North East becomes UK’s Buy to Let Property Hotspot

The North West of England has held the title for buy to let property hotspot for some time now. However, property experts are predicting that the North East will overtake the North West.

Property Forecaster is an investment property platform that analyses properties with the biggest future gains and highest yields. Using predictive algorithms they can scan, rank, and compare findings.

Investment properties in England and Wales were given a score from one to 10. The lower the score the less likely the property is to increase in value. The locations with the higher scores are labelled as ‘Diamonds’ by property experts. The top 10 in the monthly forecast is made up of locations with the highest amount of Diamond properties.

Property Forecaster, part of One and Only Pro, used their tools to predict the future best locations for UK residential property investment.

Property Forecaster’s top properties

According to the most recent property market forecast Washington in Tyne and Wear take the number one spot. Hartlepool, Sunderland, and Newcastle also made it to the top 10. 

Last year Bootle took the number one spot but this year it moves to second place.

According to the research, locations from the East of England made their way to the top 10. These locations also include Newcastle-under-Lyme in Staffordshire sits in seventh place and Grimsby in Lincolnshire places ninth.

Properties with the highest potential achievable yield

Property Forecaster also ranked properties with the highest achievable yield. This means these properties are likely to give investors a healthy return regardless of their budget.

In first place is Washington with a staggering 7.9% yield and a maximum of 23.3% and in second place is Bootle with a 7.1% average yield. Here is the full table of results.

Akhtar Hussain from Property Forcaster concludes: “The North East has seen rental demand go from strength to strength. Our data now clearly shows a number of locations in the North East are demonstrating strong promise, both in terms of future gains and the highest yields. 

“With average Diamond property prices in Washington, Hartlepool and Sunderland of between £48,000 - £53,000, the North East can’t be beaten for value and offers a very accessible investment opportunity with great future potential.

Property prices in the North East can only go one way from here – they have already started to rise over the last year and recent inward investment in the area will also support future growth. There has never been a better time for investors to look at what the North East has to offer.

In terms of the UK wide picture there is still underlying strength in the market despite the reinstatement of stamp duty and the pending closure of the furlough scheme. Although there may be a slowdown in the next couple of months due to seasonality, the next 12 months will remain strong overall. The Government has done a fantastic job of preventing a possible housing crash with assistance from the Bank of England reducing interest rates to a record low. 

Our previous predictions that prices would increase in spite of the pandemic, and that Brexit wouldn’t cause a crash in the housing market have been borne out. As the economy recovers over the coming months 2022 continues to look positive for investors.”