A buy-to-let boom is expected in the North East, as it overtakes the North West as the best UK buy-to-let hotspot.
The latest Property Market Forecast from Property Forecaster has found that properties in Washington in Tyne and Wear are most likely to increase in value. Hartlepool, Sunderland and Newcastle also feature in the top ten.
The forecast ranks the top buy-to-let locations using a unique algorithm. Investment properties across England and Wales are given a score from one to ten, with properties rated ‘ten’ being the most likely to increase in value and dubbed ‘Diamonds’. Those locations with the greatest concentration of Diamond properties make up the top ten in the monthly forecast.
Akhtar Hussain from Property Forecaster comments: “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.”