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Invest in Newcastle

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Why Invest in Newcastle

Newcastle at Night

Over the last ten years Newcastle’s property investment has increased rapidly, increasing the demand for Newcastle Buy to let through continuous regeneration projects. Potential investors have recognised the city as a UK hot spot, highlighting the success, affluence and achievement on a city-wide scale, stressing the reason to invest in Newcastle.

Newcastle - Property Investment

  • £25 million future homes fund. Plans to build 15,000 homes by 2030.

 

  • Newcastle University has been ranked in the top 1% of universities worldwide according to QS World 2016 World Rankings.

 

  • Newcastle International Airport connects to 85 destinations worldwide.

 

  • The cities tech sector is worth over £1 billion and is overtaking the rest of the economy.

 

  • A proud home to over 7,000 registered businesses.

 

Newcastle is one of the liveliest cities within the North East England, presenting itself as a location of culture, thriving businesses and visionary regeneration projects. These aspects are constantly working in accord to build an unrivalled community, pushing Newcastle against other UK cities as a must visit hotspot and leading contender for prosperous investment.

The Rough Guide 2018 crowned Newcastle as the number one must visit destination. Well known for its industrial heritage and brown ale, Newcastle has undergone rapid transformations since the days as a Roman Fort on Hadrian’s Wall 122AD. Providing a major influence on the productivity and competitiveness of the UK economy, Newcastle is a significant driver of the economic growth. Despite the unknown brought with the recession and Brexit, there is strong evidence of market confidence and investment, especially through Newcastle property.

Flagship Program

“It is reassuring to see that the regeneration continues across the whole city and not just in isolated pockets.

Newcastle is an ambitious city with a bright future, and it is hugely encouraging in the post-Brexit world in which we live, to see the city continuing to attract investment and developments which will create jobs across the city in a wide range of sectors.”

Stephen Patterson, director of communications at NE1 Ltd, an international award-winning Business Improvement District.

Newcastle Helix

Newcastle Helix is the cities £350 million flagship project aiming to join academic, the public sector, business  and industry in the heart of the city. Formerly known  as Science Central, it has become a landmark location for science, technology, and business, not forgetting an outstanding area for Newcastle property investment.

The main goal of Newcastle is to provide a global centre for urban innovation through the development of the Newcastle Helix, meaning twenty-four acres will be redeveloped to improve the existing area.

Over twenty distinct building and six residential schemes are set to be restored providing an estimated 4000 jobs. This is allowing the industry to be united through industry leaders using their first-class research and education facilities across significant residential and commercial space.

The creation of five avenues, three cross streets and three state of the art public realms to be explored within walking distance whilst the intertwining streets celebrate the contrast between the past and future.

Public squares alone will not complete the shaping of this innovative development. Residential housing will provide opportunity to capitalise on Newcastle buy to let property investment. An urban quarter located in the beating heart of Newcastle will be an example of a sustainable development aiming to attract cutting-edge organisations to build a new rejuvenated community.

Newcastle Helix is an investment opportunity that offers one of the largest city centre developments of its kind  in the UK. The development is primed for investment  and growth. Thirty-seven bespoke commercial, retail, leisure and residential plots are available to ensure the best possible return on investments, ensuring it’s an ideal opportunity for investors to build their portfolio in Newcastle property investment.

Newcastle Helix is established as part of a strategic accelerate development zone, with a strong vision for the future in terms of developments. It’s been recognised a key economic asset of North East England which has been boosted by the Governments investments within the city.

Unparalleled Business Destination & Ground Breaking Sectors

Newcastle is the home to over 7000 unregistered business, making it a hotbed for knowledge intensive sectors and tech, opening the doors for securing unique opportunities to invest in Newcastle. Through a large sum of industries, from 3d solutions, digital gaming and pioneering technology in science and healthcare.

Newcastle Is now a wider business scene that remains prospective in every venture. Whilst securing over £600 million to the local economy, Newcastle also contributes to £13 billion towards the UK’s GVA each year, reinforcing its thriving entrepreneurial spirit and exceptional credentials.

Tech & Digital

Newcastle is one of most illustrious digital clusters outside of London, with the highest growth in England with the software and technology market predicted to rise to 2.5 billion by 2020. This sector alone accounts for over 2800 businesses, employed over 27000 people in Newcastle and its surrounding commuter belt.

Additionally, Newcastle is the only location with a company featured in the Financial Times Stock Exchange 100. Sage Group PLC are a leading global software company that liaise with rapidly expanding local start ups through collaborating and innovating schemes in the pipeline.

Digital and tech companies who are setting up within Newcastle are set to profit from the high calibre talent pool within the North East due to the two world renowned universities. In addition to teaming with strong social networks and faultless support systems, the cities infinite links with external organisations provide the opportunity to locate in high spec creative hubs.

On a whole, Newcastle’s tech sector is estimated at almost £1 billion and is overtaking the rest of the economy with the industry growing 2.6 times faster and jobs increasing five times as quickly. This has triggered young professionals and millennials to reside, therefore leaving Newcastle property an attractive asset for investors looking to benefit on the digital tech boom. Newcastle’s tech sector is thriving currently and is expected to continue this trend with a predicted growth of 28% to the middle of 2019.

Medical Science

The UK has designated only six regions as Science Cities, therefore due to Newcastle’s internationally renowned reputation for medical sciences and sustainability, this is a well-deserved title. Located in the City’s core, Newcastle Helix presents itself as a 24-acre mixed use site and a monumental location for exploring science, business, leisure and living. If you’re considering investing in Newcastle, considering a location next to several landmarks could increase the lucrativeness of your property creating maximum gains in the property’s sale in Newcastle.

Setting the benchmark for front line facilities across the UK is the International Centre for life, an award wining visitor attraction and education facility belonging to Newcastle University specialising in research, biotechnology, fertility and regenerative medicine therapies, also being a great day out for the whole family to enjoy.

Furthermore, Newcastle University Institute for ageing is the largest facility of its kind in Europe with a clear goal to bring together, public, research and business insights to help product strategic solutions for the emerging market created by demographic changes. The Government has awarded Newcastle University £20 million to establish the National Centre for Ageing Innovation.

Pharmaceutically, the North East is the front runner in leading this industry with an established pharmaceutical cluster. They account for £632 million of the regions GVA, Newcastle Upon Tyne Hospital NHS sits at the top of numerous tables for the fourth consecutive year, undertaking several clinical trials, recruiting just under 12,500 patients.

Sustainability

Newcastle’s investment in infrastructure is excelling, with a thriving deep-sea port operating daily securing  its internationally known reputations as a major centre for offshore industries as one of six centres for Offshore Renewable Engineering in England. Working together with enhanced support for inward investment through the UK trade and investment the centre for Offshore Renewable Engineering have agreed to secure further £500 million in the private sector investment into the marine and offshore sector, strengthening Newcastle’s Investment further, potentially creating 8000 jobs across the North East.

Similar outstanding accolades are the worlds most advanced steel tube facility. Newcastle University’s £7 million engineering research facility aims to underpin Newcastle as the UK’s flagship for technology innovation and search within the offshore sector. Newcastle University has the 3rd largest Maritime Technology course in the UK and stands as only one of two universities in the whole of the UK to offer an Offshore Engineering degree.

Offshore & Marine

Newcastle’s investment in infrastructure is excelling, with a thriving deep-sea port operating daily securing  its internationally known reputations as a major centre for offshore industries as one of six centres for Offshore Renewable Engineering in England. Working together with enhanced support for inward investment through the UK trade and investment the centre for Offshore Renewable Engineering have agreed to secure further £500 million in the private sector investment into the marine and offshore sector, strengthening Newcastle’s Investment further, potentially creating 8000 jobs across the North East.

Similar outstanding accolades are the worlds most advanced steel tube facility. Newcastle University’s £7 million engineering research facility aims to underpin Newcastle as the UK’s flagship for technology innovation and search within the offshore sector. Newcastle University has the 3rd largest Maritime Technology course in the UK and stands as only one of two universities in the whole of the UK to offer an Offshore Engineering degree.

Business & Propfessional Services

Growing a strong reputation in business, Newcastle is hot spot for some of the largest names in the industry. Professional services including banking, finance and insurance dominate Newcastle with all the big four professional service companies operating in Newcastle, employing around 1300 staff.

The big four refers to be the four largest accounting firms in the world.

1. Deloitte
2. PricewaterhouseCoopers (PwC)
3. Ernts & Young
4. Klynyeld Peat Marwick Goerdeler (KPMG)

With all providing unbeatable employee opportunities, diverse job prospects and high calibre career developments. A perfect starting place for numerous graduates from both Newcastle and Northumbria University.

Business is thriving, drawing in a multitude of Newcastle Investments to cater for the increase in demands. Employing over 130,000 people in over 17,500 companies, the professional service companies around Newcastle are thought to generate around 25% of the region’s total wealth. Over 30,000 students across Newcastle study in correlated fields, accumulating a high calibre of talent with skills that can be applied to meeting the expanding sectors needs.

The UK economy is fundamentally strong, unquestionably competitive and has been the fastest growing economy in the G7 in recent years, a prime time for major international investments and many reasons to bring your business to Newcastle.

Universities

Newcastle University has a student population of around 17,000 undergraduates and 6000 postgraduates, also being ranked one of the best in the world according to QS World 2016 world rankings which saw it in the top 1% of universities worldwide. Therefore, it’s not a surprise that it has one of the highest graduate retention rates in the UK at around 30%, in comparison to its northern counterparts sitting fewer than 16% strengthening the potential for Newcastle’s buy to let investments.

Both Newcastle and Northumbria Universities attract over 9000 international students each year adding to the continued demand for Newcastle property investment as students are seeking high quality housing with lavish furnishings, creating a student hot spot with opportunities to invest in Newcastle.

Global real estate company Savills performed research highlighting the movement in the country’s property market. They rank Newcastle as one of the leadings regions for student property investment as a return on investment figures with predictions to remain consistent in the forthcoming years.

Infrastructure

Historically, during the Industrial Revolution of1750-1850, the heavy industry thrived across Newcastle serving as a suitable base for building ships and steam trains that powered the era. The momentous industrial expansion lead to a significant boost in population as it rose from 87,784 in 1851 to 266,671 in 1911. As a result, affluent suburbs began to appear on the outskirts of the city centre, due to advancements in railways and tramways and the population has experienced a major spike ever since, strengthening the opportunity for Newcastle property investment. It is no surprise that Newcastle has ranked 5th amongst the top cities in the UK for infrastructure performance.

Air

Newcastle International Airport connects to over 85 worldwide destinations, dealing with just under five million passengers per years and being the 10th largest fastest growing regional airport in the UK. Located just six miles northwest of Newcastle City Centre, this is under half the distance from both Heathrow and Gatwick airport from London.

Re-Newcastle Programme

Re-Newcastle is the council’s industrious programme delivering the biggest transformation to the infrastructure in over generation by advancing national and international transport links. The last big investment on the roads was 30 plus years ago, therefore the issues in the network are desperate to be corrected as it struggles to cope with the volume of the traffic.

Newcastle City Council have secured around £60 million to invest in the highways infrastructure helping to enhance the current transport system to meet the high standard set by the vibrant 21st century.

Newcastle City Council are dedicated to providing better and safer facilities to serve the movement both in the city centre and across the city with progressing investment. Initially, the focus will be on to remove traffic in the city centre to make it a safer place for residents, as pedestrians access takes priority. By improving central junctions, the traffic flow is expected to reduce, and the congestion will rapidly decrease as Newcastle strives to become the world’s first carbon neutral city.

Creating a safer place to live could have a direct impact on young families choosing to reside in the area and the number of business people commuting from further afield. As a result, this drives the investment opportunities for investors looking to invest in Newcastle.

History

Newcastle Upon Tyne history dates back almost 2000 years having experienced control by the Romans and the Angles amongst others. Newcastle’s name has been used since Norman conquest of England as it was originally referred to as Pons Aelius. Referring to its Roman settlement, the name ‘Aelius’ was the family name of Roman Emperor Hadrian who was held responsible for the Roman wall that still stands today in present Newcastle as turrets and walls protrude along the  West Road.

The Castle in Newcastle is a medieval fortification built on the fortress and gave the city of Newcastle its name. The sole purpose of the castle dates to the Roman era when it was used for defence to guard the bridge of the River Tyne of Hadrian’s Wall. Nowadays, the most prominent remaining buildings on the site are the Castle Keep which stands today as a Grade I listed building, the castle’s main stone tower and its fortified gatehouse.

The iconic Angel of the North sculpture was completed in 1998, designed by Anthony Gormley to create a sense of embrace, the steel angel reaches 20 metres tall and spans 54 metres across. Gormley stated that the significance of the angel was to highlight that beneath the site of construction coal miners worked for over 200 years and secondly as a symbolic emblem to mark the transition from an industrial age to an information age. In 2016 the Government announced the imposing figure as an official ‘English Icon’.

Furthermore, Newcastle Central Station was the first covered train station in the world. Queen Victoria opened the station in 1850 as it stands today as one of only six Grade 1 listed railway stations in the UK.

Residential Property in the Private Secotor of Newcastle Property Investment

To grow and deliver a joint Investment Plan in partnership with the Homes and Communities Agency (HCA), using HCA resources and Newcastle’s £25 million Future homes fund, the plan to build 15,000 homes within Newcastle’s urban area will improve the function of the housing market and provide a hotbed for Newcastle Buy to Let.

With the population increasing by 12% the number of households in Newcastle is projected to increase from 122,424 in 2015 to 137,471 by 2030. Figures from Gateshead & Newcastle Upon Tyne House Market Assessment 2017 suggested that more than 1000 new homes per year are essential for Newcastle over the next 15 years. Originally this seemed a challenge, but one Newcastle must face head on if its to meet its growing population by 2030.

With the increasing demands, the prices for property in Newcastle have sored massively. Over the past 20 years there has been a price growth of 224.6% and in the last five years by 20.49%. This increase has led to notable surge in demand over the past five years, teamed with the projections of future needs. The relatively low entry points present prosperous opportunities for investors looking to secure residential developments through Newcastle buy to let schemes between now and 2030.

Across the North East, home ownership levels are declining in recent times with household income being concluded as one of the fundamental determinants in the ability of households to access home ownership or private rented sector. Resolution Foundation figures highlight that 54.9% of people in the North East owned their own in Q4 of 2005. In 2017, this figure plunged to 48.3%. Over the same period private renting nearly double, experiencing a rise from 5.9% to a staggering 11%. Ultimately, this has produced a non-stop demand for the types of housing needed within Newcastle property, strengthening the opportunities and prospects for investors to capitalise on the flourishing Newcastle buy to let scene.

Rental Yields & House Prices

The North East asserts a multitude of hidden gems within the property market, especially within Newcastle buy to let. Fuelled by affordable housing and a heavy demand for rental properties, prospective landlords are now strongly considering Newcastle property investment when looking to embark on a new property project.

Although capital appreciation across Newcastle buy to let has started to slow, this has kept housing affordable following steady increases through the previous five years. This has created unmissable opportunity to build up their portfolio and expand rental income from Newcastle property investment.

Property price act as a catalyst for Newcastle investment that is tempting people away from the capital to seek lower prices. Within Newcastle the property prices are around 70% below the national average with a 9% increase over the last five years due to ongoing regeneration. House building and the expansion of university facilities. This proving an exciting time for property investors to consider Newcastle buy to let.

Newcastle offers 68 postcodes with a variety range of different investment opportunities. This highlights the importance to perform due diligence before committing to any Newcastle property investment. Considering what type of investment you expect, researching the market and understanding the area is important, whilst considering the maximum returns and growth the investment aims to generate.

Totally Money search highlight that university cities have some of  the highest rental yields on offer, with Newcastle property taking the position as one of the top performers. Due to a high demand of students arriving on a yearly basis, landlords have plethora of students to choose from which reduces the likelihood of void periods. NE6 ranked sixth for Newcastle buy to let with an average of 9.48%. Situated within a couple of miles from Newcastle University it secured itself as a viable buy to let hotspot to invest in Newcastle for student accommodation.

With student numbers being continuous each year, investors are attracted to capitalising on properties for sale in Newcastle for assured rental yields and the potential for full occupancy. Students are keen to seek higher quality living meaning that rent figures can be significantly more during term time.

According to the Royal Institute of Chartered Surveyors, rents will rise by more than 25% over the next couple of years, highlighting the appeal for rental properties in terms of the potential returns one can gain.

Newcastle is a city with an iconic history and bright future for both it’s resident and those looking to benefit by investing in it’s future. The industrial city has witnessed its ambition and inventions influence multiple buyers of the globe. Newcastle is no longer dependant on the industrial past. The traditional history has transformed it into a top-class digital future, ensuring the city stands proudly at the forefront of modernisation.

Download a copy of our Newcastle investment guide.