Property investment stats for Newcastle upon Tyne, North East

• Investors can benefit from strong rental yields of 7.6%, with even higher returns in the top-performing postcode district (9.4%).
• The city’s large student and young adult populations (in the 98th and 94th percentiles, respectively) underpin resilient rental demand year-round.
• Entry prices remain accessible, with the current median asking sale price for a 3-bedroom house at £230,000 and a 2-bedroom flat at £150,000.

• The unemployment rate sits in the 95th percentile, which could dampen long-term capital growth prospects or impact tenant reliability.
• A high proportion of social rented housing (in the 88th percentile) may limit the scale of the private rental sector in some neighbourhoods.
• Owner-occupation is relatively low (in the 14th percentile), which could signal less stability in the local housing market.

Rental demand looks set to remain strong, given the city’s demographic profile and the high proportion of private renters. Investors are likely to continue seeing properties sell quickly, with homes spending just 28 days on the market and a median discount of -£1,000 (the typical achieved discount), suggesting ongoing competition among buyers.

Capital growth has been modest, with a 1-year increase of 0.5% and annualised growth over three years at 2.8%. However, the three-year capital growth of 8.5% indicates that steady appreciation is possible. While affordability remains a draw, the elevated unemployment rate is a concern that investors should not ignore. Overall, Newcastle upon Tyne offers a compelling mix of rental income and accessible prices, but investors should be mindful of the local economic headwinds.