North East England – what does the property market currently look like?
4 Nov 2019
If you are considering selling or letting your home, you’ll be eager to know the current state of the market, to know how much you could get for your property or how much you could be charging in rent.
With this in mind, we explore what the property landscape currently looks like in some of this region’s major towns.
Sunderland and Middlesbrough attractive to investors
They might be big rivals when it comes to football, but these two post-industrial North East towns both have plenty to cheer when it comes to high rental yields as cheap buy-in prices make them ideal investment locations.
Middlesbrough, which has an overall average price of £138,600 (Rightmove), and terraced properties on offer from as little as £77,000, offers some of the best rental yields in the country, with research earlier this year revealing that the TS1 postcode close to Middlesbrough train station and Teesside University has yields of 9.2%.
The same research found that Sunderland’s SR1 was the second-best university postcode for property investment with yields of 9.4%, only beaten by Bradford. Sunderland, which has an overall average price of approximately £142,00, has also seen sold prices rise by 3% since 2016 – good news for those landlords with one eye on capital gains.
Again, terraced properties are the most affordable homes on offer, with an average price of just over £108,000.
Locations in the North East regularly feature in lists of the top postcodes for buy-to-let yields, with high tenant demand, lower initial investment, large student populations and rising populations drawn to the areas by ongoing regeneration projects and increasing job opportunities all helping these areas to shine.
Hartlepool continues strong house price recovery
The North East, more than many other regions, saw its property market badly hit by the global financial crisis, with house prices in Hartlepool still well below (-19%) their 2007 peak.
That said, houses prices in the town are starting to recover, 3% up on the year before and 8% up on 2015 when they averaged out at just over £128,000. According to Rightmove, the current average asking price is slightly above £138,000, with sellers now likely to get more for their property than three or four years ago.
Demand is also likely to be high from buyers thanks to the lower asking prices on offer. Terraced properties, for example, can go for as little as £80,000 – making them popular among first-time buyers on a budget and buy-to-let investors searching for a bargain. Semi-detached homes, with an average price of just over £130,000, are also likely to appeal to family buyers who may work in nearby Middlesbrough and Sunderland, or Hartlepool itself, while sellers of detached properties can expect to fetch more than £220,000 for their home.
The County Durham town, with a population of around 92,000, is best known for its industrial past (in particular its shipbuilding heritage), but suffered considerably as a decline in heavy industry and shipbuilding following the Second World War caused periods of high unemployment.
The 1990s, however, saw a reversal of the town’s fortunes when a number of major investment projects and the redevelopment of the docks area into a marina gave Hartlepool new purpose. This has continued in recent years, with the Hartlepool Regeneration Masterplan aiming to rejuvenate and revive the town centre and unlock further regeneration opportunities around the waterfront.
The strategic aims of the masterplan include plans to increase Hartlepool’s profile as a major leisure and visitor destination, as well as redefining and opening up the potential of the town through the delivery of bold solutions for leisure, tourism, retail and recreation uses, and kick-starting the wider regeneration of the town as a whole.
The ambitious regeneration plans are expected to cost between £50 million-£60 million over the next few years.
Darlington – a town with high hopes
Similarly sized to Hartlepool, the large market town was heavily influenced by local Quaker families in the Georgian and Victorian era, which defined much of the area’s architecture and was largely responsible for the funding and vision of the Stockton and Darlington Railway, the world's first steam locomotive powered, permanent passenger railway.
Nowadays it’s best known as a key transport hub and commuter suburb, and has seen its house price recover in a similar vein to its coastal neighbour. Sold prices in the last year in the town were 5% up on the year before and 7% up on 2015.
It’s one of the region’s more expensive regions, with an overall average price of just over £152,000, but buyers prizing affordability can bag a terraced home for a shade above £100,000.
Sellers of detached properties, meanwhile, will be delighted with an average price of £269,000 – which is especially strong for this part of the world.
Like Hartlepool, Darlington is currently undergoing significant regeneration to make it a nicer place to live, work and commute from.
The biggest investment surrounds the town’s transport links, with The Tees Valley Combined Authority and Darlington Council launching a transformational vision for Darlington station in 2017. Darlington 2025 aims to turn the town into a modern rail hub for a modern economy, coinciding with the 200th anniversary of the first passenger journey between Stockton and Darlington.
The plans would lead to a £130 million boost to the economy annually, amounting to up to £1 billion overall, with more than 3,000 direct and indirect jobs created, as well 98,500 square metres of commercial space and 1,500 new homes.
There has been little concrete information about its progress in recent times, but these ambitious plans are just one of many regeneration projects planned for ‘Darlo’ – as its affectionately known by locals – in the coming years to improve the town.
Here at Online Estate Agents, we have the tools and knowledge to help you to sell or let your home efficiently and effectively all across the UK. For expert advice on selling or letting your home, please contact us on 0330 1244 786 or email@example.com.
Additionally, you can request a valuation on our website to see how much your home could be worth on the current market.
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