Investing in Newcastle, UK for Chinese National’s
Introduction to Investing in Newcastle, UK for Chinese National’s
Authored by the dedicated team at UKPDA, this piece delves into the property market of Newcastle, a city known for its iconic Tyne Bridge, the River Tyne, and its unique Geordie culture. However, what often goes unnoticed is Newcastle’s potential for property investment.
Newcastle upon Tyne, often shortened to Newcastle, is the largest city in Northeast England. As of 2023, it boasts a metro area population of approximately 823,200. The city forms part of the Tyne & Wear area, which also encompasses Gateshead and Sunderland.
Newcastle’s economy has transitioned from its historical reliance on coal mining and shipbuilding to a service-based economy. The city’s major employers span the public sector, financial and professional services, construction, transport, and automotive industries. Additionally, Newcastle is witnessing growth in its creative, digital, science, and tech sectors.
The city is home to several large business parks, including Cobalt Park, the UK’s largest business park employing over 14,000 people. These employment hubs significantly contribute to the stability of Newcastle’s property market.
Newcastle is currently undergoing extensive regeneration, which is expected to stimulate the economy and positively impact the property market. Key projects include Newcastle Helix, a hub for tech and science businesses, the Stephenson Quarter, and the redevelopment of East Pilgrim Street. Forth Yards and Quayside West are set to become a new city centre suburb, while Newcastle Gateshead Quays is being developed into a conference and exhibition centre and entertainment venue.
Newcastle is renowned for its vibrant social scene. The city’s nightlife attracts visitors from across the region, and the Quayside area by the River Tyne is a popular waterfront destination. The city also boasts a large shopping centre, Eldon Square, and the Metrocentre, one of the UK’s largest shopping malls.
Newcastle’s transport infrastructure is robust, with good road and rail links to the rest of the UK. The city is serviced by the Tyne & Wear Metro, a light rail system that connects various parts of the city. Proximity to a Metro station generally increases rental demand.
Newcastle is a significant student city, housing around 28,000 students at Newcastle University and approximately 27,000 students at Northumbria University. This student population creates a strong demand for rental properties, particularly in areas like Jesmond, Heaton, Sandyford, Shieldfield, and Spital Tongues.
According to Rightmove, the average property price in Newcastle over the past year has been around £213,827, making it about 35% cheaper than the national average. While some areas command higher prices, there are also districts where property prices start as low as £35,000.
Rental Demand
The rental market in Newcastle is diverse, catering to locals, workers, and students. Home.co.uk’s Newcastle Market Rent Summary reports that the average monthly rent across Newcastle is around £1,288, with variations depending on the type of property and location.
Landlords looking to set up a house in multiple occupation (HMO) in Newcastle will need an HMO licence, regardless of the HMO’s size. Certain areas of the city also operate under a selective licensing scheme, requiring all rented properties to have a licence.
The article further explores specific areas within Newcastle for property investment, detailing the average house prices and potential yields in each area. These areas include Newcastle City Centre, Jesmond, Gosforth, Benton and Longbenton, East Newcastle, West Newcastle, the coastal suburbs of North Shields, Tynemouth and Whitley Bay, and Gateshead, a separate town just across the River Tyne.