A nationwide buy to let consultancy says it believes one specific area of the country is on the verge of a rental market boom.
Sequre Property Investment has singled out the North East in general and the Tees Valley in particular for special treatment.
Whilst returns from the North East currently lag behind the North West, Sequre insists it’s about to change.
House prices in the North East have climbed considerably in the last year, up 11.8 per cent annually, while other factors have come out in favour of economic growth.
Nissan recently revealed that its Sunderland car factory would create 400 jobs in the area, while the redevelopment of Teesside’s Redcar Steelworks is expected to bring a a further 18,000 jobs, creating the UK’s largest Freeport in the process.
This incoming investment is already showing signs of stimulating the local property market according to figures released by Sequre, which show rental demand in the North East is currently higher than both the North West and England as a whole.
Within the Tees Valley area, in particular, Darlington is home to the highest level of rental demand with Redcar and Cleveland also seeing tenant demand for rental homes sit well above the regional average. Hartlepool and Stockton on Tees are also home to a good level of tenant demand.
Sequre sales director Daniel Jackson says: “We’ve seen more and more investors within the buy to let space opt to invest outside London due to the more favourable yields on offer and, as a result, the North West has been performing very well in recent years.
“However, the focus certainly seems to be shifting to the North East as the next area of substantial growth and investors are eying the potential returns that may come due to substantial projects like the redevelopment of the Redcar Steelworks.
“The firm foundations of a strong rental market are already in place across the Tees Valley area, but when you also factor in the potential shortage of existing stock in some areas, it presents a great opportunity for those considering an investment into the buy to let sector.”
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