The North East has overtaken the North West as the best UK location for buy-to-let investment, a property index has revealed.
Property Forecaster uses an algorithm to rank investment properties in England and Wales with a score from one to 10, with 10 being ‘diamond’ properties that are the most likely to rise in value.
The locations with the greatest concentration of ‘diamond’ properties make up the top 10 in the monthly forecast with Washington in Tyne and Wear coming first in this list.
Hartlepool, Sunderland and Newcastle also feature in the top 10, ranked fourth, fifth and 10th respectively.
Last year’s leader Bootle dropped to second place on the list while locations from the Midlands and East of England climbed into the top 10.
Newcastle-under-Lyme in Staffordshire reached seventh place and Grimsby in Lincolnshire was ranked ninth.
Property Forecaster also ranks locations by potential yield and Washington maintains its top spot here too with an average 7.9 per cent yield and a maximum of 23.3 per cent.
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“The North East has seen rental demand go from strength to strength,” said Akhtar Hussain from Property Forecaster.
“Our data now clearly shows a number of locations in the North East are demonstrating strong promise, both in terms of future gains and the highest yields.
“With average ‘diamond’ property prices in Washington, Hartlepool and Sunderland of between £48,000 and £53,000, the North East can’t be beaten for value and offers a very accessible investment opportunity with great future potential.
“Property prices in the North East can only go one way from here – they have already started to rise over the last year and recent inward investment in the area will also support future growth. There has never been a better time for investors to look at what the North East has to offer.
“In terms of the UK wide picture there is still underlying strength in the market despite the reinstatement of stamp duty and the pending closure of the furlough scheme.
“Although there may be a slowdown in the next couple of months due to seasonality, the next 12 months will remain strong overall. The government has done a fantastic job of preventing a possible housing crash with assistance from the Bank of England reducing interest rates to a record low.
“As the economy recovers over the coming months 2022 continues to look positive for investors.”