The North East of England is already attracting lots of attention from property investors as of late, with Durham buy-to-let investment especially catching the eye – and it’s easy to see why!
With the mortgage and housing market in something of an uncertain situation thanks to the recent political problems with the UK government, many UK investors are taking the opportunity to snap up high-yielding, income-providing assets and especially buy-to-let properties in the north of England.
Here at yieldit, we have experienced an increase in the number of clients looking for both Durham buy-to-let properties and the wider North East, so we’ve decided to take a look at the area and market overall.
Durham buy-to-let
According to market data, the average rent in Durham is £1,434 per month, with a median rent of £1,100 per month, which is a rise of roughly 15% year on year – music to the ears of Durham buy-to-let investors.
There is a significant shortage of rental properties in the Durham area too, with just 70 properties listed across the area for rent at the moment, but with a large rental demand from young professionals, students and families.
According to the Northern Echo, ‘The latest data from the government department reveals that in July 2022 average house prices in County Durham reached £127,782. This was up from £123,749 in June, representing a 3.3 per cent increase. In the last 12 months, it has risen by 7.3 per cent’.
The Durham buy-to-let market may be cooling somewhat post-pandemic, however, the rise of nearly 7.5% represents a huge jump in value for an asset in a wider investment market that’s seen crypto, savings and stocks all fall significantly.
Further, average yields around Durham, according to Liveyield, yields across Durham postcode areas range from around 4.2% to 6.7%.
Thanks mainly to the student population, there is high demand for shared houses and HMO accommodation in Durham, whilst families and young professionals are mainly responsible for the demand for larger residential properties.
Durham in numbers
Based in the North East of England, next to the River Wear, it is home to one of the most prestigious universities in the world, Durham University. The university itself means that, as a student town, Durham is often bustling and has a huge rental market just for students and professionals.
The university hosts over 20,000 students just by itself, and the city has a population of just under 50,000 people.
Durham cathedral, Raby castle and the Durham dales are just some of the attractions that bring thousands of visitors to the area every year, as well as hosting a number of cultural events, festivals and other tourist attractions.
It has a quickly growing local economy and many are moving to live and work in the city to enjoy the more rural surroundings and lower cost of living compared to other areas of the country.
If you’re interested in investing in Durham buy-to-let, why not contact us for more information?
