Newcastle 'a good option for landlords'

News Category: Industry News

While house prices in Newcastle and Sunderland have increased rapidly in recent years, landlords looking for new property can still find good value developments in the cities, an industry expert has said.

A spokesperson for property consultants King Sturge, Matt Collis, explained that good transport links with London and the proliferation of broadband internet connections meant that more people were thinking about renting in somewhere like Newcastle rather than the capital.

"Up until recently you could still buy houses for literally, £30,000," Mr Collis added. "The market is such now that it has all moved on and people have seen that the tidal move will sweep those up as well and that's what's happened and I think they contribute to some quite awkward increased figures."

He also said that landlords could consider opting for serviced apartments to cater for the growing professional markets in the cities.

"Your professional people…instead ofusing a hotel for a hundred quid a night or whatever, they can have a serviced apartment for three or four hundred quid a week," Mr Collis explained.

"The guy with the flat letting it out is getting a higher yield, although not always the same occupancy, and the occupant at the time, instead of being in a hotel, has got his own flat for a while. So we've seen that take off."