Newcastle upon Tyne might be an interesting area to invest in when looking for a house for sale in the UK as it is a unique area in the county of Tyne and Wear.
Before looking for a house for sale in the city of Newcastle upon Tyne we strongly suggest landlords and real estate investors to research in detail and consider all involved factors. Indeed, house prices can change quite a bit depending on the square foot of the property, the number of rooms, the economic climate, the location of the house and more.
In this data heavy article the reader will be able to find out more on the topic and see the specific data to consider when evaluating different houses for sale in Newcastle upon Tyne.
What’s the rental yield in general for the city of Newcastle upon Tyne?
The figure of rental yield is commonly looked at by investors who wish to increase their income by investing in areas where rental yields of the houses for sale are higher. Usually, the higher the rental yield, the more attractive a house for sale is for an investor.
Nonetheless, there are also instances where an investor will go with a house with lower yields in order to benefit from the appreciation of a house too which is why it’s vital to look in to all the details of Newcastle upon Tyne.
The data below shows the rental yield, rent turnover and the percentage of the money made on the sale of a house. The data is broken down into the county city is in (Tyne and Wear) as well as the broader region; North East.
|Average Yield||Average Asking rent||Turnover (rental)||Turnover (sale)|
|Newcastle upon Tyne||5.8%||£701||140%||20.7%|
|Tyne and Wear||5.54%||£749||138.20%||21.54%|
Also, you can compare other data to the table above such as the number of houses sold per month in Newcastle upon Tyne which is 170 and get a better understanding of the housing market.
This is great if you want to gauge if investors are actively looking for houses for sale in the area over other areas in the UK which may be an induction of how profitable Newcastle upon Tyne is to invest in. Both in terms of rental yield and capital appreciation.
What is the growth in the housing market of Newcastle upon Tyne?
Before committing to Newcastle upon Tyne to make a housing investment, an investor should always ask the question, what is the growth like in the area?
So take a look below at the growth patterns of the previous years displaying the percentage of new houses being built. This will help you understand how the number of houses for sale will evolve in the future.
|1 year||3 years||5 years|
|Newcastle upon Tyne growth rate||-5%||1%||10%|
Whether housing growth actually changes the price of a house depends on if the city in question is outstripping demand with the supply of new housing. You’d have to do some more research on what rate Newcastle upon Tyne is building housing to find your answer.
Asking price in Newcastle upon Tyne for a house for sale
Average asking prices for houses for sale in Newcastle upon Tyne
|Average asking price (1 bed)||£112,941|
|Average asking price (2 bed)||£123,501|
|Average asking price (3 bed)||£182,014|
|Average asking price (4 bed)||£338,842|
|Average asking price (5 bed)||no relevant data for this city|
After looking at this table about prices of houses for sale in Newcastle upon Tyne, someone who is buying a home would be able to know in great detail what kind of house for sale available on the market best suits the amount of money they are looking to invest. Also, using a more general figure like the average asking price per square foot of a property which is £0 will help them to have a more wholistic understanding.
Before a house gets sold, the figure it sells for always starts off as an asking price. This average asking price for the houses for sale in Newcastle upon Tyne determines the eventual sale price of the house so it isn’t the most important figure but is still important to take note of. This figure is currently £167,012.
Below, there is a table showing the asking price of the different sizes of houses based on the number of bedrooms of the houses in Newcastle upon Tyne.
In general, for the city of Newcastle upon Tyne, what are the final purchase prices for the houses for sale?
There are a lot of factors that impact the final sale price a house for sale sells for in the UK and in Newcastle upon Tyne. In Newcastle upon Tyne, this sale price works out to be £142,336. As an example, a factor like population growth over the last 10 years which works out to be 3% in Newcastle upon Tyne and impacts house prices of the houses for sale.
|Housing category||Total final sale price|
|Average sold price (detached)||£251,586|
|Average sold price (semi-detached)||£147,852|
|Average sold price (terraced)||£123,207|
|Average sold price (flat)||£89,936|
Above, the exact type of house is also shown to vary in price in a table in Newcastle upon Tyne. You may think that the bigger the house is the more expensive, but actually, this table is more based on the demand for the properties in each category.
|Housing category||Sale price per square foot|
|Average sold price/sqft||£1,690|
|Average sold price/sqft (new build)||£1,853|
|Average sold price/sqft (old stock)||£1,602|
In addition, here is the price per square foot. By taking this data and doing an average, it is also possible to work out the average square foot of houses in Newcastle upon Tyne which is £1,690. From here you can get a sense of the price of the overall housing market and therefore, also find out the prices of the houses for sale.
What kind of demographics does the city of Newcastle upon Tyne have?
How much do people in Newcastle upon Tyne earn?
By and large, a higher household income in a population can have positive effects on the crime rate and the quality of space. This is due to the fact that higher earners tend to buy houses where there are better schools and more desirable amenities that impact the quality of life someone has.
In Newcastle upon Tyne, the average income is £34,145. Measuring this figure against the average household income for the UK of price34,000 should tell you if the city is higher or lower earning.
When buying a house, use this statistic with other factors when making a decision too like the crime rate or the social grade score of 17% to decide on what the demographics are like in the area.
What is the social grade score of Newcastle upon Tyne?
Most of the time, the social grade score of a city is what it takes to determine what the economic levels are like as this score refers to what type of jobs the people of the area generally work as. So, from highly skilled, managerial roles, to the manual labour workers of the UK, how does Newcastle upon Tyne compare?
At the highest end of the scale (A) jobs that are managerial administrative or professional are all lumped into this category. On the other hand, there is the lowest grade (E) where workers who are on benefits, state pensions or work casual jobs fall into.
In Newcastle upon Tyne, the percentage of people who work in the two highest skilled categories of this scale (A and B) is 17%.
So you can compare this data, here is the estimated grouping of the social grades of the UK for the general population. Adding the two highest categories of A and B and comparing this percentage to the high social grade score which combines A and B should give you a good comparison.
|Social Score||Category||The proportion of the UK population (%)|
|A||Professional, managerial or administrative||4|
|B||Intermediate managerial or professional jobs||23|
|C1||Supervisory, junior managerial or professional jobs||29|
|C2||Skilled manual workers||21|
|D||Semi and unskilled manual workers||15|
|E||State pensioners, casual & lowest grade workers||8|
Is the city of Newcastle upon Tyne deprived?
Deprivation of a city is defined as the number of people who are considered to not be earning enough to sustain their lifestyle. The UK average of deprivation nationwide is 33% so comparing the figure of 29% for Newcastle upon Tyne should give you a nice idea of the deprivation in the area.
For the city of Newcastle upon Tyne, what is the education level?
Interestingly, the percentage of people who have a degree in the city of Newcastle upon Tyne is 22%. Most of the time, the more people that have a degree, the higher the average household income and the more likely someone is to be able to afford to purchase a house. For example, the average income of the citizens in the area of Newcastle upon Tyne is £34,145.
Generally, areas with high numbers of people with a degree are also areas with more people likely to be home owners and therefore the value of houses and relative prices of the houses for sale are more likely to go up too.
Nonetheless, making predictions about the appreciation of a house also has to be considered alongside other factors like population growth and the rental yields of the area.
However, most of the time, being educated is a good indication of affluence with 82% of people graded a first in tertiary education going on to eventually own a house.
Is there sufficient green space in Newcastle upon Tyne?
Providing the right amount of green space for people in the UK is a difficult subject because there are clear benefits for human health but at the same time, it is hard to make sure all areas of the UK can get enough greenery. This is a result of land being already in use in cities where most people live.
In Newcastle upon Tyne, 20.2 is the amount of acres of outdoor space there is for every 1000 people. Charities such as ‘Fields in Trust’ recommend there to be at least 6 acres. This should allow you to conclude whether this green space is sufficient for you if you are interested in buying in Newcastle upon Tyne.
In the city of Newcastle upon Tyne, has the population grown or shrunk?
Whenever there is a population change this can impact the demand for housing and hence the appreciation of properties too. The total population of Newcastle upon Tyne if 235,640 and in the below heading how this population has changed will be broken down.
Like most data to do with houses, all data has to be considered holistically with multiple variables to determine if the population growth actually impacts the statistics that matter to you as a landlord in Newcastle upon Tyne such as rental yield or house appreciation.
How has the population size of Newcastle upon Tyne adjusted in the last 5 years?
In the previous five years there has been a change in the number of people of Newcastle upon Tyne by 1%. Analysing this figure is a great way to tell if there is new demand for housing or not as a decreasing figure reduces the number of people who want to buy houses. Read more here
To compare this figure over a greater period of time, you could look at the figure for the 1 year population too and compare them. This way you can see if the population has changed recently or if this 1% change has historically occurred before. Click here to know more on the UK population trends.
Over the last 10 years, how has the population size adjusted in Newcastle upon Tyne?
In the last decade, the population of Newcastle upon Tyne has been adjusted by 3%. This growth may be as a result of factors like new industries employing people or emigration and immigration balancing out to create this population change.
A precedent that shows population change in this way over decades is the region of Greater London. The capital city has grown by 27% in the past 20 years. Population growth has caused house prices to go up to price523,666 on average.
Is the crime rate bad in the city of Newcastle upon Tyne?
In Newcastle upon Tyne, for every 1000 people, there is currently a crime rate of 223. This can be compared to the national average of 79.52 for every 1000 people.
Low crime rates are desirable for your safety as a homeowner. Even if you don’t tend to leave the house too often and tend to not mind living in a slightly more dangerous area. Things like burglaries are always a possibility which could harm your ability to pay for home insurance and also may force you to install additional security in your home that can cost you further.
Having said this, you can look at the crime rate on a deeper level to find out what the threats are exactly. It could be the case that a proportion of these crimes (223 for every 1000 people) come from things like anti-social behaviour rather than more serious crimes like violence and sexual offences.
If this is the case you may be more willing to look over a high crime rate within the areas you’re looking to buy a home.
Newcastle upon Tyne in the county of Tyne and Wear is notable for its specific demographics and has individual characteristics.
For localised cities and the bigger areas of the UK there are wide variations in the demographics that shape an area so the same is also true for the wider region Newcastle upon Tyne is located in; North East.
Below, these demographics are talked about in headings that explain how the city has grown, what the education levels are like in Newcastle upon Tyne, what the social grade score of the city is like and if the green space matches the recommended levels people living in the UK should have.