Newcastle Property Investment
Looking for great off-market below market value property opportunities in the North? We’ve got you covered!
Written by: Jessica Chambers, Reviewed By: Jonny Christie
First Published: Oct 20, 2020 | Last Updated: Aug, 11, 2025
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Table of Contents
- Why invest in Newcastle upon Tyne?
- Where are the best places to invest in Newcastle upon Tyne?
- Newcastle property investment deals
- Check out our previous Newcastle upon Tyne property deals
- Does Newcastle upon Tyne offer high property yields?
- What types of Newcastle investment properties can we offer?
- FAQs
Did you know? ONS data shows the average house price in Newcastle upon Tyne was £209,000 in May 2025, which is a considerable 13.4% increase from May 2024. This rise is 6.3% higher than the rise in the North East during the same period.
Property prices in Newcastle upon Tyne are currently booming and average monthly rents have also seen an increase of 9.7% since 2024. As such, Newcastle is emerging as one of the UK’s most rewarding property investment hotspots.
From its iconic Quayside and space aged Sage Gateshead arts venue to the tranquility of Jesmond Dene park, Newcastle is a vibrant city with so much to offer. Recent generation projects mean that the city has also become a northern innovation hub with a diverse economy.
In fact, studies from Invest Newcastle show that Newcastle’s urban economy is now worth a whopping £9.9 billion. Plus, with both Newcastle and Northumbria University on the doorstep and Durham University nearby, the city boasts a thriving student population.
With property prices steadily increasing and employment opportunities on the rise, investing in Newcastle could be a wise move. Here’s a reminder of why in a nutshell:
- Property prices are seeing a healthy increase meaning you could benefit from a solid level of capital appreciation
- Rental returns and yields are lucrative in and around the city (more on that soon)
- There’s a buoyant buy-to-let market in Newcastle
- The city boasts a vibrant and captive student population
One of the best things about Newcastle upon Tyne (apart from St James’ Park, the iconic Victoria tunnel, and its thriving arts scene) is the wide range of property investment opportunities it offers.
Whether you’re on the hunt for commercial opportunities, renovation projects or buy-to-let investments, there’s no shortage of choice. If you need a little inspiration, here are some of the best areas to invest in Newcastle right now.
| Postcode area | Average property values | Average rental yields |
|---|---|---|
| NE1: City Centre, Grainger Town | £156,358 | 8.5% |
| NE8: Gateshead, Bensham | £126,864 | 7.5% |
| NE2: Jesmond | £262,513 | 7.4% |
| NE6: Walker, Byker, Heaton | £171,283 | 7.0% |
| NE4: Bishopston, Gloucester Road | £161,148 | 6.7% |
Sources: Track Capital
As you can see, property prices across these Newcastle property investment hotspots are typically affordable and offer potentially lucrative rental yields.
If you’re looking to expand your property investment portfolio, this thriving north-eastern city is (more than) worth your consideration. For added inspiration, here are some other areas to explore:
- NE37: Washington
- NE10: Heyworth, Felling
- NE33: South Shields
- NE7: Heaton, High Heaton
- NE5: Denton
As regional property sourcing specialists, we keep a keen eye out for potential investment properties in emerging areas. If you’re searching for well-priced buy-to-let investments opportunities in or around Newcastle, take a look at our most recent (and most exclusive) deals.
Newcastle, NE6
Freehold 3 bed end of terrace property – freehold close to Newcastle City Centre
28% Discount, 24.4% ROI!
Tyne & Wear, NE12
3 bed semi-detached – freehold (standard construction)
34% Discount, 36.5% ROI!
South Shields, NE33
2 bed first & second floor maisonette – Leasehold 968 years
remaining (standard construction)
28% Discount, 8.8% Yield!
Property sourcing in Newcastle: a success story
A budding buy-to-let investor approached us as they were looking to expand their portfolio and connect with opportunities in the north east.
They already had two buy-to-let properties in the north west and decided to explore the north east due to its amenable property prices and solid rental yields.
After a detailed consultation, we chose three target locations within Newcastle based on their specific budgets and needs. In this case, our client had a budget of £160,000 and wanted to attract professional long-term tenants.
We explored property deals in or close to NE1 and eventually sourced our client a two-bedroom apartment in the city centre for 10% below market value. Needless to say, they were pleased with their investment and are working with us to secure their next buy-to-let investment.
The average rental yield in Newcastle upon Tyne is 5.9%, which sits above the national average of 5.6%. What’s also interesting is that the north east as a whole boasts gross rental yields of up to 9.3%.
You’ll also be pleased to know that as Newcastle is home to the largest proportion of rented homes in the whole of the north east, buy-to-let demand across the region is incredibly strong.
When you throw our discounted (often by 15 to 20%) below market value properties into the mix, your potential rental yields could be very favourable.
Whether you’re looking for a HMO at the heart of the city or a suburban family buy-to-let property, Newcastle offers immense opportunities for savvy investors.
Contact us today to discover how we can help you thrive through Newcastle property investment. From expert guidance to exclusive off-market property deals, we’re here to support you every step of the way.
Our Newcastle ‘average monthly rent’ hotspots…
Did you know? Average private rents in Newcastle rose by a notable 11.8% between 2024 and 2025.
Earlier, we explored the best places to invest in Newcastle according to property values and rental yield (which we’re sure you’ll agree are excellent). To help you make the best decision for your needs, here are the rental returns you can expect from these high-yield hotspots:
| Postcode area | Average monthly rent |
|---|---|
| NE1: City Centre, Grainger Town | £1,112 |
| NE8: Gateshead, Bensham | £789 |
| NE2: Jesmond | £1,617 |
| NE6: Walker, Byker, Heaton | £1,004 |
| NE4: Bishopston, Gloucester Road | £897 |
Our teams opinion on investing in Newcastle…
“Newcastle is a great place to invest, especially if you are just starting out. The entry price point compared to the rest of the country is relatively low and it offers several opportunities, with straight flips and BTL options being the most popular. It’s a large city with a busy market, bustling businesses and is one of the most affordable in the country, and that affordability factor makes it a compelling option.”
– Jonthan Christie, CEO of The Property Sourcing Company
From the heart of NE1 to the tranquillity of Jesmond and all in between, Newcastle offers property investment opportunities to suit every style of investor, including you.
Whatever your property investment specifications, you’ll find just what you’re looking for within this vibrant north-eastern powerhouse.
Here are some of the most popular investment options we provide here at The Property Sourcing Company:
- Buy-to-let investments
- Below market value properties
- Commercial property investments
- Properties to flip or renovate
- Student property investments
This ever-evolving portfolio of opportunities is a surefire sign that Newcastle is a property investment sweet spot. In our expert opinion, it’s an ideal location if you’re searching for high-yield investments, consistent capital growth, and quality long-term tenants.
Find your new off market Newcastle-upon-Tyne investment with the property sourcing company
“I have really enjoyed my experience with the property sourcing company. I bought a house for 240k spent 45k on renovation and it is now valued by the estate agent at 375k. Bradie has been a gem through the process and is now helping me find the second property. I def recommend the Property Sourcing Company!”
— Annelie Sernevall, TrustpilotThe Property Sourcing Company is honestly off market. We work with our sister brand, The Property Buying Company, to focus on the best property sourcing in Newcastle and offer investors opportunities to suit their goals and budgets.
Typically, sellers approach The Property Buying Company for a quick and easy cash sale. We secure these properties directly from them for below market value prices. That means we can pass these deals onto investors just like you.
We’ll source you the most potentially rewarding deals for your Newcastle property investment needs. We don’t just want you to buy from us once—we want you to come back (which we’re sure you will). That’s why we provide a hands-on end-to-end service you can count on time after time. So, don’t delay…
Average rental yields in Newcastle are 5.9%, which is above the national average. A high gross rental yield in or around the city centre is considered somewhere in the region of 8% to 9%. The good news is, there are several postcode areas in Newcastle that potentially offer rental yields of around 8%.
When you’re managing a HMO property, you may need to obtain an appropriate license depending on the property type or location. You’ll also need to meet stringent safety regulations and legal requirements to remain compliant and avoid potential penalties. You’ll also need to screen potential tenants, provide water-tight contracts, and set up an efficient rent collection process.
Yes, we do. We can even provide properties that already come with trusted tenants if you prefer. As a thriving investment hotspot, we regularly purchase properties in Newcastle and offer a range of opportunities to suit all requirements, often for 15 to 20% below market value.
Article Written By: Jessica Chambers
Jess is our Investment Team Manager, she has a wealth of experience in property investing and finance, working with a wide range of different types of investments from BTL, Flips, HMOs and more over the years. Experience she often shares on The Property Sourcing Company website.
Ready to Start Investing in Newcastle?
We can help find you a fantastic off-market opportunity that meets your personal requirements.
Discounted property with high yields
Transparent & honest throughout the process
We’re property experts with years of experience
Investment opportunities tailored to your requirements
WHY INVEST WITH US?
Simply put, we’ll get you the best possible deal. Our sister company, The Property Buying Company, have been in the property buying industry for years & we have access to all their stock which is at a price point that is ready for investors to buy and make a great return on.
No middlemen, no stress & no hassle. We make investing in property and growing your portfolio as easy as it possibly can be.
Property Investment In Newcastle
If you’re looking to invest in Newcastle, we can help find you the best deal to suit your requirements.
Discounted property with high yields
Transparent & honest throughout the process
We’re property experts with years of experience
Investment opportunities tailored to your requirements
WHY INVEST IN NEWCASTLE?
Newcastle-upon-Tyne presents a compelling case for property investors seeking robust returns and long-term growth potential. This amazing city offers a blend of factors that make it an ideal destination for strategic property investment.
Newcastle boasts a large 42,000-strong student population, thanks to prestigious institutions like the University of Newcastle and Northumbria University. This consistent demand for student accommodation, particularly in areas like Jesmond, Heaton, Sandyford, Shieldfield and Spital Tongues, creates a lucrative opportunity for Buy-To-Let investors, ensuring high occupancy rates and steady rental income.
Beyond the student market, Newcastle offers excellent rental yields for traditional Buy-To-Let properties. The city’s strong economy, with major employers in the public sector, financial services, construction, transport and emerging tech sectors, attracts a wide range of tenants seeking quality accommodation.
Newcastle is experiencing significant regeneration and development, with projects like Newcastle Helix, the Stephension Quarter, and the East Pilgrim Street regeneration boosting the economy and enhancing the city’s appeal. These initiatives are set to further increase property values and retinal demand in the coming years.
Newcastle’s renowned nightlife, cultural attractions like the Sage Gateshead and BALTIC Centre for Contemporary Art and a thriving shopping scene make it a desirable place to live, work and play. The vibrant atmosphere attracts a diverse population, further bolstering the rental market.
And, finally, Newcastle also benefits from strong transport connections, with a major train station, an international airport, and a well-developed light rail system (Tyne & Wear Metro). Properties located near Metro stations are particularly sought after by renters, adding to their investment appeal.
Our experienced property investment team specialises in the North East England market, using our deep knowledge and extensive network to identify the most promising investment opportunities. We focus on properties with proven rental demand and strong potential for capital appreciation.
Our parent company, The Property Buying Company, and sister company, The Property Selling Company, allows us exclusive access to off-market deals. This means we can secure high-quality properties that meet your investment criteria without ever going on the open market.
Newcastle investment opportunities
Newcastle isn’t just a bustling city with a thriving student population; it’s a dynamic hub of lucrative property investment opportunities. Whether you’re a seasoned investor or just starting, we offer a diverse range of options tailored to your goals:
Buy-To-Let
Capitalise on Newcastle’s strong rental market with high-yielding properties, catering to both students and professionals seeking quality accommodation.
Below Market Value (BMV)
Discover hidden gems with significant potential for capital appreciation, allowing you to build wealth through strategic property purchases.
Commercial Property
Diversify your portfolio with commercial spaces in prime locations, tapping into Newcastle’s growing business sector.
Student Accommodation
Invest in Purpose-Built Student Accommodation or individual apartments, ensuring consistent demand and attractive returns in this thriving market.
Property to Renovate
Unlock hidden value by transforming properties with renovation potential, creating sought-after homes for modern tenants.
Houses of Multiple Occupation (HMOs)
Maximise rental income by investing in HMOs, catering to the growing demand for shared living arrangements.
Our deep rooted knowledge of Newcastle’s property landscape ensures you’re making informed decisions, guided by experts who understand the market. We listen to your investment objectives and curate a personalised strategy that aligns with your risk tolerance and desired returns.
Gain access to off-market deals and hidden Newcastle gems not available to the general public, giving you a competitive edge. From property sourcing and due diligence to ongoing property progressions and beyond, we’re your trusted partner throughout the entire investment journey.
Don’t miss out on the potential that Newcastle holds. Contact us today to explore these investment opportunities and start on a rewarding path to investing in success.
Does Newcastle offer high property yields?
Newcastle has shown consistent strength as a high-yield property market. Combining data from Rightmove and Home.co.uk, in 2022, the estimated yield sat between 6.43% and 7%, aligning with industry standards for attractive returns. This consistent performance is further emphasised by Track Capital’s rankings, placing Newcastle 5th in the UK for rental yields in 2022, and an even more impressive 2nd in 2024.
Newcastle’s rental yields currently sit at 7.33%.
These robust yields are fueled by high-demand, low supply rental markets. A diverse tenant base, including students, young professionals and families continually seeks quality accommodation in Newcastle.
This imbalance between supply and demand not only strengthens rental yields but also creates a favourable environment for investors seeking profitable opportunities. However the potential for even higher yields exists.
By specialising in below market value property sourcing, we can significantly boost our investors returns beyond the already attractive averages.
Why is property in Newcastle so cheap?
Newcastle’s relative affordability stems from the city’s historical context and evolving landscape. Historically, Newcastle thrived as a hub for heavy industries like shipbuilding, coal mining and steel production.
This industrial boom led to the development of vast amounts of housing, particularly catering to the working class. While these industries have declined over time, the legacy of abundant housing stock remains.
This abundance, particularly in the more affordable segment of the market, has contributed to keeping property prices lower than in other major cities like Liverpool or Leeds. While demand for housing in Newcastle is growing, the existing supply continues to exert downward pressure on prices, creating an attractive environment for both first-time buyers and investors.
NEWCASTLE HOUSE PRICES
Using the statistics on Rightmove you can clearly see that Newcastle that the housing market is positive.
Newcastle’s housing market is booming for property investors, showcasing a city of growth and opportunity. According to Rightmove, the average property price in Newcastle over the last year was £215,966, with terraced properties leading the market at £194,123.
Semi-detached properties fetched an average of £214,905, while flats averaged £128,739. Notably, overly sold prices in Newcastle have risen 3% year over year, nearing the 2021 peak of £214,775.
The North East, including Newcastle, is emerging as a hotspot for property investment due to a combination of attractive factors. The region for one, boasts lower property prices compared to the national average, making it more accessible for investors. This affordability, coupled with high rental yields, creates a very lucrative proposition for Buy-To-Let investors.
NEWCASTLE AREAS TO INVEST IN
Newcastle has a lot to offer investors, and there are lots of different areas amongst the city that appeal to different kinds of investors.
If you’re looking to invest in property in Newcastle, you might be curious as to some of the areas that we regularly have properties available.
The truth is that we cover across the whole of Newcastle, and get a lot of property investment opportunities in several of the main areas, here are just a few of them:
Benton
Benwell
Blakelaw
Byker
Castle
Coxlodge
Cowgate
Cardlewell
Dene
Denton
East Denton
East Gosforth
Shieldfield
Slatyford
South Heaton
Wingrove
Elswick
Fawdon
Fenham
Gosforth
Grainger Town
Haymarket
Heaton
High Heaton
Jesmond
Jesmond Vale
Kenton
Lemington
Spital Tongues
Sugley
Walker
Westgate
Newburn
Newcastle City Centre
North Gosforth
North Heaton
North Kenton
Ouseburn
Paradise
Parklands
Pottery Bank
Quayside
Red House Farm
Sandyford
Walkergate
West Denton
West Gosforth
Westerhope
NEWCASTLE HOUSE PRICES
Newcastle’s housing market is booming for property investors, showcasing a city of growth and opportunity. According to Rightmove, the average property price in Newcastle over the last year was £215,966, with terraced properties leading the market at £194,123.
Semi-detached properties fetched an average of £214,905, while flats averaged £128,739. Notably, overly sold prices in Newcastle have risen 3% year over year, nearing the 2021 peak of £214,775.
The North East, including Newcastle, is emerging as a hotspot for property investment due to a combination of attractive factors. The region for one, boasts lower property prices compared to the national average, making it more accessible for investors. This affordability, coupled with high rental yields, creates a very lucrative proposition for Buy-To-Let investors.
NEWCASTLE’S BEST PROPERTY INVESTMENT AREAS
Newcastle has a lot to offer investors, and there are lots of different areas amongst the city that appeal to different kinds of investors.
If you’re looking to invest in property in Newcastle, you might be curious as to some of the areas that we regularly have properties available.
The truth is that we cover across the whole of Newcastle, and get a lot of property investment opportunities in several of the main areas, here are just a few of them:
Benton
Benwell
Blakelaw
Byker
Castle
Coxlodge
Cowgate
Cardlewell
Dene
Denton
East Denton
East Gosforth
Shieldfield
Slatyford
South Heaton
Wingrove
Elswick
Fawdon
Fenham
Gosforth
Grainger Town
Haymarket
Heaton
High Heaton
Jesmond
Jesmond Vale
Kenton
Lemington
Spital Tongues
Sugley
Walker
Westgate
Newburn
Newcastle City Centre
North Gosforth
North Heaton
North Kenton
Ouseburn
Paradise
Parklands
Pottery Bank
Quayside
Red House Farm
Sandyford
Walkergate
West Denton
West Gosforth
Westerhope
WHY CHOOSE THE PROPERTY SOURCING COMPANY?
With over a century of experience in the property industry, our team possesses an unparalleled ability to identify and secure exceptional deals. We use this expertise to access exclusive Below-Market-Value opportunities in Newcastle, in order to get you the best returns possible.
As part of a company actively acquiring hundreds of properties Below Market Value every month, we offer a continuous stream of prime investment opportunities. This ensures you have access to the best deals.
Our commitment to finding you the best deals stems from our desire to build lasting partnerships. We strive to exceed your expectations, ensuring you return to us as your trusted advisor for your future property investments.
Whether you’re a first-time buyer or a seasoned investor, we provide comprehensive support tailored to your individual goals. We’ll discuss your investment objectives and guide you through the entire process, from property selection and acquisition to tenant placement and ongoing management.
Newcastle offers a wealth of benefits for property investors, from a vibrant student population to increasing rental demand in the city centre and surrounding areas. We use our market expertise and extensive network to unlock these opportunities for you.
With our deep knowledge of the local market and established track record, we offer unparalleled support for your property investment journey in Newcastle. We empower you with the information and resources you need to make informed decisions and achieve your investment goals.
Whether you’re a first-time buyer or a seasoned investor, we provide comprehensive support tailored to your individual goals. We’ll discuss your investment objectives and guide you through the entire process, from property selection and acquisition to tenant placement and ongoing management.
Newcastle offers a wealth of benefits for property investors, from a vibrant student population to increasing rental demand in the city centre and surrounding areas. We use our market expertise and extensive network to unlock these opportunities for you.
With our deep knowledge of the local market and established track record, we offer unparalleled support for your property investment journey in Newcastle. We empower you with the information and resources you need to make informed decisions and achieve your investment goals.
FREQUENTLY ASKED QUESTIONS
Have we not yet answered your question about property investment in Newcastle?
Oops, sorry! Not to worry though, we’ve collated some of our most popular queries and answered them below for you. If you don’t find your answer, please feel free to get in touch.
Typically, a high yield is considered to be anything between 6-7%. We know however due to some of the deals we can provide in that area, we can often achieve higher. Newcastle in 2024, has an average rental yield of 7.33% which is on par with the highest rental yield in the UK.
Yes – we consider it to be! You can get some great deals on property at relatively low market value, especially in the outskirts, and it offers several opportunities with a busy letting market, students & several large businesses based in the area.
This major UK city holds one of the best affordability ratios among the top five major investment cities in the country, making it extremely appealing to potential investors. The average property price in Newcastle is £215,966, which has decreased by 3% over the last year (comparing 2023 to 2024).
You can calculate rental yield by multiplying the rental amount pcm by twelve & then dividing that figure by the overall amount you are paying or have paid for the property.
We certainly do, and we can even provide properties that are already tenanted if you prefer. It’s an area in which we regularly purchase properties, so get in touch to find out more!
FREQUENTLY ASKED QUESTIONS
Have we not yet answered your question about property investment in Newcastle?
Oops, sorry! Not to worry though, we’ve collated some of our most popular queries and answered them below for you. If you don’t find your answer, please feel free to get in touch.
Typically, a high yield is considered to be anything between 6-7%. We know however due to some of the deals we can provide in that area, we can often achieve higher. Newcastle in 2024, has an average rental yield of 7.33% which is on par with the highest rental yield in the UK.
Yes – we consider it to be! You can get some great deals on property at relatively low market value, especially in the outskirts, and it offers several opportunities with a busy letting market, students & several large businesses based in the area.
This major UK city holds one of the best affordability ratios among the top five major investment cities in the country, making it extremely appealing to potential investors. The average property price in Newcastle is £215,966, which has decreased by 3% over the last year (comparing 2023 to 2024).
You can calculate rental yield by multiplying the rental amount pcm by twelve & then dividing that figure by the overall amount you are paying or have paid for the property.
We certainly do, and we can even provide properties that are already tenanted if you prefer. It’s an area in which we regularly purchase properties, so get in touch to find out more!
WHY INVEST WITH US?
Simply put, we’ll get you the best possible deal. Our sister company, The Property Buying Company, have been in the property buying industry for years & we have access to all their stock which is at a price point that is ready for investors to buy and make a great return on.
No middlemen, no stress & no hassle. We make investing in property and growing your portfolio as easy as it possibly can be.
WHY INVEST WITH US?
Simply put, we’ll get you the best possible deal. Our sister company, The Property Buying Company, have been in the property buying industry for years & we have access to all their stock which is at a price point that is ready for investors to buy and make a great return on.
No middlemen, no stress & no hassle. We make investing in property and growing your portfolio as easy as it possibly can be.
