There are some locations that garner headlines like “up and coming” and “family friendly” – creating the kind of demand which is often hard to match, without significant investment in development and in securing and offering properties to buy and rent across a range of price points.
The pandemic changed the way that homeowners and renters alike approached their search for the perfect home. Alongside pricing requirements, it particularly highlighted a broader interest in rural surroundings and the opportunity for outside space, subsequently pushing city hubs like London further down the list of must-haves.
What emerged from the pandemic, and what seems here for the long run, is a demand for properties which combine access to the countryside with proximity to city facilities and amenities. Newcastle upon Tyne has risen to a coveted status, as a location which is both incredibly commercial and creative, with great access to the waterfront and countryside.
And this, in turn, has created a rise in rental demand which seems, from the outset, difficult to keep up with.
In this blog post, we’re looking at the rise in demand across Newcastle from the perspective of landlords, considering how you can benefit from this increase in the number of tenants across the area, and how to navigate the journey towards becoming a high quality landlord in Newcastle.
The state of the Newcastle housing market in 2023
To look at the housing market from a tenancy and rental point of view, we first need to understand why so many people are seeking rental opportunities throughout the UK.
The hike in interest rates, combined with the cost of living crisis, means that owning a home is beyond the financial capabilities of many – particularly growing families who need space but cannot afford homes big enough. While the wealthier homeowners snap up second homes in previously unpopular rural areas, the demand for housing in small cities like Newcastle has created new opportunities in the rental market for those who have properties available and ready to let.
To look at the figures, the average rent in Newcastle between September 2021 and 2022 was £867 per calendar month, bringing the city in fourth in a ranking of the rental price across the UK’s 36 metropolitan boroughs. For landlords, this, combined with the rent growth of 0.7% between the years 2021 and 2022, creates an opportunity to capitalise on a high demand marketplace.
So, why is supply so low when demand remains high?
Why the imbalance between supply and demand?
One of the challenges facing landlords is the fact that owning a property is so much more expensive now than it has been for a long time. Not only are mortgage repayments exceptionally high, but bills have risen, and the cost of maintenance has increased, making it difficult for some landlords to manage multiple homes.
In short, the rise in interest rates, which has dominated headlines over recent times, means that for many buy-to-let mortgage owners, the appeal of simply selling their investment property is higher than ever.
To juggle these increases, the only way for landlords to retain their investment properties is to review and increase rental prices – passing the rise in costs down to their tenants. But while this is a solution for one side of the agreement, it means that the more affordable properties in more affordable areas are overrun with renters who are being priced out of the market in popular and higher priced locations.
Add to that the fact that a higher percentage of the population are looking to rent rather than own anyway, and it creates a market imbalance. One built on the rising cost of living, which pushes rent high and which makes the market of affordable properties narrower and thus more coveted.
Which is not necessarily a bad thing for landlords.
This is because, for those landlords who are in a position to market and rent out their property to prospective tenants, the imbalance and high demand means that finding a good tenant is only a matter of time – and can be made easier than ever with the help and support of our Tenant Find Service.
Introducing the Tenant Finder Service
An innovative solution designed with landlords in mind, the Pat Robson & Co. Tenant Find Service is an effective tool which equips landlords with a range of services.
This service includes the following:
- Marketing support
- Professional property photography
- Agent accompanied viewings
- Negotiation support with prospective tenants
- Contractual support and management on your behalf
We also offer comprehensive property management services for landlords through our team of dedicated experts, ensuring that everything from contract questions to evening and weekend appliance breakdowns are handled with ease.
The benefits of this service are wide-ranging, however one of the most important for landlords is the efficiency of the service in terms of identifying and getting the right, reliable tenant in place.
Other benefits include the convenience of a packaged service which carries your property from marketing through to tenant move in, and of course the financial benefits of this incredibly affordable service.
Turning a challenge into an opportunity
Newcastle upon Tyne is just one of many locations across the UK which is seeing a huge increase in demand across the rental market, with development simply unable to keep up with the number of families and individuals who are looking to move to the area.
The opportunities for landlords who have properties ready to rent, and for those considering a move into the rental market, are huge – with the Pat Robson & Co. team on hand to offer as much support as you need in navigating the move to becoming a reputable and quality landlord.
Our Tenant Find Service enables us to maximise the potential of your property, getting it seen by prospective tenants in all the right places and allowing you to find a reliable tenant quickly.
For more information on this and to learn how our Tenant Find Service can help you, get in touch with our team today.