Newspaper article The Journal (Newcastle, England)

Property Investors Head North

Newspaper article The Journal (Newcastle, England)

Property Investors Head North

Article excerpt

Byline: By Karen Wilson

Northumberland is being tipped as the best place to invest in bricks and mortar. Driven by a burgeoning modern economy - particularly pharmaceuticals, electronics and modern engineering - London-based property consultants Colliers CR said Northumberland shows the best residential investment returns, with a gross yield of 12.7pc.

That figure relates to rental income only. Include capital appreciation, and some investors have enjoyed annual returns approaching 30pc, says the report.

David Moulton of Colliers CRE said: "Despite predictions of 20pc falls in house prices, there is little doubt residential property remains a sound long-term investment. Right now, the big money is being made north of the Midlands."

Yields are lower in areas such as Corbridge and Wylam, where prices have soared, but those who can spot the next boom area could strike gold.

Andrew Coulson, proprietor of Northumbria & Cumbria Estates Homesale Network in Hexham, believes there is still room for further capital appreciation in Northumberland, despite house price growth of about 40pc over the past two years.

He said: "This year we expect growth of eight to 10pc - possibly even 15pc. Demand is still far outstripping supply - with two out of five sales going to sealed bids."

Mr Coulson adds that 50pc of sales are to buyers moving from outside the area and the investors' market for cheaper flats and terraced houses is still buoyant.

But is there sufficient demand for rental properties in Northumberland or could new landlords find their profits slashed by poor yields and void periods?

Karen Newell, residential lettings manager at George F White in Alnwick, rents out two to three properties a week and says there is strong demand from tenants in the Alnwick area. …

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