Investing In UK Property
in the North East of England

Investing in UK property in North East England has been frozen in time compared with the residential property market in the rest of the country over the past 30 years.

This slow market development was largely due to the demise of coal mining and shipbuilding industries that provided much of the region's employment. Now, following a regeneration program that lasted more than three decades, investing in UK property in North East of England is very much reborn.

During 2004, Newcastle was named one of the top cities in the European City of Culture competition. Today, it is a centre of leisure, culture, and sporting pursuits, with an unspoiled countryside and coastline.

North East of England has a very strong economy with a comparatively low cost of living. Most importantly, it is one of the few remaining areas in the UK’s entire residential property investment market where rental income will pay the mortgage and other annual costs. Once those expenses are paid, you'll still be left with a healthy yield.

Some of the areas to target in North East of England include:

• Bishop Auckland
• Durham
• Hartlepool
• Seaham
• Sunderland
• Bedlington

Like the property market in Scotland, the areas listed above are experiencing high demand from first-time buyers and young professionals who are looking to rent.

Here are the financial details for investing in UK property that I viewed last year in North East of England.

	Block of flats in Northeastern England
	Kitchen area
	Bathroom

However, I decided not to buy it, because the numbers didn't stack up for me. Take a close look at the figures. Even though the rental coverage is more than 125%, the 6% yield is too low.

Also, this being a leasehold flat, there is a service charge of £65 per month. When this is added to the equation, this particular UK residential property investment simply is not worth it.

	Front of the house
	Lounge area
	Downstairs

The yield is more than 7%, which covers my mortgage payments and other expenses. Also, nothing has to be done to the property to prepare it for the rental market.

North of East of England is popular among buy-to-let investors, who can still find decent yields of around 7-8%. Compared to the rest of the UK residential property investment market, this is great. However, finding properties with yields of more than 7% is getting harder every day, as the market continues to grow each year by as much as 10-15%.

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