Navigating Newcastle's Property Market as a… | Newcastle Apartments
16 August 2023

Navigating Newcastle's Property Market as a Young Professional

Explore Newcastle's property market for young professionals: key trends, investment areas, renting vs. buying, and financial planning tips.


Navigating Newcastle's property market as a young professional can feel like a complex maze. With a rich historical context, the market has evolved into a unique landscape, shaped by recent trends, the impact of COVID-19, and Brexit. High property prices and a competitive market pose challenges, but opportunities also abound, thanks to government schemes and Newcastle's burgeoning tech industry. Whether considering renting or buying, financial planning, working with estate agents, and understanding legal considerations are key. This article offers a comprehensive guide to understanding and successfully navigating Newcastle's property market, arming young professionals with the insights and tools needed to make informed decisions.

Sunset over tyne bridge

Understanding Newcastle's Property Market

Historical Context

Newcastle's property market has seen significant changes over the years. The average property price in the Newcastle upon Tyne postcode area is £207k, with a median price of £162k. Over the last twelve months, the average price increased by £11.4k (6%). The price of established properties averages at £204k, while newly built properties average at £286k. Sales have dropped by 28.4%, with most properties sold in the £100k-£150k price range.

Current Trends

The current trends in Newcastle's property market reveal a diverse picture. The most affordable place in the area is 'NE37 3', with an average price of £56.4k, while the most expensive is 'NE18 0', at £592k. The average price of detached houses is £392k, flats £119k, semi-detached £208k, and terraced £178k. The median property price to median salary ratio ranges between 4.7 in Gateshead and 5.7 in Newcastle upon Tyne.

Impact of COVID-19

The COVID-19 pandemic has had a noticeable impact on Newcastle's property market. The sales dropped by 28.4%, reflecting a decrease in transactions during the pandemic period. The shift towards remote work and the need for more space has influenced property preferences, with a focus on detached and semi-detached properties. The pandemic has added a new layer of complexity to the market, affecting both prices and availability.

Property Market Trends in Newcastle

Recent Trends

Recent trends in Newcastle's property market include a rise in the average property price by 6% over the last year. The cost comparison between new homes and older homes shows a difference, with newly built properties averaging £286k and established properties £204k. The market share also varies across different price ranges, reflecting a diverse market catering to various needs and preferences.

Impact on Property Prices and Availability

These recent trends have affected property prices and availability in Newcastle. The increase in average property prices indicates a growing demand, while the drop in sales signifies a decrease in availability. The competition for houses in Newcastle has risen by 36% year-on-year, making it a competitive market. The impact on prices and availability offers both challenges and opportunities for buyers and sellers in the region.

Predictions for Future Trends

Predictions for future trends in Newcastle's property market include a continued focus on sustainability, technology integration, and urban development. The potential impact of future developments like Newcastle Helix may further shape the market along with options meeting the need for affordable living such as co-living spaces. The growth of the tech industry and government initiatives may also influence property demand and prices. These predictions provide valuable insights for those looking to invest or find a home in Newcastle.

Key Areas in Newcastle for Property Investment

Overview of Newcastle's Districts

Newcastle upon Tyne is home to a variety of districts, each with its unique characteristics. Some of the notable districts include Benton, Benwell, Byker, Castle, Chinatown, Coxlodge, Denton, East Gosforth, Elswick, Gosforth, Grainger Town, Heaton, Jesmond, Kenton, Newburn, North Gosforth, Ouseburn, Sandyford, Walker, West Denton, and Westerhope, among others. These districts offer diverse living experiences, catering to different lifestyles and preferences.

Property Market Analysis

The property market in Newcastle's districts varies widely:

  • Benton: Known for suburban living with good schools and parks.
  • Byker: A mix of traditional terraced houses and modern apartments.
  • Gosforth: Popular for families, offering detached and semi-detached homes.
  • Jesmond: A vibrant area with a mix of students and professionals, known for flats and shared houses.
  • Newburn: Offers affordable housing options, attracting first-time buyers.
  • Ouseburn: Emerging as a creative hub, with unique loft-style apartments.

Each district has its property market trends, reflecting the local culture, amenities, and demographics.

Emerging Areas for Property Investment

Emerging areas for property investment in Newcastle include:

  • Ouseburn Valley: Known for its artistic community and unique housing styles.
  • Newcastle Great Park: A new development offering modern living with green spaces.
  • West Denton: Attracting investment due to affordable prices and potential growth.

These areas are gaining attention for their potential returns and opportunities for both property investors and homebuyers.


Renting vs. Buying in Newcastle

Pros and Cons

Renting and buying in Newcastle each have their pros and cons:

  • Renting: Pros include flexibility, fewer responsibilities, and no mortgage commitment. Cons may involve lack of ownership and potential rent increases.
  • Buying: Pros encompass building equity, potential appreciation, and personalization freedom. Cons include maintenance responsibilities, mortgage commitments, and potential market risks.

Factors to Consider

When deciding between renting and buying, factors to consider include:

  • Financial Stability: Assessing income, savings, and credit score.
  • Long-term Goals: Considering future plans and housing needs.
  • Market Conditions: Analyzing property prices, interest rates, and availability.
  • Lifestyle Preferences: Evaluating the desire for stability vs. flexibility.

Case Studies

  • Renting in Newcastle: Renting offers flexibility and short-term commitments, ideal for those not planning to stay long-term in Newcastle. It also allows for saving for a down payment or exploring shared mortgage possibilities. The responsibility for major repairs falls on the property owner, while minor repairs are the tenant's responsibility.
  • Buying in Newcastle: Buying a home provides a sense of security and control. The cost comparison between monthly mortgage repayments and renting depends on factors like the type of mortgage and location. Owning a home also involves additional costs like property taxes, insurance, and maintenance. The decision to buy or rent with a friend or partner requires careful consideration, as being tied into a mortgage deal can cause problems if situations change.

Challenges Faced by Young Professionals

High Property Prices

High property prices in Newcastle are a significant challenge for young professionals. The city's property market has seen a 23% growth in prices since 2010, with a further increase of 13.5% anticipated over the next five years. This upward trend makes homeownership a distant dream for many young individuals. The scarcity of available homes also contributes to high rents, making even rental properties less accessible. This situation is particularly evident in Newcastle's rental market, where demand is exceptionally high, further fortifying property prices.

Competitive Market

The competitive property market in Newcastle adds to the challenges faced by young professionals. With a growing population and a thriving economy, the demand for housing is increasing. Despite numerous development projects, the city is still grappling with a consistent lack of available housing. By 2030, a shortfall of at least 18,707 residential units is expected, as mentioned in the previously cited source. This competition for limited housing options makes it difficult for young professionals to find suitable accommodation, whether they are looking to buy or rent.

Impact of Brexit

Brexit has added uncertainty to the property market, affecting prices and availability. While specific data on Newcastle's property market post-Brexit is limited, the overall UK property market has experienced fluctuations due to changes in regulations, trade agreements, and economic conditions. This uncertainty may have indirect effects on young professionals in Newcastle, making it harder to predict property prices and availability. The long-term impact of Brexit on the property market remains to be seen, but it adds another layer of complexity to an already challenging situation for young professionals.

Girl working on laptop

Opportunities for Young Professionals

Government Schemes

For young professionals struggling with high property prices, government schemes for first-time buyers offer some relief. Programs like Help to Buy and Shared Ownership provide financial assistance, making homeownership more attainable. These schemes can reduce the deposit required and offer favorable mortgage terms, helping young professionals overcome the financial barriers to owning a home.

Impact of Newcastle's Growing Tech Industry

Newcastle's growing tech industry has created new opportunities for young professionals. The city is emerging as a hub for innovation within digital and creative industries, attracting tech companies and capitalizing on a highly skilled workforce. This growth in the tech sector has led to promising career opportunities, attracting young professionals to the city. The influx of tech talent also fuels demand for rental properties, making Newcastle an appealing location for investors and potentially creating more housing options.

North of Tyne Devolution Deal

The North of Tyne devolution deal is a significant development that could benefit young professionals in Newcastle. This agreement provides the region with greater autonomy over local governance and funding, allowing for targeted investments in housing, education, and employment. While the specific impact on the property market is yet to be determined, the devolution deal has the potential to address some of the challenges faced by young professionals, such as high property prices and limited availability. By focusing on local needs and priorities, the North of Tyne authorities can implement policies that support young professionals in their quest for homeownership or affordable rentals.

Financial Planning for Housing in Newcastle

Importance of Financial Planning

Financial planning is an essential aspect of life, especially when considering housing options in Newcastle. Whether you're thinking about how to spend, save, or invest your money, or planning for future needs like retirement or care, financial planning helps you make informed decisions. It's not just about buying a financial product like a pension or mortgage; it's about organizing your finances for the present and future. If you lose the ability to make your own decisions, having a plan in place, such as a Lasting Power of Attorney (LPA), can ensure that your financial affairs are handled by a trusted person. Newcastle City Council provides resources on financial planning, including free and independent advice.

Tips for Budgeting and Saving

Budgeting and saving are crucial steps in financial planning, especially when aiming to buy or rent property in Newcastle. Here are some practical tips:

  • Create a Budget: Outline your income and expenses to understand where your money is going.
  • Set Clear Goals: Define what you want to achieve, such as buying a house or saving for emergencies.
  • Use Tools: Utilize free budget planners like the one offered by Your Homes Newcastle.
  • Avoid Unnecessary Expenses: Cut back on non-essential spending to save more.
  • Invest Wisely: Consider investment options that align with your goals and risk tolerance.
  • Consider Professional Advice: Independent Financial Advisers (IFAs) can provide tailored advice based on your personal circumstances.

Resources for Financial Advice

Newcastle offers various resources for financial advice and support:

  • Free Financial Advice: Money Helper offers free unbiased independent advice, including managing debt and investing.
  • Specialized Advice for Older People: Tax Help for Older People provides free tax advice for those on low incomes.
  • Housing Options: FirstStop Advice is a free online service to help consider housing options.
  • Independent Financial Advisers (IFAs): IFAs can give detailed personal advice on financial products. Websites like Unbiased and VouchedFor can help you find IFAs in your area.

Steps to Navigate the Property Market

Importance of Financial Planning

Navigating the property market in Newcastle requires careful financial planning. It's not just about finding the right property; it's about aligning your financial goals, understanding your budget, and making informed decisions. Whether you're buying or renting, financial planning helps you assess your options and choose the path that best suits your needs and circumstances. It also prepares you for unexpected challenges, ensuring that you have the resources to handle them.

Working with Estate Agents and Property Advisors

Estate agents and property advisors play a vital role in the Newcastle property market. They provide expertise in finding properties that match your criteria, negotiating deals, and handling legal aspects. Working with a reputable estate agent can save time and reduce stress. They understand the local market trends, legal requirements, and can guide you through the complex process of buying or renting a property.

Legal Considerations

Legal considerations are an essential part of buying property in Newcastle. From understanding property rights to handling contracts and agreements, legal aspects must be carefully managed. Considerations include:

  • Conveyancing: The legal process of transferring property ownership.
  • Surveys and Inspections: Ensuring the property meets legal and structural standards.
  • Mortgages and Financing: Understanding the legal obligations of mortgage agreements.
  • Lasting Power of Attorney (LPA): Planning for scenarios where you might lose the ability to make decisions.
  • Deputyship: A legal arrangement authorized by the Court of Protection for those who lack mental capacity.

Navigating Newcastle's property market as a young professional presents both challenges and opportunities. From understanding the historical context and current trends to exploring key areas for investment and the pros and cons of renting vs. buying, the journey requires careful planning and consideration. The impact of external factors like COVID-19 and Brexit, along with the growing tech industry and government schemes, adds layers of complexity. Financial planning, working with estate agents, and understanding legal considerations are vital steps in this process. With the right approach, resources, and guidance, young professionals can confidently explore Newcastle's property market, making informed decisions that align with their goals and needs. The vibrant city of Newcastle awaits, offering a diverse and promising property landscape.

Company Information

Tenant Information

Contact Us

Find Us

156 Pilgrim Street, NE1 6SU

Follow Us

© Newcastle Apartments 2023
All Rights Reserved