Newcastle beats London in buy-to-let

Permalink: Newcastle beats London in buy-to-let
by Kay Murchie

A survey of 121 postal areas by The Mortgage Works established that Newcastle-upon-Tyne led the way with 3,545 buy-to-let deals in the second quarter of 2007. East central London was second with 2,676, while Birmingham was third with 2,167.

Most would expect London to come out on top due to all the housing development and new infrastructure being carried out in the area, primarily due to the 2012 Olympic Games.

Mortgagestrategy.co.uk highlighted that taken on its own, London would still come out ahead. The figures are distorted in that sense as the capital is divided into several different areas, but against this the comparative population figures of London (7 million) and Newcastle (around 300,000) can be considered.

However, it still proves that Newcastle-upon-Tyne is becoming particularly attractive for the buy-to-let industry. The fact that it surpassed Birmingham and Glasgow is a positive sign but it could also be attributed to lively nightlife around the Quayside, a good transport system and attractions such as Hadrians Wall and nearby Northumberland.

Recently Newcastle became a WiFI hotspot, useful for both work and leisure from the viewpoint of professionals living and working in the area. Furthermore, compared to London, Newcastle has a lower standard of living.

A spokesperson for The Mortgage Works said that the student population is also making the buy-to-let industry strong in Newcastle.