Press Release Summary: In any survey of buy-to-let mortgages in Great Britain, one might reasonably predict that most of the attention would focus on urban areas, with city living a popular choice for professionals.
Press Release Body: In any survey of buy-to-let mortgages in Great Britain, one might reasonably predict that most of the attention would focus on urban areas, with city living a popular choice for professionals. Of these, one might then suspect that London would come out top, with areas just to the east of the central area being the most sought after.
Such a rationale might seem reasonable, with all the housing development and new infrastructure being created in the area, mainly due to the forthcoming 2012 Olympic games. Yet, surprising as it may seem to some, east central London only comes second for buy-to-let mortgages.
That was the finding of The Mortgage Works, which found in a survey of 121 postal areas that Newcastle-upon-Tyne led the way with 3,545 buy-to-let deals in the second quarter of 2007. This left east central London lagging behind on 2,676, while Birmingham was third on 2,167.
Mortgagestrategy.co.uk pointed out that taken on its own, London would still come out on top. The figures are in that sense distorted as the capital is split into several different areas, but against this the comparative population figures of London (seven million) and Newcastle (around 300,000) can be taken into account.
Either way, it is clear enough that the north-east city has become particularly attractive for the buy-to-let industry. The fact that it exceeds Birmingham Property, which has a population of a million, as well as Glasgow (population 600,000, 2069 buy-to-let mortgages) indicates something good is happening up north.
Of course, it could be that the famed nightlife around the Quayside, the student population, the transport benefits fo the Metro (a hybrid underground / light rail system that covers the Tyne-Tees conurbation) and the nearby rural and historic attractions of Hadrians Wall and Northumberland.
But there may be other advantages too. Compared to London, it has a lower standard of living, but it has specific advantages too. One of these is the fact that central Newcastle recently became a WiFI hotspot, which is useful for both work and leisure from the point of view of professionals living and working in the area.
Andy McQueen, managing director of the Mortgage Works, had his own ideas, saying: \"Clearly this [trend] has been helped by a number of factors including the ongoing regeneration programme for the city and the influx of students to Newcastle University.\" Certainly the profitability the student buy-to-let market brings is now well known.
Whatever the reasons for the Newcastle buy-to-let boom, it suggests that those involved in the industry might do well to look north and see what the city can offer.
Andy McQueen, managing director of the Mortgage Works, had his won ideas, saying: \"Clearly this [trend] has been helped by a number of factors including the ongoing regeneration programme for the city and the influx of students to Newcastle University.\" Certainly the profitability the student buy-to-let market brings is now well known.
Whatever the reasons for the Newcastle buy-to-let boom, it suggests that those involved in the industry might do well to look north and see what the city can offer.
2012
