Newcastle attracting southern investors ? commercial mortgages

20 June 2007

Southern young professionals are taking advantage of the more affordable house prices in Newcastle and investing in property, according to an industry expert.

Matt Collis, a spokesperson for property consultants King Sturge, said that recent years had seen an influx of young professionals from the south taking out commercial mortgages and purchasing property in Newcastle.

Mr Collis, of the Newcastle-Upon-Tyne branch, said that the north-east city had seen significant changes in recent years, which had led to a surge of interest among young professional investors.

Among the factors causing an increase in interest are improved transport links between Newcastle and the capital, as well as regeneration.

He added that the short-term lettings market had seen a particularly strong increase, with many firms choosing to rent rather than pay for often expensive hotels while on business trips in the area.

"We''re a northern city and the industry has led to the need for affordable social housing from the turn of the century. So a lot of the mining, ship building - that profile of occupant has traditionally had a two-up-two-down, so there''s lots of that type of stock here," Mr Collis said.

"It''s also been fairly disadvantaged for a number of years and obviously that''s kept those prices quite low. Up until recently you could still buy houses for literally, £30,000. The market is such now that it has all moved on and people have seen that the tidal move will sweep those up as well and that''s what''s happened and I think they contribute to some quite awkward increased figures."