Something seismic is happening right now across the North East — and most investors still haven’t noticed.
While London landlords scrape by on 4–5% gross yields and complain about Section 24, the North East has quietly become the highest-yielding region in the entire UK.
New data released this week (Nov 2025):
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Average gross yields: 8.9% (up from 7.8% in 2023) – Paragon Bank / Zoopla
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Top postcodes now delivering 10–11% (SR4, TS3, NE28, DH4)
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Rents rose 9.2% in the last 12 months – the fastest in Britain (ONS)
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Student demand + young professional influx + chronic undersupply = 97.8% average occupancy across managed portfolios
This isn’t a forecast. This is happening right now.
Picture this:
A £115,000 three-bed terrace in Sunderland’s SR4 bought off-market in September 2025.
£18k light refurb → converted to a 5-bed HMO.
Now pulling in £2,950 pcm (Sept 2025 lettings data).
That’s a 10.8% gross yield before the paint was even dry.
The drivers are stacking up like never before:
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Corporate relocations – Nissan, Britishvolt, Netflix studios, and the new Net Zero cluster are bringing thousands of well-paid workers who don’t want to buy yet.
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University expansion – Newcastle, Northumbria, Durham, Sunderland and Teesside are adding 14,000 new student places by 2027 → instant HMO demand.
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Mortgage rates stabilising – 5–5.5% buy-to-let rates are now priced in → investors are piling back in.
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Supply drought – new-build completions in the North East are at a 20-year low.
The result?
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Average time to let: 8.4 days
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43% of our managed properties now have waiting lists
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Rents in some postcodes are rising £50–£100 per room, per year — and tenants are still snapping them up.
Hot zones right now (Nov 2025 live data):
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SR4 / SR5 (Sunderland) – 10.4–11.1%
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TS1 / TS3 (Middlesbrough) – 10.2–10.9%
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NE28 / NE29 (Wallsend / North Shields) – 9.8–10.7%
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DH4 (Houghton-le-Spring) – 10.1% and rising fast
This is the last cycle where you can still buy below £150k and lock in double-digit yields.
In 12–18 months these numbers will be history — the institutional money is already circling.
The train is leaving the station.
Are you on it?
Lock In Your 2025 Yields Today
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