The Tyne Bridge is back in full working-week glow and so is the North East property market.
No January slump. No “post-Budget wait-and-see”. Early 2026 data is showing the region didn’t just survive 2025 — it’s carrying serious momentum into the new year.
Key live numbers (first week of Jan 2026):
- Average time-to-let across managed portfolio: 7.2 days (down from 7.8 in Dec)
- % of properties with tenant waiting lists: 51% (up from 48% end of 2025)
- Enquiry volume for new HMO/BRR acquisitions: +11% vs Jan 2025
- Top micro-market gross yields (live comps): 10.4–11.3%
Fastest-moving micro-markets right now:
- SR4 / SR5 (Sunderland central & east) → 10.7–11.3%
- NE28 / NE29 (Wallsend / North Shields) → 10.4–11.0%
- DH4 / DH5 (Houghton-le-Spring) → 10.3–10.9%
- TS1 / TS4 (Middlesbrough core) → 10.1–10.7%
Real deal examples from the last 30 days:
- £172k 3-bed in NE28 → £32k HMO conversion → £3,050 pcm → 10.8% gross
- £198k 4-bed in SR4 → £38k to 6-bed → £3,500 pcm → 10.9% gross
- £215k in DH4 → £45k to 7-bed → £3,900 pcm → 11.1% gross
What’s driving the continued strength?
- Rent growth still running hot (8.9% YoY regional average – ONS)
- Student & graduate demand at record levels (retention up again)
- Corporate relocations (Nissan/Netflix/tech ripple) still feeding young professional renters
- Affordability gap widening vs South — shielding against rate sensitivity
- Buy-to-let mortgage rates now averaging 4.35–4.48% (2-year fixed) — lowest since mid-2024
Early 2026 investor sentiment:
- “We’re seeing more portfolio builders coming back in after sitting out late 2025” — 3 large regional agents (Jan calls)
- Off-market supply still tight — good stock moving in <72 hours when priced right
- Institutional capital starting to trickle in — first confirmed North East HMO fund allocation announced Dec 30
Bottom line for January 2026: The North East isn’t “coming back” — it never really left. The window to buy at current levels and lock in double-digit yields is still open — but it’s tightening week by week.
2026 isn’t a recovery story. It’s an acceleration story.
The question is whether you’ll be in position before the crowd fully wakes up.
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Let’s make 2026 count. Happy investing from Mike Bells Property Sourcing.
#propertyinvestment #northEast #rentalyields #2026property