HomeBlogMarket UpdatesJanuary 2026 North East Property Update – 10%+ Yields Still Very Much Alive

January 2026 North East Property Update – 10%+ Yields Still Very Much Alive

The Tyne Bridge is back in full working-week rhythm, and so is the North East property market.

No January slowdown. No hesitation. The first full week of 2026 is showing the region is carrying serious momentum from the end of 2025 straight into the new year.

Key live numbers (mid-January 2026):

  • Average time-to-let across managed portfolio: 7.1 days (tightening further)
  • % of properties with tenant waiting lists: 53% (up from 51% last week)
  • New enquiry volume for HMO/BRR acquisitions: +13% vs January 2025
  • Top micro-market gross yields (live comps): 10.5–11.4%

Fastest-moving micro-markets right now (January 2026):

  • SR4 / SR5 (Sunderland central & east) → 10.8–11.4%
  • NE28 / NE29 (Wallsend / North Shields) → 10.5–11.1%
  • DH4 / DH5 (Houghton-le-Spring) → 10.4–11.0%
  • TS1 / TS4 (Middlesbrough core) → 10.2–10.9%

Real deals moving in the last 10 days:

  • £175k 3-bed in NE28 → £35k HMO conversion → £3,200 pcm → 11.0% gross
  • £202k 4-bed in SR4 → £40k to 6-bed → £3,650 pcm → 11.1% gross
  • £218k in DH4 → £48k to 7-bed → £4,000 pcm → 11.2% gross

What’s keeping the heat on?

  • Rent growth still aggressive (8.9–9.2% YoY regional average – ONS latest)
  • Student intake & graduate retention numbers are setting new records again this academic year
  • Corporate/professional relocation wave (Nissan, tech, media) still feeding strong demand
  • Affordability buffer vs South remains massive (~£130k+ below UK average)
  • Buy-to-let mortgage rates continuing to ease: 2-year fixed now averaging 4.32–4.45% (latest lender panels)

Early January investor mood:

  • “January usually quiet — this year it’s the busiest start we’ve seen since 2021” — 4 regional sourcing agents (this week’s calls)
  • Off-market stock vanishing in <48 hours when priced right
  • First institutional fund confirmed active buying programme in the North East for Q1 2026

Bottom line for mid-January 2026: The North East isn’t warming up — it’s already running hot. The window to secure double-digit yields at current pricing is narrower every week.

2026 isn’t a comeback story. It’s a continuation story — and it’s accelerating.

The best deals are still available… for now.

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Let’s make January count. Happy investing from Mike Bells Property Sourcing.

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