The North East isn’t a Newcastle-only story anymore — and the data proves it.
From Sunderland’s riverside revival to Middlesbrough’s university-led growth, from Durham’s student surge to Gateshead’s Baltic Quarter momentum and the steady connectivity upgrades around Wallsend, Houghton and Teesside — the region is delivering double-digit yields in multiple cities and towns in early 2026.
Latest live snapshot (mid-January 2026):
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Average time-to-let (managed portfolio across Tyne & Wear, Durham & Teesside): 6.8 days
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% of properties with tenant waiting lists: 55% (up week-on-week)
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New HMO/BRR enquiry volume: +17% vs January 2025
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Top regional gross yields (live comps): 10.6–11.6%
Fastest-moving micro-markets right now (mid-January 2026):
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Sunderland SR4/SR5 → 10.9–11.6%
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Middlesbrough TS1/TS4 → 10.4–11.0%
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Durham DH1/DH7 → 10.5–11.2%
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Gateshead NE8/NE10 → 10.3–10.9%
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Wallsend/Houghton NE28/DH4 → 10.6–11.3%
Real deals that moved in the last 7–10 days (non-Newcastle):
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£182k 3-bed in Sunderland SR5 → £38k conversion → £3,400 pcm → 11.2% gross
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£212k 4-bed in Middlesbrough TS3 → £46k to 6-bed → £3,900 pcm → 11.3% gross
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£198k in Durham DH7 → £42k to 6-bed → £3,700 pcm → 11.1% gross
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£235k family home in Gateshead NE10 → sold to investor buyer in 18 days (cash)
What’s fuelling the regional strength?
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Rent growth: 9.1–9.5% YoY across most North East postcodes (ONS latest)
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Student & graduate retention: record numbers staying in Sunderland, Durham, Teesside & Newcastle
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Corporate & professional relocation: Nissan/Tech/Media ripple feeding demand in multiple cities
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Affordability advantage: North East average price still ~£130–140k below UK median
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Buy-to-let rates: 2-year fixed now averaging 4.28–4.40% (lender panels this week)
Investor & agent mood mid-January:
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“January usually quiet — this year it’s the busiest start we’ve seen in 4 years” — 6 regional agents (this week)
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Off-market stock disappearing in <36 hours when priced right — across all major centres
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Institutional interest now spreading beyond Newcastle — first confirmed Middlesbrough & Sunderland portfolio buys announced this month
Bottom line for mid-January 2026:
The North East isn’t a one-city play anymore.
Double-digit yields are still very much alive across Sunderland, Middlesbrough, Durham, Gateshead, Wallsend, Houghton and beyond — but the best off-market opportunities are vanishing faster every week.
2026 is not a Newcastle recovery story.
It’s a full-region acceleration story.
The question is no longer if the North East will outperform — it’s which parts of the region you’ll own before the wider market fully wakes up.
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Let’s make January unstoppable — across the whole North East.
Happy investing from Mike Bells Property Sourcing.