Newcastle Location Guide - Frater Property Partners

Invest in Newcastle

Last reviewed: June 2026, against ONS, EY Regional Economic Forecast, Newcastle City Council and Savills data

Newcastle is the commercial heart of North East England, with a population of over 324,000 and an urban economy worth £9.9bn, forecast to grow by £500 million by 2028. Savills’ most recent forecast (June 2026) puts North East house price growth at 23.9% over the five years to 2030 — among the strongest in the UK. Backed by the £100m Pilgrim Street regeneration scheme and the region’s most affordable major-city entry points, Newcastle offers a compelling case for landlords seeking both yield and capital growth.

Newcastle's Economy & Population

Newcastle is the commercial heart of North East England, with a population of over 324,000 and an urban economy worth £9.9bn.
Newcastle’s economy is forecast to grow by 1.5% annually to 2028, matching the UK average and outpacing the wider North East region (1.3%).

Predicted to expand by over £500 million by 2028.
It is the first city worldwide where the local authority, hospital trust, and universities jointly declared a climate emergency and committed to achieving net zero emissions by 2030.

Regeneration & Institutional Investment

Newcastle upon Tyne is undergoing significant regeneration and investment initiatives aimed at enhancing its infrastructure, economy, and cultural landscape.

Transforming the City Centre: This scheme is focused on creating lasting places for people of the city focused on becoming a safer, cleaner and greener city centre.
Pilgrim Street is a £100m city centre regeneration scheme set to deliver nearly 1 million sq ft of new commercial space, aiming to bring thousands of jobs into the city centre and support wider regeneration and growth.

Connectivity & Transport

Newcastle is a gateway to the UK and the rest of the world.

Newcastle Central Station – Major hub on the East Coast Mainline. London: approximately 3 hours. Edinburgh: 1 hour 30 minute & Regular direct services to Manchester, Leeds, Birmingham, and other UK cities.
Newcastle International Airport – around 15 minutes (6 miles) from city centre with domestic, European, and international flights.
A1 Motorway – major road linking Newcastle north towards Scotland and south towards Yorkshire and London as well as being well-connected via A19 and A69 to surrounding regions and cities, facilitating commuter and logistics movements.

Employment

Newcastle benefits from access to a 2.7 million-strong regional workforce within a one-hour drive, offering a diverse talent pool with loyal employees and lower attrition rates than the national average.

Newcastle’s employment growth is expected to exceed the national rate, averaging 0.8% annually compared to the UK’s 0.7%.

Largest Employment Sectors:
Health and Social Care: Largest sector, employing 124,000 people.
Education, Retail, and Manufacturing: Approximately 80,000 employees each.
Hospitality and Business Support Services: Employ between 60,000–70,000 people each.

Large Employers include: Sage, Nationwide (formerly Virgin Money), Siemens, Nestlé, British Airways (call centre), and Procter & Gamble.

Universities & Graduate Retention

With a highly educated and well-connected population, Newcastle is home to 60,000 students across its two centrally located universities.
The region boasts a strong pipeline of talent, with the highest proportion of STEM graduates per capita anywhere in England.
With 18,000 international students, Newcastle benefits from a global talent pool that brings diverse language skills and rich cultural perspectives to the city.

Lifestyle & Amenities

Vibrant City Living: Renowned nightlife, cultural diversity, and friendly atmosphere.
Outdoor Recreation: Close proximity to Northumberland National Park, Northumberland Coast (AONB), and beautiful beaches.
Riverfront Lifestyle: Scenic Quayside area popular for living, dining, and leisure activities.
Outstanding Retail: Eldon Square, Grainger Market, and numerous boutique shopping districts.
Excellent Dining & Nightlife: Rich selection of restaurants, bars, cafés, and vibrant nightlife, especially around the Quayside and Jesmond.
Arts & Culture: The Sage Gateshead, Theatre Royal, Laing Art Gallery, BALTIC Centre for Contemporary Art.
Historic Landmarks: Newcastle Castle, Grey’s Monument and the iconic Tyne Bridge.
Sports & Leisure: St James’ Park (home to Newcastle United FC).

Previous Growth & Performance

Although in recent years the growth in Newcastle hasn’t been as strong as other locations, there has been steady growth and the city is now seeing more investment. It presents opportunities to find a balance for capital growth with strong rental yields.
The rents in the North East have always been strong, alongside house prices being low. This is usually a reflection of a low of capital value growth. You will see this in other areas of the North East. Newcastle however, is now seeing both capital growth and rental growth due to regeneration and investment in the city.
Rental growth the highest in England in 2024 of 6.2%.

Forecasts for Growth

Savills’ most recent forecast (June 2026) puts North East house price growth at 23.9% over the five years to 2030 — among the strongest in the country, reflecting the region’s affordability advantage.
It is expected that rental growth will continue in more affordable areas in the country, so landlords in Newcastle can expect rents to grow further, especially in high quality properties.

Discuss Newcastle investment property with one of the team

Is Newcastle a good place to invest in property in 2026?
Newcastle has a population of over 324,000 and an urban economy worth £9.9bn, forecast to grow by £500 million by 2028 — matching the UK average growth rate and outpacing the wider North East region. Savills forecasts 23.9% house price growth across the North East over the five years to 2030.

What regeneration is happening in Newcastle?
Pilgrim Street is a £100m city centre regeneration scheme set to deliver nearly 1 million sq ft of new commercial space, aiming to bring thousands of jobs into the city centre alongside the wider “Transforming the City Centre” programme.

What is the rental market like in Newcastle?
Newcastle saw the highest rental growth in England in 2024, at 6.2% (Zoopla). Rents in the North East have historically been strong relative to low house prices, but Newcastle is now seeing both capital growth and rental growth together as regeneration and investment accelerate.

What are Newcastle’s major employers?
Large employers include Sage, Nationwide (formerly Virgin Money), Siemens, Nestlé, British Airways and Procter & Gamble. Newcastle’s employment growth is forecast at 0.8% annually, ahead of the UK’s 0.7%.

Is Newcastle a good city for graduate retention and rental demand?
Newcastle is home to two centrally located universities and 60,000 students, including 18,000 international students, with the highest proportion of STEM graduates per capita in England — supporting strong, sustained rental demand.