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Newcastle upon Tyne · report

Buy or rent in Newcastle upon Tyne

Owning the average home costs less each month than renting it. Owning counts interest, running costs and the return the deposit could earn, at the average sale price; rent is the average of all private tenancies. Repaying the loan is saving, so it is left out.

Rent per month
£1,220
Owning per month
£995

Try your own numbers

Starting from the average sale price of £211,255 and the average private rent of £1,220 a month in Newcastle upon Tyne, and a mortgage rate of 4.6%.

Assumptions
4.6
1
Buildings insurance, maintenance, and any service charge and ground rent. Council tax is paid by tenants too, so it is left out.
3
What the deposit and purchase costs could earn if invested instead.
7
Stamp duty (land transaction tax in Wales, LBTT in Scotland), conveyancing, survey and lender's fees, paid once.

Owning costs less each month than renting.

Rent a month
£1,220
Owning a month, not recovered
£995
Interest
£729
Running costs
£176
Return given up
£90
Cash out a month, if buying
£1,151

Gross rental yield in Newcastle upon Tyne

A year's rent as a share of the average sale price, month by month. Higher means rent is dear compared with buying.

Show the numbers
PeriodNewcastle upon Tyne
Aug 20266.9%
Jul 20266.9%
Jun 20266.9%
May 20267.0%
Apr 20267.0%
Mar 20267.0%
Feb 20267.0%
Jan 20266.9%
Dec 20257.0%
Nov 20257.0%
Oct 20257.0%
Sep 20256.8%
Aug 20256.7%
Jul 20256.6%
Jun 20256.7%
May 20256.6%
Apr 20256.5%
Mar 20256.3%
Feb 20256.3%
Jan 20256.3%
Dec 20246.3%
Nov 20246.3%
Oct 20246.2%
Sep 20246.1%
Aug 20246.1%
Jul 20246.2%
Jun 20246.3%
May 20246.4%
Apr 20246.4%
Mar 20246.4%
Feb 20246.2%
Jan 20246.2%
Dec 20236.1%
Nov 20236.2%
Oct 20236.1%
Sep 20236.1%
Aug 20236.1%
Jul 20236.1%
Jun 20236.2%
May 20236.2%
Apr 20236.1%
Mar 20236.1%
Feb 20236.0%
Jan 20236.0%
Dec 20225.9%
Nov 20225.8%
Oct 20225.8%
Sep 20225.7%
Aug 20225.8%
Jul 20225.9%
Jun 20225.9%
May 20225.8%
Apr 20225.8%
Mar 20225.7%
Feb 20225.8%
Jan 20225.8%
Dec 20215.9%
Nov 20215.8%
Oct 20215.9%
Sep 20216.0%
Aug 20216.0%
Jul 20216.1%
Jun 20215.9%
May 20216.1%
Apr 20216.0%
Mar 20216.0%
Feb 20216.1%
Jan 20216.1%
Dec 20206.1%
Nov 20206.0%
Oct 20206.0%
Sep 20205.9%
Aug 20206.0%
Jul 20206.1%
Jun 20206.2%
May 20206.3%
Apr 20206.3%
Mar 20206.3%
Feb 20206.2%
Jan 20206.1%
Dec 20196.1%
Nov 20195.8%
Oct 20195.7%
Sep 20195.6%
Aug 20195.8%
Jul 20196.0%
Jun 20196.1%
May 20196.2%
Apr 20196.1%
Mar 20196.1%
Feb 20196.1%
Jan 20196.0%
Dec 20185.9%
Nov 20185.8%
Oct 20185.8%
Sep 20185.8%
Aug 20185.8%
Jul 20185.8%
Jun 20185.8%
May 20185.9%
Apr 20185.9%
Mar 20185.9%
Feb 20185.9%
Jan 20186.0%
Dec 20175.9%
Nov 20176.0%
Oct 20175.9%
Sep 20176.0%
Aug 20176.0%
Jul 20176.0%
Jun 20176.0%
May 20176.2%
Apr 20176.3%
Mar 20176.2%
Feb 20176.1%
Jan 20175.9%
Dec 20165.9%
Nov 20165.9%
Oct 20165.8%
Sep 20165.7%
Aug 20165.6%
Jul 20165.6%
Jun 20165.6%
May 20165.6%
Apr 20165.7%
Mar 20165.7%
Feb 20165.7%
Jan 20165.6%
Dec 20155.5%
Nov 20155.5%
Oct 20155.4%
Sep 20155.5%
Aug 20155.5%
Jul 20155.5%
Jun 20155.5%
May 20155.6%
Apr 20155.6%
Mar 20155.7%
Feb 20155.7%
Jan 20155.8%

The comparison counts only the costs of owning you never get back: interest, running costs and what the deposit and purchase costs could earn elsewhere. Loan repayments build equity, so they are left out. So is any rise in the home's value, because nobody knows it in advance. Rents here are ONS's average of all private tenancies, new and continuing, which runs below what a new tenant pays; Scotland's are mostly advertised new lets, and its councils and Northern Ireland's take their nation's figure.

Other reports for Newcastle upon Tyne

Next 12 months

Sale prices have an 80% chance of landing between £210,317 and £234,161 by August 2027.

Expected, August 2027
£222,239
Chance of a rise
88%

Affordability

At the average sale price, a home costs £211,255. With 10% down and a 30-year mortgage, the payment is £975 a month. The UK sets no cap on the payment; no more than 15% of new mortgages may lend over 4.5 times income.

Payment, two incomes
16%
Payment, one income
33%

New homes

155.4% more homes were started in the last 12 months than in an average year of the past decade.

Started, 12 months
2,740
Per 1,000 residents
8.5

Foreign buyers

Figures for United Kingdom: Newcastle upon Tyne has no reliable figures of its own.

Buyers living abroad bought 1.8% of the homes sold here in the four quarters to Q1 2025.

Bought by buyers abroad, 12 months
1.8%

Past cycles

Sale prices have fallen by 3% or more 11 times since 1995. The deepest began in July 2007.

Deepest fall
−19.3%
Recovery from the low
81 months

People and new homes

In 2025 the population grew by 1,989 while 730 homes were finished: 2.7 new residents for every new home.

New residents per new home, 2025
2.7
Population change, 2025
+1,989

Empty homes

4.8% of the 129,553 homes counted in the 2021 census had nobody usually living in them.

Empty, 2021 census
4.8%
Empty homes
6,200

Renovation

In 2025, 3% of the homes added came from existing buildings rather than new ones.

Homes from existing buildings, 2025
3%