Property prices in the North West have risen by 15.2% in the last year, according to buy-to-let (BTL) specialist Sequre Property Investment.
House prices in the region have climbed considerably in the last year, up 11.8% which is the second-highest rate of growth of all regions.
As well as this, rental demand in the North East is currently at 42%, higher than both the North West (40%) and England as a whole (39%).
Within the Tees Valley area, Darlington rental demand has reached 52%, with Redcar and Cleveland (46%) also seeing tenant demand for rental homes sit above the regional average.
Hartlepool (27%) and Stockton on Tees (27%) are also home to a good level of tenant demand, while Middlesbrough is the least in demand at 21%.
Across both Redcar and Cleveland and Stockton on Tees, 16% of all dwellings sit within the private rental sector, coming in below the national average (19%).
Hartlepool is also home to a below average level of rental homes at 18%, while Middlesbrough (20%) and Darlington (21%) sit marginally higher.
Daniel Jackson, sales director at Sequre Property Investment, said: “We’ve seen more and more investors within the buy-to-let space opt to invest outside of London due to the more favourable yields on offer and, as a result, the North West has been performing very well in recent years.
“However, the focus certainly seems to be shifting to the North East as the next area of substantial growth and investors are eying the potential returns that may come due to substantial projects like the redevelopment of the Redcar Steelworks.
“The firm foundations of a strong rental market are already in place across the Tees Valley area, but when you also factor in the potential shortage of existing stock in some areas, it presents a great opportunity for those considering an investment into the buy-to-let sector.”