StripeHomes: Newcastle could see house price uplift if Magpies’ takeover is greenlit
Property developer StripeHomes has suggested that, if Newcastle United’s Saudi takeover is greenlit, it could mean a boost of 15% for property prices in the region.
The takeover, reported to be worth £300m, is yet to go ahead, but could make Newcastle one of the richest clubs in the world, and fans will be hoping a return to the top tier of the Premier League to follow.
StripeHomes looked at 20 previous takeovers and what happened to local house prices in the years following.
On average, house prices in towns or cities to benefit from a big name takeover increased by 5% in the year following, climbing to 15% over three years.
With the average house price in Newcastle currently at £159,722, a similar boost could see a climb to £167,711 over the next 12 months, hitting £184,062 in just three years.
In the year following Tottenham Hotspur’s takeover by Joe Lewis in 2001, surrounding house prices increased by 19%.
After Joshua Harris took over Crystal Palace in 2015 local house prices climbed by 16%, with a 10% increase in local market values when Abramovich took the helm at Chelsea.
When Tony Bloom became the majority owner at Brighton, house prices in the local area climbed 13% in the city.
After the Glazers took over at Man United, there was also a 10% uplift.
Bournemouth, Norwich and Sheffield also saw increases of between 6%-8% following their respective takeovers.
Looking at the data over the three years following each takeover, Tottenham, Arsenal, Watford, Norwich, Chelsea, Bournemouth and Crystal Palace all saw house price increases in excess of 20%.
However, Leicester, Liverpool, Newcastle and Man City all saw prices decline in the year following their last takeover, while Newcastle, Liverpool and Man City have also seen a decline over the three years following.
James Forrester, managing director of StripeHomes, said: “If it does come off, this latest deal should put the club back where it belongs and bring a much wider benefit to the local economy and housing market.
“Mike Ashley may not be the most popular man in Newcastle but he is a businessman at the end of the day.
“So it’s no surprise that any wider economic benefit has been slim since he took over Newcastle as the club has been run on spreadsheet analysis rather than with a passion for football and the local community.
“What we really need is the return of that feel good factor on match days, the atmosphere that fills the pubs, clubs and restaurants in the city.
“It’s this buzz that makes Newcastle and we can’t underestimate how important it is for the club and how it filters down through the community to all areas of the local economy.
“Hopefully, it will make Newcastle the footballing destination it once was and this boost will increase demand for housing and see prices increase as a result.”