Is the dumb money in London right now?

A landlord asked us this week: "Is it a good time to buy, or should I wait?" Every major forecaster is saying the same thing about the North East, and none of them are saying wait.

Three separate measures, growth forecasts, rental yields, and current rent inflation, are all pointing the same way for the North East right now. That almost never happens at once.

The growth forecast

Savills has the North East growing 3.5% in 2026, accelerating to 5.5% in 2027 and 6% in both 2028 and 2029, for 28.8% cumulative growth by 2030, one of the strongest regional forecasts in the country. The underlying story is simple: average prices here are still below £170,000, giving buyers priced out of the South far more headroom, and that's what's keeping this market moving while pricier regions stall.

The yield is still there too

Newcastle is posting gross yields of around 7.4%, one of the highest of any UK city, well above London's 3 to 4%. Growth and yield rarely move together this well, usually a region is strong on one and weak on the other. Right now the North East is delivering both.

Rents are rising here faster than anywhere else

ONS figures for July 2026 put private rent growth in England at 3.8%. The North East is out on its own at 6.3%, the highest of any English region, more than double London's 2.2%, and it's topped this table every single month this year. Buy here now, and it isn't just the property likely to be worth more in a few years, the rent you're charging is climbing faster than almost anywhere else in the country too.

The bottom line

No forecast is a guarantee, and mortgage rates staying higher for longer is a genuine risk worth factoring in. But when the growth forecasts, the yields, and the ONS's own rent data are all pointing the same direction, waiting for a better moment to buy in the North East looks like the more expensive decision, not the safer one. The landlords who did the maths on this a year ago are already ahead. The question is whether you want to be one of them next year, or still waiting.

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