Middlesbrough Property Market Update

🏠 Middlesbrough Rental Market Snapshot

As of June 2025, the average private rent in Middlesbrough reached £664 per month, representing a 10.0% increase from £604 in June 2024, outpacing the North East regional inflation rate of 9.7%, which remained the highest in England over this period.

📊Key Rental Update – Middlesbrough

Average Monthly Rent 2025: £664

Average Monthly Rent 2024: £604

Year-on-Year Growth: +10.0%

Middlesbrough’s rental market is accelerating due to its affordability relative to national averages, growing tenant demand - bolstered by Teesside University and local regeneration schemes - and a tight housing supply, which has intensified competition and driven rents upward.

🏡Middlesbrough Sales Market Snapshot

Middlesbrough’s housing market has experienced significant growth, with the average house price reaching £150,000 - a 12.5% increase from £133,000 in 2024. This rise exceeds the North East regional average growth of 6.4% over the same period.

📊Key Sales Update – Middlesbrough

Average House Price 2025: £150,000

Average House Price 2024: £133,000

Year-on-Year Growth: +12.5%

This surge in values—especially significant among first-time buyers (average £128,000) and mortgage purchasers (£152,000) - underscores Middlesbrough’s ongoing affordability, its regeneration momentum, and growing attractiveness as a place to live and invest.

📈What’s Happening in Middlesbrough?

Middlesbrough’s mix of affordable property prices and rising rental levels is creating strong opportunities for investors looking for competitive returns.

Flats and terraced houses remain particularly attractive in this market, as they generally deliver higher rental yields compared to larger family homes. This is further supported by local regeneration projects and student demand from Teesside University, both of which contribute to sustained rental demand and long‑term growth potential.

🎯Investor Appeal in Middlesbrough

Capital + Income Growth
Strong rental uplift (10%) combined with solid house price growth (12.7%) makes Middlesbrough appealing for investors looking for both income and capital appreciation.

High Yields on Compact Stock
Terraced houses and flats in central postcodes like TS1 and TS3 deliver yields in excess of 7–9%, outperforming broader area averages.

Low Entry Price
Average property prices (£80K–£111K for flats and terraces) remain well below national averages, lowering barriers to entry and improving return potential.

Sustained Tenant Demand Drivers

Large student population from Teesside University and Urban regeneration and infrastructure investment (e.g., rail station, urban farm, leisure hub) striving to boost demand.

Relative Strength in Regional Context

Middlesbrough represented around 35% of homes bought by landlords in the North East in early 2025, the second hottest area by volume after Redcar & Cleveland (50%).

🚀Why Now?
If you’re considering expanding your portfolio or getting into the market, now is a fantastic time to explore opportunities in Middlesbrough before prices climb further.