Newcastle takeover deal could boost local property market by 15%

June 5, 2020

Fans of the Magpies continue to bite their nails this week as the club’s Saudi takeover, reported to be worth £300m, is still yet to be given the green light after weeks of uncertainty.

The deal 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 will soon follow as a result.

But what could it mean for the local property market?

Local property developer, StripeHomes, has released research looking at 20 previous Prem takeovers and what happened to local house prices in the years following.

The research shows that on average, house prices in towns or cities to benefit from a big name takeover increased by a buoyant 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 as a result of the Saudi deal could see this climb to £167,711 over the next 12 months, hitting £184,062 in just three years.

This price increase, could however, climb even higher.

In the year following Tottenham Hotspur’s takeover by Joe Lewis in 2001 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.

But this double digit price growth isn’t restricted to London. 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, a local property market boost isn’t guaranteed and 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.

Premier League club takeovers vs average house price change ranked by highest increase in the first year following each deal.
Football club
Majority Owner
Date of takeover
Average house price – date of takeover
Change 1 yr
Change 3 yrs
Tottenham Hotspur
Joe Lewis
2001
£165,127
19%
43%
Crystal Palace
Joshua Harris
2015
£307,064
16%
21%
Brighton
Tony Bloom
2009
£212,685
13%
17%
Chelsea
Roman Abramovich
2003
£389,648
10%
28%
Manchester United
The Glazers
2005
£119,724
10%
16%
Bournemouth
Maxim Demin
2013
£208,226
8%
23%
Norwich
Delia Smith and Micheal Wynn-Jones
1996
£39,276
8%
28%
Sheffield United
Prince Abdullah Bin Musa’ed
2013
£127,215
6%
16%
Wolves
Guo Chuangchang
2016
£132,806
5%
16%
Everton
Farhad Moshiri
2016
£118,441
5%
13%
Watford
Gino Pozzo
2012
£223,356
4%
33%
Arsenal
Stan Kroenke
2011
£424,104
4%
38%
Burnley
Mike Garlick
2015
£71,855
3%
12%
Aston Villa
Nassef Sawiris
2018
£182,786
3%
x
Southampton
Gao Jisheng
2017
£205,002
2%
0%
West Ham
David Sullivan and David Gold
2010
£243,608
2%
9%
Leicester City
Aiyawatt Srivaddhanaprabha (formerly his father Vichai)
2010
£119,909
-1%
3%
Liverpool
John Henry
2010
£113,327
-4%
-6%
Newcastle United
Mike Ashley
2007
£160,874
-5%
-10%
Manchester City
Sheikh Mansour
2008
£138,728
-11%
-11%
Average overall
5%
15%
Potential price growth in relation to Newcastle takeover
Newcastle United
Saudi Arabia Public Investment Fund
expected 2020
£159,722
£167,711
£184,062

Properganda PR

National and local media coverage for property businesses. Journo quotes delivered in minutes.

You May Also Enjoy

Breaking News

Almost one in five first-time buyers seeking max 60% LTV mortgages

Almost one in three (31%) first-time buyers are opting for 90% LTV mortgages, and a further 10% are looking at 95% LTV options. This hints at many first-time buyers relying on 5-10% deposits. This translates to £13,650 to £27,300 at the average UK house price of £272,995 [source]. Almost one in five (17%) first-time buyers…
Read More →
Breaking News

Property values bounce back in October

The latest Halifax Property Index shows that: – House prices rose by +0.6% in October vs a fall of -0.3% in September Fourth time in last five months that the average price has increased Average property price now £299,862, edging up to a new record high Annual rate of growth rises to +1.9% (up from…
Read More →
Breaking News

UK house prices rise at fastest pace since January

House prices rose by +0.6% in October vs a fall of -0.3% in September Fourth time in last five months that the average price has increased Average property price now £299,862, edging up to a new record high Annual rate of growth rises to +1.9% (up from +1.3% in September) Mortgage approvals reach highest level…
Read More →
Rightmove logo
Breaking News

Rightmove accelerates AI product delivery to surface more potential sellers and buyers for agents

The UK’s largest property platform Rightmove is today announcing a series of AI developments for consumers and partners, to help agents reach more potential sellers, buyers and renters. There are currently 27 AI initiatives in development, as Rightmove makes AI technology central to its platform to benefit partners and home-movers. Four new developments – two…
Read More →
Estate Agent Talk

How to Pick the Best Option for your Business’ Broadband

Having a dependable broadband connection is crucial for any business. Whether you run a small office or a larger company, a slow or unstable connection can disrupt work, affect communication, and reduce productivity. Picking the right broadband package does not have to be complicated, but it does require careful thought about your business’s specific needs…
Read More →
bank of england interest rate
Breaking News

Bank of England Hold’s Interest Rates at 4%

With the Bank of England holding Interest Rates at 4%, here are some thoughts from the Industry. Matt Smith, Rightmove’s mortgages expert: “Ahead of one of the most widely anticipated and discussed Autumn Budgets of recent times, it was unlikely the Bank would go for another interest rate cut so close to the announcement and…
Read More →