Kieran Maguire rubbishes Newcastle property news as Shearer at centre of £5.8m deal
The Newcastle United takeover is unlikely to lead to a boom in house prices in the city.
So says finance guru Kieran Maguire, speaking exclusively to Football Insider about the impact of the £305million deal on the wider community.
The PIF-led consortium promised to deliver “long-term sustainable growth” in Newcastle when the buyout was completed in October.
Club legend Alan Shearer recently sold a house in nearby Darras Hall for £5.8million that he had bought in 2004 for £3m, as per the Daily Mail last Sunday (23 January).
The same report explains that the PIF takeover is expected to lead directly to a boost in the property market in the local area.
But Maguire is wary of overstating the impact of the deal on the housing economy in Newcastle.
“I think these claims are a little bit tenuous,” he told Football Insider‘s Adam Williams.
“House prices are rising for a variety of reasons at present. There are issues around interest rates and restricted supply and so on.
“If Newcastle start fishing in a different pool in the transfer market, this could potentially lead to a rise in house prices at the elite end.
“But many players will be renting an apartment rather than buying. The nature of football is that you might be at a club for just a few years.
“At a certain level, there might be a pick-up. But I’d be cautious as to whether there will be any significant impact on the housing market in Newcastle.
“Newcastle are paying £50,000 to £60,000-a-week to players anyway, so they will tend to be able to afford pretty decent properties.“
Newcastle staff and players spent a week in their new owners’ home country over the winter break.
Maguire told this site earlier today (29 January) that there is “huge interest” in the Magpies in Saudi Arabia.
In other news, pundit tips Newcastle United to sign their own Jordan Henderson after £42m update.