Unlock the Potential of
Buy-to-Let in Sunderland
As a savvy investor, you're always on the lookout for new opportunities to grow your portfolio. If you're in the market for a buy-to-let property, look no further than the thriving port city of Sunderland.What makes Sunderland such an exciting prospect for buy-to-let investors?
For starters, the city boasts a competitive average property price and a track record of impressive historical price growth. With ambitious regeneration projects in the works and a steady stream of demand from students and professionals, the estimated rental yields in Sunderland are nothing to sneeze at. But how do you ensure that your investment in Sunderland is a smart one? Here are some expert tips to guide you: Keep an eye on the projected future growth potential of Sunderland's property market. Factors such as the city's expanding university sector, rising demand for high-quality housing, and infrastructure improvements can all contribute to future price appreciation. Consider investing in serviced accommodation. As Sunderland continues to attract more tourists and business travellers, short-term rentals are becoming an increasingly popular option for investors. By offering stylish, comfortable accommodations with hotel-like amenities, you can enjoy higher occupancy rates and premium rates of return. Stay up to date on regeneration and development plans in Sunderland's housing market. The city has big plans for new housing developments, retail centres, and transportation links, which can all have a major impact on the demand and value of your buy-to-let property.With its potential for growth and attractive rental yields, Sunderland is a smart choice for any buy-to-let investor. By following these tips and doing your due diligence, you can maximise your return on investment and take advantage of all that this dynamic city has to offer.
Economy Output (GVA) £5bn
Population 347,000
Property Growth Average 4%
Rental Growth Average 6%
Why is Sunderland a Good Place to Live and Work?
Sunderland, the largest city in the North East of England, offers an incredible lifestyle for its residents. With a population of over 300,000 people, this bustling city is home to a vibrant community and an array of amenities that make it an ideal place to live and work.
Sunderland boasts a thriving education sector, with several universities and colleges in the area. This not only creates a hub of intellectual stimulation but also ensures a steady stream of students, which can be a great market for buy-to-let investors.
In addition to its educational institutions, Sunderland is renowned for its rich cultural scene. From museums and galleries to theatres and music venues, there is always something exciting happening. Residents can immerse themselves in the arts and enjoy a diverse range of experiences.
What sets Sunderland apart is its strong economy and job opportunities. The city has a variety of industries, including automotive, manufacturing, and service sectors. With an increasing number of businesses setting up shop in Sunderland, there are plenty of employment options available.
Sunderland's low cost of living and high quality of life make it an attractive place to call home. The affordable property prices, coupled with the abundance of amenities, mean that residents can enjoy a comfortable lifestyle without breaking the bank.
Whether you're a young professional, a student, or a family, Sunderland offers something for everyone. With its vibrant community, cultural attractions, job opportunities, and affordable living, it's no wonder why Sunderland is considered a great place to live and work.
Average Property Prices in Sunderland
The average property price in the Sunderland postcode area is £140k, with a median price of £110k. Over the last twelve months, the average price has declined by 0%. This decline is indicative of the high level of demand for properties in the area, despite the challenges posed by increasing mortgage rates and inflation in 2023.
In terms of property types, an established property in Sunderland has an average price of £140k, while a newly built property carries a higher average price of £270k.
In terms of sales, there were 3.1k property transactions in Sunderland. However, sales dropped by 24.2% (-1.1k transactions) due to the impact of the Covid-19 pandemic and rising mortgage interest rates.
When analysing property sales by price range, the majority of properties were sold in the £50k-£100k range, accounting for 1144 (37.0%) properties. This was followed by the £100k-£150k range, with 657 (21.2%) properties sold.
Sunderland features a diverse range of neighbourhoods, each with its property prices. The most affordable places in Sunderland include areas such as Houghton-le-Spring and Seaham, with average property prices below the city's average. The most expensive areas include Sunderland City Centre and Ryhope, with average property prices above the city's average.
When comparing average property prices and the percentage change in prices by postcode area, Sunderland fares favourably. It is among the top ten places for cheapest postcode areas in England and Wales.
In terms of property types, flats tend to be more affordable than houses in Sunderland. However, it is worth noting that the cost of new homes is higher compared to older properties.
Overall, the average property prices in Sunderland provide a range of options for buyers and investors, with opportunities to find affordable homes and potentially lucrative investments.
Historical Price Growth in Sunderland
Sunderland offers a diverse property market, catering to a wide range of tastes and budgets. From grand Victorian mansion houses to modern studio apartments, there is something for everyone in this bustling city.
Since the year 2000, average home prices in Sunderland have experienced significant growth, rising by over 187%. The most accelerated period of growth occurred between 2000 and 2008 when property prices saw substantial increases. However, like many areas across the UK, Sunderland was not immune to the effects of the economic crisis, and prices temporarily fell during this period.
During the growth period from 2000 to 2008, detached homes, semi-detached houses, terraced properties, and apartments all experienced significant increases in value. Apartments, in particular, were often more expensive due to new developments offering luxurious flats in appealing city-centre locations.
In the years following the economic crisis, property prices in Sunderland stabilized and began to show modest growth. Between the years ending June 2012 and June 2022, prices on average grew by 2.3% per year. If this trend continues, it is projected that the average property price in Sunderland will reach £165,384 by the year 2025/2026.
Overall, Sunderland's property market has shown resilience and the potential for future growth. Whether you're looking for a family home, an investment property, or a stylish city apartment, Sunderland has a variety of options to suit your needs.
Regeneration Projects in Sunderland
New Urbam Quarter - Riverside - £1bn
New Leisure Development - £80m
Sunderland New Eye Hospital - £32m
Sunderland is undergoing an exciting transformation with several regeneration projects that are set to reshape the cityscape. One notable project is the construction of a new footbridge, connecting the northern and southern parts of the city. This will improve connectivity and provide easier access for residents and visitors alike.
In addition to the new footbridge, Sunderland is focusing on revitalizing its neighbourhoods and creating more green spaces. Parks are being revamped, giving residents beautiful outdoor areas to relax and enjoy nature. A new business district is also being developed, attracting companies and creating job opportunities for the local community.
Another major development is the Riverside Sunderland project, which aims to transform the Vaux site into a vibrant waterfront district. This £1 billion masterplan includes the construction of 1,000 energy-efficient homes, a new central business district with 1 million square feet of office space, and the creation of Riverside Park. This ambitious project will not only enhance the city's aesthetic appeal but also bring thousands of jobs to the area.
Sunderland is also seeing improvements in its transportation infrastructure. The construction of a new train station, as part of a wider £100 million plan, is well underway. This will modernize the city's main transport hub and provide better connectivity for commuters.
Exciting proposals are also on the horizon, such as the FulwellCain Studios, which aims to create one of Europe's largest film studio facilities. This £450 million project has the potential to generate thousands of jobs and put Sunderland on the map as a hub for the film industry.
With all these regeneration projects in the works, Sunderland is quickly becoming a city to watch. The changes taking place are not only transforming the city's skyline but also creating new opportunities for residents, businesses, and investors alike.
Expected Rental Yields in Sunderland
Sunderland boasts an active rental market, making it an attractive destination for buy-to-let investors. With a growing number of businesses and a thriving student population, there is a steady demand for rental properties in the city. Out of Sunderland's 280,000 residents, 174,000 are of working age, with a median pay of £27,000. Additionally, the University of Sunderland alone is home to 15,000 students, and a total of 110,000 students attend the region's five universities. This makes buy-to-let student accommodation one of the property sector's most lucrative rental markets.
In Sunderland, the average rent is £970, offering attractive returns to landlords with available properties. In fact, according to Rightmove, average yields in Sunderland in 2022 were 5% however this yield can increase to 8% within the student sector. Moreover, the average sale price of a property in the city rose by £12,000 from 2021 to 2022. Despite this increase, houses in Sunderland remain affordable, and the city ranks second on the list of most affordable boroughs to buy a property in England and Wales.
With a strong rental market, affordable housing prices, and attractive rental yields, Sunderland presents an enticing opportunity for buy-to-let investors. Whether you're looking to cater to students or professionals, the city's rental market is ripe with potential for a solid return on investment.
Does Sunderland Work on Serviced Accommodation?
Serviced accommodation is a fantastic option for those looking to invest in a buy-to-let property in Sunderland, especially in city centre locations. These fully furnished apartments offer a range of benefits for both corporate clients re-locating for work and visitors.
Compared to hotel rooms, serviced apartments provide more space, privacy, and comfort. With separate living areas, fully equipped kitchens, and laundry facilities, guests can enjoy the convenience of a home away from home. Additionally, serviced apartments often offer amenities such as free Wi-Fi, parking, and access to gym facilities.
One of the biggest advantages of serviced apartments is their cost-effectiveness for visitors or businesses. In Sunderland, nightly rates can range from £50 to £100 depending on the style of the property. This makes them a more affordable option for longer-term bookings or for larger groups of people as opposed to hotels.
When it comes to occupancy rates, self-managed landlords in the serviced accommodation sector typically see an average of around 50% occupancy for the year. However, those who utilise professional management services can expect an average occupancy rate of 70% or higher.
It's important to note that choosing the right location and management team is crucial for the success of serviced accommodation in Sunderland. With the right investment strategy, rental returns can be significantly higher than traditional letting and student lets. So, if you're considering a buy-to-let investment in Sunderland, serviced accommodation is definitely worth exploring.
Some of the biggest employers in Sunderland you are likely to be targeting for serviced accommodation:
Overview
Sunderland is a city on the rise, offering numerous opportunities for buy-to-let investors. With its competitive average property prices, impressive historical price growth, and projected future growth potential, Sunderland presents a smart investment choice. The city's thriving education sector, cultural scene, and strong job opportunities make it an attractive place to live and work. The average property prices in Sunderland provide a range of options for buyers and investors, with opportunities to find affordable homes and potentially lucrative investments. Additionally, the ongoing regeneration projects in the city, such as the construction of a new footbridge and the Riverside Sunderland project, are reshaping the cityscape and creating new opportunities. With a strong rental market and attractive rental yields, investing in serviced accommodation in Sunderland can also be a profitable venture. Overall, Sunderland offers a wealth of potential for buy-to-let investors, and with careful consideration and research, investors can unlock the full potential of this dynamic city.