Sunderland Buy-to-Let 2023 Guide

The average monthly rent for a room in the North East region is £514, less than the UK average of £704, with rents in Sunderland average at around £633. Private rental prices are increasing reasonably rapidly across the board, as low supply keeps upward rent pressure, and the North East is no exception.

The North East is one of the highest gross-yielding regions in England, and Sunderland, in particular, can offer some of the best rental yields in the UK, with an average of 7.61%, according to Zoopla. This suggests that Sunderland can provide lucrative investment opportunities for those seeking buy-to-let investments.

Sunderland has a strong reputation as a manufacturing and port city with a rich industrial history. It has shed this image in recent years, rebranding itself as a modern and dynamic place to live. The manufacturing sector, however, remains strong in the city, providing many job opportunities for those in the area. Buy-to-let investors can also target commuters travelling into Newcastle as potential tenants, especially with short-term accommodation.

It’s important to note that Sunderland has been hit by deindustrialisation and outward migration in the past, shrinking the overall working population. The local government is trying to address this through ambitious regeneration projects to revitalise the city as an attractive place of residence.

Buy-to-let student accommodation makes up a large part of the rental demand in Sunderland.

According to Sunderland City Council, the student population is essential to the area’s privately rented housing market. The city is home to the University of Sunderland, and about 9000 students are based at the Sunderland campuses. The constant flow of new students keeps up demand and makes a steady stream of rental income likely.

Learn more with our guide to different property investment strategies for more information.

Average Property Prices in Sunderland City Centre (SR1)

The average property price in SR1 is £98,314.

Average Rental Yield in Sunderland City Centre (SR1)

The average rental yield in SR1 is 8.14%.

Average Property Prices in Seaburn (SR6)

The average property price in SR6 is £249,879.

Average Rental Yield in Seaburn (SR6)

The average rental yield in SR6 is 3.3%.

(Averages taken from Rightmove and Zoopla, rental yield average calculated with figures from housesforsaletorent.co.uk)

Coastal Location

Due to Sunderland’s coastal location and proximity to the River Wear, the area could be attractive to nature-loving renters.

Sunderland also boasts many acres of parks and green spaces. Well-maintained cycle paths allow cyclists to enjoy the area’s beautiful natural scenery, such as the Coast to Coast and Walney to Wear routes. Sunderland is by far one of the best buy-to-let areas in the UK.

Infrastructure

With a population of 175,000, Sunderland is a smaller city, making it easy to get around while still providing all the trappings expected of a modern city, such as a bustling shopping district, a burgeoning arts and culture scene, educational facilities, and employment opportunities in various sectors.

Sunderland has excellent public transport, serving the city and linking it to the rest of the country. This includes bus, metro and rail.

Transport in the city has also been improved with investments in transport infrastructure and regeneration efforts. This includes the Sunderland Strategic Transport Corridor, a revamp of Sunderland Central train station, and expansion to the Port of Sunderland. These projects, along with others, have boosted Sunderland’s logistics industry, with some calling it the logistics capital of the North East.

Regeneration

As previously mentioned, the local government is aggressively revitalising Sunderland with various regeneration projects to provide a boost to local jobs and infrastructure. Around £1 billion has already been invested in the city since 2015, and the council has said they will spend a further £626 million by 2024.

‘Riverside Sunderland’, one of the ongoing projects, is described as the UK’s most ambitious city centre regeneration project. The 32-hectare site is being transformed into a brand new carbon-neutral urban quarter, with plans to include places for work, living and socialising, including 1,000 new homes to help increase the local population.

It’s not just the city centre that benefits from regeneration programmes, as a continuing effort to transform the seafront areas is also in place. It focuses on Seaburn and Roker, which, according to the local government’s strategy, will have a crucial role in providing cultural and tourist attractions in Sunderland by 2025.