Sunderland Buy-to-Let Guide

The average price of property in Sunderland is one of the lowest in the UK. According to Rightmove, sold properties in the city over the last year saw an average price of £167,568. This is 3% up on last year and 9% on 2020.

As per Zoopla’s July 2023 UK House Price Index, the UK average for house prices is £261,500, putting Sunderland below the average. While house prices have fallen in some areas such as London and the South East, the North East bucked this trend, exhibiting an average growth of 1%. Promisingly, Sunderland’s property grew the most in value in this region, rising 1.3% in June.

While capital value has been stalling in the past few months, predictions point to overall growth for house prices across the UK in the future, meaning now is a good time to invest before prices rise.

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Sunderland is home to diverse property types suitable for investment. Investors looking for seafront properties will find them in Seaburn, and the larger area of Fulwell is littered with 19th century terraced properties and 1930s semi-detached houses. The majority of housing in Ashbrooke is Victorian style, and other areas boast bungalows and detached houses. There’s also a type of property unique to Sunderland called the Sunderland Cottage, which can be described as a terraced bungalow.

There are some modern and new build properties available as well, but they are limited compared to older properties.

According to Rightmove, the majority of sales in Sunderland during the last year were semi-detached houses, going for an average price of £171,145. This is followed by terraced properties, which sold for an average of £123,102, while detached properties fetched £322,923.

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.

While newly built properties have developed a reputation for attracting both landlords and tenants alike, they are typically far more expensive than older residential homes.

However, one way to mitigate this high cost is through off-plan property investment.

Off-plan investors will purchase a property before it has been fully completed, usually at a heavily discounted rate compared to standard market prices.

By jumping on early, investors can benefit from higher levels of capital appreciation and more substantial rental demand than older properties, which can lead to considerable returns in the future.

As with new-builds, the best areas for off-plan investment will be those with robust infrastructure and high levels of regeneration. While there is some potential for off-plan investment within the Sunderland rental market, it may be more beneficial for investors to consider UK cities with more concentrated levels of new-build developments (such as Liverpool or Manchester).