Can First Time Buyers Afford to Live in Sunderland?

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Can First Time Buyers Afford to Live in Sunderland?
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Sunderland residents, like those in the rest o the UK, are currently suffering from a cost-of-living crisis. With high inflation and average mortgage rates above 5%, money is being squeezed from all directions, and causing homeowners many headaches.

But what about first time buyers? How does the current climate affect those of you looking to get on the property ladder? Whilst high mortgage costs are not a good thing, are the economic conditions making it cheaper for buyers looking to get on the ladder in Sunderland?

Let us take a look at the current state of pay for first time buyers and answer the question of whether first buyers can afford to live in this up-and-coming city.

Sunderland: The Most Affordable City for First-Time Buyers 

For single first-time buyers looking to make their initial venture into homeownership, the north of England offers a compelling opportunity, thanks to affordable house prices. This affordability enables individual buyers to manage the monthly mortgage repayments on their own, while still having funds available to enjoy life.

Among the northern cities, Sunderland stands out as the most budget-friendly choice for first-time buyers. Acquiring a small flat would require just £53,316, with the monthly mortgage repayments amounting to a mere nine per cent of an average salary.

In contrast, the average first-time buyers across England and Wales find themselves allocating 33 per cent of their monthly income to mortgage payments. Sunderland’s affordability becomes even more appealing when one considers that a typical monthly salary in the city is £2,187, and only £201 of that would be needed for the mortgage.

Not bad, eh? No wonder people are contacting cash house buyers like us at We Buy Any Home as they look at cash house buyers as the ideal way to sell house fast and generate cash to plough into affordable Sunderland property.

Penshaw monument Sunderland | sell your house fast in Sunderland

Is Sunderland a good place to invest in property?

Sunderland is rapidly emerging as a hotspot for property investors in search of the next promising locale for growth and investment. The city’s appeal as an investment destination is bolstered by new residential buildings going up, workspaces, job prospects, and plenty of amenities and tourist attractions.

Among Sunderland’s population of 277,700, the majority are working-aged individuals, with an average income of £27,394. This particular demographic composition forms a fertile market for buy-to-let investors. Working professionals and families seeking rental homes for occupational needs are in plenty. So if you want to sell house fast and invest here, you would be able to generate tidy rental yields.

Furthermore, Sunderland boasts a vibrant student population, with the University of Sunderland alone serving 14,700 students. Across the region’s five universities, two of which are esteemed members of the Russell Group, there are a total of 106,000 students. Investing in student accommodation within Sunderland presents a profitable opportunity, as this rental segment is recognized as one of the most lucrative within the property sector.

How much is property in Sunderland?

In Sunderland, the property is in good health. Over the last 12 months, the average sold price for a property in the city stood at £156,853. However, this figure varies widely across different categories of housing. Detached homes are at the top of the range with an average sold price of £284,111, followed by semi-detached properties at £163,727. Terraced houses are somewhat more affordable, averaging £119,474, while flats come in at the most economical bracket, with an average sold price of £95,108.

These varying prices highlight the breadth of options available in Sunderland, accommodating a wide range of preferences and budgets for potential buyers and investors.

Is there help for first time buyers?

Luckily, there are a few schemes out there that are designed to help first time buyers get on the property ladder. These include:

Lifetime Individual Savings Account (LISA)

LISA offers a way for those between the ages of 18 and 39 to buy a first home (valued up to £450,000). An annual contribution of up to £4,000 can be made until the age of 50, with an initial deposit required before turning 40. The government adds a 25% bonus, up to £1,000 yearly. If buying with another first-time buyer who also has a LISA, both accounts can be used towards the same property. Note that withdrawal penalties apply if not used for a deposit or after age 60.

Help to Buy ISA

Still applicable for those who opened this account before November 2019, the Help to Buy ISA permits the utilization of the account for a deposit until December 2030. Similar to LISA, a 25% bonus on savings is available, but with a monthly saving limit of £200, unlike LISA’s yearly £4,000 cap.

Help to Buy: Equity Loan (England)

Exclusively for first-time buyers in England looking to purchase a new build within the relevant price cap, this scheme requires a minimum 5% deposit. Up to 20% of the purchase price can be borrowed interest-free for the first five years. Afterwards, interest-only payments are made without reducing the principal loan amount.

Help to Buy: Mortgage Guarantee Scheme

 Introduced in the 2021 Budget, this scheme encourages lenders to offer mortgages with only a 5% deposit by providing a guarantee for 80% of the purchase value, covering 95% of net losses in case of repossession. Lenders retain a 5% risk, ensuring a vested interest in each loan.

There are some other options too, such as shared ownership so do some research to find a scheme that may be beneficial to you.

What is the best area of Sunderland to live in?

If you’re considering property investment or buying a first home in Sunderland, several areas offer promising opportunities.

  • Carley Hill and Castletown have average property prices of £95,000 and monthly rentals at £550.
  • Sunderland’s seafront area, known for growth and rejuvenation, offers properties at around £180,000, while the Riverside Quarter’s average price is £160,000.
  • The student-focused University District is a strong investment area with £130,000 average pricing.
  • Seaburn, a premier beachfront neighbourhood, boasts average prices of £264,000, while Fulwell, known for its vibrant culture and varied housing, averages £190,000.
  • Ashbrooke, a popular suburb, has properties for around £186,000, and Middle Herrington, known for easy access to key locations, averages £177,000. Rental prices across these areas range from £550 to £800 per month, providing diverse options for investors.

How We Buy Any Home Can Help 

If you are lucky enough to already have a home to sell, We Buy Any Home can help you get on the Sunderland property ladder. One of the primary benefits of utilizing our service is the speed we offer. As the UK’s premier quick house sale company, we’ve successfully handled property sales in Sunderland for many years, encountering and navigating every conceivable challenge. Our vast experience enables us to adapt our services to meet clients’ specific timelines, ensuring timely completions without the last-minute rush. This advantage is especially notable considering that selling a property on the open market typically takes between 6 to 9 months.

Call us today for more information!

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