Sunderland’s Buy-to-Let Market

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Sunderland’s Buy-to-Let Market
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Sunderland’s buy-to-let market is booming. This is driven by the fact Sunderland has some of the lowest property prices in the UK while also being a bustling city with increased job opportunities, and of course, with jobs comes the need to have somewhere to live.

While Sunderland is unlikely to command the highest rental prices in the country, it is a top market for buy-to-let investors. Anybody considering getting into the rental game may pay attention to Sunderland, as the market is potentially about to explode in popularity for the reasons above. This could drive property prices up massively, significantly cutting into profit margins.

Let’s look at some of the best areas to invest in Sunderland and some details on what you can expect from Sunderland as a buy-to-let area.

Best areas for renting in Sunderland

While you could purchase a buy-to-let property almost anywhere in Sunderland and make some cash, some areas are in high demand. If you own property there, you could easily command top rates.

Sunderland City Centre 

Sunderland City Centre is small, but if you live in or know the area, you’ll see it going through a massive rejuvenation period. The local council are investing heavily to regenerate an area that hasn’t had a lot of love over the years. 

If you buy a property in Sunderland City Centre now, you’ll benefit from this rejuvenation. Over the next few years, you’ll likely see increased rents and property prices.

There’s also a good collection of properties in Sunderland City Centre, including apartment blocks, houses, and traditional flats. 

You can expect a yield of 7.6% in Sunderland City Centre – not bad at all!

North Sunderland Suburbs 

There are a variety of suburbs in North Sunderland. They include:

– Monkwearmouth

– Roker

– Fulwell

– Carley Hill

– Seaburn

– Whitburn

– Witherwack

– Downhill

– Town End Farm

All of these are viable places to rent. They are in fairly low-crime areas, and many boast modern properties.

Sunderland has some fantastic transport links, and these suburbs often make great spots for those who commute to Sunderland or Newcastle. Rents are especially high in these areas, thanks to major employers in the area such as Nissan and several other factories.

Unfortunately, yields are slightly lower than Sunderland City Centre at 3.7% and 6.1%, depending on the suburb. However, it is still an investment worth making. 

South Sunderland Suburbs 

If you want to get into student housing, South Sunderland’s suburbs are perfect. They are close to the University of Sunderland, and you should have no issues filling a property during term time (and probably beyond).

There are plenty of suburbs in South Sunderland, too. While some have a very student vibe, you can also opt to invest in Sunderland flats, houses, and more. Top suburbs include:

– Wearside

– Grangetown

– Plains Farm

– Ford Estate

– Doxford Park

– Humbled on Hill

– Ashbrooke

– High Barnes

Landlords can expect a yield of around 5% here, which is very healthy indeed. 

Is Sunderland expensive?

In a word, no, not when compared to the rest of the UK anyway. Sunderland has some of the lowest property prices in the UK. In 2023, the average house price in Sunderland was £163,402. While the average property price in Sunderland has dropped, it remained significantly below the average UK house price of £264,400

This means that purchasing property in Sunderland is affordable. It is one of the most affordable cities in the country for buy-to-let investors. The best part is that property prices are only climbing in Sunderland, which is a stark contrast to cities further south that have seen a small decrease in price. Buying a property for rental in Sunderland could also make it easier to sell the property at a later date.

Average rental price in Sunderland

As you might expect, the average rental price in Sunderland is a bit lower than in comparable cities, too:

– One Bedroom: £589 pcm

– Two Bedrooms: £771 pcm

– Three Bedrooms: £1,070 pcm

– Four Bedrooms: £1,166 pcm

– Five Bedrooms: £1,700 pcm. 

As a landlord, attracting families to three and four-bed properties could be a good way to get good returns. 

Remember, if you want to sell a tenanted property, We Buy Any Home can help. 

The amount of Council Tax you can expect to pay in Sunderland

As with all cities, the council tax you can expect to pay will depend heavily on the valuation of your property. When you move into your Sunderland home, the council will assign your property a band. This will determine how much council tax you’ll pay. According to Sunderland City Council, this is the current price (as of 2024). 

– A: £1,265.54

– B: £1476.46

– C: £1687.38

– D: £1898.31

– E: £2320.16

– F: £2742

– G: £3,163.85

– H: £3796.62

Why you should invest in buy-to-let property in Sunderland

You may invest in buy-to-let property in Sunderland for several reasons.

Affordable housing

As we stated – Sunderland is one of the most affordable places to purchase property in the United Kingdom. This can make it incredibly easy to enter the buy-to-let market for a new investor.

Sure, this does mean that the properties you purchase will only command a small amount of rent. Still, it can be a stable income as you grow your buy-to-let business since rental costs are far higher than a decent mortgage (in most cases).

Lots of renters

Sunderland is a city with a huge demand for housing right now. There are lots and lots of renters in the area. If you have a buy-to-let property in Sunderland, it probably won’t sit empty for too long, especially if you worked with a decent property management company.

Home value is increasing

Many buy-to-let property investors will eventually sell their property. This way, they can unlock the cash they have wrapped up in their asset.

If you plan to do this, you’ll be pleased to know that home prices in Sunderland are not dropping off hugely like in some places in the UK where they seem to have plateaued or dropped significantly. This means you should have no issues receiving the cash you need for your property when you sell it.

Rent costs are increasing 

Like most places in the United Kingdom, rental costs are rising in Sunderland. This means that an investment in a property now could pay off massively in the future. We wouldn’t be surprised if the amount you can get for rent next year is significantly higher than rent this year. However, how much ROI landlords can get on Sunderland properties will depend on several factors.  

The easy way to sell a tenanted property

While many people purchase buy-to-let properties in Sunderland to rent them out long-term, sometimes you want to unlock the capital you have tied up in the property, particularly if you notice a huge increase in property prices. This is where We Buy Any Home can help.

Reach out to us now. We have no hidden fees and can give you a free cash offer for your property, even if you have tenants. Our service is a fast and simple way to sell your home and we operate across the UK, including Sunderland, so call us today. 

Free cash offer within minutes, any condition, any location.

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