If you’re an investor looking for a fast-growing property market with bundles of future potential, you might want to take a look at the buy-to-let opportunity in Sunderland.
With a mix of city, beach and countryside, Sunderland has always had an incredible set of underlying fundamentals. This famous port city in Tyne and Wear is gradually transforming into a bustling cultural and economic hub – turning the page on the post-war period that saw it rank as one of the most deprived areas in the UK.
Sunderland, and neighbouring Newcastle, now represent some of the best property investment opportunities in the country. But with most investor interest having focused on London, Birmingham, and the North West in recent years, the industry is only just starting to recognise the potential in the North East.
In this guide, we’ll explain everything you need to know about property investment in Sunderland, including the five best areas to purchase a buy-to-let.
Overview
Once a humble monastic settlement on the banks of the River Wear, Sunderland’s evolution into a bustling urban centre was sparked by its rise as a coal mining and shipbuilding powerhouse. The city’s shipyards once claimed the title of the largest in the world, a testament to Sunderland’s industrial spirit.
Unfortunately, these industries declined in the mid-20th century and are all but gone today.
This has forced the local government to re-evaluate Sunderland’s future, and the economy is evolving as a result. Coal mines have been replaced with offshore wind farms, tapping into the North Sea’s vast potential for green energy production. Shipbuilding has given way to automotive manufacturing, with Nissan maintaining a huge plant in the region. Plus, a focus on software and the creative arts is opening up a range of new industries, such as filmmaking.
Not only does this create jobs, but it keeps talent in the region and spurs further growth. That’s boosted by the University of Sunderland, a world-class educational institution that attracts over 15,000 students each year and generates a stream of fresh graduates for the job market.
The city is renowned for its affordable and varied nightlife, ranging from historical pubs and bustling nightclubs to fantastic museums and theatres. It’s a popular destination for sports too, with local football team Sunderland AFC playing their home games at the Stadium of Light.
Why Is Sunderland A Good Choice For Property Investors?
Sunderland is a good choice for property investors because it offers lower prices and higher yields than key market alternatives. With high demand from a mixed economy and excellent transport links to Scotland and the North, it’s a prime growth location.
As of November 2023, the average property price in Sunderland stands at £165,000 (Rightmove). That means, compared to the national average of £291,000, Sunderland offers a much more affordable route for investment. If you’re a first-timer or you don’t have a huge budget, that makes Sunderland a very interesting proposition.
This affordability is combined with strong rental yield performances in a low-risk, high-reward package. In our 2023 research, we found that the SR1 postcode in Sunderland offered the 8th strongest yields in the country. This provides an excellent opportunity for investors looking for a profitable buy-to-let property.
The city’s strong yields are driven by the demand for rental properties, which in turn stem from the presence of the University of Sunderland (ensuring a consistent influx of students) and the city’s growing workforce. Plus, with its coastal location, Sunderland offers a balance between daily urban life and natural beauty – an attractive combination for renters and homeowners alike.
The Five Best Areas For A Buy-To-Let In Sunderland
Sunderland City Centre
As we’ve already mentioned, the SR1 postcode, which covers Sunderland’s city centre, ranked extremely well in our 2023 research. With an average property price of approximately £76,000 and rental yields hitting 8.5%, this is one of the best value-for-money locations in the UK.
With substantial regeneration projects in the pipeline, properties in the city centre should see strong capital appreciation alongside profitable rental income over the next decade – making it an excellent choice for investors looking for the next hotspot.
Seaburn
Seaburn’s close proximity to the nearby coastline means that it is regarded as one of the most desirable areas of the city. Seaburn Beach, a couple of miles north of the city centre, is popular for bathing, sailing, surfing, and other watersports – boosting demand for properties in the area.
This makes it an excellent choice for an investment property, especially given properties in Seaburn could achieve excellent yields as summer holiday rentals. That said, it’s worth keeping in mind that this is where you’ll find some of the highest property values in the region.
Ashbrooke
Ashbrooke was one of the city’s first suburbs, with roots in the Victorian era, and it has become a highly desirable residential neighbourhood.
With a range of large Victorian-era houses and apartment conversions, it’s now home to many young professionals and students of the University, which is situated nearby.
Within easy cycling distance of the city centre, Ashbrooke offers a range of restaurants, cafes and other amenities.
As one of the city’s most in-demand spots, it’s an excellent location to purchase a buy-to-let property.
Fulwell
Fulwell sits in between Seaburn and the city centre. Here, you’ll find a mix of modern new-builds and older properties dating back to the 19th century. You’ll also find Fulwell Mill, a distinctive landmark and the only working windmill in North East England.
Fulwell is a relatively affluent area, pulling in young professionals and families looking for an excellent standard of living within easy reach of the city centre.
Smart investors will recognise this as an opportunity. By tapping into the area’s high demand, landlords can benefit from excellent yields, minimal void periods, and stunning capital growth.
High Barnes
High Barnes is a popular residential area that offers a more laid-back suburban lifestyle. There are plenty of nearby amenities, most notably the tranquil gardens and green spaces of Barnes Park.
The area is most sought-after by young families, with the park, local schools, and nearby shopping facilities playing a big part in its appeal.
For an investor, this area has all of the fundamentals we look for in a location:
- Great transport links – there’s easy access to the A19, which connects Sunderland with the rest of the region
- Tenant demand – families want to move here, creating a demand for properties that can cater to their requirements
- Location – despite being separate from the city centre, it is still very close. Buses to the centre take just 20 minutes.
Looking for a buy-to-let in Sunderland?
The investment case for a buy-to-let in Sunderland is growing. The city offers experienced investors an opportunity to diversify their portfolio with a low-risk, high-reward property across five exciting residential areas. Meanwhile, new investors can benefit from the low barrier to entry, with affordable prices making it an easy first step into the industry.
Whatever your situation, our experts can help you find the right property for your goals and budget. We’re here to help you source and purchase exceptional buy-to-let properties in an ethical manner, at no extra cost. We draw on years of experience supporting investors across the UK and beyond.
We can connect you with better deals and find properties that fit your specific criteria, so if you’re looking for a buy-to-let in Sunderland or elsewhere, get in touch today for a free consultation.
