Why Sunderland is the UK's next property investment hotspot

Are you thinking of expanding or starting your property portfolio?

Why you should consider property in Sunderland for your portfolio.

Why not think of property in Sunderland?

Sunderland is becoming a favourite for landlords in the UK as the northern town goes through a regeneration period.

In 2024, Sunderland was recognised by NRLA as the leading UK area for buy-to-let investments, presenting a prime opportunity for landlords.

With affordable property prices and strong rental demand from students and young professionals, the city offers great potential.

High rental yields in Sunderland

Sunderland is becoming a favourite for landlords due to its high rental yields. The presence of young professionals and students from local higher education institutions allows landlords to earn more from property investments compared to many other areas.

In the postcode area SR1 (the city centre), the rental yield is as high as 10.1%. For the more general area of Sunderland, the rental yield is 7.61%—compared to the national average of 5.37%. Investing in property in Sunderland offers greater profit potential for landlords compared to many other regions in the UK.

The high number of students and young professionals in the area creates strong tenant demand. Students often change residences frequently as they relocate home or move in with peers, creating high tenant turnover over also allowing landlords to take advantage of the changing housing market year by year.

Affordable property prices in Sunderland

Not only does Sunderland have one of the best returns on investment in England for landlords, but the property prices are some of the friendliest in the country.

The average property price for the area is £144,000, with a medium price of £125,000.

Property prices in the area have had a decrease of 5% in the past 12 months, further cementing it as one of the most budget-friendly areas in England.

Here is a breakdown of the price averages for the different kinds of properties available.

• Terraced Houses: Average prices of £139,241.

• Semi-Detached Houses: Average prices of £178,060.

• Detached Houses: Average price of £294,650.

• Flats: Average price of £101,762.

The area cheapest property prices in the postal areas in SR1 1 with an average of £56,100. SR6 8 is the most expensive area, with an average price of £254,000.

Making Sunderland an ideal first investment opportunity, as it offers above-average rental yields combined with below-average property prices, making it a low-risk choice for those starting their property portfolio.

Sunderland regeneration boosts property values.

Another reason for the sudden interest in Sunderland from landlords is the regeneration that is currently underway in the city centre.

Riverside Sunderland is a long-term vision to transform the city centre that is on track to come to a close in the next 18 months.

In 2019, Sunderland City Council introduced a project as part of a long-term initiative to transform the city centre into a livelier environment for residents and businesses.

Riverside Sunderland is designed to provide:

• Housing.

• Office spaces.

• Recreational facilities (shopping and restaurants).

• Walkable green areas around the River Wear.

For more information about Riverside Sunderland, click here.

Final thoughts: why invest in Sunderland property?

All in all, Sunderland is shaping up to be a prime spot for property investment.

With high rental yields, affordable prices, and plenty of demand from students and young professionals, it’s a great option whether you’re a hands-on landlord or looking for a more passive income.

Plus, with the city’s ongoing regeneration, property values and opportunities are only set to grow. If you’re thinking about investing, now might be the perfect time to jump in!

‍

To find out more about Sunderland's potential for your property portfolio contact Estatio today!

Phone: 0800 779 7791