Buy to let has long been a popular investment option for those looking to diversify their portfolio and take advantage of the stability and growth of the housing market. The goal of buy to let is to generate a steady stream of passive income, as well as potentially benefit from long-term capital appreciation. However, it is important to understand that being a landlord comes with responsibilities, such as finding and managing tenants, maintaining the property, and dealing with legal issues, and that the rental market can be impacted by a variety of factors that can impact profitability, leading to some people who don’t do enough research needing to sell a tenanted property quickly and start again elsewhere.
Sunderland: A Prime Investment Opportunity
Sunderland is a prime investment opportunity for landlords in 2023. Known for its rich history as the world’s largest shipbuilding centre, Sunderland has evolved into the UK’s largest car manufacturing hub, making it a popular destination for commuters and travellers in the northeast region
What does the Sunderland rental market look like?
The rental market in Sunderland is healthy. Sunderland boasts a strong employment rate, as well as a thriving arts and cultural scene with museums, galleries, and theatres. This, combined with the city’s great transportation links, makes it an attractive option for tenants including students, workers, and families.
Currently, there are 161 properties available for rent with 42 being listed in the last 14 days. The average rent in Sunderland is £731 per month, while the median rent is £595 per month. Out of the properties available for rent, 1 is priced under £250 per month, 47 are priced between £250 to £500 per month, 92 are priced between £500 to £1,000 per month, 16 are priced between £1,000 to £2,000 per month and 5 are priced between £2,000 to £5,000 per month.
The combination of low property prices and rents in Sunderland provides an opportunity for landlords to achieve attractive rental yields. According to Liveyield, the Sunderland area boasts some of the highest rental yields in the northeast, with an average of 5.7%. Additionally, properties located in the Sunderland SR1 postcode have been reported to provide yields as high as 7.6%.
If you are keen to buy into the Sunderland buy to let market, an obvious target market would be the city’s student population, who are always looking for good quality yet affordable housing.
How many universities does Sunderland have?
Sunderland has one university, the University of Sunderland. The university has 200,000 students and the recent addition of a medical school further solidifies Sunderland’s appeal to potential renters.
Does Sunderland have popular student areas?
In Sunderland, several areas are popular among students for housing. These areas offer affordable and comfortable student accommodation options for those attending the city’s universities and institutions. Some of the top areas for student housing in Sunderland include Jesmond, Garth Heads, Fishergate York, and Quayside.
Jesmond is an upscale area known for its lively social scene and vibrant nightlife. Accommodation is plentiful in this area and includes complexes such as The Foundry.
Garth Heads is an ideal location for students, located a short walk from the city centre. This area is highly sought after by students as a result of student accommodation options in Garth Heads, Mansion Tyne, and The View.
Quayside is a bustling neighbourhood in Sunderland with many gathering places and attractions that draw students to the area. Manor Bank, St James’ Point, and Magnet Court are all great options here.
What do students look for in accommodation?
Students typically look for several key factors when choosing their accommodation, such as:
- Location: Accessibility to campus, public transportation, and nearby amenities such as shops, restaurants, and entertainment venues.
- Affordability: Students often have limited budgets, so finding affordable accommodation that fits their needs is important.
- Comfort: Students want to live in a safe and comfortable environment, with amenities such as a well-equipped kitchen, comfortable furnishings, and good-quality bedding and linens.
- Security: Students want to feel safe and secure in their accommodation, with secure locks, fire safety features, and well-lit common areas.
- Community: Many students value the opportunity to interact with their peers, so student-oriented housing communities that provide common spaces for socializing and other activities are popular.
- Flexibility: Some students may need accommodation for a limited period, so finding flexible lease options that cater to their specific needs is important.
- Amenities: Students may look for additional amenities such as on-site laundry facilities, high-speed internet, and recreational facilities.
Your Checklist for Investing in Sunderland
As you can see, Sunderland is a city that has the envious combination of low housing costs, a high student population, and student-friendly areas which can lead to healthy annual yields for rental properties.
If you are interested in investing in Sunderland rental properties, make sure you do the following:
- It is important to do your research. You need to be aware of the local real estate market, the demand for rental properties in the area, and the types of properties that are most popular among renters.
- It is also important to buy at a value to ensure that you are getting a good return on your investment.
- Once you have purchased a rental property in Sunderland, it is important to set realistic rents. You should consider the local rental market and make sure that your rental price is competitive. This will help you to attract tenants and maintain high occupancy rates, which will help to maximize your return on investment.
- Finally, when the time comes to sell a tenanted property in Sunderland, you can rest assured that there will be assistance available.
Whether you need help finding a buyer, negotiating a sale, or managing the sale process, some professionals can help you every step of the way. By working with a knowledgeable real estate professional, you can ensure that you get the best possible outcome from your investment in Sunderland rental properties.
Then when the time comes to sell, our experts at We Buy Any Home can assist to sell a tenanted property quickly and at no cost to you.
