In some parts of the UK, it is becoming difficult to find somewhere to rent at affordable prices. Head to Newcastle, for instance, and many struggle to find somewhere decent to rent, whether it be professionals or families. This is why many people are venturing out of these unaffordable cities towards places like Sunderland, a city that has become well known for offering affordable property prices. But is it difficult to rent in Sunderland these days too?
Remember, as Sunderland cash house buyers we always make sure we know what the local property market is doing, and this helps us buy properties for cash from landlords eager to sell a tenanted property. If this is you, give us a call and we will make you an offer on your Sunderland home within minutes.
Demand for Rental Property in Sunderland
A few years ago, Sunderland was regarded as one of the cheapest places to rent in the UK. In fact it was the cheapest place to live overall. These low prices drove a lot of demand in the area, especially among those who wanted to work in major cities like Newcastle but didn’t want the associated costs.
Demand for rental properties in Sunderland is continuing to rise today. Lots and lots of people are heading into Sunderland as employment opportunities increase, to enjoy the links to major cities in the North, and a thriving cultural scene. While rental prices in Sunderland are still considerably lower than some of the surrounding areas, demand for property here is sky-high, and savvy buy-to-let investors rarely struggle to let their properties out.
The demand for rental properties in Sunderland will likely continue to rise too. The area is very popular right now, and the lower average wage in this area often means that people have little choice but to rent, since they’ll struggle to borrow cash to buy in this increasingly tough economy.
Current Sunderland Rental Yields
The big question, however, is can landlords get ROI on Sunderland rental properties and the answer is – yes. Even though rental prices here are a bit lower than in surrounding areas, the average cost to buy a property in Sunderland is also lower, which does lead to decent rental yields.
In 2024, Sunderland rental yields are 8.5%, which in the Northeast is only beaten by Middlesborough (8.52%). This means that rental yields in Sunderland are some the highest in England (and only beaten by a few Scottish cities in the overall UK).
This makes Sunderland more than a solid investment, and with rents rising quite sharply as of late, chances are that the rental yield in Sunderland will continue to rise over the years.
Current Average Rental Prices in Sunderland
As of March 2024, these are the current average rental prices in Sunderland:
- One Bedroom: £597 per month
- Two Bedrooms: £751 per month
- Three Bedrooms: £1,060 per month
- Four Bedrooms: £1,123 per month
- Five Bedrooms: £1,767 per month
And per property type:
- Room: £706 per month
- Flat: £800 per month
- House: £912 per month
The average rent for a room is particularly surprising since this is one of the few parts of Sunderland which is more expensive than elsewhere in the UK. The high average rental cost for a room is driven by the nearby university, plus the fact that there are very few individual rooms to rent in the area, at least for the short-term rentals that students crave. So, buy-to-letters that get into the student market could make a sizeable amount if timed right and the property is desirable.
Buy-to-Let Areas in Sunderland
Sunderland as a city is quite spread out, and while most places in Sunderland can give you a decent rental yield, there are a few areas that savvy investors may wish to focus on.
Sunderland City Centre
Sunderland City Centre is going through a huge period of rejuvenation right now, and this means that the market for the area will get stronger, delivering decent rental income. Even now, the average rental yield is over 8.5%, and with properties as low as £67,000 available, Sunderland City Centre can be a great place for new investors to get started.
Properties in Sunderland City Centre should always be in demand, but some parts are a bit better than others, so do your research. There are still a few areas you may want to avoid unless you want a true fixer upper.
Seaburn
Seaburn is a few miles away from the centre, but the fact that it is on the coast does make it a much more desirable place for those craving something a little bit different. Although, unfortunately, as with most areas that have a beach right on their doorstep, property prices in Seaburn are among the highest in Sunderland. However, many people are making money just running some summer rentals here, which may be something investors would want to investigate.
Ashbrooke
This is where you’ll find most of the student housing in Sunderland, although there are a few young professionals in the area too. This is an area that has become incredibly popular with buy-to-let investors, and we have started to see property prices in Ashbrooke rise a little, but most people with a goal for investing in Sunderland should find a property suitable for their business needs.
Fulwell
Fulwell is another area that is a bit higher than the Sunderland average for property prices but can still deliver great rental yields. A purchase here will likely have you purchasing a family home, although there are a few flats to purchase too.
Fulwell is especially popular among more affluent families and the odd young professional who has started to make larger sums of cash working in the centre of the city.
High Barnes
This suburban area is delivering a lot for investors right now. It is an affluent area with affordable properties. The proximity to the centre of the city, good transport links, and fantastic schools means that this area ticks the boxes for many people wanting to live in Sunderland. This means that landlords can capitalise and offer higher rents than average.
Struggling to Find Renters & Hoping to Sell Your Tenanted Property? We Can Help
If you’re struggling to find renters in Sunderland and want to offload your tenanted property, We Buy Any Home can help. You can sell a tenanted property to us in any condition even if you have tenants already in situ. We’ll do the hard work for you and there are no hidden fees too. Just reach out for a cash offer within minutes today, and we can buy your home in as little as a week, completely hassle-free.
We offer a guaranteed sale in a timeframe that suits you, so call us now.
