Solid rental returns? Rising property prices? A sudden increase in sales volumes?
According to the latest statistics, Sunderland can lay claim to all three in its position as the top location for buy to let investors in the UK.
According to LendInvest survey data, net rental yields in Sunderland are 6.9% with a gross yield of 10.6%. Part of the reason for this is the comparatively low price of property in Sunderland and the North East in general.
The North East is usually the last location to experience any ripple effect from London and with average prices in the city currently in the region of £113,000, this means returns on investment are magnified. Sunderland is the cheapest place to buy property among all the top 20 student towns in the UK.
Property prices are often influenced by affordability in a particular area and the availability of jobs. When it comes to the latter, Sunderland’s future has been given a boost with Nissan investing in 37 million pounds worth of new technology.
Unfortunately Sunderland lags behind most of the rest of the UK when it comes to average salaries. The average worker is paid £21,630 compared to a national average salary of £26,208, which has the effect of keeping property prices low and within an affordable range for the local population.
While there is some uncertainty over what may happen in the immediate future as Britain officially withdraws from the EU, this is a positive sign that Nissan remains committed to the region and will continue to provide much needed employment.
Aside from being one of the UK’s top buy to let locations, Sunderland among the top 5 greenest in the UK. There are also signs of significant movement in housing transactions and property prices that will only strengthen the case for Sunderland from an investment point of view.