Friday, 11 December 2015

'Needs Work' 5 Bedroom Townhouse (7.5% Gross Yield)

This 5 bedroom townhouse needs redecoration, flooring and the lack of suggests these may need to be replaced but even so, having done the work it could return 7.5% Gross Yield

I'm basing the figures on a single let to a family, it may be that you could get a higher return renting it as a Multi Let (but care must be taken if renting all 5 bedrooms as given it is over 3 stories it would then be classed as an HMO requiring a license)

Assuming you pay the OIRO £79,950 then spend a further £15k on improvements it will return 7.5% Gross Yield based on £595pcm rent

It's being marketed by Alfred Pallas so click here for details and call them to arrange a viewing

Give me a call if you'd like to discuss this or any aspect of property investment in Sunderland - call 0191 567 8577 or email

Thursday, 10 December 2015

Three Bedroom Farringdon Semi - Reduced by £5k (8.25% Gross Yield)

This 3 bedroom semi in the popular Farringdon area has just been reduced by £5,000 and as it is being sold by an online agent it suggests the vendors may be disappointed by a lack of interest since first being listed in May and therefore open to offers

The most recent sale on this street was for £83,500 in August 2015 so it may be worth matching this or going in with an even more cheeky offer

It looks to be in a decent lettable condition and has a conservatory in addition to a lounge and dining room, plus

You should work on £550pcm rent so assuming the property could be picked up for £80,000 this would deliver a decent 8.25% Gross Yield

It's being sold by Express Estate Agency so you'd need to contact them (but the vendor is likely to conduct the viewing) - click here for details 

If you'd like to discuss this or any aspect of property investment in Sunderland please call me on 0191 567 8577 or email

Tuesday, 8 December 2015

Sunderland Asking Prices Are Down vs 2014 But Sold Prices Are Up

As 2015 draws to a close I thought it may be worth taking a quick look back at how the Sunderland property market has performed in the last 12 months

The first trend to catch my eye was that based on 3 month moving average data, Asking Prices are down on all property types compared to December 2014

The graph and below shows an average fall of 3% across all property types and that detached homes showed the greatest fall, being 12% down on December 2014 with an average asking price of £284,249 in December 2015

This goes against expectations as detached homes, typically appealing to more established, affluent buyers tend to be cushioned against market conditions and operate somewhat in a bubble

Semi's and terraces both showed decreases (1% and 3% respectively) with the Asking Prices for flats down 5%

I thought it may be interesting to compare this with sold prices (what is actually paid) and looking at this data gives a slightly more positive picture, with most property types showing slight increases in the prices paid this year compared to last

Given this is based on Land Registry data there is a slight lag in the data being registered and published, so for this we are comparing September 2015 and September 2014

The average sold price in Sunderland in £140,561 which is up 9% compared to the same time last year

Splitting this down to look at property types, detached properties have shown an increase of 13%, terraces an increase

The only property type showing a fall are semi's with an average sold price in Sept 2015 of £130406 compared to £137,758 in Sept 2014, a fall of 5%

Finally I've taken a look at the health of the market by comparing the number of properties on the market now vs 2014

Given the media headlines that the UK property market needs cooling (and the tactics and strategies being employed to solve that 'problem'), it's concerning that overall there are 10% fewer properties on the market in Sunderland now than in December 2014

Looking at this by property type the largest fall has been within semi detached properties (15% down compared to December of last year, with 584 properties on the market at the moment compared to 684 at the same time last year), with terraces and flats down 11% and 9% respectively, with only detached properties showing a slight increase 

The problem with this is that to be healthy and robust the property market needs to allowing a smooth flow where buyers can trade up from one property type to another in keeping with their economic progression & lifestage, with the typical property buyers 'journey' being from a flat or terrace First Time Buy to a larger terrace or semi, then eventually to a detached

When there are bottlenecks, caused by a lack of supply, it can destablise the market or cause price peaks if there are shortages of particular property types 

It may be that the relative lack of supply causes a correction in the sold prices of Sunderland semi detached properties next year and that if we looked again at the sold price data in six or twelve months time this would also be showing positive growth once again

Looking at these figures as a whole, it's interesting to note that Asking Prices are down yet Sold Prices are up - this may be explained by Asking Prices being informed by pessimism on behalf of local vendors and Estate Agents (so properties are being valued & advertised conservatively) but the relative scarcity is contributing to the increase in what is actually being paid

Overall whilst it is a little concerning to see that there are 10% fewer properties being advertised for sale now compared to the same time last year this scarcity may in turn lead to the modest increase in sold prices continuing into 2016, which could lead to a more positive outlook by vendors and Estate Agents and in doing so encourage more properties to be listed

Feel free to get in touch if you'd like to discuss any aspect of the Sunderland property market - call me on 0191 567 8577 or email

Immaculate First Floor Moorside Flat (7.4% Gross Yield)

This 2 bedroom first floor Moorside flat looks to have a lot going for it, it has a stylish new kitchen and shower room/wc, the only downside I can see is that it doesn't look to have GCH

This may be reflected in the £80,000 asking price but that's a potential bargaining tool as in our experience to attract (and crucially retain) tenants you'd need to budget for installing a gas boiler and central heating - in our experience tenants don't tend to stay for 2 winters in one of these if it just has electric heating!

Assuming you can negotiate the cost of this from the £80k price it should be able to achieve the upper end of Moorside flat rents at £495, giving a decent 7.4% Gross Yield

It's being marketed by Your Move so click the link here for details and call them if you want to arrange a viewing 

We manage a number of similar flats in Moorside and know this particular street very well having managed a similar flat here since 2008

You may be interested in reading my very first blog post from January 2014 which compared Moorside flats with flats in Ashbrooke - clearly the figures aren't up-to-date but they haven't really changed since then therefore the principles still apply Moorside Outperforms Ashbrooke By Almost 40%  

Give me a call if you want to discuss this property, investing in Moorside or any area within Sunderland - call 0191 567 8577 or email

Monday, 7 December 2015

Stylish 2 Bedroom Bonners Raff Apartment (9.75% Gross Yield and 47% of Last Sale Price)

Regular blog readers will know I like the Bonners Raff development due to it's quirky nature, riverside location and spacious, good quality apartments which all lead to its ability to attract Good Tenants

This 2 bedroom, 2nd floor apartment is being offered at £79,950, it has two double bedrooms including a master bedroom with ensuite, river views and secure parking

Based on paying the asking price and achieving a realistic £650pcm rent it will deliver 9.75% Gross Yield

It's interesting to note it was bought in 2007 for £171,000! That means it's now worth at most 47% of what was paid in 2007, suggesting that whilst it may never rise to that level again there is plenty of room for some capital growth

It's being marketed for sale by Your Move, click here for details and call them for more information or to arrange a viewing

Give me a call on 0191 567 8577 or email to have a chat about this opportunity or to discuss any aspect of the Sunderland property market