The news for people renting in London has been a tough read over the past few years. Prices have been going up, with a record breaking 11.2% increase year on year in March. Things seem to be improving now, but demand is still high while supply is low, keeping prices high. As a result, more people are becoming first time buyers. We want to look at this here, focusing on the four most popular spots in the city. Then, if you need help with investing and guaranteed rent in Newham, you can ask us.
More FTBs
Recent data from Hamptons shows there has been a surge in first time buyer activity in the UK in the first half of 2024. In fact, their data claims the number of homes bought by FTBs was a record high. It was up 6% on 2023. As a result, almost a third of all sales were first timers.
The activity of FTBs was even higher in London. In fact, if you look at the list of areas for highest ratio of first time buyers, four of five were in the capital. In these spots, over 57% of purchases were people taking their first step onto the property ladder.
A lot of people have chosen to commit to buying their first home to escape high rents. Usefully, while the rental market has seen prices rising, sales have been noticeably slower and prices softer. So, people willing to commit have been able to get good deals.
Most popular locations
Diving in to the specific locations with FTBs, Newham has far and away been the top spot. According to the data, a massive 76.8% of sales in the borough were first time buyers. The average price was £388,170. However, prices in more affordable areas such as East Ham, Becton, and Upton Park were £263,000.
Several areas in Newham were very popular. Earlham Grove in Stratford was the top street. It was followed by Silvertown Way in Canning Town and Gallions Road in Beckton. If you’re thinking about investing, these are good locations to consider and we can offer guaranteed rent in Newham for all areas.
Barking and Dagenham took the second spot on the list of most popular boroughs for first time buyers. They were responsible for 67.7% of all sales.
The main factor in Barking and Dagenham’s success was the affordability. The average price was £309,530. Even more affordable properties were available in different areas though, including new flats in Barking Riverside.
Not all FTBs target affordable areas though. Some have a larger deposit and can look at spots with higher prices. Taking fourth spot on the list, behind Thurrock in Essex, Wandsworth had 60.6% sales from FTBs. The borough is the third most affluent in London if you look at ONS stats for property prices and wages. The average property price is £533,650.
Interestingly, Battersea was one of the most popular spots in the borough. Prices here are very high, generally over the £900,000 mark. As a result, a lot of FTBs get help from parents. There are plenty of more affordable spots in comparison though, including Balham, Tooting, and Wandsworth.
The final Borough in London to make it into the top five popular spots for FTBs was Havering. First time buyers were behind 57.7% of all sales here. It is another area that people love for the affordability.
Think about guaranteed rent in Newham
The wave of activity from first time buyers shows it is currently a buyer’s market in many locations. London has no shortage of them. Many landlords are even choosing to sell their assets. However, there is another option. Guaranteed Rent can provide a stable, secure income for properties. It can guarantee the cash flow, avoiding the risk of empty properties and voids.
An impressive thing to keep in mind here is you can choose rent guarantees for the short to medium term, up to five years. This can give plenty of time to see how markets evolve. A lot of first time buyer behaviour can really refresh an area, improving the community as well as the local economy. Ultimately, it could add a lot of value to properties. It could be win/win for you.
So, if you would like to find out more about guaranteed rent in Newham and other parts of London, speak to us. We’re ready to give more information about any aspect of it, including how it works, responsibilities, and more.
