Affordability is an important topic, especially when people are looking to buy a house. The good news is annual earnings are up in many parts of the UK and house prices have cooled. So, in many spots houses are more affordable. The latest data from Zoopla shows which areas are the best in this regard. Let’s have a look, then you can rely on us for things like guaranteed rent in Croydon.
The analysis
Zoopla has had a look at the value to earnings ratio for houses in all regions. They consider the average price of a house in each area and the average income of a two earner household. This gives an idea how many times the annual salary it would cost to purchase a typical property.
The most impressive thing is that affordability is up across the board; it is more affordable to buy an average property in any region than it was in 2023.
The average for all regions is 3.8 times value to earnings of a two earner household. The most affordable region is the North East, at just 2.1 times. At the other end is London with 5.8.
It is harder for buyers who live on their own to buy a house. According to the figures, with an average income it would require 7.6 times the annual earnings.
Buying in London
As we said, London is the worst area in terms of affordability. However, there are some spots that are below the 5.8 times average. It is definitely worth looking at them. Investors can then rely on us for services like guaranteed rent in Croydon.
As you may be able to tell by the fact we’ve mentioned it a few times, Croydon is the most affordable area in London. It takes an average of 4.7 times earnings to buy a house. The average price is £417,000, much cheaper than London’s £560,800. So, it is definitely worth considering
There are a few others areas in London with affordability less than the city’s value to earnings ratio. This includes popular Greenwich. Barking and Dagenham, one of the top Outer Boroughs, is on the list too.
Commuting
If the affordability in London itself is a concern, there are a number of popular commuter spots outside the city that could appeal. Some have a value to earnings ratio below 4 times. Chatham is an interesting option, with 3.7 times value to earnings. Or you could consider Basingstoke or Southend (3.9).
The security of guaranteed rent in Croydon
London is a good place to invest if you want to earn a stable income from residential properties. There is generally high demand for rentals, especially good quality homes in attractive areas with lots of amenities.
If you do invest, you should consider all of your options for income. Most people choose to be private landlords, but it isn’t the only option. An alternative is to work with us and get guaranteed rent. It can offer more security for your income and less responsibility.
If you’d like to find out more about guaranteed rent in Croydon or other parts of London, feel free to contact us. We’re here to discuss any aspect of the services so you can see why it is such a good choice. Then, we can offer assistance with crucial things like making sure properties are ready for tenants.
