Knowing where to find the best deals is key for property investors. So, new research that sheds light on the areas offering buyers the chance to purchase multiple properties for the average UK house price could be really useful for property investors to understand where they can get the most for their money.
The research explores the areas in the UK where buyers can stretch their budget further and get more bang for their buck and also reveals the local authorities where investors can only buy only a fraction of a home for the same price.
The study reveals just how fragmented the UK property market is, with buyers able to purchase more than two properties for the average UK house price across 5 per cent of local authorities, while in the most expensive areas of the market, the same budget won’t even bag them half a home.
Over the last 12 months, the UK’s national average house price has increased by 9.8 per cent and currently stands at £294,329, but within this national picture, there are some wildly different stories playing out.
In West Lancashire, for example, prices have increased by a remarkable 23.8 per cent on the year while, at the other end of the spectrum, prices in London’s Westminster have dropped by -13.4 per cent.
According to the research, nowhere does the UK’s national average house price buy you more than in Burnley, Lancashire where the average local house price is just £117,661 which means you could buy 2.5 properties for the average UK price. In Inverclyde, you can buy 2.35 properties and in North Ayrshire, you can buy 2.32 properties for the national average price of £294,329. Meanwhile, in East Ayrshire, buyers can purchase 2.28 properties for the national average house price; this is followed by Hyndburn in Lancashire (2.23 properties), County Durham in the North East (2.22) and West Dunbartonshire in Scotland (2.13 properties).
At the same time, however, in 4 per cent of local authorities, the current UK average house price is not enough to buy even half a home.
In London’s Kensington & Chelsea, where the average house price currently stands at just under £1.3m, the research from eXp UK reveals that a budget of £294,329 will buy you less than a quarter of a home. It’s a similar story in London’s other prime boroughs, including the City of London (0.30 properties), and the City of Westminster (0.32 properties).
Even outside London’s predictably pricey market, the research discovered Elmbridge in Surrey where a budget equal to the national average will only buy you 41 per cent of a home.
By region, the best areas to get more bang for your buck are the North East where you can buy 1.8 properties for the national average house price, Northern Ireland (1.68), Scotland (1.57) and Yorkshire and the Humber (1.37).
As a property investor, does this price divide affect your buying choices for your buy-to-let and property development properties? Let us know in the comments.