House prices have increased to more than the UK’s average employee’s net earnings in the past two years in almost one of five districts across the UK. A majority of these areas are in the South East and in London, with data showing that eight London boroughs are included in the top ten. Areas which have witnessed the biggest differences were Fulham and Hammersmith, where prices increased by average of £200,000, surpassing the take home earnings in the area by £150,000.
Research also suggests that in the past five years, 23 areas in the UK have had their average property prices exceed earnings, including Islington. In 2014, the national price of homes increased by nine percent, the biggest annual increase since pre-recession 2007, and rose particularity quickly in London (16 per cent) and the south east (11 per cent).
While this is great news for home owners as they can experience high returns when they come to sell their properties, it also means that many people who are looking to enter the property market are unable to afford to buy a home. When rising property prices are combined with the availability of rental properties in the capital, it is clear to see why more and more people are choosing to rent a home rather than buying.
If you are an investor with the resources to purchase a London property, you will have plenty of opportunities to attract tenants and could make a brilliant return on your investment if you come to sell in the future. Contact us for any guidance you need on investment properties in Camden and the rest of London. From purchasing to marketing to managing tenancies, we can help you with all your property-related concerns. Whether you already own property or are considering making an investment, we are ready to assist.