Finding a house you can afford can be a daunting task. Following the credit crunch and recent changes to mortgage regulations, you may find your head spinning when thinking about where you can afford to live. The great news is, people looking to buy property in the North East, particularly Middlesbrough, will find houses more affordable than anywhere else in the UK.
A recent study by online blinds making firm web-blinds.co.uk has logged the average house prices in 2,643 different postcode areas to help potential buyers find affordable areas when looking for their new home. It has then broken down what hourly rate you would need to earn to buy a house in each postcode. Although the figures are for guidance only, they are useful to help work out where you might want to start looking.
Out of the top ten least expensive areas in the UK, the North East appears four times, with three postcodes, including the number one spot, being in Middlesbrough. Postcode TS2 requires an hourly rate of just £2.15 to buy property, while TS1 and TS3 require £3.94 and £4.85 respectively. This suggests that moving to the region is an affordable option for those looking to get on the property ladder.
The hourly rate required to buy property in TS1 is extremely low in comparison to South Kensington, London, which is the most expensive place in the UK to live. A potential buyer would need to earn about £186 per hour to afford a property in the SW7 postcode area. This vast difference shows how much easier it is for those looking to buy property in the region than for those wanting to buy in the South, particularly in London.
In Darlington, you can also find yourself a property, even on a lower hourly salary. In the DL4 postcode, the average earnings need to be £5.98 per hour, and in DL1, buyers would need to earn £8.22. More expensive properties in the area include Yarm and Stokesley, where you would need to earn more than £18 per hour to afford a house.
Middlesbrough appearing so frequently in the top ten most affordable postcodes in the UK has positive implications for the area. For example, people who work in the region’s bigger cities, such as Newcastle, Sunderland and Durham may struggle to buy properties in those areas, as they would need to earn up to £27 per hour to live close by. However, the lower house prices in Teesside offer an option of buying a more affordable property, with straightforward commuting options to work.
The lower average house prices are also attractive to the buy-to-let market, who are looking to get a significant return on their initial investment. This makes the region as a whole a more desirable place to look for new properties for a landlord’s portfolio, as it will result in lower stamp duty up front, and will take less time to pay off either as a mortgage or replenishing savings. This will allow the landlord to start making money from the property quicker than they would in other areas of the country.
With so many areas in the North East, particularly Middlesbrough, offering fantastic value for money, it’s easy to see that it is a great place to start looking when buying a new property.
Please note: This article is intended as guidance only. No responsibility for loss occasioned/costs arising as a result of any act/failure to act on the basis of this article can be accepted by Latimer Hinks. In addition, no responsibility for loss occasioned/costs arising as a result of any act/failure to act on the basis of this article can be accepted by the firm.