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New data reveals opportunity for first time buyers to outperform housing market

By Surrenden Invest | August 27, 2019

New data reveals opportunity for first time buyers to outperform housing market

Recent data has revealed that First-time buyers in the UK need an average income of £54,000 in order to buy a property, marking a 9% rise from 2016 when Britain decided it would leave the European Union.

Looking at the data released from property website Zoopla this month, it’s fair to say that Millennials have had something of a raw deal when it comes to their finances. From soaring house prices, inflation exceeding earnings, through to political and economic uncertainty with Brexit – getting onto the property ladder has never been more difficult.
Those wanting a start on the housing ladder will often face a never-ending stream of negativity, with many believing it’s near impossible to buy their first home as they cannot raise enough money. This has created a new opportunity for first time buyers to act more savvy and  to selectively invest in Buy to Let property in national growth locations.
Data released by Zoopla found that the average household income required to buy in London was £84,000. In Liverpool, which had the lowest required household income before tax of the 30 cities surveyed, it was just £26,000.
Current house prices are encouraging huge rental demand in the UK’s busiest cities with young professionals flocking to areas like Manchester, Birmingham, Newcastle and Liverpool. Purchasing a one or two bedroom apartments as a Buy to Let in these locations is a shrewd investment for those priced out of their home town or city.

“The world as we knew it has changed when it comes to property ownership. We’re seeing more people renting and for longer periods, but that doesn’t mean that they need be denied the opportunity to profit from property. It’s just that doing so may look different in the future. Property investment companies need to work with Millennials to encourage that to happen.”

Jonathan Stephens, MD, Surrenden Invest
While Liverpool was named the most affordable market for first-time buyers, it was also the city with the highest house price growth, with values rising 5% over the 12 months April to April.
The Tannery is one of Liverpool’s most iconic residences. The elegant exterior sets the tone for the graceful, stylish homes inside, bringing capital-quality residences to Liverpool’s renters. The low entry price of just £85,000, coupled with 6% NET yields and long term capital growth projections make The Tannery highly appealing to investors looking to either bolster or begin their portfolios with one of the most exciting new opportunities of 2019.

For regular updates on investing in Liverpool and other key UK regional cities, follow the Surrenden Invest team on social media.

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