In a study by Direct Line Home Insurance, it is found first-time home buyers need to find £43,623 more today than they did in 2016 to buy their first house. This represents a 24% increase in the cost of stepping on the property ladder.
Dan Simson, head of Direct Line Home Insurance, was recorded by Landlord Today as saying: “The rate at which FTB prices have been increasing is frankly frightening. However, this generation of property owners are facing the challenge of dramatically increasing property prices in traditionally popular areas such as London and instead are buying in places that are less well-known. We may see an even more dramatic emergence of these ‘young towns and cities’ with the increasing prevalence of remote working that enables people to be far more flexible as to where they live.”
How are house prices faring in Finchley?
According to Rightmove, as of the end of May 2022, house prices in Finchley are as follows;
“Properties in Finchley had an overall average price of £694,391 over the last year.
The majority of sales in Finchley during the last year were flats, selling for an average price of £427,437. Terraced properties sold for an average of £753,017, with semi-detached properties fetching £943,036.
Overall, sold prices in Finchley over the last year were 3% up on the previous year and 11% up on the 2017 peak of £623,598.”
How does this affect the rental market?
Even if your sole focus is the Finchley lettings market, it is important to know how property prices affect the market.
As we can see, sold property prices in Finchley have risen in the past year. This makes it harder for people to buy homes. Given Finchley is an affordable area of London (albeit still higher than the national average for property prices), you’d imagine many first-time buyers would look for home here.
If these buyers are priced out of the market, they might move elsewhere, or they might decide to rent here. If this is the case, it is brilliant news for local landlords.
Then again, it is only positive news for landlords who already own property. If you want to expand your property portfolio in Finchley, you’ll need to spend more money to buy a property.
If you need assistance in determining your budget and if this is a good move for you, we can help.
Contact David Harris & Co to let in Finchley
We have assisted many Finchley landlords connect with tenants, and we know where these groups are looking for rental property. You can take the stress out of connecting with your ideal tenant by turning to a local letting specialist in Finchley.
If you want to make an informed decision in and around Finchley’s letting market, we are here for you. If you have any questions about the local market, or you need assistance, please contact David Harris & Co today. Call us on 0208 346 9122.
