London has long been one of the most troubling cities in the world in terms of affordability. High prices in the most popular parts of the city can make it difficult for the majority of buyers. However, there is still a huge amount of demand. It can just mean a shift and more people looking for more affordable locations. You can see this in the big jump in interest in the investment properties Barking and Dagenham has to offer.
Retaining its title
According to the latest data, Barking and Dagenham keeps its title as the most affordable borough. It will cost you an average of just £353,893 to buy in the area. That is massively behind the price for the city as a whole, which sits at close to £550,000.
When you look at affordability though, you must consider salaries. Ideally people should not be spending dozens of times their salary to buy. That can cause huge issues with paying back mortgages. Barking and Dagenham stands out here. The average salary in the area is £31,673. This is 8.9% of the property value.
To put that into perspective, Kensington and Chelsea is the least affordable location. The average salary is higher here, at £46,410 per year. However, it is just 2% of the average property value, an astonishing £2.32m.
Mortgage troubles
While you should consider investment properties in Barking and Dagenham if you are looking to buy, you may have a tricky time at the moment. The recent Mini Budget has caused chaos for lenders. It has made it incredibly difficult for them to even price products effectively.
The situation meant lenders have withdrawn a record number of products from the market. In total, over 1,600 mortgages were removed from sale. This is more than 40% of the products. The previous record was 935, and before that was 462. It is worse than at any point during the pandemic.
Some mortgage providers have had to withdraw all fixed rate products. They simply have been unable to work out what to offer and how to price it. Increases in the cost of borrowing make it even harder.
The situation is still an incredibly tricky one. In fact, it is likely more products will be taken off the market. At the end of the day it will make it harder for people to find a mortgage. Lack of fixed rate ones can also mean paying higher interest rates with other products.
Talk to us about investment properties in Barking and Dagenham
Finefair Ltd knows everyone has unique requirements when they invest in a property. Some are looking for their dream home and want everything to be right for them. Others are thinking about the value to tenants and how much they can earn by letting or leasing. Whatever you are thinking about with investments, we can provide great services for you.
There are lots of benefits when you work with us. For example, we have experience managing portfolios. We can work with acquisitions, handle management, and have our own maintenance team. Plus, and most importantly, we can give you guaranteed rent.
So, why not work with us when it comes to the investment properties Barking and Dagenham offers? You can get everything you need without having to worry about costs.
