It’s no secret that the cost of living in the South, particularly London, is much higher than here ‘oop North – a fact I’m frequently reminded of by several of my southern landlords when they come to check up on their properties and local property market news (although mainly for the gravy I suspect).
For a touch of perspective, over the last 3 months the average price paid for an apartment in London resides at £504,275. Based on that figure alone, you could buy 5 apartments in Tameside (based on the current average price of £93,442).
Of course, the average salary down in the capital is also much higher, reflecting the larger price tags for those properties. What I really wanted to find out however is whether or not the average salary in Tameside reflects the price of our properties.
The property market in Tameside has been for one heck of a roller coaster ride over the past two decades as regular readers of my blog will know all too well – whilst the average salary has been on a much more gentle and relaxing journey. I’m never one to keep my findings to myself, so here is what the journeys look like for both:
Based on the results at the back end of last year, the average £135,000 price of a Tameside property means that property prices in the borough are 5.5 times higher than the borough’s average salary of £24,537.
Now I’m no fortune teller or time traveller, but based on the numbers in the graph above, it’s clear to see this is only going to continue to grow year on year. The turn of the century saw the beginning of a radical escalation in Tameside’s average property prices, increasing the gap between the cost of a property to an average annual wage by a considerable amount.
Infact if you look at the figures over the last ten years, the average property price has increased by 25.4%, whereas the increase in the average annual salary has only been by 16.5%:
All this is important, as the relationship between salaries and property values is the foundation on how affordable property is to buyers. It is also vitally relevant for Tameside landlords as they need to be aware of this when making their buy-to-let plans for the future. If more people are buying in Tameside, then demand for Tameside rental properties will drop (and vice versa).
If you’re considering a buy-to-let future within the towns in the borough and are looking for advice on the property market, please do feel free to get in touch as many investors and landlords currently are doing, and I certainly wouldn’t want you to miss out on some of the current great deals. Would you?