An old client of ours who moved out of the area last year popped into the office this week and asked whether properties nearby are still affordable, despite the current ongoing political uncertainty. The best advice I can give to those looking to invest in property is our secret trick of the trade. You can judge the affordability of a town by simply finding the ratio of the average property price to the average salary. The lower the ratio, the more affordable property is.
When we put this to the test, we found that the BR6 area currently has an average property value, according to Zoopla’s ZED index, of around £556,011 with the average salary being £29,610. This is a respectable ratio of 1 to 18.78. Meanwhile, in the neighbouring TN14 postcode area, the ratio of property values to salary is 1 to 22.54, which suggests that property with a BR6 post code is, on average, more affordable than in the more rural areas with a TN14 post code.
We also had a look at TN16 and found the average salary is £27,749 and the average property value is £494,645. This means that property in this area is slightly more affordable than BR6, with a ratio of 1 to 17.83.
Despite the ongoing political uncertainty we are noticing strong interest in properties to sale, with buyers keen to secure a purchase before the festive period when the market quietens down significantly. With strong affordability ratios, this could mean that now is a good time to invest in the property market.
There are many other factors that need to be considered when buying a property, not just the affordability. If you would like to talk to us about your potential investment, we welcome the opportunity to discuss the process with you and properties we have for sale.
Langford Rae Property Agents cover the Bromley Borough, Sevenoaks District, Bexley Borough and further afield from our flagship office on Windsor Drive in Chelsfield. We are a team of highly regarded and respected valuers, negotiators, sales progressors and property managers.
* Data collected from Zoopla.co.uk and Mouseprice.com in November 2019