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Perry Barr - a good time to buy property?

19/10/2014

Following on from my last article focusing on Erdington, in the North Birmingham Property blog, I had an interesting chat with a lady over the phone. She is looking at her first buy to let property in Perry Barr and she wanted my opinion on the state of the market and if it was a good time to invest.

 

With talks of the Birmingham City University (BCU) campus moving to a central location over the next couple of years and all the newspaper headlines of a booming housing market, she was particularly worried that there wouldn’t be a great demand by tenants in the area.

 

One of the best pieces of advice I can give to those looking to invest in property is a simple trick of the trade. You can judge the affordability of an area’s property market (and thus how much demand there could be) 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 Perry Barr currently has an average property value of £127,600 with the average salary being £18,864. This is a ratio of 1 to 6.8  In Birmingham as a whole, the ratio of property values to salary is 1 to 8.2  Both these ratios are very fair, comparing with other parts of the UK. The UK average is 1 to 9.7

However, the issue is not affordability, it is the raising of the minimum 5% deposit, which when you take into account additional fees, will be in the region of £10,000.

 

Tenants inability to raise that sort of money for the deposit is driving demand for rental property. Based on this, my predication is that the rental market in Perry Barr will stay in good demand.

 

If you would like some advice about buying to let, be you a landlord with a portfolio or someone looking for their first buy to let property, please come and see me in my office on the Kingstanding Rd or drop me an email to Melissa@amityproperties.co.uk

 

Chow for now!



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