This question formed the basis of a lengthy and heated conversation (argument!) at the weekend with another estate agent and one of my friends who is also a local landlord owning several properties in the area that he rents out. Not going to tell you who won the day but I have now done some proper research and will not have to rely on gut feeling next time.
One measure of affordability in a town is the ratio between the average house price and the average salary. The lower the ratio, the more ‘affordable’ the property in that area.
Rightmove tells me that the average property price in Aylesbury is £215,422. The average salary is £31,107 giving a ratio of 1 to 6.9.
For comparison High Wycombe, values £255,615 and salaries £32,752 giving a ratio of 7.8.
Using the same formula I tried an area where property is much more expensive than Aylesbury but with salaries to match. Teddington average price £711,221 with salaries of £41,808 gives a ratio of 17.0!
So Aylesbury does look like good value when compared locally. Further the fact that nearby areas are less affordable with higher prices means that there is plenty of room for our sale prices to increase further…giving the investor a good shot at achieving strong rent with good prospects of capital growth, the ideal scenario.
If you want further details or to talk through your investment options please give me a call, pop in to our office or email me ian@mortimersaylesbury.co.uk
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