There is no denying owning a home is a rite of passage for many people, if not a dream. However, the cost of property ownership is rising, and a new study shows how hard it is for first-time buyers (FTBs) to step onto the property ladder.
This creates greater demand in the rental market, which is positive news for landlords and property investors.
FTBs paying more to own a home
Direct Line Home Insurance indicate the average first-time buyer must spend £43,623 more than they did in 2016 to buy their first home. This represents a 24 per cent increase.
Dan Simson, head of Direct Line Home Insurance, says: “The rate at which FTB prices have been increasing is frankly frightening. However, this generation of property owners are facing the challenge of dramatically increasing property prices in traditionally popular areas such as London and instead are buying in places that are less well-known. We may see an even more dramatic emergence of these ‘young towns and cities’ with the increasing prevalence of remote working that enables people to be far more flexible as to where they live.”
How are house prices faring in Peterborough?
According to Rightmove, house prices in Peterborough, as of the end of May 2022, are as follows;
“Properties in Peterborough had an overall average price of £234,732 over the last year.
The majority of sales in Peterborough during the last year were detached properties, selling for an average price of £332,886. Semi-detached properties sold for an average of £217,303, with terraced properties fetching £171,888.
Overall, sold prices in Peterborough over the last year were 3% up on the previous year and 13% up on the 2019 peak of £207,221.”
As you can see, house prices in Peterborough are rising, which no doubt places first-time buyers under more pressure to afford a home. You also have to consider rising interest rates as another barrier to people stepping on the property ladder.
So, landlords and property investors must realise there will be sustained demand for rental property for years to come. This isn’t just the case for Peterborough, it is likely to happen all across the country.
However, as Peterborough letting agent specialists, we can play a role in supporting the local letting industry. If you are interested in letting property in and around Peterborough, we can help you.
Just Lets – Here to Help
If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.
The team at Just Lets Peterborough continue to operate remotely to ensure we can continue to serve you and your tenants throughout this covid period and beyond. Please contact us through our usual channels – email us at email@example.com or call us today on 01733 346255.