A landlord came in to our office earlier this week to discuss the affordability of property in Burley, with the current national market property market being in recovery with increasing house prices. Some of 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 Burley currently has an average property value of around £166,000 with the average salary being £25,203. This is a respectable ratio of 1 to 6.59.
We tested this against our other local postcodes.
In Kirkstall the ratio of property values to salary is 1 to 7.28, which suggests the property in the town is 10% less affordable than in Burley.
We also had a look at Armley and found the average salary is £17,189 and the average property value is £138,700. Surprisingly, this means that property in Armley is a rather significant 18% less affordable than Burley, with a ratio of 1 to 8.07.
This could mean that now is a brilliant time to invest in Burley’s property market, while the average value of property is low compared to the average salary. If you would like to talk to us about your potential investment, please come into our offices.