An increase of buy-to-let investors coming into Beverley has caused asking prices on smaller homes to sky rocket in the town, leading to first time buyers being frozen out of the property market.
Landlords have been attracted to the area because of a high tenant demand. According to Home.co.uk, the average asking price for a property in Beverley is currently £267,637 – up 5 per cent on last year.
However, when you take a closer look at the market and inspect the average price for a smaller property, it really highlights how hard it is getting for first-time buyers to take that first step up on the property ladder.
Currently, the average price for a small one bedroomed home in Beverley has risen 15% from £90,750 to £104,050 in the past year and the average cost of a two bedroomed property in the town has also climbed by 15% from £134,047 to £154,078.
Nationally, excluding inner London, a smaller home has an average asking price of £184,676 making prices in Beverley extremely tempting to investors. .
Rightmove director Miles Shipside recently told Property Industry Eye, “Tenant demand is such that many letting agents are reporting viewings and tenancy applications on the same day as marketing properties.
“In some cases they’ve nothing to rent until tenants move out or a new influx of investor landlords gives some short lived respite to tenants-in-waiting.
“Both investor landlords and first-time buyers looking to buy smaller homes are finding them in short supply. As they’re typically owned by potential first-time sellers, the price gap and costs of moving to the second step on the housing ladder deter them coming to the market.
“Competition is fierce in this sector, with first time buyers and buy-to-let investors going head-to-head for the same properties.”
If you are first-time buyer or a buy-to-let investor looking to purchase in Beverley or surrounding areas and would like some further advice on the local property market, please don’t hesitate in getting in touch with Northwood in Beverley by calling 01482 444440 or visiting our website www.northwooduk.com.