Opportunity For Enfield Landlords To Connect With More Tenants
A new study of first-time buyers, and the rising costs of their deposit, indicates the rental market will be active for many years to come.
Stipendum, a finance management platform, claims the average cost of a mortgage deposit for first-time buyers has increased by 54% in the past ten years. This has made it harder for first-time buyers to step onto the property ladder.
A new analysis of prospective first-time buyers suggests that the cost of their initial deposit has soared in the past decade - suggesting demand for rental property will stay strong.
How is Enfield market faring?
According to Rightmove, house prices in Enfield are as follows:
“Properties in Enfield had an overall average price of £533,696 over the last year. The majority of sales in Enfield during the last year were terraced properties, selling for an average price of £496,373. Flats sold for an average of £335,652, with semi-detached properties fetching £681,536.
Overall, sold prices in Enfield over the last year were 4% up on the previous year and 11% up on the 2019 peak of £479,945.”
The increase on 2021 and 2019 prices is of interest, but of course, property prices in Enfield are higher than the UK average.
In the grand scheme of things, it might not seem like the obvious place for first-time buyers, but of course, there are first-time buyers at all levels of the property market.
However, if the average price of property in Enfield is around £530,000; a 20% deposit is more than £100,000. This is a sizable amount of money. Now, some first-time buyers receive support from family members, and of course, some first-time buyers do very well for themselves, allowing them to afford this sort of purchase.
Yet, in the grand scheme of things, many people looking to step on the property ladder in or around Enfield will need to save for a bit longer. This provides opportunity for local landlords to connect with more tenants.
What do the specialists say?
Christina Melling is the chief executive of Stipendium, who said; “Record house price growth means that the initial requirement of a mortgage deposit has climbed substantially over the last decade and the vast majority of this increase has been seen in the last five years alone. While this increase will have been felt by homebuyers at all levels of the market, it’s been particularly hard on first-time buyers who are just starting out on their journey to homeownership and who won’t have the financial backing of a previous property in order to cover their mortgage deposit costs.”
Chris continued by saying; “It really does beg the question as to where it will stop? We’ve only seen one notable market realignment in the last two decades and house prices have since surpassed previous peaks to reach new highs, which has severely reduced the chance to buy for many aspirational homeowners. The UK property market is a tough place to be for first-time buyers and this was largely our motivation behind launching our Merge platform. We wanted an affordable resource that can provide help, support and guidance throughout the duration of the transaction process, while also providing them with as many cost saving opportunities as possible.”
Contact The Letting Line for letting assistance in 2022
If you are looking for guidance or assistance in the Enfield rental market, we can help. At The Letting Line, we are a specialist letting and property management agent serving Enfield, Barnet, Potters Bar, Brookmans Park and surrounding areas.
We can arrange a free valuation for you, and if you are looking to contact us, please call us on 020 8342 1234.