Navigating the housing market can be a daunting task, especially when certain areas are notoriously unaffordable. Here, we highlight the ten worst places to buy property in our service areas, England and Wales, in 2024, based on house prices, rent yields, and overall affordability.
1. West Midlands
The West Midlands tops the list with its steep house prices and poor affordability for first-time buyers. The region has seen significant price increases, making homeownership a distant dream for many.
2. South London
South London remains one of the least affordable areas due to skyrocketing property prices and high rents. Although investment potential is still very much in effect, the required deposits are out of reach for most prospective buyers, compounding the affordability crisis.
3. East London
East London faces similar issues, with exceptionally high property prices and rents. The cost of living in this part of the capital further exacerbates the challenge of buying a home.
4. Herefordshire, Worcestershire, and Warwickshire
These regions struggle with affordability due to high house prices relative to average incomes. Both renting and buying in these areas are financially strenuous for many residents. If you’re looking to invest in property, the rental yields and selling potential look exceptionally bland, too.
5. Devon
Devon's picturesque landscapes come with a hefty price tag. The area has seen substantial house price hikes, making it one of the least favourable places for homebuyers. Low rental yields also pose challenges for property investors.
6. Cornwall and Isles of Scilly
The allure of holiday homes has driven prices up in Cornwall and the Isles of Scilly, creating significant affordability issues for locals. The surge in demand has made these areas increasingly unaffordable. Although investment in BTL or property flips can seem like a good option, buying residential homes may not be.
7. Shropshire and Staffordshire
In Shropshire and Staffordshire, house prices have outpaced wage growth, making homeownership difficult for many. These areas are also not ideal for property investors due to low rental yields.
8. Surrey, East and West Sussex
These regions are among the most expensive outside London. High property prices and living costs contribute to their ranking as some of the least affordable places to buy a house. This lowers the return potential of property re-sales. Additionally, low rental yields make these areas unappealing for BTL investment.
9. Hampshire and Isle of Wight
With high house prices and relatively low wage growth, Hampshire and the Isle of Wight face significant affordability challenges. The high living costs only add to the financial burden of potential homeowners, which also lowers the potential for eventual re-sale.
10. West Wales and the Valleys
Despite lower property prices, economic conditions and lower wage levels make homeownership challenging in West Wales and the Valleys. Additionally, low rental yields deter potential BTL investors.
As house prices continue to climb, these regions remain some of the most challenging for potential property buyers and investors in England and Wales. If you're considering buying a property, whether for yourself or as an investment, it might be a good idea to look into other areas.
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