We all know how difficult it can be to find affordable housing in London, but a new study reveals just how extreme the situation has become. In 2024, the price of a studio flat in the capital is equivalent to a five-bedroom house in Hull, an underrated city offering incredible value for money.
Construction company Validus conducted a study comparing average salaries in UK cities with property prices to determine the best value places to buy a home. They found that approximately half of the average annual salary in each town would be enough for a 10 percent mortgage deposit. Using this calculation, they identified properties on the market that fit within that deposit range.
In London, where the average salary stands at £36,184, you could purchase a two-bedroom flat in Friern Park, North Finchley for £170,000. With a 10 percent deposit of £17,000, just under half the average London wage, this property is a fantastic opportunity. Located in Park Court, the first-floor maisonette offers two spacious bedrooms with ample built-in storage. It also features a large reception room, well-equipped kitchen, and a bathroom.
One of the major advantages of the London property is its prime location. Woodside Park station on the Northern line is just a 15-minute walk away, providing easy access to the rest of the city. Additionally, North Finchley Highstreet is conveniently situated nearby, offering a wide range of dining, café, and shopping options, as well as several welcoming pubs. Families will appreciate the proximity of Wren Academy Finchley, an outstanding school located just 0.1 miles away. Considering that other properties in the area are selling for well over £300,000, this property offers great value for money.
Now, let’s explore what the same average salary can buy you in Hull. Unsurprisingly, the difference in property prices is staggering. For just £110,000, you could purchase a five-bedroom house on Berkeley Street. This property is divided into three flats – two two-bedroom flats and one with a single bedroom. According to Validus, this price is affordable for individuals earning the average household salary in Hull, which amounts to £25,396. The 10 percent mortgage deposit for this property would be £11,000, with the remainder of the mortgage covering the remaining £99,000.
Nationwide estimates monthly mortgage repayments to be £597 over a 25-year period. Once the mortgage is fully repaid, the freehold property becomes entirely yours. Additionally, there are currently tenants occupying the building, generating an annual income of £13,000 for the landlord, effectively doubling the monthly mortgage repayments and providing a solid profit. Each flat is self-contained and features its own unique layout. The ground floor flat boasts two bedrooms, a lounge, a kitchen/breakfast room, and a bathroom, and is accompanied by a large garden. The first-floor flat includes a bedroom, a lounge, a kitchen, and a bathroom with a separate toilet. The second floor offers a two-bedroom flat with a bathroom located downstairs on the first floor, as well as a lounge. Each of the flats is already tenanted and equipped with electric heating. Depending on the buyer’s preference, this property can either be converted into a spacious family home or retained as a block of flats, making it a highly exciting investment opportunity.
The location of the property in Hull is excellent, with the train station just a short walk away and stunning views of the Humber estuary a quick drive from the house. Hull also serves as a travel hub for the continent, with regular ferry services connecting the city with the charming Dutch city of Rotterdam.
For families considering a move to Hull, there are numerous reputable schools in close proximity. Clifton Primary School and Thoresby Primary School, both rated Outstanding in their most recent Ofsted inspections, are particularly notable.
In conclusion, if you’re looking to save money on your next home purchase, considering relocating to Hull could be a wise decision. With property prices that offer exceptional value for money, Hull presents an underrated alternative to the skyrocketing housing market in London.
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