Pure Commercial Finance, the Cardiff-based commercial finance brokers, carried out a research to reveal whether purchasing property near a football stadium is a worthy investment. The research found that homes near football stadiums are experiencing property price increases considerably higher than the UK average. The brokerage’s campaign combines Land Registry data and
Despite increasing market prospects for the property sector as a whole, concerns have been raised as the overall affordability of rental properties; this time, not solely within the reputedly-expensive London area. As of present, the majority of private sector landlords have a stated requirement of some four weeks’ worth of
BDC 319 : Aug 2024
Pure Commercial Finance, the Cardiff-based commercial finance brokers, carried out a research to reveal whether purchasing property near a football stadium is a worthy investment. The research found that homes near football stadiums are experiencing property price increases considerably higher than the UK average. The brokerage’s campaign combines Land Registry data and previous reports by mortgage lenders to highlight previous property surges near new English sports stadiums such as The Emirates Stadium and the Etihad Stadium. It also predicts areas which will likely see an increase as the result of future redevelopment. “The statistics are compelling, it’s great to see that as a result of the development of new football grounds its proven to not only stimulate local infrastructure investment, regenerate tired or unused areas of the cities but to create an unprecedented rise in house prices in the immediate area of redevelopment,” said Ben Lloyd, Managing Director and Co-Founder of Pure Commercial Finance. If the same average growth is seen in the next two decades as that seen in 1997 to 2017, investors can expect an average 450% increase in property prices for buildings near Premier League stadiums, according to the research. Saying that, developments coming out of Millwall FC are definitely worth keeping an eye on. The New Den, which is Millwall’s current stadium, opened in 1993 just a few miles from London’s financial centre. In August 2018, it was reported that the club had appointed architects to draw up plans for its community programme, which involves pre-planning what the club requires in order to meet Premier League requirements. The average property price in nearby postcodes is around £505,000 – up more than 33% in the last five years, and 292% in the last two decades – and, if the club is redeveloped, this could see local property prices positively affected. Research has also revealed that investing in property surrounding West Ham, Fulham and Arsenal’s stadiums could achieve healthy returns on investment. Whereas property with the highest price per square metre can be found near stadiums belonging to Chelsea, Fulham, and Arsenal. One of the biggest increases in past property prices could be seen surrounding Tottenham Hotspur’s stadium in North London. The average home value in the postal district surrounding Spurs’ stadium rose more than seven and a half times in the two decades between 1997 and 2017 from £59,638 to £450,104. Zoopla states the current average price around White Hart Lane is just under £460,000.
Despite increasing market prospects for the property sector as a whole, concerns have been raised as the overall affordability of rental properties; this time, not solely within the reputedly-expensive London area. As of present, the majority of private sector landlords have a stated requirement of some four weeks’ worth of rent before handing over the keys which, given increases in the average rental price of such properties, is beginning to raise similar concerns of affordability as have been seen in those relating to getting onto the property ladder. In fact, the average rental deposit has been predicted to increase by approximately 40% by 2026, hitting a colossal value of £1,111 which, though seemingly far smaller than the costs of getting onto the property ladder, may put people off approaching the rental ladder, even as a temporary measure. With the average monthly rental deposit then, based off these predictions, sitting at around 70% of the average monthly wage, the difficulty of individuals getting their own property in any shape or form is seemingly on the rise. Yet, there are considerable regional variations in this percentage, as reported by the Centre for Economic and Business Research. In London, where affordability has always been of great concern, it has actually been reported that the average rental deposit may reach up to 120% of the average monthly wage, serving as a stark 99% increase on last year and no-doubt putting concerns in the minds of many individuals looking to move or break away from home. Additionally, research has also highlighted that more and more landlords will expecting deposits to be of closer to six weeks’ worth of rent in the coming times, this then adding to the burden of those looking to get onto the rental ladder. With these growing prices, reduced affordability and barrier to enter onto the rental market, it begs the question how the market will react. Will getting onto the rental market be too much of a burden for some? As the major benefit of rental over purchasing a property lies within the affordability, these changes may very well change the landscape of the rental and property sectors entirely. Only time will tell, however.
