Although those finishing university can be tempted by the success that London promises, many are finding themselves more financially well off by moving elsewhere. So where are the top locations that graduates move to?
A new map by Urban.co.uk identifies areas around the country that offer both affordable properties and high salaries. If you are planning to expand your property portfolio, or are investing in the private rental sector for the first time, it may be wise to consider these spots.
The top locations include Warrington, Huddersfield, Bradford, Wigan and Faversham.
Warrington in Cheshire tops the list for graduates thanks to its average salary of £27,456 and an average house price of £169,902. Its good transport links and employment opportunities are also attractive to graduates.
Behind Warrington is Huddersfield in West Yorkshire, where the average salary is £26,928 and the average home costs £149,904. With a cultural scene that is set to challenge Leeds and the Pennines nearby, graduates are flocking to the area to set up home.
Bradford in West Yorkshire is also considered a top spot for graduates, where salaries average £26,928 and the average house price is £143,572.
The co-founder of Urban.co.uk, Adam Male, says: “Major cities such as Leeds and Manchester may not offer the best value for money, but if buyers are prepared to travel a little further out, to areas such as Warrington and Wigan, there are some great bargains to be had.
“With new transport links set to make these towns easy commuter links, savvy students should be wise to the savings they can make on a property in the cheaper parts of this region, with a view to making a long-term investment.
“Prices are currently a fraction of those that you would expect in London or the South East.”1
Wigan, in Greater Manchester, has an average salary of £27,456 and a typical house price of £151,548. Meanwhile, the average wage in Faversham is £32,232, while the average house price is £271,462.
The findings arrive amid soaring house prices in London, where many graduates traditionally head to after university.
The average property price in the capital has risen by more than £207,000 over the past decade to currently stand at £620,000, according to Zoopla. This compares to an average price of £295,000 for the whole of England.
With house prices continuing to rise, many prospective first time buyers are being priced out of homeownership. This will mean that a large number of graduates will have to live in the private rental sector.
As a landlord, it could be a good idea to purchase a rental property that would suit this type of tenant.
Although young professionals are typically reliable renters, it is important to remember that anyone can fall into financial difficulty at some point. Therefore, it is wise to cover your rental income with Rent Guarantee Insurance, which ensures you still get paid if the tenant defaults.