Analysis of ONS and Land Registry data by Together has found that property values have increased in all of the top 10 local authority self-employment hotspots.
Three Rivers district in Hertfordshire was revealed as the country’s biggest self-employment location, with 23.8% of the population running their own businesses.
The area has experienced an increase of 9.6% in house prices over the past two years (UK average: 7%).
Three Rivers was followed by Chiltern district council in Buckinghamshire, where 22.3% of its population was self-employed and the area had a 15.6% increase in house prices over the same period.
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Richard Tugwell, group intermediary director at Together (pictured above), said: “While buying at a time of steeply rising house prices could offer self-employed workers more financial security, many would-be borrowers in these areas are missing out on this significant opportunity because they can’t get a mortgage from their banks.
“Mainstream lenders often rely on computerised systems to check a borrower’s credit history and affordability, meaning those who don’t “tick the right box” can easily fall through the cracks.
“Unfortunately, the self-employed – who might have irregular income or a shorter trading history – are often victims here, being deemed as ‘too high risk’ for many high street banks to lend to.”
Top 10 self-employed hotspots