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East of England Home Truths' affordability report 2016/17 - 1 Feb 17

NHF logo Only those earning upwards of £65,000 a year can now afford the average mortgage in the East of England, a  new report [pdf] 55KB from the National Housing Federation says today.

With the mean salary now set at £28,000, the typical worker would need a staggering £37,000 pay rise (130%) to get a mortgage for the average home in the region.

According to the East of England Home Truths 2016/17 report, housing costs in the East of England continue to rise, making it unaffordable for many working households to rent or buy a home. In addition, the region has a growing and ageing population.

Between 2014 and 2039, it is estimated that the number of households aged 65 and over will increase by 62%, from 759,000 to 1,230,000. This is the third biggest increase behind London and the South East.

The report, which provides local data on the housing market in the East of England, reveals that the average house price is over £288,000, above the national average. This represents more than ten times the typical salary.

Compounding this is the increasingly unsustainable pressure that renting privately puts on people’s income. Private renters in the area have to fork out 33% of their income on rent to meet the average monthly rents which now total £786. This rises to over £1,400 a month in Three Rivers, leaving local people very little for other outgoings.

The report reveals one of the sources of all this misery: over 58,000 too few new homes have been built over the last five years in the region.

Home Truths 2016/17 reveals the most expensive and least expensive places to buy a home in the region.

Five most expensive areas to buy in the East of England

Table showing most expensive areas

Area

Mean house price

Mean salary

How many times house prices are average salaries

St Albans

£545,777

£42,489

12.8

Three Rivers

£520,644

£31,746

16.4

Cambridge

£501,572

£30,056

16.7

Hertsmere

£478,557

£31,938

15

Epping Forest

£473,455

£33,535

14.1

 

Five least expensive areas to buy in the East of England

Table showing least expensive areas

Area

Mean house price

Mean salary

How many times house prices are average salaries

Great Yarmouth

£162,463

£20,686

7.9

Fenland

£169,759

£24,544

6.9

Peterborough

£176,813

£25,085

7

Ipswich

£178,287

£23,665

7.5

Waveney

£190,327

£20,779

9.2

 

As a sector, housing associations are working to end the region’s crisis, completing almost 3,500 new homes, and having started building nearly 4,500 more. They built more than 40,000 homes across the country in 2015/16, 29% of all new homes in England. Housing associations have ambitions to work with Government to build thousands more new homes across the country.

Claire Astbury, External Affairs Manager for the National Housing Federation in the East of England, said:“This year’s Home Truths figures highlight the increasingly bleak reality that local people in the East of England are confronted with daily. The fact that they would require an increase of 130% in their salary to be able to afford a typical mortgage just shows how dysfunctional the current housing market is and the extent to which it does not work for the average worker.

“Housing associations are a vital part of the solution to the housing crisis. The sector is buoyed by the additional funding and flexibility secured in the Autumn Statement and is ambitious about delivering even more homes.”

 

 

Contact information

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Alternatively, email us at: enquiries@axiomha.org.uk, fax a message on 01733 295520 or send a text message to 07799 760764.
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