Less than 10% of homes affordable for families
Published by Max Salsbury for 24dash.com in Housing and also in Central Government, Communities, Finance
10% of UK homeowners face negative equity
Less than 10% of suitable homes in England are affordable for a typical family hoping to get on the property ladder, new research has revealed.
And housing charity Shelter's study found that in some areas the problem is even worse, with fewer than 10 affordable homes for sale in an entire local authority area.
Less than 5% of homes are affordable in West Somerset, York and Warwick. And in Brent and Cambridge it was found that not one of the homes for sale was affordable for a typical family.
In the whole of London there are just 613 homes on the market that are affordable to young families with children – 1.6% of all private homes in the capital.
Shelter notes that, though it aims to help families get on the housing ladder, the government’s help to buy scheme is also out of reach for most. Research shows that first-time buyers would be unable to afford the scheme’s mortgage costs in over 80% of the country.
The research comes as census data shows that homeownership in England has dropped for the first time since records began. Shelter is warning that unless the government tackles the shortage of affordable homes things are only going to get worse.
Campbell Robb, Shelter’s chief executive, said: "It’s right that young people who aspire to own their own home should work hard and save each month, but with such a pitiful number of affordable homes on offer – even with a generous 20% deposit – our housing shortage is holding them back.
"Young people are working hard and doing their bit. Now the government has to meet people halfway and increase the supply of affordable homes – not the supply of credit – or the prospect of a home of their own will slip even further out of reach for future generations."
Tom Copley, London Assembly Labour Group housing spokesperson, said: “London is facing a housing crisis for all types of tenure, there simply isn’t enough housing being built. This is putting intolerable strain on house prices and on rents. In one month alone house prices rose by £50,000 and private sector rents are seeing double-digit increases year on year. London is becoming more and more unaffordable, this is not healthy for London’s future. The dream of home ownership is becoming an ever more distant dream for young Londoners."