People need to earn more than £50,000 a year to be able to afford to buy a house in Shropshire, a new report claims today.
Fears that increasing numbers of people are being priced out has led to calls from the National Housing Federation to build more affordable housing.
The report issued by the NHF says demand for social housing has soared, with nearly 7,000 on a waiting list in Shropshire because they are unable to buy a home outright.
Depressingly, a recent survey shows people expect things to get worse and house prices to be even higher in 12 months’ time.
About 54 per cent think the cost of property will increase during the coming year, with seven per cent thinking prices will be at least 10 per cent higher.
Only 11 per cent think they will be lower, property website Rightmove said after questioning nearly 35,000 people last month.
The figure is a dramatic turnaround from the 69 per cent of people who thought prices would be lower in 12 months’ time during the first quarter of the year.
The most expensive place to live in Shropshire according to the NHF report is Ludlow, where the average house price is £242,702.
It means a family would need to have an annual income of £62,400 to be able to afford a mortgage there.
Following the release of the figures the NHF warned people would simply give up hope of getting a house unless there was a “dramatic increase” in the number of social homes being built.
Councillor Malcolm Price, portfolio holder for housing at Shropshire Council, said: “I am pleased this report has come out because it backs up the work we are doing in the county to solve the problem.
“Our figures suggest the average house price in the county is roughly £175,000 but the average wage is only £21,000 so people have been completely priced out of the market.
“This is why it is vital as a council that we look at sites to build affordable homes.
“It is important to stress these homes are for local people and they will be built to fit in with village and towns.”
He added: “Social housing is for everyone including professional people because the wages they are earning will not get them a mortgage.”
Councillor Price said the authority was also looking at empty homes in the county as a solution to the problem.
By Wayne Beese
See Also:
9 Comments
People do have choices: they have the opportunity to save before deciding if they want to buy a house or not.
There’s too much of an ownership culture in Britain. There’s nothing wrong with renting – that’s what the Germans do.
Report abuse
id love to know were the average wage bit comes from as alot of people i know are on around 15k must have been 1 person on 500k a year in the survay to average it out
Report abuse
Dan [#2: most people I know are on £70k+ but they’re socio-economic group A and B. Your pals must be manual workers.
Report abuse
Thank-you Birmingham…
Report abuse
I don’t know anyone on £70k+ except, maybe, a couple of high ranking Army Officers – a lot of clerical and admin staff are on £15k or less in Shropshire.
But people do have a choice – they don’t have to buy expensive houses. There is a flat for sale near me that is under £100k and has been on the market for months – nothing wrong with it but people seem to think they have to buy a house as their first home. Why don’t they just set their sights a bit lower to start with and work up the property ladder instead of wanting to buy a family home straight away?
Report abuse
Invest in a foreign passport, contribute nothing to the system, turn up in Shropshire and you will get a FREE house and your bills paid.
Problem solved.
Report abuse
it keeps the riffraff oput at least
let them go live in birmingham there is acres of empty space for housing there
Report abuse
Lower taxes would also help.
Report abuse
English Exile,
What a pathetic, racist and above all untrue comments yours was…
Report abuse