Shropshire housing market is ‘broken’ claims report
Wednesday 7th December 2011, 1:24PM GMT.
The housing market in Shropshire is broken with first time buyers and middle income families unable to afford a new home, it was claimed today.
The difference between what people earn and what people can afford has become unbridgeable, according to the National Housing Federation.
The worst affected in the region is south Shropshire.
In a new report called West Midlands Home Truths 2011, it is revealed the average home in the region costs £177,913 – nine times the average West Midlands wage of £19,864.
The report, launched today by National Housing Federation chief executive David Orr, warned of ‘a broken housing market’.
In Shropshire, the average home costs £208,309 – 10.2 times the average individual income of £20,374, with even homes in the lowest bracket costing £130,000.
The report shows that the gross annual income needed to secure a mortgage in Shropshire is £44,638.
The NHF said home ownership on the open market remained out of reach for many in the county, and with private-sector rents also on the increase, saving for a deposit was becoming even harder.
South Shropshire was the least affordable area in the whole region, with the average home costing 14 times the average local income.
Gemma Duggan, West Midlands lead manager for the National Housing Federation, said: “House prices in the region remain out of reach for thousands.”
Listen to Martin Holland, Chief Executive of Shropshire Housing Group, talking about the county’s property market:
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I’ve been saying for a number of years that the housing market needs to be reset and costs brought back down to realistic levels. I’m perfectly happy to see the value of my house halved if it means the cost of my next (more costly) house is also halved.
The only losers are the baby boomer generation who have ridden the housing market wave and are currently laughing all the way to the pool in their retirement villas.
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I am a baby boomer and have worked from 16 years old, paid all my taxes and saved for my retirement so I think I deserve my retirement
and all that goes with it.
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If you’re one of those baby boomers who was lucky enough to upsize while house prices were 3 x income and downsize when they jumped to 7 x income (gleefully selling to the next generation and pocketing huge amounts of “free” money), through nothing more than happenstance that was completely unrelated to any effort on your part and was fuelled by irresponsible lending practices of banks (which has played a part in precipitating the current global financial mess), then I’m disinclined to agree.
On the other hand, if that doesn’t sound like you then yes, you deserve everything you’ve worked for.
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Original Jake, completely and utterley agree with you. Years ago, people were in a comfortable position to buy homes and then sell on for a large profit. Those that are well off and retired now are the lucky ones, the “I’m alright Jack” generation. most of the current generation work just as hard and have the added stress of the current economic climate to deal with as well as cuts left right and centre, while taxes are at an all time high.
The government is doing it’s best to give us each a pair of rose tinted spectacles, but it isn’t working! It will only get worse and I worry what position my children will be in 20 years from now.
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Another “entitled” baby boomer! No, we cannot afford your 40 years of retirement and no your house isn’t worth half what you think it is.
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I’m still working at the moment but in the near future I’ll be taking early retirement and settling back into my nice house in a nice village.
I’ll supplement my pension with income from my rental properties both here and in Europe (all paid for at market rates – no Buy-to-lets here).
I worked for it, I went bust once trying to create jobs for others but was successful in the end. Do you think I should benefit from my hard work and endeavour or should I just hand over my cash to you now ?
By the way – Original Jake, the property market isn’t going bust. It will not grow for a long time but I cannot see much growth over the coming few years.
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The only people to profit greatly by this are our glorious bankers and financial institutions not forgetting the estate agents and the surveyors.
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It is not easy right now for anyone looking to get on the ladder and this is exactly why Derek Royle has set up Royle Property Ladders to address. While we are a bone-fide, professional business, and the whole reason we exist is to try and solve the huge challenge that young couples now face in trying to save enough money for a deposit and get their first foot on the property ladder. Yes, believe it or not, we are doing this because we genuinely believe something needs to be done – that is the key motivation and we are taking a positive attitude. We’ve already proven it can work and we’re convinced it can work for many more couples in Shropshire.
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But we’re saving first time buyers by underwriting mortgages on extremely overpriced slave boxes, ahem sorry newbuilds for loans up to 95%! Please don’t worry about the small details of owing 6x joint income.
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We live in France because we were priced out of the UK Market. It works well for my family as I am a freelance programmer and only work on the internet. For most families that come here, i.e. people of the age that need to work, it is an impossible dream and ends when the cash runs out. I know of at least 5 boomers who are heading to Shropshire now they think prices have gone down and have sold their property. They came here when houses were a few thousand, pumped them up and are now retuning now the pound is weak and they think they will been needing and English speaking health system. I do hope my experience is not typical.
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A Shropshire builder recently stated that he could build well equipped 2 bedroom homes,sell them for £69k and make a healthy profit were it not for the fact that every plot of land which comes on the market whether it has current planning permission for house building or not is pounced on by one of the big developer cartel members,knowing full well that paying well in excess of the true value to prevent
competing builders getting any costs them nothing because the cost will be added to the price anyway .Easy Solution….
A statute requiring all developers to build houses on all land they buy within 1 year of the purchase thereof or have it reposessed with no compensation
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