Shropshire housing market is 'broken' claims report

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: