£724 a month needed to save deposit for average house in North West reveals National Housing Federation
House prices in the North West are now so disproportionate to salaries that buyers hoping to save for a typical deposit over the next four years will need to put away at least £724 every month, according to a report from the National Housing Federation reveals today.
The North West Home Truths 2016/17 report, reveals that a 20% deposit on an average house in the area has now reached £34,741.
Despite house prices in the North West being considerably lower than the national average, the combination of low wages and a huge number of empty homes is resulting in an acute housing crisis in the region, it says.
The average house price of £173,705 is nearly seven times more than the typical salary, meaning that a household currently needs an income of almost £39,704 a year to afford an average 80% mortgage.
Home ownership is furthest out of reach in South Lakeland, where average houses cost £255,344 – close to 10 times local salaries. Homes are nearly as unaffordable for those living in Trafford, despite salaries being higher than average for the region.
Cheshire East, Ribble Valley and Cheshire West and Chester complete the five most expensive areas to buy in the North West.
The cheapest area in the region to buy a home is Burnley where the average property costs £96,330 – 3.8 times the average salary.
Hyndburn, Blackpool, Pendle and Blackburn with Darwen complete the five least expensive areas to buy in the North West.
The report also exposes the North West as having the highest number of empty homes in England, at over 40,000. Many are congregated in older pockets of deprivation and are in urgent need of sweeping investment.
Katie Teasdale, the National Housing Federation’s external affairs manager for the North West, said: “It is clear that the North West is suffering from an acute housing crisis and these truly distressing statistics simply reaffirm that fact – we must get building more genuinely affordable homes.
“Our sector is buoyed by the additional funding and flexibility secured in the Autumn Statement and we are now seen as key players in ending the housing crisis within a generation.
“We now need the backing of key local partners to release land in the right places, free up planning and help us to deliver the types of affordable housing needed most.
“With this support we can not only ramp up supply, but also begin vital regeneration projects, enhance infrastructure and bring empty homes back into use.”