Average worker in Yorkshire and the Humber would need a 64% pay rise to afford a mortgage says National Housing Federation
The average full-time worker in Yorkshire and the Humber would need a 64% pay rise just to afford a mortgage on a typical home in the region, according to a report from the National Housing Federation.
The Yorkshire and the Humber Homes Truths 2016/17 report reveals that those earning any less than £39,811 a year are now priced out of buying the average home in the area.
Despite regional house prices being lower than the national average, the combination of low wages, an above-average unemployment rate and job insecurity is resulting in an acute housing crisis in the area it says.
Local salaries have failed to keep up with house prices it says, meaning the average home in Yorkshire and the Humber – costing £174,171– is now over seven times the average yearly income of £24,284.
Home ownership is furthest out of reach in Harrogate, where average houses cost £305,442 – over 11 times local salaries, while house prices are 10.1 times salaries in Ryedale and over nine times local salaries in Hambleton, York and North Yorkshire.
House prices are lowest in Kingston upon Hull at £110,180, which is 5.2 times the local salary. Earnings in the area are among the lowest for the whole region while its unemployment rate is the area’s highest.
As well as low wages, the Yorkshire and the Humber workforce is characterised by the second-highest number of part-time workers in the country. Nearly one third (32%) of people work part-time in the region, second only to the South West.
The report also exposes the severe shortfall of new homes in recent years. Between 2011 and 2015, there were over 37,000 too few homes built across Yorkshire and the Humber to keep up with demand, while growing cities like Sheffield and Leeds alone were 7,000 homes short.
Jo Allen, the National Housing Federation’s external affairs manager for Yorkshire and the Humber, said: “It is clear that Yorkshire and the Humber is suffering from an acute housing crisis and these truly distressing stats simply reaffirm that fact – we simply must get building more genuinely affordable homes.
“Our sector is buoyed by the additional funding and flexibility secured in the Autumn Statement and housing associations are now seen as key players in building the homes to end the housing crisis within a generation.
“The Government has displayed a clear show of faith in our sector, and we are ambitious about delivering even more affordable homes where they are needed most across the region.”