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Dave Beans

On The Front Of The Western Daily Press Today

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Glanced at this in a local Tesco's...

http://www.thisissomerset.co.uk/wdpfeed/Homes-cost-20-times-salaries/article-3300350-detail/article.html

The average price of a house in some parts of the West is now as much as 20 times the average wage, as the region faces an affordable homes crisis.

Despite the house market slump, the gap between wages and house prices is at an all-time high and is now fuelling an increasingly bitter feud between developers and politicians who want to curb house building on the West's green fields. The 'affordability gap', which reveals how many times more the average house price is in an area compared to the local average wage, has grown to almost 20 in the Cotswolds.

It is more than 10 in the Forest of Dean and South Somerset and nearly 11 in Sedgemoor in Somerset. With the average across the region around 12, the problem is so bad in some parts it is becoming difficult for key workers like nurses, teachers and firefighters, to afford to live in the areas they are needed, it has been warned.

A new study by the National Housing Federation, which lobbies for housing associations, said rural areas are suffering the most from the affordability gap. The study found that while the average price of a house in the West countryside has more than doubled in the past ten years, wages have only risen by a fifth in some parts.

The NHF's South West manager Jenny Allen, said: "It's pretty clear from these figures that people in more rural parts of the South West face a huge challenge when it comes to affording their own home in the current climate.

"With the gap between house prices and local wages widening so rapidly, it's not surprising.

"Local people are already being priced out of their communities, and unless affordable homes can continue to be built to meet demand in rural areas, then this problem will increase further – having a huge knock-on impact on the rural economy," she said.

According to developers and lobby groups like the South West Housing Initiative – a coalition of house builders, housing associations, employers and unions – the answer is to build thousands more homes, including social housing, to meet the demand. The SWHI said the figures showed the West faces the biggest housing crisis outside London. It said while almost 30,000 new households will be created in the West in the next five years, the "discrepancy between supply and household change is massive".

"The South West region has the worst average affordability ratio in England outside of London," warned SWHI chief executive Richard Kitson.

"In the South West the average house price is 12 times more than the average income, but in some areas it is nearly 20.

"Mortgage lenders work on the basis of up to four times earnings.

"Only 35 per cent of working household can afford to buy a home in the South West, while the national average is 46 percent," he added.

"This is even worse for those under 40, with only a fifth able to afford to buy a home."

And the problem of a lack of affordable homes is being exacerbated by the planning vacuum created by the new Government, the SWHI said. The Coalition scrapped the previous Government's controversial nationally-set housing targets. And while residents opposed to widespread housing developments fear that vacuum in planning policy could leave a back door for speculative development, the housebuilders say they fear the opposite is proving true.

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It's ok if you own your own property - these losers should just get on the ladder and stop complaining.

While it's hard to get 20x salary, it's easy to get a mortgage for 5x fictious salary.

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There are other problems apart from the affordability of houses, the affordability of the transport to get to work, and the scarcity of work to pay for the unaffordable houses.....to top it all, the wage paid to purchase the unaffordable house together with the cost and availability of transport to support it. ;)

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There are other problems apart from the affordability of houses, the affordability of the transport to get to work, and the scarcity of work to pay for the unaffordable houses.....to top it all, the wage paid to purchase the unaffordable house together with the cost and availability of transport to support it. ;)

With the majority of the SW being rural, and with crap public transport, the hike in fuel costs will really hit a lot of households (as well as the rest of rural areas in this country)...

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With the majority of the SW being rural, and with crap public transport, the hike in fuel costs will really hit a lot of households (as well as the rest of rural areas in this country)...

Yes it will.......people will have to start organising themselves, sharing resources, working together....... doing things differently. ;)

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There was a report on Radio 4 this lunch time about the high cost of petrol/fuel.

it hits the rural and poor the most.

people aew cutting back on eating out, holidays, saving etc...

It's a real shame.

But it's funny that the cost of petrol going up is a bad thing - but the cost of housing going up is a good thing.

Both have the impact of taking money out of your pocket that could be spent on other things.

While petrol is in part taxed heavily - the price of fuel we can't really control.

For housing, there are demographic and economic factors - but we can control them and the government (labour) did everyhing they could to inflate the bubble.

I would not like to live in the Rural parts of the UK and rely on a state-sector job for employment.

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But it's funny that the cost of petrol going up is a bad thing - but the cost of housing going up is a good thing.

Both have the impact of taking money out of your pocket that could be spent on other things.

Yes, but you can't sell the petrol again later.

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It's ok if you own your own property - these losers should just get on the ladder and stop complaining.

While it's hard to get 20x salary, it's easy to get a mortgage for 5x fictious salary.

You've got to be careful with satire. Sometimes it can be overtaken by events.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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