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Shropshire Housing Market Broken


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Saw this on the 'Sloppy' Star website today:

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.”

http://www.shropshirestar.com/news/2011/12/07/shropshire-housing-market-is-broken-claims-report

Feel free to add your HPC comment to the article! ;)

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Also on the BBzz...

http://www.bbc.co.uk/news/uk-england-16068738

West Midlands housing market 'broken', says NHF report

...

South Shropshire is the worst area, with houses on average costing 14 times people's annual income.

By comparison, people wanting to buy a house in Stoke-on-Trent have to spend just five-and-a-half times their annual wage to buy a house.

...

Amy Beddis, its policy officer, said she would like to see more investment in house-building, and a greater emphasis on shared ownership.

The NHF said building more houses would bring prices down and generate more money for the economy.

:rolleyes:

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A comment on the Shropshire Star website:

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.

:rolleyes:

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  • 4 weeks later...

A quick check on rightmove gives 215 properties under £70k. (there's 90 under £50k)

Trouble with averages is that the big properties that cost £1m+ (38 on rightmove currently) mess the figures up. (or 324 properties for 500K+)

The average price quoted for Shropshire includes 5 bed detatched houses. Is that *really* the definition of an average house?

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