A worker on average earnings in Cheshire West and Chester now needs an 88% pay rise to afford a mortgage, reveals a new report from the National Housing Federation.
The North West Home Truths 2017/18 report reveals the average home now costs around £232,213 in the Cheshire West and Chester local authority area, which is eight times the local typical salary, making home ownership impossible for many.
The report also reveals:
• The cost of renting privately has added pressure on people’s income. Average monthly rents now stand at £648 swallowing up around 28% of private renters’ income.
• Around 20% of housing benefit recipients are in work, yet are still unable to afford their rent. This is lower than the England average, but shows rents across the region are increasingly unaffordable.
• The reason for the growing crisis is down to a large shortfall of new housing. Between 2012 and 2016, around 1756 too few homes were built in Cheshire West and Chester.
In the North West last year, housing associations completed nearly 3,400 new homes and started work on just under 4,300 more.
Ciaran Tully, external affairs manager for the National Housing Federation, said: “The housing market has seen a relentless rise in the gap between house prices and people’s salaries.
“Cheshire West and Chester UA is no exception. Attaining a mortgage is increasingly unrealistic and private sector rents make saving up that bit more difficult.
“As this year’s Home Truths report shows, it is more important than ever for the sector to be able to deliver homes that are truly affordable. If we want to get serious about ending the housing crisis, we need to start looking at unlocking more land so we can build homes faster.”