The average full time worker in South Gloucestershire needs a 130% pay rise in order to buy a house, according to a new report from the National Housing Federation.
With average house prices in the area at tipping the scales at £275,000 it means a household would need to earn at least £62,806 and have a 20% deposit to purchase a home; in stark reality the average earnings in South Gloucestershire are currently £27,253. Despite this, the Home Truths 2017/18 annual report, which analyses the cost of housing across the entire South West, has revealed that it’s actually cheaper to buy a home in South Gloucestershire than in neighbouring Bristol or Bath & North East Somerset.
Because of the challenges presented by these gloomy figures, together with other housing associations, we’re working to end the housing crisis by providing more affordable homes, over the past 12 months we’ve completed new homes in Staple Hill, Cadbury Heath, Charlton Hayes and Thornbury.
Amanda Swann, Head of Development at Merlin said: “The Home Truths report again reinforces that it is increasing difficult for people to access good quality, affordable housing. But we’re committed to increasing the number of homes we build both for rent and importantly for shared ownership, to help those with a home owning aspiration achieve those dreams . Over the past year we’ve started work on more than 250 affordable new homes in South Gloucestershire and going forward our partnership with Bromford will deliver at least 14,000 homes over the next ten years.”
Nikki Knowles, External Affairs Manager for the National Housing Federation, said: “It’s disheartening to see how out of reach home ownership is for most young people while average rents are spiralling out of control.
“With land values at a premium and costs sky rocketing, delivering the amount of affordable homes the sub-region needs often proves very difficult. Ultimately, to deliver the homes the sub-region desperately needs, housing associations need more land to build on. Rather than continuing to sell public land to the highest bidder, public land needs to be made available for social housing.
“Housing associations are key to solving the housing crisis and we are collaborating with local authorities and the combined authority to achieve this goal.”
With low and stagnating wages and drastically rising house prices, the affordability in the South West is among one of the worst in the country. The Home Truths report also shows:
- The average house price in the South West is £270,054. Regionally, house prices have risen by £14,000 in the last year. House prices in the Cotswolds are nearly 50% higher than the regional average.
- The average house in the South West costs more than 10 times typical salaries and households would need a pay rise of over £36,000 to afford a mortgage.
- The average cost of renting is over £700 per month, swallowing up around 35% of local incomes and pushing many families into rent poverty.
- More than 20% of all second homes in England are located in the South West, increasing prices for local people.