Cumbrian homes less affordable than ever
Last updated at 12:14, Tuesday, 21 August 2012
The gap between house prices and wages in Copeland has grown faster than anywhere else in the UK over the last decade, according to a new report.
House prices between 2001 and 2011 rose 145 per cent while wages in the district went up by just five per cent.
It means the average house now costs SIX times what people are paid - making it more difficult than ever for local people to get a mortgage for a house in their community.
The average house price last year in Copeland was put at £129,862, while the average wage was just over £21,000 a year.
The study by the National Housing Federation said that back in 2001, the typical house price was £121,769 and the average salary just over £16,500.
Local estate agents says the extraordinary growth in house prices - seen more during the property boom of a few years ago – are due to a correction in the housing market.
Frank Morgan, a county councillor for Cleator Moor South, said: “House price inflation in Copeland is a major cause of concern particularly at this time when wages are being held down. Copeland needs a significant increase in all types of housing from executive properties to affordable homes for first time buyers in order to create a more balanced housing market.
“There is a particular need to stimulate the construction of affordable homes for purchase and rent. The building of new homes would also create job opportunities and address the appalling levels of youth unemployment and enabling local people to secure jobs and remain in the area.”
Liz Bolger, area sales manager of Your Move, which has offices in Workington, Whitehaven, Carlisle and Wigton, said prices varied in Cumbria.
She said: “The fantastic thing about Cumbria is you can a property from as little as £40,000 up to £1 million and still be in a wonderful part of the country near lakes and mountains. That option just isn't available to people in places like London.”
Traditionally, homes in Copeland have been cheaper than many other areas of the country and therefore had risen faster to catch up.
House prices were 2.6 times the average local annual earnings in Copeland in 2001 but by 2011 they were 6.1 times the typical wage.
Ian Tallentire, of Home Group, the company behind the £4.8m Grammerscroft estate rebuild in Millom, said: “As these latest figures show, getting a foot onto the property ladder is becoming increasingly difficult for a number of families in this area where average salaries are failing to keep track with the cost of purchasing a house from a private developer.
“Many people think they can’t afford their own home and that renting is the only option. Recently, like other social housing providers, we have been offering people a chance to get onto the property ladder through shared ownership.”
First published at 11:27, Tuesday, 21 August 2012
Published by http://www.newsandstar.co.uk
Have your say
I moved from Carlisle to Lancashire 5 years ago selling my house in Carlisle for Â£120,000 I bought a house in Lancashire for the same. My house in Lancashire is now only worth Â£90,000 while the house I sold in Carlisle has increased Â£5,000 in 5 years - not the normal average I would say, everywhere around the country houses have dropped by Â£20,000 except Carlisle!
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