X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LONDON-The National Housing Federation (NHF) has called for the Government for a massive investment in affordable housing. It argues that the Government’s £250 million ($350 million) starter home initiative does not go nearly far enough and, despite claims that 10,000 key workers will benefit, demand will way outstrip supply.

In over half of all English counties outside London an income over £30,000 ($43,000) is needed to buy an average priced home. Whilst London and the South East have some of the most expensive housing the problem is not solely confined to those areas. To buy an average priced home in Herefordshire, for example, an income of nearly £37,000 ($53,000) is needed while in the East Riding of Yorkshire an income of £24,000 ($34,300) is required. In 18 English counties, to buy a home with a 95% mortgage, borrowing three times income, a household needs to earn over £40,000 ($57,200) . In all but four London boroughs incomes of over £40,000 ($57,200) are needed. Barking & Dagenham is London’s most affordable borough.

The NHF has said the figures make ‘stark reading’ as the latest Government figures show that over 70% of households have incomes below the £30,000 ($43,000) level. Liz Potter, policy director at NHF, said, ‘The high cost of housing is now putting essential services at risk- not just in London, but now across many areas of the country. The current buoyancy in the market is masking real dangers for the economy and for homes and families.’

Potter expressed disappointment at the Government’s handling of the housing problem. She said, ‘We had hoped that at this stage- almost 18 months on from the Government’s announcement- we would have been looking to expand the initiative, and not still waiting to get it off the ground. Under the scheme just 3,500 homes will be available annually over the next three years. Demand will inevitably outstrip supply.’

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. Apartments 2020Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.