The Warwick District is in ‘urgent’ need of more affordable housing after a new report reveals people would need a minimum income of £70,000 to secure a mortgage.
This message has come from the Warwickshire Rural Housing Association (WHRA) after the release of ‘Home Truths’, which is the National Federation of Housing’s annual report on the housing market in England.
The report is broken down into nine different regions and in the West Midlands, the Warwick District has been ranked as the second most expensive place to buy a new home, with Stratford topping the list.
According to the NFH’s 2016/2017 report the West Midlands has a five-year shortfall of more than 45,000 affordable homes, with 2,065 being in the Warwick District.
In the district the gap between people’s income and house prices is higher than the average for the whole of the West Midlands.
The average home across the West Midlands costs 7.8 times more than the average income but in the Warwick District a home costs 9.7 times more.
Latest figures also show that only those who are earning £70,149 in the district would be able to afford an 80 per cent mortgage.
Again, this statistic is higher than the West Midlands average, where people need £45,159, and it also is higher than the average for the whole of England, where £64,460 is needed.
According to the WHRA the expensive house prices means more people are likely to turn to privately rented properties but even these work out more expensive at £802 when compared to the region’s average, which is £607.
The WRHA’s concerns over affordable housing is illustrated further by the report as the number of housing association affordable homes in the district came in at 3,460 homes, which is one of the lowest amounts across the region.
The housing association are set to develop a potential 42 affordable homes for local people in six Warwickshire villages this year.
The villages set for the home are; Broom and Long Compton Stretton on Fosse, Claverdon, Great Alne and Wootton Wawen.
Craig Felts, company secretary of Warwickshire Rural Housing Association, said: “The Home Truths report highlights the high cost of housing across Warwickshire, with Warwick district being one of the most expensive areas in the County.
“It shows that our work to develop affordable homes is more crucial than ever before.
“Having a decent home enables people to establish a stable life and participate in education and employment. It is key to a person’s wellbeing.
“Developing affordable homes helps to build strong communities in which individuals and families can participate and contribute to their future sustainability.
“Our new homes will make a big difference, helping to develop communities where people can afford to live.”
Kate Warburton, external affairs manager for the National Housing Federation in the West Midlands, said: “Every new statistical release paints a bleaker picture of the current state of the housing market.
“The reasons for the situation we are in are varied and complex, but one thing is clear: we simply haven’t built enough homes as a nation.
“And this year’s Home Truths findings for the West Midlands are a stark reminder of this.