Buyers need £45k salary to get on housing ladder
MIDLANDERS now need to earn more than £45,000 a year to buy a home as new figures revealed the extent of the housing crisis in the region.
Construction of new housing in the West Midlands fell short by 45,000 homes in the past five years, according to the National House Federation.
The report – ‘Home Truths 2016/17’, published by the campaign body for housing associations – said last year fewer than 12,500 homes were built in the region, far below what is required to accommodate 19,000 new households a year.
The figures reveal that many people are simply priced out of home ownership in the region.
While average salaries in the West Midlands fall below the national figure of £25,000, only those earning upwards of £45,000 a year can now afford the typical mortgage, the report claims.
The average home costs around £197,600, almost eight times the local typical salary, rising to nearly 11 times in areas such as the Malvern Hills and Wychavon.
The cost of renting privately now stands at an average of £607 per month but can reach much higher figures in areas such as central Birmingham.
The report also revealed the most and least expensive places to buy a home in the region.
Stratford-upon-Avon is most expensive, with an average house price of £329,925, followed by Warwick with £306,902 and Solihull with £286,723. The cheapest area, according to the new report, is Stoke-onTrent, where the average house price is £112,476, followed by Sandwell with £134,267 and Wolverhampton with £147,359.
Birmingham City Council has previously stated that about 80,000 new homes were needed to accommodate a population growth of an estimated 150,000 extra people by 2031.
The council has attracted controversy in recent months by earmarking formerly greenbelt land in Sutton Coldfield for new housing development.
Housing associations built more than 40,000 homes across the coun- try in 2015/16, 29 per cent of all new homes in England.
Kate Warburton, of 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. Housing associations are a vital part of the solution to the housing crisis.
“The sector is buoyed by the additional funding and flexibility secured in the Autumn Statement and is ambitious about delivering even more houses.”