Call to act now to create ‘truly affordable housing’
IT would take someone 32 years of saving £100 a month to afford a deposit for a first-time mortgage in some parts of the West Midlands, it has been revealed.
Research conducted by Unison shows that workers saving in Stratford-upon-Avon would have to save for longer than anywhere else in the West Midlands, with the average price of a deposit £38,036.
And the figures also show that many public sector workers such as nurses, librarians and Police Community Support Officers (PCSO) could only afford mortgages in certain parts of the region.
This is because Bank of England guidelines recommend only giving mortgages worth 4.5 times the salary of the individual. So, in theory, a nurse would only be considered for a mortgage in Wolverhampton and Stoke-on-Trent, as these are the only places in the region with low enough house prices.
The figures come as the West Midlands Combined Authority (WMCA) considers redefining “affordable housing” in the region, with a new commitment to provide more affordable housing.
In Birmingham it would take a worker saving £100 a month 20 years for a deposit on an averagely priced home, while none of the professions of nurse, NHS cleaner, PCSO, librarian or teaching assistant could afford a mortgage based on the 4.5 to 1 ratio.
And housing charity Shelter says that, in many cases, it’s nearly impossible for people to save up in the first place.
“Despite working all the hours they can, too many people in the West Midlands are trapped paying extortionate private rents meaning they can barely afford to make ends meet, let alone save for a deposit,” said Greg Beales, campaign director at Shelter.
“So, it’s good to see the West Midlands Combined Authority looking to build more homes at truly affordable rents in the area.
“To support councils across the country to deliver more good-quality housing, we need central government to provide much-needed investment, as well as reforms to our broken land laws, to make it easier and cheaper to build. A new generation of social homes is what people want and is what we need to solve our country’s housing emergency.” This was a point supported by the Trade Union’s Congress, which said: “Just like the rest of the UK, the West Midlands is in the grip of a housing crisis and we have to finally grasp this policy nettle.
“Owning a home is something millions of people aspire to yet it’s getting harder each year for working people to achieve. The market is broken. That’s why we welcome this report and we look forward to working closely with the WMCA to deliver a step change in affordable housing provision and to tackle the scourge of homelessness.”