Lack of homes fuelling crisis

Charity bosses have warned a lack of suitable accommodation is, in part, fuelling the homelessness crisis in the UK. Homes in Scarborough are at their least affordable since 2010, new figures show. Each year, the Office for National Statistics calculates housing affordability by comparing the median house price in a local authority area to the median full-time annual income of people who live there. In Scarborough, homes became less affordable as wages increased by four per cent in 2021, while house prices rose by nine per cent.

The analysis shows that the average house price in Scarborough is now £182,500, while the average annual salary sits at £28,434 – meaning house hunters need 6.4 times their wage to buy a home.

This is the highest ratio recorded since 2010. In 2020, the figure stood at 6.2.

Polly Neate, chief executive of housing charity Shelter, says the blame for worsening affordability lies with a “huge decline” in affordable social homes, paired with less housebuilding. “House prices have been pushed higher by policies that have given some people greater purchasing power, like Help to Buy or the stamp duty cut. These policies, coupled with a lack of supply, means homeownership is now out of reach for most people on modest incomes.”