More misery predicted for would-be home-owners

Nov 7 2007 by Caroline Innes, Liverpool Daily Post

A NEW report predicts further housing misery for those wanting to get on the property ladder in Merseyside and Cheshire, with the affordability gap widening and waiting lists for social housing doubling.

Figures released by the National Housing Federation last night reveal a looming regional property crisis, with 43,257 households in Merseyside and 15,462 households in Cheshire on social housing waiting lists.

Currently, average house prices in the region are around 8.4 times average incomes and it is predicted this gap will widen even further, forcing more and more people to seek housing help.

In Warrington and Knowsley, house prices have grown 12 times faster than incomes in the last 10 years, and overall house prices now cost 10 or more times local earnings in more than 20% of Merseyside and Cheshire.

Last night experts warned the situation would not improve until the housing supply caught up with housing demand.

They said failure to build the necessary number of new homes each year increased the shortfall, and people were now being made to wait longer for a social home.

New social house building made up only 7.7% of all new homes in the region last year.

The North West as a whole has a 13% share of national waiting lists but receives less than 6% of the national expenditure on new social housing.

The North West contains four of the Government’s Housing Market Renewal pathfinders and is receiving more than half of the programme’s national funding for 2003/2008.

However, in parts of Merseyside the number of new properties bought by speculators and buy-to-let investors is reported to have pushed up house prices, particularly in the first time buyer market.

The average house price in Merseyside is £140,825 but the average income is just £17,638. In Cheshire it is £200,968 and £19,791 respectively.

Sallie Bridgen, National Housing Federation North West regional manager said the financial cost of housing in the region was having a “serious impact on people’s life choice.”

She said: “It is time to face up to a few home truths. Without urgent action the housing crisis in the region will deepen further.”

She added: “Now is the time to address the supply and demand mismatch.

“The shortage of affordable homes in the region is not only affecting the lowest earners but those on middle incomes.

“The desire to own your own home is being put on hold for a generation of first time buyers, while others find it impossible to move to a larger home to meet changing family needs.

“Buying a mid-priced home in the region now requires an income of over £40,000 a year.”

Ms Bridgen called on the Government to deliver its promise of substantially more investment in affordable housing to end the housing misery blighting Merseyside and Cheshire.

She added: “Housing associations are doing all they can to address this serious problem but need more investment and additional support.”

carolineinnes@dailypost.co.uk