Welwyn Hatfield's first-time buyers 'locked out' of housing market
PUBLISHED: 12:15 07 December 2011
THE cost of an average home in Welwyn Hatfield costs a whopping £318,894, locking an entire generation out of a broken housing market, a report says.
That is 12.2 times the average salary of £26,130 in the borough – nowhere near the £68,334 salary first-time buyers need to obtain a mortgage (of 75%, at 3.5 times income).
The staggering figures were revealed in a National Housing Federation released yesterday (Tuesday), called Home Truths 2011: Fixing Our Broken Housing Market.
The report showed the average property price in the East of England is £237,668. The value is even more daunting in Hertfordshire, standing at £317,376.
But while house prices have risen sharply in the past 10 years, salaries haven’t matched this pace – growing four times slower.
Claire Astbury, of the federation, said: “The East of England has become unaffordable for ordinary hardworking people who have little realistic chance of buying their own house, triggering even greater demand for good social housing or a desperate search for a home in the more expensive private rented sector.
“Ministers should make a renewed commitment to building the affordable homes we need and identify housing as a key driver for economic activity.
“Housebuilding is a crucial part of economic recovery, creating real jobs, and supporting apprenticeships and training.”