A housing association with homes across the North of England says it is working to make home ownership more affordable, after a report highlighted that the average person in the region would need a £10,000 annual pay rise to avoid being priced out of the home-ownership market.
The report, produced by the National Housing Federation (NHF), revealed that only people earning upwards of £33,968 a year can afford a typical mortgage in the North East.
But with the average worker earning £23,202, it means they would need a 46 per cent pay rise – an extra £10,000 a year – to be able to afford a mortgage.
With house prices rising at a faster rate than most salaries and people continuing to struggle to get onto the property ladder, Two Castles Housing Association says that it has recently built just short of 100 homes across the North East, in areas where demand is at its highest.
Two Castles says that all of these homes have been either sold under shared ownership agreements or let at affordable rents, providing a vital supply of affordable housing to people otherwise priced out of the market.
Developments completed in the North East during 2015 included 27 new homes in Warkworth and 26 properties in the new £3.4million Anick View development in Hexham. And Two Castles has plans for additional affordable homes in the region in 2016. Rob Brittain, property services director at Two Castles Housing Association, said: “The NHF’s report indicates that it is simply impossible for many people in the North East to even consider home ownership.
“This serves to highlight just what a vital contribution our affordable housing makes.
“Through our shared ownership homes we help to make the housing ladder more accessible for hardworking, local people – people for whom home ownership might otherwise simply not be an option.
“Our new housing schemes, such as our development at Anick View in Hexham, continue to be over-subscribed by families who are struggling to stay in the communities they call home. With this in mind, we will continue to work hard with partners to continue to address the shortfall in housing throughout 2016.”
For more information, visit www.twocastles.org.uk