26 November, 2014
North West Housing News recently reported that the North West housing market is reaching breaking point.
The National Housing Federations has revealed the extent of the fragmented housing crisis across the region. Despite house prices being below the national average in the North West at £158,926, prices are still beyond the reach of local pay-packets, with people expected to pay more than six and a half times the average income here to own a home.
The average salary for people in the North West of £24,050 doesn't come close to the £36,326 required for an average mortgage in the region, pricing thousands of workers and families out of owning a home, with some areas including South Lakeland, Trafford, Cheshire East and Cheshire West having an average house price of over £200,000.
While these areas are suffering from a housing shortage, there are also places in desperate need of regeneration and pockets of poor quality older homes which don't meet the housing needs and aspirations of local people. For example the Burnley, Hyndburn, Wigan and Blackburn areas.
There is a huge need for new affordable housing in these areas. Not only will this help to alleviate the housing crisis but it is reported that every new affordable home built in the North West adds £90,972 to the regional economy and creates 2.1 jobs.