Only people earning upwards of £40,000 a year can afford a typical East Midlands mortgage, according a new report by the National Housing Federation. The average worker earning £24,000 would need a staggering £16,000 pay rise (68 per cent) to get a mortgage for an average home in the region
Home Truths 2015/16 portrays a gloomy picture for renters, too. Private renters currently fork out around £537 a month in the East Midlands; 27 per cent of their pay packet.
In parts of the region the picture is even more extreme, with rents in Rutland and South Northamptonshire now hovering well over the £750 mark.
The report concludes that the source of all this misery is 40,000 too few new homes built over the last four years in the region.
With house prices across the region now at seven times local salaries, housing associations are building homes at scale to help end the East Midlands housing crisis.
Housing associations are working to end the region’s crisis, providing 145,000 affordable homes in region. Housing associations built 50,000 homes across the country last year, which is 40 per cent of all new homes in England.
Kate Warburton, external affairs manager for the National Housing Federation in the East Midlands, said: “This is a housing crisis several generations in the making, and one that affects buyers and renters across the region. To spell it out, if you’re on an average salary and want to buy a home, you’ll need to ask your boss for a 68 per cent pay rise!
“There are nowhere near enough homes being built to keep up with demand. Last year 8,000 too few homes were built to keep pace with demand – over the last four years that’s a shortfall of 40,000. Urgent action must be taken.”
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