New Homes Are Unaffordable For Most – Bright – Mortgage Broker St Neots

Almost eight out of ten families across England aren’t able to afford newly built homes in their local area, a new report from Shelter suggests.

The report research shows rising house prices impacting all parts of England, not just London and the south-east.

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A new style of building is being called for, modelled on that of Victorian philanthropists, where short-term profits are put aside and replaced by long-term community gains.

Ministers agree that the system is broken and are working towards making housing more affordable. The government is looking to invest a further £50bn in housing loans and subsidies by 2021, but more than half of this is being earmarks for “market-priced” housing.

Looking further into the report produced by the housing charity, Shelter, the problem seems to be at its worst in the West Midlands, where 93% of privately renting, working families couldn’t afford to buy a newly built house, even with the help of the governments Help to Buy scheme.

The second worst area is south-west England, where 89% of people were pushed away from home ownership by price, and this is the East Midlands where 87% couldn’t afford the £215,000 average price tag.

Newly built homes are the main way the government is increasing housing stock.

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Save money on your mortgage with Bright Advice – Mortage Broker St Neots

Under what the government describes as a “speculative” model for house building, Shelter says housing developer are required to maximise returns on their substantial investment and therefore they are not willing to lower the price of the homes they build for sale.

Graeme Brown, Shelter’s interim chief executive, had this to say: “Big developers and land traders are making millions from a rigged system while families struggle with huge renting costs and have to give up on owning a home of their own, which has become nothing more than a pipedream.

“For decades we’ve relied on this broken system and, despite the sweeteners offered to developers to build the homes we need, it simply hasn’t worked.”

Bright – Mortgage Broker St Neots

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