Buying home in Newham costs ten times salary
PUBLISHED: 06:30 24 November 2011
Newham’s housing market has been described as ‘‘unsustainable’’ after figures released last week showed buying a house looks harder than ever for the average man on the street.
An aspiring home buyer in the borough would have to pay out 10 times their annual salary in order to get a foot on the housing ladder, the National Housing Federation (NHF), which represent housing associations, said.
The charity’s Home Truths report stated that the average price of a house in Newham is £220,143, with the typical annual salary around £22,000.
Kate Dodsworth, assistant director at the NHF, said: “An entire generation has been locked out of a broken market.
“The housing crisis should dominate next year’s mayoral election as Londoners face their own Olympian struggle to find a home they can afford.
“We need a reformed planning system that supports the building of affordable homes and the use of suitable surplus public land to build on.”
The average property price in the capital amounted to £408,384 with the average household income calculated at £27,128.
However, homes in Newham are still comparatively affordable when compared to other parts of London. The average price of house in Kensington and Chelsea stands at £1.24 million.
The average price of a house in neighbouring Barking and Dagenham and Waltham Forest boroughs is £179,178 and £236,913 respectively.
Newham has also been named as the 26th most expensive place to rent in the country. The council’s proposals to licence private landlords have sparked fears that any extra cost could be passed on to tenants.
Kate Boycott, director of policy and campaigns at Shelter, said: “This report is the latest in a series showing a housing market that is not only out of control but completely unsustainable.
“With a shortage of social housing, and home ownership out of reach for most, private renting is becoming the only option for thousands of families.
“But renting has reached crisis point too. Recent research from Shelter found that rents in Newham are taking up 55 per cent of typical earnings.
“We are already working hard to meet an increased demand for our services as a result of London’s housing crisis.”
Anybody who wants advice should contact Shelter’s Newham advice centre on 0344 515 1231.
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