Newark Notts Newark Community Website
The cost of buying your own home in the East Midlands increased by nearly three times the rate of an average salary over the past ten years – leaving thousands of people without a hope of ever getting on the housing ladder.
National Housing Federation research found that in 2001 the average price of a home in the East Midlands was £85,244, and the average salary was £14,971. In the space of ten years the price of a home has rocketed to £160,997 – an increase of 89% – whereas wages have risen just 31% to £19,661, making buying a home increasingly unaffordable for thousands of workers.
Overall, the East Midlands has seen a 44% increase in the gap between house prices and wages between 2001 and 2011. Newark is not singled out in the figures but the 10 worst affected areas are:
1. Corby in Northamptonshire: House prices up by 118% (from £60,594 to £132,381) where wages have only increased by 9%, meaning the gap between house prices and wages has risen 100% between 2001 and 2011.
2. Lincoln: House prices up by 119% (from £59,205 to £129,873) where wages have only increased by 23%, meaning the gap between house prices and wages has risen 79% between 2001 and 2011.
3. Charnwood in Leicestershire: House prices up by 102% (from £92,103 to £185,744) where wages have only increased by 16%, meaning the gap between house prices and wages has risen 74% between 2001 and 2011.
4. Gedling in Nottinghamshire: House prices up by 91% (from £82,562 to £158,015) where wages have only increased by 16%, meaning the gap between house prices and wages has risen 64% between 2001 and 2011.
5. South Kesteven in Lincolnshire: House prices up by 85% (from £95,811 to £177,461) where wages have only increased by 13%, meaning the gap between house prices and wages has risen 64% between 2001 and 2011.
6. East Northamptonshire: House prices up by 90% (from £98,927 to £187,827) where wages have only increased by 19%, meaning the gap between house prices and wages has risen 59% between 2001 and 2011.
7. Chesterfield in Derbyshire: House prices up by 93% (from £67,810 to £130,689) where wages have only increased by 22%, meaning the gap between house prices and wages has risen 58% between 2001 and 2011.
8. Leicester: House prices up by 113% (from £65,442 to £139,232) where wages have only increased by 36%, meaning the gap between house prices and wages has risen 56% between 2001 and 2011.
9. Wellingborough: House prices up by 81% (from £86,627 to £156,892) where wages have only increased by 16%, meaning the gap between house prices and wages has risen 56% between 2001 and 2011.
10. High Peak in Derbyshire: House prices up by 92% (from £91,702 to £176,053) where wages have only increased by 23%, meaning the gap between house prices and wages has risen 56% between 2001 and 2011.
During the same period, getting a mortgage also got a lot harder, with the amount of deposit needed in the East Midlands rising by 372%. In 2001 the deposit for a typical 90% mortgage (available in 2001) was £8,524. By 2011 the amount banks were willing to lend was less, and so the deposit needed for a typical 75% mortgage leapt to £40,249.
The five areas that have seen the greatest rise in the amount of deposit needed for a mortgage between 2001 and 2011 are:
• Lincoln – up 448% to £32,468 in 2011
• Corby in Northamptonshire – up 446% to £33,095 in 2011
• North East Derbyshire – up 443% to £41,985 in 2011
• West Lindsey in Lincolnshire – up 442% to £39,912 in 2011
• Leicester – up 432% to £34,808 in 2011
Chris Hobson, East Midlands lead manager for the National Housing Federation, said: ‘The East Midlands has seen some shocking increases in house prices in recent years and that’s making it increasingly hard for people looking to buy their own home here – particularly in the current climate.
‘Corby in Northamptonshire is in third place out of a national top ten for the greatest increase in the gap between income and house prices over the last ten years. Lincoln’s seen the largest increase in the amount needed for a deposit anywhere in the East Midlands. All this is making it extremely difficult for people to buy in their local area.
‘A shortage of homes means the price to buy them is being pushed ever higher by the market, and out of reach of thousands of hard working families. Unless we start building more homes people can truly afford, to match the demand, this will only get worse.’
