Half of Preston families ‘can’t get a mortgage’

MORE than half of families in Preston can't afford a mortgage
MORE than half of families in Preston can't afford a mortgage
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More than half of families in Preston can’t afford a mortgage, according to council chiefs.

The deputy leader of Preston Council this week explained the “challenge” 
facing more than 50 per cent of the city’s households, unable to get on the property ladder.

But bosses hope developments in the enterprise zones, as well as the City Deal, will boost Preston’s economy and improve families’ finances.

A report discussed by leaders at this week’s cabinet meeting said the average household income in homes with one income was £17,393 per year.

Coun John Swindells, cabinet member for planning and regulation, said: “To get a 90 per cent mortgage, which is very rare, a family with one earner would need £22,450, and a dual income of £27,000.

“The difference between £18,000, which more than half of families in Preston earn, and the minimum of £22,000 that’s needed for a mortgage is a real challenge.

“More than 50 per cent of Preston families probably couldn’t get a mortgage.”

He added that, even if they could get a mortgage, half of families had less than £500 in savings.

He said: “It’s a real challenge and it’s why we hope City Deal will bring the higher paid jobs in.”

Speaking after the meeting, he said: “We can’t provide mortgages”, but said it was hoped the enterprise zones at Warton and Samlesbury would bring “high-end engineering jobs.”

He said: “They will bring high wages and hopefully, as they spend the money, they buy the new homes in North West Preston and start to spend the money they earn in Preston.

“We hope with the City Deal it will improve the finances in all sorts of ways, not just with new jobs.

“But it’s just more and more difficult for people to get into even entry level housing.”