Increasing cost of housing is ‘damaging’ the market

Crisis: The gap between wages and mortgages is widening says new report
Crisis: The gap between wages and mortgages is widening says new report
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LANCASHIRE’s housing market is reaching breaking point, according to a new report.

Data produced for the National Housing Federation reveals that some parts of the county are suffering a severe shortage of affordable homes and the gap between wages and the cost of homes is growing.

In some areas the huge demand for properties has been blamed for spiralling costs, meaning that in some areas, such as the Ribble Valley, people need mortgages seven times the average salary in order to buy a home.

The North West Broken Market, Broken Dreams report said that despite house prices being below the national average, £153,152, in some areas, including Preston, prices are still beyond the reach of local pay-packets,

Estate agents and financial advisers say the local market is improving and in some areas is better than it has been in years.

However Georgina Cox from Moving Works in Longton, said first time buyers are still priced out of the market adding: “I think the changes in affordability criteria are making it harder and harder to get a decent sized mortgage.”

She added: “We still have disappointed first time buyers.”

Jason Hinde from- Kieron Bassett Financial Services in Morecambe said: “Things have been picking up, 2014 has been a much better year than the five years preceding it. Whether this going to be a flash in the pan due to the help to buy scheme, or a genuine sustainable change in the market, is something which is yet to be seen.

Figures show that salaries rose to an average of £34,463 last month, up 1.9 per cent from last year, beating inflation, which was 1.5 per cent.