Homebuyers need 74 per cent pay rise

First time buyers in Fenland need a 74 per cent pay rise to help them get on the property ladder according to a new report.
First time buyers in Fenland need a 74 per cent pay rise to help them get on the property ladder according to a new report.

A worker on average earnings in Fenland now needs a 74 per cent pay rise to afford a mortgage, reveals a new report from the National Housing Federation.

The East of England Home Truths 2017/18 report reveals the average home now costs around £187,212 in the Fenland local authority, which is eight times the typical local salary, making home ownership impossible for many.

The report also reveals:

• The cost of renting privately has added pressure on people’s income. Average monthly rents now stand at £579 swallowing up around 28 per cent of private renters’ income.

• A significant number (21 per cent) of Housing Benefit recipients are in work, yet are still unable to afford their rent. This is lower than the England average. This shows rents across the region are increasingly unaffordable.

• The reason for the growing crisis is down to a large shortfall of new housing. Between 2012 and 2016, around 854 too few homes were built in Fenland

The housing association sector is working to battle the capital’s housing crisis, completing nearly 9,000 new homes during 2016/17 and starting a further 13,585.

Sarah Finnegan, external affairs manager for the National Housing Federation, said: “The housing market has seen a relentless rise in the gap between house prices and people’s salaries. Fenland is no exception. Attaining a mortgage is increasingly unrealistic and private sector rents make saving up that bit more difficult.

“As this year’s Home Truths report shows, it is more important than ever for the sector to be able to deliver homes that are truly affordable. If we want to get serious about ending the housing crisis, we need to start looking at unlocking more land so we can build homes faster.”