Tagged: house prices

Average Teesside home is worth £25k LESS than it was five years ago

The average homeowner in parts of Teesside has lost £25,000 off the value of their house since the coalition came to power in 2010 – while prices in London have soared.

Exclusive analysis of Land Registry data show the average house price in Redcar and Cleveland has dropped by 21.3% since May 2010, the date of the last election.

The average price is now £92,785 – or £25,134 LESS than it was then.

Only two places in the country – Merthyr Tydfil (down 27.1%) and Blackpool (down 24.9%) – have seen a bigger percentage fall.

In Middlesbrough, prices are down 6.6% since May 2010.

That means the average property is worth £5,904 less now than then.

And Stockton-on-Tees has seen a 2.6% fall, equivalent to £2,944.

Across England and Wales as a whole, house prices have actually gone up by 10.8% since May 2010, with the average property worth £17,595 more than it was then.

Across England and Wales as a whole, house prices have risen by 10.8% since May 2010.

The biggest increases have all been in London – with the 29 top-rising areas all in the capital.

Top of the list is Hackney, where house prices are up 76.3%.

The average house is now worth £634,045 – or £274,491 more than it was five years ago.

In the City of Westminster, meanwhile, the average price is up £464,941 from £610,767 to £1.07m.

When London is taken out of the equation, Tory-run areas seem to have done markedly better than those controlled by other parties.

Ten of the 20 ‘non-London’ areas that have seen the biggest rises are held by the Conservatives, with nine in no overall political control and just one – Slough – held by Labour.

Tory Wokingham (up 25.7%), Hertfordshire (up 24.6%) and Surrey (up 24.6%) have seen the biggest rises outside London.

By contrast 19 of the 20 areas to have seen the biggest falls in house prices are run by Labour.

The only one that isn’t is Lancashire (down 13.6%) – which is in no overall control.

Source – Middlesbrough Gazette, 13 Apr 2015

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Houses cost five times the average wage in the North East

Concerns have been raised that aspiring North-East homeowners are being priced out of the property market as houses now cost five times the average wage.

The TUC’s analysis of average salaries and house prices by local authority area shows that in 1997 the average house price in every area of the North-East was less than four times the average salary.

By 2013 not a single area had this level of affordability.

The affordability ratio of five is particularly significant, says the TUC, as the Bank of England has recently instructed banks to limit the proportion of mortgages they offer that are more than 4.5 times applicants’ salaries.

The TUC believes that the combination of soaring house prices, stagnating pay in the run-up to the economic crash and the longest real wage squeeze in over a century will leave house prices more out of reach than ever before.

Although average house prices have not yet reached their pre-recession peak in many parts of the North-East, wage levels mean that buying a home remains out of reach for local people, says the TUC.

Their analysis found that wages in the North-East fell by around £1,320 a year in real terms between 2010 and 2013.

TUC regional Beth Farhat said:
“Over the last 16 years, house price rises have outstripped peoples’ pay packets and left huge swathes of the region unaffordable.

“Last year, house prices in nearly half the North-East’s local authority areas were more than five times the average local salary.

“Unfortunately, the situation is compounded because our region has the highest unemployment rate and the lowest wages in the country.”

Ms Farhat said an ambitious house building programme was needed to get prices back under control and better rent deals were needed for people struggling to get on the property ladder.

She added:

“Housing affordability isn’t just about house prices though.

“At the moment, earnings and house prices are going in opposite directions, pricing ordinary people out and denying them something as fundamental as a roof over their head.

“More and better jobs and decent wages would go a long way to limiting the impact of property price hikes for everyone.”

In both 1997 and 2013, Northumberland was the most unaffordable area in the North-East, where last year the average house price was almost six times the local average salary.

In 1997, Redcar and Cleveland was the most affordable but that has now been replaced by Middlesbrough.

Nationally, Copeland in the Lake District is the last local authority area left in Britain where average house prices were less than three times the average annual salary.

The top five least affordable areas are in London, with Kensington and Chelsea having average house prices more than 30 times the average local salary.

Source –  Northern Echo,  01 Sept 2014