Tagged: Kensington and Chelsea

North East family incomes lags behind most of UK

Family  incomes are on the rise in most of the region, official figures show – but at a slower pace than in most of the country.

Household disposable income per head crept up by just 0.8 per cent in the North-East between 2012 and 2013, below the one per cent rise across the United Kingdom.

And the North-East was left in the slow lane by both Scotland (up two per cent) and the West Midlands (up 2.3 per cent) as the economy bounced back, as well as by Yorkshire (up 1.4 per cent).

But households in London and the South-East (both up 0.6 per cent) saw incomes grow more slowly – even though overall growth was far higher than in the North-East in both areas.

The statistics also reveal striking local variations in the changes in gross disposable household income (GDHI), the amount available for spending or saving after taxes and benefits.

Incomes grew sharply in Darlington (3.5 per cent) and South Teesside (2.6 per cent) and were also up in North Yorkshire (two per cent) and Hartlepool and Stockton-on-Tees (1.9 per cent).

But growth was more sluggish in County Durham (1.3 per cent) – and fell markedly in both Sunderland (3.1 per cent) and York (3.3 per cent).

 And disposable incomes in the North-East are as little as one-third of those in the plushest parts of London, where the figures surged ahead between 2012 and 2013.

In Westminster, the average GDHI was £42,221 in 2013 – almost three times the figure of £14,659 in County Durham and the highest of 173 local areas analysed.

And incomes in Kensington and Chelsea/Hammersmith and Fulham (£42,116), Camden and City of London (£37,324) and Wandsworth (£35,237) were not far behind.

Matt Whittaker, chief economist at the Resolution Foundation think-tank, said:

“Regional inequalities have fallen since the crash, but the gap between the South East and the UK is stark.”

Experts believe disposal income – the amount people have to spend after the bills have been paid – is the best measure of the economic confidence of families and individuals.

The rising figures in most areas were thought to reflect low interest rates and low inflation offsetting disappointing wage rises, perhaps helping to return David Cameron to No.10 earlier this month.
Source – Northern Echo, 28 May 2015
Advertisements

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

Britain’s Richest MP slams welfare state but makes £625k a year in housing benefit

A Tory MP worth £110million is raking in £625,000 a year from his hard-up tenants’ housing benefit – despite blasting the “something for nothing” welfare state.

Richard Benyon – Britain’s richest MP – runs his vast property empire from a mansion on his sprawling country pile.

But last night he was accused of cashing in off the back of the very handouts his party pledged to slash – as it emerged a string of other Tories were doing the same.

Just last month the MP, 53, said: “The average household spends £3,000 per year on the welfare state. This figure had been rising inexorably and unaffordably.”

Mr Benyon has also attacked the Labour Party over payments and said: “Labour want benefits to go up more than the earnings of people in work. It isn’t fair and we will not let them bring back their something for nothing culture.”

He is a director of the Englefield Estate Trust Corporation Limited, which owns most of the land and property linked to his family.

It got £625,964 in housing benefit from West Berkshire council last year, more than any other private landlord in the area.

Eileen Short, of Defend Council Housing, fumed: “How dare Richard Benyon lecture us about ‘something for nothing’ when he is living off the poorest and milking taxpayers all the way to the bank?

“It’s not tenants who gain from housing benefit, but some of the richest people in Britain. They get richer at our expense – and blame us while they’re at it.”

Mr Benyon is likely to pull in thousands of pounds more from properties in other areas, too, as his firm owns 20,000 acres of land from Hampshire to Scotland and 300 houses in Hackney, East London.

His office refused to comment on the figures or confirm whether Englefield got more housing benefit from other councils. Buy-to-let landlords and property tycoons like him will bank a total of £9.2billion in housing benefit this year.

It costs more than £23 a week, or 29% more in housing benefit, for a council to house a tenant with a private landlord than with a housing association or social not-for-profit landlord, according to the Department for Work and Pensions.

Mrs Short added: “It’s time we stopped greedy private landlords living off housing benefit. Instead of subsidising them, we ought to cut rents not benefits, and invest in housing that’s really affordable. Let’s get these people off our backs.”

Our investigation, with the GMB union, comes after it was revealed yesterday that UKIP’s housing spokesman Andrew Charalambous was making a fortune off migrant tenants on welfare – despite leader Nigel Farage calling for a ban on foreigners claiming the cash.

The millionaire pocketed £745,351 in housing benefit from occupants, who he admitted included immigrants.

Our probe also uncovered a number of other Tories and donors who also bagged cash through housing benefit tenants last year –

Baron Iliffe’s firm got £195,072 from West Berkshire council. His estate is worth an estimated £245million. He and his wife have donated £50,000 to the Tories.

Peer Lord Cavendish benefitted from £106,938 in housing welfare last year from Barrow council in Cumbria through his shareholding in Holker Estates.

The Earl of Cadogan, who has given £23,000 to the Tories, has received £116,400 in benefits from Kensington and Chelsea.

And MP Richard Drax’s 7,000-acre Morden Estate got £13,830 from Purbeck council, South Dorset, last year. A Morden spokesman said: “We don’t comment on these things.”

On top of Mr Benyon’s haul from tenants, his family farms have also received more than £2million in EU subsidies since 2000.

Once a year the multi-millionaire – whose great great grandad was PM Lord Salisbury – hands out food to poor families as part of a 16th century tradition. He recently came under fire for scrapping plans to dredge the Somerset Levels. He was also criticised for claiming poor families wasted too much food.

Our investigation is based on Freedom of Information Act requests made by the GMB union, which has many members who rely on social housing. There are 1.8 million households on the waiting list for council homes. Despite ­Government pledges to tackle the welfare bill, the annual cost hit £24billion this year.

The DWP said: “Housing benefit provides a meaningful safety net for people, whether they live in social housing or in private rental properties, and it’s sensible that both of these options are available to people.”

Source – Daily Mirror,  24 Feb 2014