Housing Costs
6.43 The issue of affordability continues to be a serious problem in the South West. Home ownership has become more expensive since 1992 as house prices have grown much faster than earnings. According to the ODPM (now DCLG) Survey of Mortgage Lenders the average dwelling price in the South West was 3.1 times the average recorded income of people securing a mortgage in 1992. By 2005 this had increased to 4.66 times average income (compared to 4.11 for England). In 2004 an average three bedroom house in the South West cost 1.1 times the £157,000 average price for a three bedroom dwelling in England.
| House prices lower quartile (£) | Average house prices (£) | Average Income (£) | House price to average income ratio (£) | Average house price first time buyer (£) | |
|---|---|---|---|---|---|
| South West | 143000* | 210639 | 49620 | 4.2 | 151842 |
| England | 125000* | 206714 | 52424 | 3.9 | 153752 |
| Source: DCLG 2006 | |||||
| *Third quarter price 2006 | |||||
6.44 The Joseph Rowntree Foundation's report, 'Can Work - Can't Buy' published in 2003 identified that, with the exception of London, access to affordable housing was more difficult in the South West region than in any of the other regions in England. Sixteen out of the top 40 'least' 7 affordable areas in England were in the South West. The report showed that 68% of households in the South West were unable to afford the average price of even the cheapest 25% of houses. This was the highest proportion in England outside London. The varying sub-regional picture of house price to income ratio by HMA is illustrated.
