Homes still unaffordable for first time buyers in the South West despite falling property prices

By PRSD, on Tuesday, September 29, 2009

First-time buyers in the South West cannot afford to enter the housing market despite property prices falling 8 per cent in the past year, according to the TUC and the National Housing Federation.

Their comments come as the Land Registry announced the average house in the South West costs £167,00

For full details including local data see the land registry pdf.

Simon Nunn, Head of the South Region of the National Housing Federation, said: “These new figures don’t change the fact that house prices in the South West are higher than average while incomes remain lower than average.

“Buying a house remains out of reach for ordinary working families as their incomes are squeezed and banks restrict mortgage lending and ask for big deposits. This is especially true in rural areas where homes cost more than 14 times average incomes.

“The message is clear – the South West needs a lot more affordable homes, and we cannot afford to let house prices spiral out of control again.”

Simon Nunn will address the South West TUC Regional Council in Plymouth on Saturday, October 3, where one issue affecting trade unionists is the lack of houses on the market, with sales falling by 17 per cent in the past year.

Nigel Costley, regional secretary of the South West TUC, said: “Problems with banks giving their customers credit and concerns about job losses are having a real impact on the South West housing market.

“The drop in house prices is being felt at the same time as recession is biting on employment. The Government needs to keep putting pressure on banks to lend their customers money to keep the housing market and the wider economy moving.

“We also want to see the current financial fiscal stimulus maintained to move the UK out of recession as soon as possible.”

Welcoming the news the Homes and Communities Agency announcement that around half of all the 260,000 new homes being built in the next two years would be paid for by the government, Nigel Costley added: “With the private sector languishing in the doldrums, it is right the government should step up to provide much needed social housing.”

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