House prices in North Somerset up by more than £20k in past year
PUBLISHED: 12:00 17 April 2018 | UPDATED: 12:00 17 April 2018
Average house prices in North Somerset have increased by more than £20,000 in the past year.
A National Housing Federation (NHF) Home Truths 2017/18 report has found the average North Somerset home costs £271,631, which is up from £251,607 in 2016.
It means the average house price in the area would cost almost 10 times the mean annual salary of £27,388 for 2017, making home ownership ‘increasingly unrealistic’ for many people.
An 80 per cent mortgage would require an income of £62,087, meaning people from North Somerset would need a 127 per cent pay rise to be able to meet the required rate.
The price of renting privately has added pressure on people’s income, with the average cost at £731, eating up almost one third of a renter’s average annual income at 32 per cent.
North Somerset also suffered from a large shortfall of new housing from 2012-16, as 3,384 too few homes were built.
Zeb Shepps, of Portishead, is trying to take his first step onto the property ladder but is being priced out of the market.
He said: “The rising house prices in the area are unrealistic for first time buyers.
“The availability of two or three-bed properties seems to be scarce, too.
“Me and my partner are expecting our first child in October so the pressure is definitely on to find a suitably priced and located property within the area.”
The report stated the South West ‘is one of the most unaffordable regions in the country’ due to ‘low and stagnating wages combined with drastically rising house prices’.
Nikki Knowles, external affairs manager for the NHF, said: “The housing market has seen a relentless rise in the gap between house prices and people’s salaries, and North Somerset is no exception.
“Attaining a mortgage is increasingly unrealistic and private sector rents make saving up more difficult.
“As this year’s report shows, it is more important than ever for the sector to be able to deliver homes which 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.”