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Wages failing to keep up with house prices

HOUSE prices in south Warwickshire remain among the highest in the West Midlands.

A new report by the National Housing Federation puts that figure at £347,991 in Stratford District and £331,036 in Warwick District, an increase of 5.5 per cent and 7.8 per cent, respectively, on the previous year.

But the report also shows the growing gap between house prices and wages, with the average wage reported to have grown by just 0.3 per cent in Warwick, improving to around a four per cent increase in Stratford.

In Warwick, the average home costs 10.2 times the average salary — up significantly from 9.5 times the previous year — and in Stratford the figure rises further still to 10.7, up 0.1 per cent on the previous year.

Potential home buyers in Warwickshire looking for an 80 per cent mortgage would need to be earning over £62,000, and those hoping to buy in Warwick and Stratford would need an income of over £75,000.

Earlier this year, Stratford District Council said it was on track to oversee the building of a record number of so-called affordable homes of between 350 and 390 for rent or shared ownership.

That eclipses the previous highest amount which was 288 in 2015/16. Warwick District Council adopted its new Local Plan in August last year, in which it has pledged to build 5,000 affordable homes over the next 12 years.

The National Housing Federation is the voice of housing associations across England.

Craig Felts, company secretary of Warwickshire Rural Housing Association, which builds homes in rural villages across the county, said: “We know there is a housing crisis in Warwickshire and the Federation’s latest Home Truths report shows that it is getting worse.”

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