Ten times average earnings needed to afford a home in and around Bury St Edmunds says report by National Housing Federation
A report into housing in the East of England has highlighted that the average home in St Edmundsbury now costs 10 times the average earnings.
Private rental is also putting pressure on people’s incomes with the average of £820 eating into 35 per cent of private renters’ incomes.
The East of England Home Truths 2017/18 report also points to a shortfall in new housing.
In St Edmundsbury the average house price stood at £281,524 with mean annual earnings at £28,517. The income required for an 80 per cent mortgage was £64,348.
Average unemployment in the district stood at 3.1 per cent over the year and there was a shortfall of new homes over a five-year period from 2012 - 2016 of 532 homes. The total of housing association affordable homes in 2017 was 8,265.
St Edmundsbury’s Vision 2031 identifies that 5,740 new homes are needed in Bury between 2012 and 2031.
A spokesman for St Edmundsbury said: “The housing market is inflated by supply versus demand. West Suffolk’s success as a great place to live and work means that there is a strong demand for housing.
“Our role is to ensure that we have land available for housing growth, to lobby for funds and invest ourselves in some of the necessary infrastructure to support the delivery of new homes.”
Babergh house price averages were £296,917 with monthly rental at £709 and mean annual earning of £30,623. There were 488 second homes in the district compared to 252 in St Edmundsbury.
In Mid Suffolk a house could cost on average £278,335 compared to earnings of £26,666. An income of £63,619 was needed for an 80 per cent mortgage. Mid Suffolk had a shortfall of 492 homes and 445 second homes.
Forest Heath average house prices were at £233,147 with earnings at £27,950 but rental prices stood at a massive £997, possibly influenced by rental to Americans from Lakenheath and Mildenhall. Forest Heath had a shortfall of 712 homes.
The National Housing Federation, which produced the figures, states that there are too few homes being built to meet local needs with renting still unafordable in parts of the Eastern region.