East Riding affordable housing crisis
WITH its picturesque market towns, green countryside and good schools, the East Riding is a popular place to live.
But a chronic shortage of affordable homes has made it one of the worst areas in the country for those looking to get on the property ladder.
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Would-be first-time buyers say certain parts of the East Riding are simply out of their reach
New research suggests thousands of people are struggling to buy a house.
High land costs and house prices in the region, combined with the recession, has been blamed for the shortage of affordable properties.
Would-be first-time buyers say certain parts of the East Riding are simply out of their reach and even renting can be a problem.
The issue has been highlighted by the housing charity Shelter.
It has ranked East Riding Council 308th out of 323 English local authorities for delivering affordable homes.
The council says securing more Government money to pay for additional homes could help ease the problem.
Nineteen-year-old Jodie Saltmer is one of those who cannot afford to buy a property.
She says prices in the area make it too expensive for first-time buyers such as herself and her partner – despite having two jobs.
She said: "We were renting in Beverley, but we couldn't afford that, so I moved back in with my parents in Market Weighton.
"The problem is the deposit. By the time we save up the house prices have increased again."
Just four per cent of the number of affordable homes needed in the county have been built – leaving a shortfall of 1,395 per year, according to Shelter.
An average of only 60 have become available in the past year.
Campbell Robb, Shelter's chief executive, said the figures were "extremely worrying".
He said: "The council must work far harder to ensure more desperately needed affordable homes are provided if it ever hopes to meet the housing needs of the local population."
Shelter based its ranking on housing market assessments completed by each area nationally.
These studies are done by staging household surveys and are undertaken by independent experts commissioned by the council.
From the survey findings, and council house waiting lists, local authorities then work out an area's demand for affordable homes.
There are plans to build 325 new affordable homes across the county – made possible through a £40m scheme, funded by the Government and East Riding Council.
The sites earmarked for development range from a row of garages in Abbey Road, Bridlington, to land at a former primary school in Goole.
John Craig, East Riding Council's housing and spatial strategy manager, said more central government funding is needed.
He said: "It is more difficult to provide affordable housing in rural areas because of higher land prices, but the council is committed to providing more.
"We have been successful in securing the largest grant in the country to deliver more than 300 new affordable houses."
"The problem has also been caused from our planning policies. We now require private developers to commit 40 per cent of a development to affordable housing.
"This was introduced about 18 months ago and will take time to have effect."
Adrian Harrison, of estate agent Dee, Atkinson and Harrison, said: "House prices are higher in the countryside and the further outside of Hull which brings up the cost of affordable houses."
9 Comments
by lee, west hull
Friday, March 19 2010, 8:26PM
“I believe the ERYC has been given millions of pounds by the government to build hundreds of housing which is classed as affordable housing. The problem is land. The council has little land which is suitable land which houses can be built on. The HDM needs to speak with the ERYC and find out what plans are presently being put together for develpoing land which is suitable for housing.”
by Somebody who works for a living, Thorngumbald
Friday, March 19 2010, 5:12PM
“Jim,Leven theres a chap who fits Fat Tonys description who lives in Thorngumbald, there must be one in every village!!!!”
by jim, leven
Friday, March 19 2010, 4:01PM
“Fat Tony
Think I know the one,do you live in our village?”
by Michael, Hessle
Friday, March 19 2010, 1:00PM
“@ Mark
"isn't the historic average for house price something like 3-4 times average salary?"
Sort of. There is a belief amongst some that the "correct" amount to lend someone is up to 3.5 times their salary because that is what happened in the "old days."
but, they then go on to interpret that maximum as 3.5 times one salary. Most households now have two incomes, tax credits etc etc. unlike the "old days"
3-4 times a household income is probably about right in my opinion (depending on commitments, level of disposable income etc etc)
"Could it be the Banks want the 10% deposit to cover themselves if property loses value in the future..."
Of course, but the reality behind their decision are not that simple and are more to do with costs in the credit reinsurance market and their desire to reduce credit risk.
Concern about house prices in the current market is best dealt with by lenders by things like insisting on repayment mortgages and longer term fix rates to ensure affordability for higher loan to value and income multiple customers.
"There is no guarantee that house prices will rise indefinitely, regardless of what "vested interests" (and I don't mean you in particular) might like to suggest.... "
Don't think that anyone counts on prices rising. a quick look at the Land Registry site shows that this area is down from 2006/7 (although we have not seen the extremes that some areas have).
I make no predictions about house prices.
The actual offer in terms of £ that my client makes has little effect on income I make. Whether a mortgage is available to them with the deposit they have does.
I would be happy for house prices to rise, fall or remain stagnant - average prices here never outstripped incomes in the same way they did in other parts of the country or even yorkshire (hull was 91666 and e yorks 158492 at the peak).
Housing cost issues in rural areas are nationwide and down to a number of factors such as those mentioned by Ernie and a lack of real employment options - not just rampant House Price Inflation as some would like to believe.”
by Daniel, Hull where 75% of the houses are in band A.
Friday, March 19 2010, 11:31AM
“It is not in the interests of East Riding Council to have cheap affordable houses in their area. How are they to continue to fund immoral early retirement packages if houses are in the lower council tax bracket”
by Ernie, HEDON
Friday, March 19 2010, 10:47AM
“presently the east riding planning authority do not allow homes to be built in the rural areas of the eastriding unless the homes are provided by housing associations where the landowner receives peanuts for his land and then the housing association can make them "affordable" to rent.
"In the country side "AFFORDADLE" does not necessarily mean that a private developer can sell the houses cheaper as he cannot get planning permission anyway.
Most "affordable" housing proposed for the rural areas by the council will be rented council houses which is why there is a stack of planning applications in the pipe line from the East Riding council for sites in villages such as Keyingham etc.
First time buyers or older couples seeking to down size who want to buy "affordable " homes in rural villages such as Paull have not got a chance of owning an "affordable" property until the goverment via the local authority relax the planning rules and allow some development within rural villages.
The youngsters in villages such as Paull will have to move away to places such as Hedon to find homes they maybe can afford which then means the villages no longer thrive the pubs and local communities
suffer.
Building wadges of council homes in the East Riding is not the answer to solve the lack of affordable homes in rural communities .Everyone who wants should be able to be able to afford a home in their communities in order for the rural villages to thrive.”
by Mark, Hessle
Friday, March 19 2010, 10:37AM
“Mike - "affordable" - isn't the historic average for house price something like 3-4 times average salary? Could it be the Banks want the 10% deposit to cover themselves if property loses value in the future...There is no guarantee that house prices will rise indefinitely, regardless of what "vested interests" (and I don't mean you in particular) might like to suggest....”
by Mike, Hessle
Friday, March 19 2010, 10:08AM
“As someone who gives mortgage advice I can only echo what Jodie Saltmer said in the article.
To me, the problem in this area is not the price of house in itself (although we'd all want to pay as little as possible).
The problem is the deposit they need to put in. Banks are not lending at the level of deposit that most people have.
If you want to buy an £90,000 house you will need a deposit of £9000 as a minimum and £13,500 to get a half way decent deal.
A couple with a joint income of £25,000 (£12,500 each) could qualify to borrow the £76,500 to £81000 they need but are very unlikely to have the deposit.
If more lenders would accept a 5% deposit, more people could buy somewhere but lenders hide behind the need to reduce risky lending.
The truth is somewhere between banks not having the money to lend and clawing in every possible penny they can by maximising margins.
Only one or two lenders support schemes (such as those with new house builders) that reduce the deposit people need to find from their own resources.
Most people have to wait until they have the 10-15% cash deposit currently needed. Some get help from parents but not everyone is in the position to do so.
Until banks begin to lend with deposits at 5-10% at reasonable rates the position of first time buyers will not improve - no matter what happens to house prices - and we have to ask whether banks really are keeping to their promise to lend to small business and homeowners when they cherry pick and lend to only the least risky.”
by Fat Tony, Still confused.
Friday, March 19 2010, 9:49AM
“They don't have to be affordable.
Claim you have a shoulder injury that makes you unable to work (but still able to walk three big dogs, go shooting, drive, live a perfectly normal life) and you get one for free.....
That's how it works down my street anyway (In the East Riding........)”