It’s been one of the biggest issues in the housing market for several years now: housing affordability. The average cost of a home far outweighs the average salary, across many regions of the country.
But new figures from Paragon Development Finance show that for new build properties specifically, there has been some improvement in affordability last year. We find out more…
What the figures show
For the third year in a row, there has been a slight improvement in new build housing affordability. The analysis done by Paragon shows that new build properties across England and Wales were 9.5 times the average salary in 2020. This is down from 9.55 times the average salary in 2019. Compare this to 9.67 times the average salary in 2017, and the numbers are heading in the right direction.
Region by region affordability
There was an improvement in 51% (equivalent to 167) of local authority areas across England and Wales. And when you look at the average earnings of those living in the regions, it’s the North West region which remained the most affordable place to buy a new-build property in 2020. Here, the average new-build home was 7.74 times the average salary with The Wirral, Liverpool, and Newcastle-under-Lyme being the most affordable locations to buy in 2020. The next most affordable region was the North East at 7.92 the average salary.
And there are no prizes for guessing the least affordable region, which was London where the average new-build home came in at 14.51 times the average salary. Here, it was the local authorities of Kensington & Chelsea, Westminster, and Hammersmith & Fulham which were the most expensive places to buy a new home.
Help is still needed
What is clear looking at these figures, is that there is still a need to support those looking to buy a new build home. Of course, the Government have announced a handful of measures to assist buyers with Help to Buy, an extension to the Stamp Duty Holiday, and the 95% mortgage guarantee scheme. But supply remains an issue, with not enough new homes available to meet demand.
As well as supporting buyers, there needs to be more done to help smaller housebuilders get building in their local communities. It’s something we blogged about recently, the potential for SME housebuilders to build more with the arrival of the new permitted development right, due to come into effect from 1 August 2021. Read more about that here.
New homes available in affordable regions with New Homes Place
We work with large and small developers across the country to list the new homes they have available for sale. Here’s an example of two developments in or close to those regions which ranked as the most affordable areas to buy a new home in 2020.
Sundial Place, Thornton, Liverpool
This two-bedroom end-terraced property is available from Barratt Homes on the luxury, and very popular, Sundial Place development, from £185,000. With a selection of 2, 3 and 4-bedroom homes on the development, at very reasonable prices, it’s an ideal location for first-time buyers and growing families. Thornton itself is close to pretty parks, well-known golf clubs, the coast, and Formby Nature Reserve. It’s close to the motorway networks too, for easy access across the North West.
Homes on the development are available with Help to Buy and first-time buyers need only a 5% deposit to secure a property. See the development here.
Florence Drive, Egremont, Cumbria
This 3-bedroom detached home from Gleeson Homes can be found on the Florence Drive development in Egremont, Cumbria, from £189,995. The development is only a five-mile drive from the port town of Whitehaven with its historic harbour. It offers a great choice of modern, energy efficient homes at great value prices.
The Kildare 3-bedroom house as shown above is perfect for couples or growing families. It has a spacious downstairs while the upstairs master bedroom features a luxurious en-suite bathroom. An integral garage, plus front and rear gardens give the home all the space you need to enjoy the outside as much as the modern inside. See this home, and more on the Florence Drive development here.
Here at New Homes Place, we connect housing developers large and small with those ready and looking to buy a new home. If you are a housebuilder, list your new homes with us to reach a targeted audience today.
Or, if you are looking to buy a new home in an affordable area, start your search for a new home with us here.
