affordable housing

Housing Affordability in the UK

March will see the Chartered Institute of Housing unveil its annual housing review, and early reports are to no one’s surprise that affordable housing is at a worse level right across most regions of the nation.

Annual Review

The annual affordability index of the review sets out the long-term trends in affordability of average mortgages region by region and country ever since 1994. It highlights the deterioration in affordability in the run-up to the financial crisis of 2007/2008 and the subsequent improvements before the market strengthened over the most recent years.

Northern Ireland is listed as the only part of the United Kingdom where homes are now more affordable than they were two decades prior. Looking back at the peak of the market in 2008, all regions are more affordable than they were back then.

Affordable Regions

Today’s most affordable regions are Wales, the West Midlands, the North East and the North West – particularly for those looking to buy property in Stockport. Unsurprisingly, London and other areas of the South West are the least affordable in the nation.

According to the data on the review, mortgage costs about average incomes show a very favourable picture compared to 2008, but in areas such as London, mortgage costs are almost as high now as they were at the peak of the market.

Whilst house prices have largely increased concerning incomes, mortgage costs are currently kept in check by prevailing low-interest rates. This is set to stay that way for the moment but could change.

Worsening Affordability

The Chartered Institute of Housing has gone on record to state that recent figures are highlighting worsening affordability throughout most parts of the United Kingdom. In areas such as East Anglia and the East Midlands, the typical buyer has seen a shift up from the 50th income percentile to the position of 70th over the last decade since 2011.

In areas such as London, the South West and the South East, there has been a rise to the 80th income percentile from the 60th from ten years previously. Scotland and the North regions remain at the same levels, whilst Wales and Northern Ireland have displayed a deterioration.

Whilst this has shown some concern for the outlook of affordable housing for 2022 and the early start of 2023, the outlook is still in its infancy, with no one able to accurately predict how the market will alter for the year ahead at this point. Those looking into how to sell a house in this climate as well as those seeking buying a property advice are advised to keep in regular contact with independent estate agents Stockport for how the market plays out.

Contact the team at Joules Estate Agents Stockport for all updates on the Stockport housing market, affordable housing, as well as advice on renting a house in the area.