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Less than 1 in 3
homes affordable for working families in over half of the North West
NEW research by Shelter
reveals the extent of the North West's housing shortage, where in
56% of the region less than a third of the suitable homes for sale
are affordable for a typical family hoping to get on the first rung
of the property ladder.
The charity looked at asking prices for all of the properties for
sale in the North West on a single day, and compared them with the
mortgage that families, couples and single people on average wages
could afford as first time buyers.
The results reveal a shocking picture. In 15 local authority areas
in the North West less than a quarter of the homes on the market
were affordable for families; even assuming that they were able to
save a large 20% deposit.
This includes Blackpool where just 23% of the homes for sale were
affordable, Stockport (just 19% affordable) and Chorley (21% of
homes for sale affordable).
The picture is even bleaker for those looking to take part in the
government's mortgage guarantee scheme, Help to Buy, where a 95%
mortgage would mean higher monthly mortgage costs, and put even more
homes out of reach.
Several affordability black-spots were also uncovered, where the
chances of finding a suitable property were particularly small.
They
include South Lakeland where just under 3% of homes for sale were
affordable, Eden (just 6% affordable) and Ribble Valley (8% of homes
for sale affordable).
Previous research commissioned by Shelter showed that on average
young families in the region face nearly nine years of saving before
they can afford the deposit for a home of their own. This new study
shows that, even when they have saved a large deposit, there simply
aren't enough properties on the market that first time buyers can
afford.
This means that the reality for many will be years spent in
expensive and unstable private lets, often forced to move from one
short tenancy to the next and unable to put down roots.
The situation is even worse for single people looking for a home of
their own in the North West, with less than 10 affordable homes in
every 100 for sale in almost half of areas. For couples without
children, almost half of the two or more bedroomed properties for
sale were unaffordable overall.
It is little surprise therefore that recent Census data showed a 6%
drop in the proportion of home owners in the North West, a figure
likely to increase as more people are priced out of the property
market and forced into unstable private renting.
Shelter is warning that unless the Government tackles the root cause
of our housing crisis; the desperate shortage of affordable homes;
things are only going to get worse. This will not only affect future
generations hoping for a stable home, but also the thousands of
families already facing an everyday struggle to pay their rent or
mortgage.
Case Study: Lauren and her husband Ivan both work full time. They
are currently living in a flat share whilst attempting to save for a
deposit, but when they look at the properties available in their
area they are disheartened that there are so few options.
Lauren said:- "It's saddening to look in estate agents'
windows and see so few properties that we could afford, even with
the 20% deposit we're saving so desperately for. Help to Buy isn't
an option for us as it's just too expensive, and it upsets me to
think that our situation is only going to get worse if house prices
keep going up."
Campbell Robb, Shelter's Chief Executive, said:- "When the
number of affordable properties in an entire town is so small, it's
not difficult to see why a stable home of their own is quickly
becoming a distant dream for the next generation.
It's right that young people who aspire to own their own home should
work hard and save each month, but with such a pitiful number of
affordable homes on offer - even with a generous 20% deposit; our
housing shortage is holding them back.
Unless we build the affordable homes we desperately need, house
prices will continue to rise and as a result more people will be
forced to live at home with their parents into their thirties, or
move into the expensive and unstable private rental market.
Young people are working hard and doing their bit. Now the
Government has to meet people halfway and increase the supply of
affordable homes - not the supply of credit - or the prospect of a
home of their own will slip even further out of reach for future
generations."
Public welcome
at local NHS Trust board meeting
SOUTHPORT and Ormskirk Hospital NHS Trust will hold its next
board meeting on Wednesday, 30 October 2013, at 9am.
The meeting will be held in the Board Room in the Corporate
Management Office at Southport and Formby District General Hospital.
Members of the public are welcome to attend and observe the meeting.
Anyone with a special requirement should contact the Trust in
advance on:- 01704 704714.
The agenda will be available on the Trust website in advance of the
meeting. Supporting papers will be made available on the day. |
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OVER-55S
UNDERESTIMATE THE COST OF CARE BY NEARLY £12K
28% of over 55s in the
North West believe they will need long term care later in life but
31% say they cannot afford to pay for it (vs. UK averages of 32% and
38% respectively), according to research by the Equity Release
Council (The Council). The study not only exposes a shortfall in the
ability of over 55s to cope financially with this scenario, but also
highlights a worrying lack of understanding about the cost of care.
24% expect their retirement income will cover most or all of the
cost; this is the same proportion as the UK average. But in reality
the number of people financially prepared may be considerably less,
with the Equity Release Council's research highlighting that
over 55s significantly underestimate the cost of long-term care.
The average cost of long-term residential care in the North West is
£26,274 per year, but over-55s estimate it to be just £14,457; that
is a
£11,817 shortfall. This 45% gap in estimated funds illustrates an
alarming lack of understanding of the true costs of care.
In fact, data from Aviva's Real Retirement Report reveal that the
average pensioner income in this region is £14,988 per year, proving
that the cost of residential care is not only higher than most
people think; it is substantially higher than they can afford. In
addition to this, 88% of over 55s in this part of the country
confess to having made no plans at all for long-term care later in
life (vs. 85% of the UK).
Over-55s against selling their homes to
cover cost of care
Although 18% of over-55s in the North West would consider selling
their home and spending the proceeds to cover the cost of long-term
care given the choice, the majority of over-55s in this region (89%)
would prefer to receive care in the comfort of their own home (vs.
UK averages of 19% and 85%). The Council's research demonstrates
that the average over 55 in the North West owns a home worth
£177,232, opening up the potential to access an average of £46,966
through an equity release plan.
58% of over 55s in the North West recognise their home as their
biggest financial asset in retirement (vs. 57% of the UK), so with
such a significant amount tied up in property wealth, equity release
offers a solution for many who are in need of long-term care but
want to stay in their own home.
Equity release could fund nearly five years
of domiciliary care
With the possible £46,966 that the average over 55 in the North West
could release, they could afford nearly 5 years of domiciliary care.
This will be good news for the majority of over 55s in this part of
the country (89%) who would prefer long-term care to take place in
the comfort of their own home.
The potential equity available can mean those in need of long-term
care have other options available to them. The extra income can be
used to help ease people through domiciliary care or pay for home
modifications, putting off or even preventing the need to go into
full-time care.
The Care Bill must ensure local authorities
refer self-funders to regulated financial advice
Within the Care Bill there is currently no indication that regulated
financial advice will have to be recommended by local Government to
individuals when planning for long-term care. Yet The Council's
research reveals that only 14% of over 55s in the North West trust
their local authority or Council to guide them on long-term care
funding (vs. 17% of the UK).
The importance of expert, independent regulated financial advice is
emphasised further still, as The Council's research highlights that
without expert advice 81% would not be happy to invest in property,
79% would not take out a mortgage, and 65% would not purchase life
or health insurance (vs. UK averages of 75%, 73% and 62%
respectively). Also, 83% would not take out a pension and 86% would
not take out an annuity (vs. 78% and 83% respectively).
Nigel Waterson, the Equity Release Council Chairman, comments:-
"Although the ageing population means that the UK is finding
itself confronted with a rather hefty bill for care costs in later
life, there is an array of options available to those over the age
of 55. The topic of care can be highly emotive and this can in turn
make the decision making process more difficult. It is therefore
absolutely essential that consumers seek expert advice from
regulated professionals in order to best assess their options as
well as any long-term impact that may ensue. Homeowners
in the North West could release as much as £47,000, should they
decide to take out an equity release loan. This sum can help to
significantly reduce the financial burdens that those in retirement
find themselves facing, and allow them to continue to enjoy the same
standard of living to which they have become accustomed. Obviously,
equity release is only one of the options available to those in or
approaching retirement, all of which should be considered carefully
before any decision is made."
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