Homes in countryside less affordable than ever for locals

Homes in the countryside have become increasingly unaffordable for local people over the last ten years leaving many working in rural areas with no hope of getting on the housing ladder, according to new research by the National Housing Federation.

The research found the ‘affordability gap’ between wages and house prices over the past decade has widened in every rural district, with house prices rising at more than three times the rate of local salaries since 1999.

The study looked at the price of an average home in rural areas compared to local wages in both 1999 and 2009. It found that ten years ago the average price of a home in the countryside was £95,073, and the average local salary was £13,505.

Since then the price of a rural home has rocketed to £214,008 – an increase of 125 per cent - whereas local wages have risen just 37 per cent to £18,538, making properties increasingly unaffordable for local workers.

Alnwick in Northumberland, whose castle features in the Harry Potter films, witnessed the biggest change in affordability over the past 10 years with average house prices shooting up from £78,706 to £210,572 – an increase of 170 per cent.

With local incomes rising by only 5 per cent over the same period however, the gap between house prices and local salaries has widened massively and put buying a home beyond the reach of many locals. An average home in Alnwick is now 16.9 times the average local salary of £12,480 – up from 6.6 times local salary in 1999.

The NHF, which represents England’s housing associations, estimates around 100,000 new affordable homes need to be built in England alone to meet demand in rural areas over the next 10 years. Rural councils must now draw up action plans to address the housing needs of their communities, the organisation said, and publish an action plan to deal with it.

David Orr, chief executive of the Federation commented: "These figures highlight just how difficult it can be for rural inhabitants to afford a home of their own in the current climate.

"With the disparity between income and house prices growing so rapidly, local inhabitants can often feel like they have to win the lottery to be able to buy in their local area.

"Unless affordable homes continue to be built to match demand, this problem will increase further and local people will be priced-out of their communities.

"As a first step we are asking all rural councils to make sure they have a full understanding of housing need in their area and to publish an action plan to deal with this need."