A new report suggests that many people in Gloucestershire would have to increase their salaries by 120 per cent in order to be able to afford a home within this location.
Published by the National Housing Federation, the Home Truths 2015/16 analysis indicated that with increased demand in this area, house prices have risen by nearly 10 times the region’s average income.
Rental Prices Increasing Too
Not only has purchasing a property become harder, but finding a property that is affordable to rent has also become a problem for many as rental prices also continue to rise. At an average of £711 per month, the cost to rent also remains outside of many people’s budgets.
In Forest Dean, the average salary is £25,381, whilst the average house price is £201,000 – eight times more than their income. Private landlords are also expecting a quarter of this salary, with £6,900 per year required for rental.
This pattern is also noted in other areas, including Gloucester, where the ratio of house prices to salaries is 7:4 at £167,087 to £22,719. Cheltenham has a ratio of 9:6, as property averages at £269,244 and incomes at £25,381.
The Cotswolds Is the Worst-Affected Area
The worst affected area is the Cotswolds, with the average house price being £356,908 and the salary just £23,098, providing a ratio of 15:5.
Speaking about the need for more affordable buying and renting options for residents in Gloucestershire, the chief executive of Two Rivers Housing, Garry King, commented that this lack of options is causing stress for a lot of people. And whilst they will try to do all they can to address the issue, the restrictions being put in place by the government on rentals and the reduction in funding are proving challenging.
However, he also went on to say that housing associations will be able to play an integral role, as this sector was responsible for building 40 per cent of all new homes in the country last year. This, in turn, will help a Gloucester electric gate company such as Proton Access Control, as it will bring more property to the area.
He concluded by saying that over the next three years they will utilise their resources in order to achieve their aim of building 189 new homes to meet the growing demand.