FIRST TIME BUYERS AND LOW PAID PRICED OUT OF HOME OWNERSHIP IN 14 WEST MIDLANDS AREAS

Average house prices in the West Midlands are 6.4 times the average annual salary in the region and in Warwick District it is 8.3 times the average annual salary.

Across the region as a whole the average annual salary for full time workers is £25,382.00 and the average house price is 6.4 times that at £161,383.00.

For England and Wales as a whole the average annual salaries for full time workers is £24,845.00 and average house prices are 6.3 times that at £155,720.00.

Joe Morgan, GMB Regional Secretary for the West Midlands said: “Young first time buyers and workers on below average wages are absolutely priced out of private house ownership in fourteen of the thirty four West Midland areas. Thus profitable private sector employers like ASDA and Tesco in these areas are now dependant on publicly funded social housing to house their workforce.

“Average house prices in England and Wales are now 50% above the long run ratio to average earnings. Unless something has happened to the housing market which is not yet understood it is hard to avoid the conclusion that house prices will move side ways during the next decade as average wages catch up.

“It is now essential that Councils in these fourteen areas are allowed to build council houses for rent. It is an illusion to think that private house builders will be able to build houses which the low paid will be able to afford. It is also essential that the Government abandon its plan to inflate Council and Housing association rents up to the level of private sector rents. GMB also welcome measures which will help first time buyers on to the property ladder, like the proposal that the state take a share in properties being acquired by first time buyers. ”

Contact: Joe Morgan, GMB Regional Secretary for the West Midlands on 0121 5504888, Rose Conroy, GMB Press Officer on 07974 251823 or Steve Pryle, GMB Press Officer on 07921 289880.

Notes:
1. The figures are from the 2005 annual survey of hours and earnings – workplace based Table 581 housing market sourced from the Annual Survey of hours and earnings, Office for National Statistics.
2. The mean house prices were based on land registry data. Source: Housing Market – Office of the Deputy Prime Minister