New homes too expensive for first-time buyers, says charity
6:35pm Monday 28th October 2013 in News
A HOMELESS charity claims that just a third of homes for sale in Bolton are affordable to families wanting to get on to the housing ladder.
Shelter looked at asking prices for all of the properties on the Zoopla website on sale in Bolton on a single day, and compared them with the mortgage that families, on average local wages could afford as first-time buyers.
A check by The Bolton News found that of 331 two-bedroomed properties available on the website this week, prices ranged from £55,000 up to £153,000.
Camp-bell Robb, Shelter’s chief executive, said: “When the number of affordable properties in Bolton 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 per cent 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 exp-ensive and unstable private rental market.”
The latest results by Shelter further reveal that even if an affordable house were available — couples in Bolton without children would need four years to save a 20 per cent deposit, couples with one child would take 8.8 years and single people would take nine years.
On the basis of a 20 per cent deposit it would mean people needing to find between £15,000 and £30,000 just to have a deposit.
According to the charity, the picture is even bleaker for those looking to take part in the Government’s Help to Buy mortgage guarantee scheme, where a 95 per cent mortgage would mean higher monthly costs, and put even more homes out of reach.
Shelter is warning that unless the Government tackles the root cause of the housing crisis — the desperate shortage of affordable homes — things are only going to get worse.
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