Shelter calls the Budget missed opportunity to ‘build back better’
Wednesday, 3 March 2021 14:47
Polly Neate, chief executive Shelter, said: "The pandemic has left
far more people on the brink of homelessness than homeownership.
Sadly, the mortgage guarantee announced by the Chancellor is pure
window dressing. Research shows it won’t help most renters and has
no hope of turning ‘Generation Rent’ into ‘Generation Buy’. "Two
thirds of private renters have no savings at all, and there is no
way they can scrape together the cash needed to afford a
5%...Request free trial
Polly Neate, chief executive Shelter,
said:
"The pandemic has left far more people
on the brink of homelessness than homeownership. Sadly,
the mortgage guarantee announced by the
Chancellor is pure
window dressing.
Research shows it won’t
help most renters
and
has no hope of turning ‘Generation Rent’
into ‘Generation
Buy’.
"Two thirds of private renters have no savings at all,
and there is no way they
can scrape together the
cash needed to afford a 5%
deposit, nor do
they have the kind of income
that would support a huge mortgage. It is not
fair to peddle people pipedreams.
"The government should be looking at meaningful solutions to
the housing crisis,
which is causing misery
for millions,
not reaching for political
soundbites. The only way to solve this
emergency in the long-term is to invest
in many more social
homes that people can afford to live
in.”
Key statistics on housing
affordability:
-
The average house price for a
first-time buyer in
England is £224,600. A 5%
deposit on a home of
this value would be
£11,200 and typically require a
household income of
£59,300.
-
The average house price in
England is £269,200. A
5% deposit on a home
of this value would
be £13,500 and typically require a
household income of
£71,000.
-
The typical median income of a renting
household in England is just £20,911.
-
According to the government’s latest
English Housing Survey, 61% of
renters say they have no savings.
-
All house prices come from HM Land Registry December
2020 UK house price index
release; prices and deposits have been
rounded to the nearest hundred.
-
The household income requirements quoted above are
based on the typical loan to income ratio of 3.6 – that is
a mortgage lender will typically allow a household to
borrow 3.6 times their gross household income for a home
purchase.
-
Median incomes for renters (all
renters; private and social renters) comes
from the 2018/19 English Housing Survey,
Annual Gross Income of HRP and Partner.
|
