Member Article

House prices 'too high' in North East

House prices are still too high for many first-time buyers in the North East, according to a survey.

The National Housing Federation, which represents 1,300 housing associations, says prices in the region still cost around 11 times the average income.

The NHF report, entitled ‘North East Home Truths 2009’, examines the effect of the recession on the region’s housing needs. According to the report, although the North East has experienced significant drop in average house prices, this has not affected the availability of affordable housing.

The report states: “Though regional house prices have fallen 17% since the middle of 2008, our housing market is no more affordable or sustainable now than during the boom. This is due to poor job security, incomes 13% below the national average, climbing repossessions and the continuing mortgage credit crunch.”

The research also showed that the number of overcrowded households rose 11% last year, the second highest increase in the country.

This was posted in Bdaily's Members' News section by Ruth Mitchell .