Affordable housing is not viable for first-time buyers in Yorkshire, KPMG claims

New research conducted by KPMG reveals that the divide between house prices and wages has increased to the extent that a first time buyer in Yorkshire and Humberside would need an annual wage of £26,429 to get onto the property ladder.

These results should indicate a cause for concern as the actual average annual wage in the region at £20,223.

Although Yorkshire has a much closer gap between required and actual annual wage than the UK average (£40,553 versus £22,044), only those earning over the average, or those inheriting money, can afford to buy in the region.

The KPMG-commissioned poll also unveiled that people across Yorkshire and Humberside are still wanting to become homeowners, with 75% of people in the region stating that they would rather buy than rent.

A possible reason for this desire to get on the property ladder is revealed by the 55% of people who agree that owning property helps save for retirement showing that, for many, investing in a home has become a de facto pension pot.

Of those not already on the property ladder in Yorkshire and Humberside, 50% would like to buy within the next ten years.

In addition, 46% of people are concerned about the next generation, agreeing that more must be done to help young people onto the housing ladder; and 61% believe that more houses should be built.

Chris Hearld, KPMG’s Leeds office senior partner and North region chair, said: “These figures make for concerning reading and show that housing affordability in the region is no longer just a problem for lower wage earners. Now unless you have an above average income or receive an inheritance, it is unlikely you will be able to afford to buy in this region.

“Last year we worked with Shelter to publish a blueprint for the next Government to tackle the housing crisis once and for all. That report looked in-depth and cross-tenure, and these latest figures are a sure indication that more needs to be done. Politicians need to develop an apolitical, long-term housing strategy, engaging both public and private sectors, to get the UK building and stabilise our housing market. Reforms must be wide-spread: further unlocking public sector land banks, boosting small and self-builders, giving power to towns and cities to build the homes they need, and increasing investment in affordable homes are some of the ways government can match businesses’ commitment to achieve this.

“With the Election just a week away, we again call on the next Government to act decisively on housing so that people’s basic housing needs and their longer-term aspirations can be met, whatever they might be.”