A report from one of the UK’s leading authorities on the housing sector says the housing market in one of England’s largest cities is in “meltdown” due to the lack of affordable housing.
According to the National Federation of Housing (NFH), property investors with an interest in landlord insurance are getting 40% more from their rented homes as demand for decent accommodation exceeds availability. The NHF, seen as a mouthpiece for Social Landlords in the UK, says the situation has developed because house sales in the city have virtually come to a standstill.
NHF Lead Manager for Yorkshire and Humber, Robert Warm, said “For years we have all been aware of the unaffordability of the housing market, it’s increasingly difficult for people to own their own home. What we are seeing now is that fundamental lack of supply is having a knock on to private sector rents and they are going through the roof. Places like Leeds and York, which have overheated markets – the question is what’s going to happen in five or seven years when they can’t afford to buy but can’t afford to rent either. It’s a vicious circle, it’s almost impossible to save for a deposit when you are paying out 50 percent of your income on private sector rent.”
Industry insiders say rents in Leeds are now thousands of pounds above the national average and Mr Warms warning seems to be illustrated by the fact that less than 3,500 affordable homes were built in Yorkshire last year while the area has a waiting list in excess of a quarter of a million. With the average price of a home costing roughly eight times the national wage average there seems little likelihood of the status quo changing in the near future, and tenants face an almighty scramble to ensure they are lucky enough to get accommodation they can afford.