York rent costs spark new calls for cheaper housing (From York Press)
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York rent costs spark new calls for cheaper housing
9:45am Friday 14th December 2012 in News
By Richard Catton, richard.catton@thepress.co.uk
THE price difference between renting a home and paying a mortgage in York is greater than anywhere else in country, a new survey claims.
The figures, released by property search website Zoopla, put York ahead of other towns and cities where it has now become cheaper to pay an interest-only mortgage than struggle with high rents.
The results have led to calls for more cheaper homes to be built in the city.
According to Zoopla, the average rent in York is £1,083 per month, while the average asking price for a home is £147,624.
Based on an interest rate of five per cent, Zoopla claims the mortgage repayments would be 76 per cent cheaper each month than renting.
A spokesman for the York-based Joseph Rowntree Housing Trust (JRHT) said: “This report shows how we badly need an increase in housing supply to improve affordability for aspiring home owners in York.
“With people forced into private renting at sky-high rates, it’s increasingly difficult for young people to get on the housing ladder, seeing their wages eaten up by the rent.
“At the same time the waiting lists for social housing show no sign of easing and there is a huge shortfall in the building of new homes that are desperately needed.
“JRHT is doing its bit to help meet that demand by building new family homes in the city, but much more needs to be done.
“It’s vital we meet demand today and provide housing across a range of tenures, at rates people can afford.”
Press reader John Keven, 31, who rents a house in the Acomb area with his partner, said: “Our monthly rent would certainly cover a mortgage repayment.
“It’s ironic because you can’t get a mortgage because the banks are worried you won’t be able to make the repayments”
Coun Tracey Simpson-Laing, City of York Council’s cabinet member for housing, said the average household income of people in the private rented sector in York was £20,000, which meant many struggled to get on the property ladder.
She said: “The council recognises difficulties that many residents are experiencing and we are working with partners including housing associations and the Homes and Communities Agency.”
Comments(26)
rat scabies
says...
11:11am Fri 14 Dec 12
What a mess this country is in and a lot of it stems back to that 13 year term when phoney Blair and Gordon brown were at the helm.
tobefair
says...
11:26am Fri 14 Dec 12
meme
says...
12:09pm Fri 14 Dec 12
Its PC gone mad
If I wanted a home, so long as it was warm and dry, i would be grateful for it if it was given to me
Prob
says...
12:59pm Fri 14 Dec 12
You what?
There must be some very big properties skewing that...
Prob
says...
1:00pm Fri 14 Dec 12
"Based on an interest rate of five per cent, Zoopla claims the mortgage repayments would be 76 per cent cheaper each month than renting."
Gibberish. £130k+ loan for 25 years at 5% interest is not £250.
nearlyman
says...
1:13pm Fri 14 Dec 12
Prob wrote:Think it might have been interest only they are talking about ?? Not sure .do the sum !
Also:
"Based on an interest rate of five per cent, Zoopla claims the mortgage repayments would be 76 per cent cheaper each month than renting."
Gibberish. £130k+ loan for 25 years at 5% interest is not £250.
asd
says...
1:29pm Fri 14 Dec 12
rat scabies wrote:Try even further back to Thatcher, right to buy council house. Greed factor, people by house at cheap rate sell for massive profit and council can not use that money to build more. So well done Thatcher arrggghh
It's a shame the Labour Party didn't step in when they were in power for 13 years when house prices were rising 10% p.a. On average under their term of office. What a mess this country is in and a lot of it stems back to that 13 year term when phoney Blair and Gordon brown were at the helm.
Prob
says...
1:32pm Fri 14 Dec 12
nearlyman wrote:For £130k, 25 years and 5% interest:
Prob wrote: Also: "Based on an interest rate of five per cent, Zoopla claims the mortgage repayments would be 76 per cent cheaper each month than renting." Gibberish. £130k+ loan for 25 years at 5% interest is not £250.Think it might have been interest only they are talking about ?? Not sure .do the sum !
Interest only: £541
Capital repayment: £760
meme
says...
3:42pm Fri 14 Dec 12
If they faced up to the facts then we may get somewhere towards a solution to the problem but turkeys don't vote for Xmas..... do they?
meme
says...
3:44pm Fri 14 Dec 12
I will give you affordable homes if I get more than £8 million towards supplying them as JRHT did at Derwenthorpe from housing grants
tobefair
says...
4:40pm Fri 14 Dec 12
bob the builder
says...
4:49pm Fri 14 Dec 12
Prob wrote:Not really the average 3 bed semi is £800-900, terraced houses £600-700, and the nearer the city centre the more likely £1000 plus. It's cheaper to rent in Leeds and commute unless your benefits are paying the rent and you're not in work in which case you wouldn't be able to get a mortgage anyway.
"According to Zoopla, the average rent in York is £1,083 per month"
You what?
There must be some very big properties skewing that...
bob the builder
says...
4:50pm Fri 14 Dec 12
tobefair wrote:JoRo say one thing and do another, it's all about profitability, they don't give money away you know!
Have you seen the prices of JRHT at Derwenthorpe? 2 bedroom house £195,950. How can you call that affordable?
TerryYork
says...
4:50pm Fri 14 Dec 12
15 years, never missed a rent payment, payments that are three times that of a mortgage, and I can't get a mortgage. It's all wrong.
Prob
says...
5:38pm Fri 14 Dec 12
bob the builder wrote:So there you go - rent £800-900 vs repayment £770.
Prob wrote:Not really the average 3 bed semi is £800-900, terraced houses £600-700, and the nearer the city centre the more likely £1000 plus. It's cheaper to rent in Leeds and commute unless your benefits are paying the rent and you're not in work in which case you wouldn't be able to get a mortgage anyway.
"According to Zoopla, the average rent in York is £1,083 per month"
You what?
There must be some very big properties skewing that...
And that's not even taking into consideration the fact you won't get a decent three bed semi for the £145k quoted above.
I'm actually don't disagree with the crux of the article, but you can compare apples and pears or make up numbers, I just don't agree with that.
Sure a city centre flat might cost £1000 a month, but the same thing will cost £300k to buy.
Make some proper comparisons and don't just make up numbers for sensationalism, please. (Not directed at you but Zoopla and JRF)
Prob
says...
5:41pm Fri 14 Dec 12
True, I get an asset at the end but the costs thing is a myth!
capt spaulding
says...
5:53pm Fri 14 Dec 12
Scarlet Pimpernel
says...
7:32pm Fri 14 Dec 12
meme wrote:You omitted to say that JRHT were sold the land at Derwenthorpe by the Council at a knock-down price of £5.65m - a little more than £10k/plot, when the market rate was around £50k/plot - that's a discount of over £20million ! Even then JRHT are only providing 40% affordable on the site.
JRHT is doing its bit to help meet that demand by building new family homes in the city, but much more needs to be done. I will give you affordable homes if I get more than £8 million towards supplying them as JRHT did at Derwenthorpe from housing grants
Scarlet Pimpernel
says...
7:43pm Fri 14 Dec 12
tobefair wrote:More Facts on Derwenthorpe:-
Have you seen the prices of JRHT at Derwenthorpe? 2 bedroom house £195,950. How can you call that affordable?
1. There are four large 4-bedders that are not shifting; (plots 39, 40, 55 & 56) - SKYLARK house types; priced at £414,995 - 419,995 Is it because they are UNAFFORDABLE ?
2. The plots that took the longest to sell and some that remain unsold are the ones next to social rented units - proving that the pepper-potting of affordable housing puts off buyers of the private housing.
3. JRHT started phase 1 in April 2011, and after 21 months on site have sold/allocated 55 of the 64 units. At this rate of building/selling it will take around 17 years to complete the development. This will only contribute 13 affordable/social dwellings per year, when York needs nearly 800/year ! This shows that the Council's policies are failing massively.
Scarlet Pimpernel
says...
7:53pm Fri 14 Dec 12
Coun Tracey Simpson-Laing, City of York Council’s cabinet member for housing, said the average household income of people in the private rented sector in York was £20,000, which meant many struggled to get on the property ladder.
She said: “The council recognises difficulties that many residents are experiencing and we are working with partners including housing associations and the Homes and Communities Agency.”
Here is another problem. All this useless councillor does is trot out the same lame excuses; quoting incomes, and the high cost of renting/buying. Where are the solutions ? What does she mean when she says they are 'working' with HA's and the HCA ? She means they are talking not working as there are little or no houses being built in York. The Council is full of housing staff, writing reports, holding workshops, doing surveys, and building didly squat. It's time Coun Simpson-Laing took her position more seriously and did something to get more houses built, instead of tweeting about football, F1, the weather, her favourite TV programmes, the weather and party politics. No wonder she has time to sell tea on Tuesdays on the market, whilst trousering £23,000/yr of tax-payers money from her councillor post !
Digeorge
says...
8:18pm Fri 14 Dec 12
I suspect we fall into the 'average' range but the thought of paying rent on this house. God grief, no!
Digeorge
says...
8:18pm Fri 14 Dec 12
tobefair
says...
9:14pm Fri 14 Dec 12
It's about time we lowered our standards and expectations and start building flats and houses that people, especially first time buyers can really afford.
Paul Meoff
says...
9:04am Sat 15 Dec 12
Scarlet Pimpernel
says...
2:57pm Sat 15 Dec 12
meme says...
11:03am Fri 14 Dec 12
Answers are
1. Get rid of section 106 obligations
2. Increase land supply which regrettably will include green belt
3. Allow smaller facory built homes to be built again
4. Council give themselves planning on land only to build affordable not open market homes. I think they can do that and is probably acceptible
5. allow redundant commercial buildings to be converted to flats
Without an increased supply this is an issue that will not go away and even with an increased supply will take years to remedy and CoYC and its populace have only themsleves to blame as their policies have stifled building and land supply so TSL can complain all she wants but most of the blame lies firmly at her door and other Councillors who support her policies which have led us to this point