York rent costs spark new calls for cheaper housing

First published in News York Press: Photograph of the Author by , 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)

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11:03am Fri 14 Dec 12

meme says...

You cannot build a cheap house today due to costs of building regulations/section 106 payments and land cost which is due to lack of supply and restrictive planning policy .
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
You cannot build a cheap house today due to costs of building regulations/section 106 payments and land cost which is due to lack of supply and restrictive planning policy . Answers are 1. Get rid of section 106 obligations [not politically acceptible] 2. Increase land supply which regrettably will include green belt [[not politically acceptible] 3. Allow smaller facory built homes to be built again [not politically acceptible] 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 [[not politically acceptible] 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 meme
  • Score: 0

11:11am Fri 14 Dec 12

rat scabies says...

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.
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. rat scabies
  • Score: 0

11:26am Fri 14 Dec 12

tobefair says...

There are many rented properties that would not meet current Building Regulations but are habitable and provide reasonable accommadation for the tenants. Current Building Regulations add greatly to the cost of new builds making even the smallest property unaffordable to the would be first time buyer. Is it time to relax Building Regulations to make affordable housing really affordable?
There are many rented properties that would not meet current Building Regulations but are habitable and provide reasonable accommadation for the tenants. Current Building Regulations add greatly to the cost of new builds making even the smallest property unaffordable to the would be first time buyer. Is it time to relax Building Regulations to make affordable housing really affordable? tobefair
  • Score: 0

12:09pm Fri 14 Dec 12

meme says...

but its not politically acceptible to planners/certain councillors to offer property to those who desperatly need it unless its perfect!
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
but its not politically acceptible to planners/certain councillors to offer property to those who desperatly need it unless its perfect! 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 meme
  • Score: 0

12:59pm Fri 14 Dec 12

Prob says...

"According to Zoopla, the average rent in York is £1,083 per month"

You what?

There must be some very big properties skewing that...
"According to Zoopla, the average rent in York is £1,083 per month" You what? There must be some very big properties skewing that... Prob
  • Score: 0

1:00pm Fri 14 Dec 12

Prob says...

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.
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. Prob
  • Score: 0

1:13pm Fri 14 Dec 12

nearlyman says...

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 !
[quote][p][bold]Prob[/bold] 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.[/p][/quote]Think it might have been interest only they are talking about ?? Not sure .do the sum ! nearlyman
  • Score: 0

1:29pm Fri 14 Dec 12

asd says...

rat scabies wrote:
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.
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
[quote][p][bold]rat scabies[/bold] wrote: 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.[/p][/quote]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 asd
  • Score: 0

1:32pm Fri 14 Dec 12

Prob says...

nearlyman wrote:
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 !
For £130k, 25 years and 5% interest:

Interest only: £541
Capital repayment: £760
[quote][p][bold]nearlyman[/bold] wrote: [quote][p][bold]Prob[/bold] 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.[/p][/quote]Think it might have been interest only they are talking about ?? Not sure .do the sum ![/p][/quote]For £130k, 25 years and 5% interest: Interest only: £541 Capital repayment: £760 Prob
  • Score: 0

3:42pm Fri 14 Dec 12

meme says...

The actual detail over figures is not crucial. There are always exaggerations but the facts are that no matter how much complaining politicians do there will be no cheap homes in York as its not a deprived area with acres of brownfield and we have little housing supply mainly due to the politicains own policies.
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?
The actual detail over figures is not crucial. There are always exaggerations but the facts are that no matter how much complaining politicians do there will be no cheap homes in York [unlike Mbro/Rotherham/Hull etc] as its not a deprived area with acres of brownfield [thank God] and we have little housing supply mainly due to the politicains own policies. 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
  • Score: 0

3:44pm Fri 14 Dec 12

meme says...

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
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 meme
  • Score: 0

4:40pm Fri 14 Dec 12

tobefair says...

Have you seen the prices of JRHT at Derwenthorpe? 2 bedroom house £195,950. How can you call that affordable?
Have you seen the prices of JRHT at Derwenthorpe? 2 bedroom house £195,950. How can you call that affordable? tobefair
  • Score: 0

4:49pm Fri 14 Dec 12

bob the builder says...

Prob wrote:
"According to Zoopla, the average rent in York is £1,083 per month"

You what?

There must be some very big properties skewing that...
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.
[quote][p][bold]Prob[/bold] wrote: "According to Zoopla, the average rent in York is £1,083 per month" You what? There must be some very big properties skewing that...[/p][/quote]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. bob the builder
  • Score: 0

4:50pm Fri 14 Dec 12

bob the builder says...

tobefair wrote:
Have you seen the prices of JRHT at Derwenthorpe? 2 bedroom house £195,950. How can you call that affordable?
JoRo say one thing and do another, it's all about profitability, they don't give money away you know!
[quote][p][bold]tobefair[/bold] wrote: Have you seen the prices of JRHT at Derwenthorpe? 2 bedroom house £195,950. How can you call that affordable?[/p][/quote]JoRo say one thing and do another, it's all about profitability, they don't give money away you know! bob the builder
  • Score: 0

4:50pm Fri 14 Dec 12

TerryYork says...

There really should be some better routes to rent-to-own or at least treat the rent as part investment. I've been renting for 15 years, 150,000 quid in total.

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.
There really should be some better routes to rent-to-own or at least treat the rent as part investment. I've been renting for 15 years, 150,000 quid in total. 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. TerryYork
  • Score: 0

5:38pm Fri 14 Dec 12

Prob says...

bob the builder wrote:
Prob wrote:
"According to Zoopla, the average rent in York is £1,083 per month"

You what?

There must be some very big properties skewing that...
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.
So there you go - rent £800-900 vs repayment £770.

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)
[quote][p][bold]bob the builder[/bold] wrote: [quote][p][bold]Prob[/bold] wrote: "According to Zoopla, the average rent in York is £1,083 per month" You what? There must be some very big properties skewing that...[/p][/quote]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.[/p][/quote]So there you go - rent £800-900 vs repayment £770. 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
  • Score: 0

5:41pm Fri 14 Dec 12

Prob says...

Having just moved from rented to private myself, the rent and my mortgage are the same, but the value of the house is less. Plus there's the extra bills

True, I get an asset at the end but the costs thing is a myth!
Having just moved from rented to private myself, the rent and my mortgage are the same, but the value of the house is less. Plus there's the extra bills True, I get an asset at the end but the costs thing is a myth! Prob
  • Score: 0

5:53pm Fri 14 Dec 12

capt spaulding says...

And dont forget the heafty deposit needed !
And dont forget the heafty deposit needed ! capt spaulding
  • Score: 0

7:32pm Fri 14 Dec 12

Scarlet Pimpernel says...

meme wrote:
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
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.
[quote][p][bold]meme[/bold] wrote: 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[/p][/quote]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. Scarlet Pimpernel
  • Score: 0

7:43pm Fri 14 Dec 12

Scarlet Pimpernel says...

tobefair wrote:
Have you seen the prices of JRHT at Derwenthorpe? 2 bedroom house £195,950. How can you call that affordable?
More Facts on Derwenthorpe:-

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.
[quote][p][bold]tobefair[/bold] wrote: Have you seen the prices of JRHT at Derwenthorpe? 2 bedroom house £195,950. How can you call that affordable?[/p][/quote]More Facts on Derwenthorpe:- 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
  • Score: 0

7:53pm Fri 14 Dec 12

Scarlet Pimpernel says...

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 !
[quote] 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.” [/quote] 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 ! Scarlet Pimpernel
  • Score: 0

8:18pm Fri 14 Dec 12

Digeorge says...

Zoopla is a fairly accurate guide to housing as tracks the market rents and the house sales. Thank God I own my own home and wouldn't like to be starting out on the housing ladder, I think the rents are way too high and that is money down the drawn, to the mortgage-owner of the property making £sss from asking high rents.

I suspect we fall into the 'average' range but the thought of paying rent on this house. God grief, no!
Zoopla is a fairly accurate guide to housing as tracks the market rents and the house sales. Thank God I own my own home and wouldn't like to be starting out on the housing ladder, I think the rents are way too high and that is money down the drawn, to the mortgage-owner of the property making £sss from asking high rents. I suspect we fall into the 'average' range but the thought of paying rent on this house. God grief, no! Digeorge
  • Score: 0

8:18pm Fri 14 Dec 12

Digeorge says...

Good grief, I meant and wouldn't even consider it. No wonder people are priced out of York on low wages.
Good grief, I meant and wouldn't even consider it. No wonder people are priced out of York on low wages. Digeorge
  • Score: 0

9:14pm Fri 14 Dec 12

tobefair says...

I think the standards, specifications, rules and regulations and aspirations we have set ourselves in house building are far higer than we can afford.
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.
I think the standards, specifications, rules and regulations and aspirations we have set ourselves in house building are far higer than we can afford. 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. tobefair
  • Score: 0

9:04am Sat 15 Dec 12

Paul Meoff says...

Just send the poor people to Leeds slums so they can live on the cheap. Be a great incentive to work hard and get educated to escape.
Just send the poor people to Leeds slums so they can live on the cheap. Be a great incentive to work hard and get educated to escape. Paul Meoff
  • Score: 0

2:57pm Sat 15 Dec 12

Scarlet Pimpernel says...

Throughout this year I have hear Coun Simpson-Laing quoted in the Press saying the Council are working with various stakeholders on housing issues, and that announcements would be made - presumably about housing schemes that these discussions would lead to. Where are the announcements, and where are the housing schemes ? The truth is, there aren't any. Since Labour took control in York, the housing crisis has worsened and they have done nothing to solve the problem. Housing completions have continued to decline, and the only creative thing they have done is to start to count student bedspaces as housing, to make it look like the figures are improving. As usual, its all spin deception, lies and broken promises. Their manifesto promised an increase in housing, but, they have delivered a decrease. Housing is the biggest issue/challenge that the country is facing, and in York the position is getting worse. All we get from James Alexander is distractions about how great a cycle race passing through the city on one day in July 2014. It's great for cycling fans and for the marketing that tourism will benefit from, but, it does nothing for those suffering because of the housing problem. It's time that these self-serving councillors did something positive, instead of making excuses and dodging the issue.
Throughout this year I have hear Coun Simpson-Laing quoted in the Press saying the Council are working with various stakeholders on housing issues, and that announcements would be made - presumably about housing schemes that these discussions would lead to. Where are the announcements, and where are the housing schemes ? The truth is, there aren't any. Since Labour took control in York, the housing crisis has worsened and they have done nothing to solve the problem. Housing completions have continued to decline, and the only creative thing they have done is to start to count student bedspaces as housing, to make it look like the figures are improving. As usual, its all spin deception, lies and broken promises. Their manifesto promised an increase in housing, but, they have delivered a decrease. Housing is the biggest issue/challenge that the country is facing, and in York the position is getting worse. All we get from James Alexander is distractions about how great a cycle race passing through the city on one day in July 2014. It's great for cycling fans and for the marketing that tourism will benefit from, but, it does nothing for those suffering because of the housing problem. It's time that these self-serving councillors did something positive, instead of making excuses and dodging the issue. Scarlet Pimpernel
  • Score: 0

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