Report finds average Portsmouth worker needs 103 per cent pay rise to afford a mortgage
A NEW report from the National Housing Federation has shed a spotlight on the housing crisis in Portsmouth.
It found a worker on average earnings in the city now needs a 103 per cent pay rise to afford a mortgage.
The South East Home Truths 2017/18 report reveals the average home in Portsmouth now costs about £214,600, which is nine times the local typical salary – making home ownership impossible for many.
The report also revealed that the cost of renting privately puts added pressure on people’s income, and that one of the reasons for the growing crisis is down to a large shortfall of new housing.
Dave Smith, external affairs manager for the National Housing Federation, said: ‘The housing market has seen a relentless rise in the gap between house prices and people’s salaries.
‘Portsmouth is no exception.
‘Attaining a mortgage is increasingly unrealistic and private sector rents make saving up that bit more difficult.
‘As this year’s Home Truths report shows, it’s more important than ever for the sector to be able to deliver homes that are truly affordable.
‘If we want to get serious about ending the housing crisis, we need to start looking at unlocking more land so we can build homes faster.’
Average monthly rents now stand at £803, swallowing up around 40 per cent of private renters’ income.
Between 2012 and 2016, about 2828 too few homes were built in Portsmouth.
A significant number (25 per cent) of housing benefit recipients are in work, but are unable to afford their rent.
This is higher than the England average.
Housing associations in the south east built more than 6,000 homes in 2016 and 2017, and started building a further 8,700.
More than 4,800 of these starts and completions are homes for affordable home ownership, including shared ownership.