New calls over housing after survey shock

Sep 13 2008 by JL Hexham, The Journal

THERE were fresh calls for more affordable homes in rural areas yesterday as the plight of first-time buyers in the region was highlighted in a new study.

Research by estate agents Halifax showed that the average house price in rural areas is around £235,000 – 15% higher than in urban areas.

Tynedale and Castle Morpeth were listed in the 10 most expensive rural local authority areas in which to buy a house outside the South.

Castle Morpeth was the fourth most expensive with an average house price of £253,000, while Tynedale emerged as the sixth most expensive at £237,000.

Berwick MP Alan Beith said it was simply a question of supply and demand.

“It (the study) reflects the fact that Tynedale and Castle Morpeth are very attractive areas in reach of the city. Prices reflect the demand – it’s an unavoidable reality.

“The affordability gap with local wages is even higher in Berwick and north Northumberland where average wages are lower and house prices are not so high. The need for social rented housing is particularly strong and in the Castle Morpeth area, the greatest housing need is to the west of Morpeth.”

Of all the rural local authorities, Tynedale has the 10th lowest percentage of first-time buyers making up the housing market, at 17%. An 18% share of the housing market in Castle Morpeth is made up of first-time buyers, while the figure is 29% in the Wear Valley.

“Council housing needs to be replaced with more rented social housing which nowadays is usually provided by housing associations,” Mr Beith said.

“Obviously, the rise in house prices is going to slow down but the gap between local wages and affordable house prices will still exist.”

The study also measured rural quality of life, for which Tynedale ranked 70th and Castle Morpeth 49th.

Nic Best, regional policy officer for the Campaign to Protect Rural England, said efforts were needed to protect rural communities.

“It’s about maintaining viable local communities. If we want these communities to survive, we need to make affordable housing available.

“We have actually got to plan against the trend in the housing market.

“We need farmers and landowners to carry on living there.

“Of course, we can’t take housing provision as an issue in isolation. It’s about local schools and health clinics, local shops, post offices and transport if we are really talking about sustaining communities.”

Seven of the 10 least affordable rural local authorities in the study are in the South West.

North Devon is the least affordable local authority in Great Britain with an average house price of more than £252,000 – nine times local annual average earnings.

In Castle Morpeth, the average house price is more than seven times the average local annual wages while buying a house in Tynedale would cost around six-and-a-half years’ worth of local wages.