A report by the North Yorkshire Rural Commission has highlighted Ryedale as an area where getting on the housing ladder is particularly challenging.
“Average house prices in the Yorkshire Dales are around one third higher than the county average and in some parts of the county, the average cost
of a house is more comparable with houses prices in Kent and the South East of the country than northern England,” it said.
“Affordability ratios in some parts of the county, such as Ryedale, are amongst the highest in northern England and it is not unusual for a typical resident, on average earnings, to have to pay up to 10 times their annual salary in order to buy a house in some parts of the county.”
Since October 2014, mortgage lenders can only offer a maximum of 15 per cent of their customers a deal worth more than four-and-a-half times their annual salary.
The Financial Conduct Authority said last year that the policy change had “shifted the dynamics of the market” away from first-time buyers.
In addition to the challenge of getting on the property market in North Yorkshire, the Rural Commission has warned there is a “significant shortage” of affordable homes in much of the county, with an “acute shortage” within the National Park areas.
It said: “Some Housing Associations are reluctant to commit to rural affordable housing development due to concerns about future sustainability.
“It is unclear if there will be sufficient rental income in future years.
“This is a particular concern in remote rural areas if populations decline.”
One of its key proposals is a change to the national formula for deeming what makes an ‘affordable home’ so it is based on average earnings in a local area rather than current market value as is the case presently.