House-hunters are being priced out of many of the region’s most desirable locations as the cost of property has continued to soar and demand for homes has seen bidding wars erupt.
Exclusive data obtained by The Yorkshire Post has shown that the average cost of a home in the region’s most expensive districts is now in excess of £350,000.
Housing experts have called for the Government to commit to overhauling funding criteria which favours London and the South-East to help alleviate the mounting affordable homes crisis across the North of England.
Senior officials from Homes for the North, an alliance of 17 housing associations, have stressed that unless Ministers provide more funding for affordable homes, then many families and couples will be priced out of the property market completely.
The chairman of Homes for the North, Nigel Wilson, said: “There is a huge amount of pressure on the whole housing market, and there appears to be no respite in demand.
“Those worst affected are often at the lower end of the market with low wages, who are often living in the worst conditions.
“But we are seeing house-hunters already on the property ladder being affected and priced out of those locations in the North which command the highest prices. The current situation is getting unsustainable, and the Government needs to look closely at how a fairer funding formula for affordable housing can be introduced.”
Chancellor Rishi Sunak signalled in the Budget in March that the so-called 80:20 rule, although details of a new funding formula has yet to be outlined.
The rule stipulates that 80 per cent of funding from various Homes England sources must go towards unlocking development in parts of the country where property is most unaffordable, which tend to be the most affluent constituencies.
Data provided to The Yorkshire Post by the National Housing Federation has shown that the average property price in the region is now £197,743, although the average wage is £26,868.
However, there are huge variations in the cost of a home across Yorkshire, with many of the region’s property hotspots out of reach for the vast majority of house-hunters.
Barnsley has the cheapest average property price at £153,881, while homes in the Harrogate district are commanding an average cost of £353,121.
Shadow Housing Secretary Lucy Powell claimed a decade of Conservative rule in government has “failed to solve our housing crisis”.
However, a spokesperson for the Ministry of Housing, Communities and Local Government said: “Since 2010 we have built 34,300 new affordable homes in the Yorkshire and Humberside region with more than 25,600 for social and affordable rent.
“We’re investing more than £12 billion over five years, the largest investment in a decade, to provide up to 180,000 new homes across England - with half for affordable and social rent.”