Yorkshire in homes crisis as thousands priced out

The Yorkshire and Humber region is facing up to the starkest situation for affordable housing in more than 60 years as shocking statistics have revealed the chasm between workers' wages and house prices.

The Yorkshire Post can reveal that the average house price in the Yorkshire and Humber region is now 153,736, while the average income is only 19,000.

Prospective housebuyers are faced with a yawning gap between their annual incomes and the money needed to secure a footing on the property ladder.

In North Yorkshire, the scale of the problem is even more acute with average house prices almost 210,000 while average earnings last year were less than 19,000. The gross annual income required for a mortgage in North Yorkshire is almost 54,000.

The National Housing Federation, which represents 1,200 housing associations across England, has warned that the crisis is being compounded by a lack of new construction programmes.

The National Housing Federation's regional manager, Michelle Park, said: "We have been spiralling towards a housing crisis for years and these new figures would indicate we are now entering the eye of the storm.

"Across the region thousands of people are now on waiting lists and living in overcrowded conditions."

Grave fears are mounting that the Government's multi-billion pound cuts to counter the national debt will see funding dry up for affordable housing schemes.

The Department for Communities and Local Government (DCLG) confirmed yesterday that funding for programmes will be slashed by a third by 2014-15.

The number of new homes being built is already rapidly falling, with only 113,000 homes built in 2009-10 -– the lowest figure since 1923.

Housing associations across the region already accommodate one in 12 of Yorkshire's households, although affordable house-building budgets have been dramatically reduced by 63 per cent.

While the Government has pumped 8.4bn into affordable housing schemes since 2008, the figure will fall to just 4.4bn over the next four years.

Unemployment rates in the Yorkshire region stood at nine per cent last year, the second highest in England after London.

However, swingeing cuts in Government Department budgets are expected to see unemployment rates rise dramatically as the region's economy is so reliant on the public sector.

Ministers are being urged to give clear planning guidance to local authorities to identify potential development sites to help stimulate the construction industry.

The Labour MP for York Central, Hugh Bayley, said: "The Government is keen to devolve responsibility to local authorities as part of its vision of the Big Society. However, if you devolve every decision to a local level, there is a danger that nothing will actually happen. The Big Society principle needs people, and people need housing.

"You cannot have a contented society if there is not an adequate level of affordable housing."

The DCLG was adamant that the Government remains committed to tackling the lack of affordable housing across the country.

A spokesman claimed the 4.4bn investment spanning the next four years coupled with social housing reforms will see up to 150,000 new homes built, with a further 2bn spent on improving "non-decent homes".