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Cost of affordable homes rise faster than average

Michael Lloyd

December 2, 2019

The cost of the most affordable housing in England and Wales is rising more than three times as fast as the wider market, modular housing developer Project Etopia, has found.

In a blow to first-time buyers and those on low incomes, prices of entry level homes have risen 3.5 times quicker than the overall market in Copeland, Cumbria, over the past five years.

Joseph Daniels, chief executive of Project Etopia, said: “These damning figures show that years of sluggish housebuilding are harming first-time buyers and those on low incomes by forcing up the price of the most affordable homes.

“The result is a two-tier market that is completely out of sync with itself in some areas.

“In just five years, house prices for the cheapest homes have risen by more than 60% in some places, locking many people out of the housing market altogether.

“The ultimate solution to this problem will be greater supply of homes. The house building industry and policy makers must not take their eye off the ball.”

After Copeland, prices for the cheapest homes rose 2.5 times as fast as the average property market in Ceredigion, Wales, and Pendle and Burnley in Lancashire between 2014 and 2019.

The research, which excluded London, found the price paid for the most affordable homes in Uttlesford, Essex, rose the most, increasing by 63.3% in five years.

The cost of the most affordable homes here have risen from £150,000 to £245,000 in five years.

Over the same period, the price paid for the average home in Uttlesford rose by 30.1%, from £303,033 to £394,117.


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