Paragon: New-build affordability improves for third year
New-build housing affordability has improved for the third year consecutive year, according to Paragon Development Finance.
At £300,000, the average new-build property was 9.5 times the average salary of £31,500 during 2020.
This was a decrease from 9.55 in 2019, and from a high of 9.67 recorded in 2017.
Across England and Wales, new-build housing affordability improved 167 of a total of 330 local authority areas (51%).
The North West remained the most affordable region in which to buy a new-build property, at 7.74 times salary, followed by the North East at 7.92.
In contrast, London was the least affordable region at 14.51 times salary, followed by the South East (11.10) and the East (10.17).
The Wirral, Liverpool and Newcastle-under-Lyme were the most affordable locations to buy a new home in 2020, followed by Walsall and Copeland.
All of the least affordable local authorities were located in London or the East of England.
Kensington and Chelsea, Westminster and Hammersmith & Fulham were the most expensive areas to buy a new home during the year.
Robert Orr, managing director of Paragon Development Finance, said: “Housing affordability remains an issue across the UK and, whilst it’s positive to see affordability for new build homes improve across England and Wales, the sector needs to look at innovative ways to help people purchase new-build homes.
“The stamp duty holiday, Help to Buy and the government’s 95% Mortgage Guarantee Scheme are certainly a step in the right direction, but the supply side issue needs to be addressed to get more new homes built, particularly by SME developers.
“Government statistics show there were nearly 150,000 homes completed in England in 2020.
“Whilst the year was obviously impacted by coronavirus and below historical average, there is a significant shortfall of new homes needed.”