Cambridge

New figures confirm that you’ll never be able to afford a house in Cambridge

Prospective homeowners in parts of Cambridgeshire would need to borrow nearly 14 times the average income to be able to afford a house.
Exclusive analysis of government figures by Cambridgeshire Live has revealed just how unaffordable homes across our area have become.
Charities warned the study showed how Britain is in the grip of a housing “crisis” that is affecting young people and those on low incomes in particular – putting them at greater risk of homelessness.
The analysis works by comparing average household income in each neighbourhood – areas of about 7,200 people – with the average house
prices there.

Cambridgeshire's most and least affordable spots

In the neighbourhood surrounding Addenbrookes hospital in Cambridge – the least affordable area in Cambridgeshire – the average family would
need to borrow 13.5 times the local average yearly income to afford a home.
While the average net household income in the area is a healthy £46,885 a year, the average house sold for a whopping £610,000 in the year to June 2018.
Meanwhile, a house in one neighbourhood of Bretton in Peterborough – the most affordable area in Cambridgeshire – could be bought for just 4.4 times the average household income.
There, the average net household income is £33,291 a year, and the median house price is just £146,500.
Since 2014, the Bank of England has set the maximum ratio of loans as 4.5 times income. Only 15 per cent of all mortgages are allowed to exceed this.
Based on this level of maximum borrowing, only two per cent of neighbourhoods in Cambridgeshire are actually affordable to those living there.
Its important to note that the figures dont include any deposit that a family might have saved, however.

'No choice but to rent privately'

Abigail Gill, policy and research manager at homeless charity Centrepoint, said: “Finding affordable housing is getting harder and harder for all young people in the UK as we face the current housing crisis.
“High rents, deposits and upfront costs mean that young people, who receive lower wages and are more likely to be in insecure work, cannot compete in the current housing market.
“The benefit system, instead of giving them the support they need, does not cover the real costs of finding a place to live in almost anywhere in the UK.”
Across England and Wales, the least affordable area to buy a house is the neighbourhood surrounding Green Park, Piccadilly Circus and Leicester Square in London.
The average house price there, of £1.9 million, is 47.8 times the average income.
Meanwhile, the most affordable place to buy a house is a neighbourhood in Horden, County Durham, wherRead More

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