Homes at risk

Nearly 600 households in England face losing their homes every day and London house prices are now fourteen times the average income.

A survey by housing charity Shelter has revealed shocking new evidence that suggests more and more people are struggling to make their mortgage repayments.

Those living in the London boroughs of Barking and Dagenham and Newham are most likely to lose their homes with Nottingham and Salford also hotspots for those at the highest risk.

Data recorded by the ministry of justice shows that in the last year more than 210,000 homes in England became at risk of eviction or repossession.

Campbell Robb, chief executive of Shelter, said, “Tragically we are seeing more and more people coming to us for help, people who have been struggling to make ends meet and then just one change of circumstances has pushed them spiralling towards homelessness.”

The cost of an average house has risen to ten times the average salary and fourteen in London, according to figures by the Office of National Statics.

“The UK has a structural lack of housing supply, especially in the areas where the jobs mostly are,” said Jonathan Portes, director of national institute of economic and social research (NIESR).

The Bank of England has recently instructed banks to limit the amount of mortgages they give out that are more than 4.5 times the salaries of those applying, making homeownership now out of reach of many people.

“This rising cost of house prices doesn’t tally with people’s incomes,” said Unite assistant general secretary, Steve Turner.

“This is just further proof that Britain needs a pay rise and we need a council house building programme on a massive scale. Increasing numbers of families are struggling to make ends meet.

“People who can no longer afford to buy are being forced in to rented accommodation making them vulnerable to soaring rents and landlords who fail to meet their responsibilities. Not being able to live near work has a knock on effect on families and communities.”

Copeland in the Lake District is the only area where on average houses cost less than three times the average annual wage.