Workers on the Fylde coast would need a 40 per cent pay rise to afford a typical mortgage, according to new figures.
And with house prices rising by 4.2 per cent over the past year across the region, the cost of buying a home is getting further out of reach, says the National Housing Federation.
In many areas there is a mounting affordability crisis
Across the region the average salary is now £24,305, yet the annual income needed to get an 80 per cent mortgage is £37,984 – a staggering £13,500 more.
“In many areas there is a mounting affordability crisis,” says the NHF’s annual Home Truths report. “The average worker in Lancashire would need a 50 per cent pay rise - or an extra £12,000 a year – to be in with a chance of getting an average mortgage.”
The report shows in Blackpool the average house price is now £108,222. The average salary is £17,638, yet to get a typical 80 per cent mortgage a worker needs to be earning £24,736 a year – more than £7,000, or 40 per cent, more.
In Fylde, houses average £200,876. Earnings are £27,284, still £19,000 below the salary required for an 80 per cent mortgage.
And in Wyre, workers need £12,000 more than the average wage in the district (£24,034) to be able to get a mortgage on property which now averages around £160,000.
Despite talk of a Northern Powerhouse, the NHF adds: “The North West is a strong, vibrant region, but its acute housing crisis needs to be addressed so it can meet its economic aspirations.”
Coun Christine Wright Blackpool Council’s cabinet member for housing, said: “Getting on the housing ladder can be difficult, so in Blackpool we have taken a really proactive approach to help people buy their own home, while not being burdened by large mortgage payments.
“Hundreds of affordable homes are being built within Foxhall Village, starting from as little as £100,000, which means local people can buy good-quality family homes without having to pay large mortgage payments.
“At the same time, our ‘Lend a Hand’ mortgage scheme allows first-time buyers to get a competitive mortgage from Lloyds TSB or Leeds Building Society while needing just a five per cent deposit.
“These approaches, along with the other financial support and advice that we can offer, are all available for Blackpool residents at www.blackpool.gov.uk or by visiting Customer First.”