Only one in three homes affordable for working families in Rochdale

Shelter

Only 35% of the houses for sale in Rochdale are affordable for a typical family hoping to get on the first rung of the property ladder, according to new research by Shelter.

The charity looked at asking prices for all of the properties for sale in Rochdale on a single day, and compared them with the mortgage that families, couples and single people on average wages could afford as first time buyers.

However, more houses in Rochdale are affordable than many other regions in the region. In 15 local authority areas in the North West less than a quarter of the homes on the market were affordable for families - even assuming that they were able to save a large 20% deposit. 

This includes Blackpool where just 23% of the homes for sale were affordable, Stockport (just 19% affordable) and Chorley (21% of homes for sale affordable).

The picture is even bleaker for those looking to take part in the government’s mortgage guarantee scheme, Help to Buy, where a 95% mortgage would mean higher monthly mortgage costs, and put even more homes out of reach.

Previous research commissioned by Shelter showed that on average young families in the region face nearly nine years of saving before they can afford the deposit for a home of their own. This new study shows that, even when they have saved a large deposit, there simply aren’t enough properties on the market that first time buyers can afford.

This means that the reality for many will be years spent in expensive and private lets, often forced to move from one short tenancy to the next and unable to put down roots.

The situation is even worse for single people looking for a home of their own in the North West, with less than 10 affordable homes in every 100 for sale in almost half of areas. For couples without children, almost half of the two or more bedroomed properties for sale were unaffordable overall.

Recent Census data showed a 6% drop in the proportion of home owners in the North West, a figure likely to increase as more people are priced out of the property market and forced into private renting.

Shelter is warning that unless the government tackles the root cause of our housing crisis – the desperate shortage of affordable homes - things are only going to get worse. This will not only affect future generations hoping for a stable home, but also the thousands of families already facing an everyday struggle to pay their rent or mortgage.