FANCY asking your boss for a 212 per cent pay rise?
That’s what the average person would need in order to get a mortgage for the first time in Poole, a report has found.
In Bournemouth, you could get onto the property ladder with a 133 per cent hike in salary, while the figure for the rest of the county averages 178 per cent.
The latest figures follow a recent report in which the Bournemouth area ranked alongside Hong Kong, Sydney and San Francisco as one of the least affordable places to live.
Poole’s average property price is £339,201 – meaning a buyer would need to earn £77,532 to be approved for an 80 per cent mortgage, rather than the £24,846 average salary the town has at present.
The average East Dorset worker would need a 206 per cent pay rise to £78,320 to buy the £342,648 average home, while in Christchurch it would take a 197 rise to £77,113 to snap up a home worth £337,368.
East Dorset, Poole and Christchurch are all among the top five most expensive places to buy a home in the south west, with house prices at least 13 times the average salary.
The figures are contained in the report Home Truths, published by the National Housing Federation, which also spells out the high cost of renting in the area.
Average rents locally range from £705 a month in North Dorset to £905 in East Dorset, eating up a large share of incomes and making it even more difficult to become a buyer.
Jenny Allen, external affairs manager for the National Housing Federation in the South West, said: “As one of Britain’s most expensive regions, the South West has experienced first-hand the brunt of the housing crisis. The spike in house prices has had a devastating impact on rural communities, especially with young families being priced out. This is having a knock-on effect on local amenities, including shops and schools, and is detrimental to everyone.
“As this year’s Home Truths report shows, the number of homes built is far below what the region needs to keep up with demand. Housing associations are a vital part of the solution to the housing crisis. The sector is buoyed by the additional funding and flexibility secured in the Autumn Statement and is ambitious about delivering even more houses.”
Bournemouth-based housing and training provider BCHA said: “This report highlights the importance of building more homes to increase supply. There are fewer and fewer homes that are affordable to buy or rent, so it is becoming increasingly difficult for people to get onto the property ladder. With such a significant shortage of housing, prices will continue to rise, so we need to see more homes being built, so that prices begin to fall.
This report follows a recently published survey which placed Bournemouth in the Top 10 of the least affordable places to live in the world with house prices 8.5 times higher than the average household income. Not only are prices growing too fast but rental levels are increasingly unaffordable for people on lower wages. The inequality gap is widening and we need to be investing more time and resources into reducing it.”
The pay rise you’d need to get a mortgage (based on mean prices and salaries and an 80 per cent mortgage):
Bournemouth: 133 per cent rise from £24,045 to £56,056 for a £245,247 home
Poole: 212 per cent rise from £24,846 to £77,532 for a £339,201 home
Christchurch: 197 per cent rise from £25,958 to £77,113 for a £337,368 home
East Dorset: 206 per cent rise from £25,574 to £78,320 for a £342,648 home
North Dorset: 143 per cent rise from £24,508 to £59,779 for a £261,532 home
Purbeck: 232 per cent rise from £21,819 to £72,488 for a £317,133
West Dorset: 171 per cent rise from £24,357 to £66,063 for a £289,026 home
Weymouth and Portland: 123 per cent rise from £22,682 to £50,616 for a £221,443
New Forest: 138 per cent rise from £32,864 to £78,309 for a £342,602 home
Average monthly rents in Dorset and New Forest:
Bournemouth £750
Poole £813
Christchurch £902
East Dorset £905
North Dorset £705
Purbeck £788
West Dorset £752
Weymouth and Portland £642
New Forest £916
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel