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House prices ten times average Kent wage

00:01, 11 October 2016

Workers are being priced out of the housing market in Kent with property prices 13 times more than the average wage in some areas.

The average multiple in the county now stands at over 10.4 times the average wage.

Medway has the smallest gap between house prices and wages in Kent, with the largest difference in Sevenoaks where prices are 13.7 times the average wage.

The Lyons fraudulently pocketed money from the sale of houses
The Lyons fraudulently pocketed money from the sale of houses

But even in Medway, where the average wage is £29,191 a year, the average house price is 7.7 times higher, at £225,087.

In July 2015, the average price was £191,076.

Banks and building societies will only lend people a maximum of 4.5 times their income meaning Medway workers have £131,359 to spend.

But last year the average price of a flat in the Towns was £146,234.

According to the online property search website, Right Move, the most property sales in Medway involved terraced properties last year at an average of £199,537, while semi-detached properties sold for £258,919.

The problem is the same across Kent and the whole of the south east according to a new report from trade union, GMB.

In the South East as a whole, the average house price in July 2016 was £313,315 which is 10.4 times the average full time earnings of £30,074.

Average house prices in the South East increased by 11.9% in the year to July 2016.

The situation is most extreme in South Bucks where average house prices are 18.5 times average earnings.

Paul Maloney, GMB regional secretary, said a massive programme to build more houses is absolutely essential and has to get underway without delay .

He said: “We have been talking about this problem for far too long, there can be no excuses for not providing housing to people that they can afford to live in on average wages.

“The decisions of the Thatcher government in the 1980’s to sell council housing stock, and not replace it, and to pay landlords housing benefit instead of providing social housing directly has been a huge and expensive mistake.

“Last year, for example, £24 billion was spent on housing benefit. If a fraction of that amount had been spent on social housing for rent, the strain on the tax payer would be less and people would have housing they can afford to live in.

“This madness of selling council and Housing Association houses is still going ahead. GMB is calling for the Housing Bill now in Parliament to be opposed. Selling social housing, at a time of dire shortages of homes for rent at affordable prices, is irresponsible madness.

“These mistakes need to be corrected without delay, fair and affordable housing is a basic aspiration for all.”

According to the National Housing Federation, the South East needs to build 39,000 new homes every year from 2011 until 2031. Medway needs to build 30,000 homes over the next 20 years.

Trade union, Unite, has also been campaigning for a big boost in council house building and has said the region faces chronic housing problems with sky-high house prices, lack of affordable housing and little protection for tenants from unscrupulous landlords.

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