UK: Shelter claims 8 in 10 families unable to purchase new-builds

According to a report by housing charity Shelter, almost 80% of families across England cannot afford to purchase a new-build home in their local area. The worst-off regions are West Midlands, where over 9 in 10 privately renting working families are unable to afford a newly-built home even with the support of the government’s Help to Buy scheme. Second comes South-west England, where 89% are unable to access the property ladder due to house prices, followed by East Midlands with 87% unable to afford the average house.

The worst-off regions are West Midlands, where over 9 in 10 privately renting working families are unable to afford a newly-built home even with the support of the government’s Help to Buy scheme.

Shelter believes the current system distorts incentives for developers, who cannot take the risk that increasing supply will lower the value of their investment, driving the gradual release of new housing stock. The charity argues that the current system should be replaced with a ‘civic housebuilding’ programme where cities and larger local authorities sell land at the price of its ‘current use’, on which public, private and voluntary organisations would be encouraged to build well designed and affordable housing.

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