Print

UK: Housing crisis 'overwhelming'

Jaimie Kanwar

The UK has no 'affordable' housing markets, claims a new survey...

After examining the housing affordability situation of 227 urban markets, the 2008 Demographia International Housing Affordability Survey ranked the UK as the third most unaffordable market in the English-speaking world.

Some 25 of the 28 markets in the UK are 'severely unaffordable' and three markets are 'seriously unaffordable'. The best ratings are 'seriously unaffordable', in Falkirk (Scotland), Dundee and Middlesborough & Durham all with a multiple medium of 4.4.

The most unaffordable markets are Bournemouth & Dorset (8.9), Belfast (8.8) and Exeter & Devon (8.2). Among the larger markets, London (7.7) and the London Exurbs (7.4) are the least affordable.

Playing with peoples' lives

Demographia rated the urban markets by the 'median multiple' method, where the median house price of a market is divided by the median annual household income and is the method recommended by the UN and the World Bank.

The firm said that countries where property is worth less than 3 times the annual salary is judged 'affordable'; three to four times 'moderately unaffordable'; four to five times 'seriously unaffordable' and property over five times the annual household income as 'severely unaffordable'.

Co-author of the Annual Survey Hugh Pavletich said: “Evidence of the housing affordability crisis is clear, overwhelming and irrefutable.  Governments must allow affordable housing to be built on their urban fringes, and they must stop playing games with young people's lives”.