Sheffield workers need staggering '62 per cent pay rise' to afford mortgage
The average full-time worker in Sheffield now needs a staggering 62 per cent pay rise to afford a mortgage on a typical home in the city, a report has found.
The National Housing Federation's ‘Yorkshire and the Humber Home Truths 2017/18’ report concluded those earning any less than Â£40, 580 a year are now priced out of buying the average home in the area.
The report found that despite regional house prices being lower than the national average, the combination of low wages, an above-average unemployment rate and job insecurity is resulting in an acute housing crisis in the area.
Salaries have failed to keep up with house prices, meaning the average home in Sheffield – costing Â£177, 538 – is now over seven times the average annual income of Â£24, 991.
The report also exposes the severe shortfall of new homes in recent years.
READ MORE: Council aims to build more social housing in SheffieldBetween 2012 and 2016, there were nearly 36, 000 too few homes built across Yorkshire and the Humber to keep up with demand, with South Yorkshire alone being 6, 500 homes short.
However, South Yorkshire Housing Association has plans to build 1,180 homes by 2021, and in 2017 alone to built 73 new homes in the region.
In addition, Sheffield Council revealed plans last year to provide 1000 new council homes by 2021.
Tony Stacey OBE, chief executive of the South Yorkshire Housing Association, said: “We tend to talk as though there is just one housing crisis, but it takes many different forms. It is not just about the impossibility of affording a home in London or people sleeping rough.
“For far too many local people, affordable housing is simply out of reach. We should expect more from both national and local politicians to find solutions that work for all sections of society here in Sheffield."