House prices across half of the North West now at least five times the average local salary.
Only five areas remain in the North West where houses cost less than four times the average local salary, according to new analysis published today by the TUC.
It shows that homes in half the local authority areas across the region have become out of reach for local people.
The TUC analysis of average (median) salaries and house prices by local authority area shows that in 1997 the average house price in all areas throughout the region was less than four times the average local salary.
More than half the local authority areas were ‘easily affordable’ in 1997 – with a house price to local wage ratio of less than three. No area had a ratio above five – a level which the TUC believes puts home ownership out of reach for local people, particularly if they only have one salary. In 1997 all ratios in the North West were below four.
However, there are no longer any areas of the North West that are ‘easily affordable’. Burnley, Hyndburn, Pendle, Knowsley and Blackburn with Darwen are the only areas left where house prices are less than four times the average local salary.
Even previously ‘easily affordable’ areas, such as Bury and Rossendale, are now out of reach for many local people with house prices now over five times the average wage. Four others have also made the jump from ‘easily affordable’ to out of reach.