Brighton and Hove workers need £47k pay rise to keep up with house inflation

Brighton and Hove workers need £47k pay rise to keep up with house inflation

Brighton and Hove workers need £47k pay rise to keep up with house inflation

First published in News

Workers earning the average wage in Brighton and Hove would need a £47,000 pay rise to keep up with local house inflation, a new report estimates. 

The city has the second biggest gap between the rate of growth in average earnings and house prices in the south east between 1997 and 2012, beaten only by Elmbridge in Surrey.

Experts warned of the "very serious social implications" of increasing numbers of adults still living in their childhood bedrooms following a first drop in home ownership in England since records began.

And campaigners called on the Government to urgently invest in new affordable housing stock, arguing that its Help to Buy scheme would only make matters worse for first-time buyers.

Campbell Robb, chief executive of housing and homelessness charity Shelter, said: "When you'd need to more than double your salary just to keep up with rising house prices, it is no surprise that the dream of a home of their own is slipping further out of reach for a generation.

"Politicians need to start meeting people halfway by committing to bold solutions that will get more affordable homes built. Otherwise future generations will find themselves priced out of a stable home, however hard they work or save.

"The reality is that successive governments have failed to build the affordable homes that this country needs, and as a result our housing shortage has reached crisis point.

"Despite the fanfare surrounding Help to Buy, pumping money into mortgage guarantee schemes is not the solution.

"This further inflates prices by increasing demand for an already limited number of homes, and will only make things worse for the next generation of first time buyers. The only solution is to build more affordable homes."

A study carried out by the charity comparing average earnings and house prices between 1997 and 2012 found that average earners would need a £29,000 pay rise to keep up with soaring house prices.

The Castle Trust, an equity loans and property investment provider, warned that its own research showed that over the past 30 years the average cost of a home for first time buyers had increased by 480%.

The results of a poll of people 2,034 conducted by ICM on its behalf discovered that 27% of adults surveyed had given up on ever getting on the property ladder, including 28% of people aged 25 to 44.

The poll also found that just one in seven adults (14%) not currently on the property ladder thought they would be able to buy a home before they are 30.

More than half of people struggling to get on the property ladder (53%) found that raising a deposit was the main problem, according to the poll.

Up to 38% said they did not earn enough to own a house and a further 21% believe they would not be able to keep up with mortgage payments.

And one fifth (20%) said that they would be unable to buy their own home because their credit rating was not good enough to qualify for a mortgage.

With such a bleak outlook, respondents said they were hoping to be able to borrow from parents (12%), grandparents (5%) or receive an inheritance (9%).

Sean Oldfield, chief executive officer at Castle Trust, said: "The failure of the young to break into the housing market has some very serious social implications.

"Older generations know this and want to help - many have the resources to do so."

Comments (8)

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7:28am Tue 11 Feb 14

Kate234 says...

Sadly this is nothing new. Twenty years ago I had to work in London to be able to afford my first place in Brighton. At the time all my neighbours were also working in London. It was too expensive for me to buy and work in London then. I didn't think I was entitled to live in London it was just the way things were (and I was on a good wage).

Sadly if you can't afford to live in Brighton there are plenty of cheaper places which you can commute into the city from. Studio flats in St Leonards start from £40,000 and £57,000 in Eastbourne. The population is growing and there is just limited space.
Sadly this is nothing new. Twenty years ago I had to work in London to be able to afford my first place in Brighton. At the time all my neighbours were also working in London. It was too expensive for me to buy and work in London then. I didn't think I was entitled to live in London it was just the way things were (and I was on a good wage). Sadly if you can't afford to live in Brighton there are plenty of cheaper places which you can commute into the city from. Studio flats in St Leonards start from £40,000 and £57,000 in Eastbourne. The population is growing and there is just limited space. Kate234
  • Score: 4

8:04am Tue 11 Feb 14

HJarrs says...

We have had economic and social policies since 1979 that have failed us. The housing crisis and stagnation of wages for a large proportion of people have been the result.

Despite both Tories and labour are belatedly talking about a cost of living crisis. Fifteen years too late! Neither party nationally or locally have the bottle to make difficult decisions and take on vested interests to provide decent homes for all.
We have had economic and social policies since 1979 that have failed us. The housing crisis and stagnation of wages for a large proportion of people have been the result. Despite both Tories and labour are belatedly talking about a cost of living crisis. Fifteen years too late! Neither party nationally or locally have the bottle to make difficult decisions and take on vested interests to provide decent homes for all. HJarrs
  • Score: -2

9:21am Tue 11 Feb 14

Morpheus says...

HJarrs wrote:
We have had economic and social policies since 1979 that have failed us. The housing crisis and stagnation of wages for a large proportion of people have been the result.

Despite both Tories and labour are belatedly talking about a cost of living crisis. Fifteen years too late! Neither party nationally or locally have the bottle to make difficult decisions and take on vested interests to provide decent homes for all.
No, as a nation we think we should be paid more than we can earn.
[quote][p][bold]HJarrs[/bold] wrote: We have had economic and social policies since 1979 that have failed us. The housing crisis and stagnation of wages for a large proportion of people have been the result. Despite both Tories and labour are belatedly talking about a cost of living crisis. Fifteen years too late! Neither party nationally or locally have the bottle to make difficult decisions and take on vested interests to provide decent homes for all.[/p][/quote]No, as a nation we think we should be paid more than we can earn. Morpheus
  • Score: -6

9:44am Tue 11 Feb 14

ourcoalition says...

Morpheus wrote:
HJarrs wrote:
We have had economic and social policies since 1979 that have failed us. The housing crisis and stagnation of wages for a large proportion of people have been the result.

Despite both Tories and labour are belatedly talking about a cost of living crisis. Fifteen years too late! Neither party nationally or locally have the bottle to make difficult decisions and take on vested interests to provide decent homes for all.
No, as a nation we think we should be paid more than we can earn.
No, as a nation, we have allowed the rich and the wealthiest take 99% of the cake - and are being conned that if we were to take some back, the "wealth creators" would leave the country. Except all those wealth creators, had their wealth created by those who sweated for them........US!!!!!!
!!
[quote][p][bold]Morpheus[/bold] wrote: [quote][p][bold]HJarrs[/bold] wrote: We have had economic and social policies since 1979 that have failed us. The housing crisis and stagnation of wages for a large proportion of people have been the result. Despite both Tories and labour are belatedly talking about a cost of living crisis. Fifteen years too late! Neither party nationally or locally have the bottle to make difficult decisions and take on vested interests to provide decent homes for all.[/p][/quote]No, as a nation we think we should be paid more than we can earn.[/p][/quote]No, as a nation, we have allowed the rich and the wealthiest take 99% of the cake - and are being conned that if we were to take some back, the "wealth creators" would leave the country. Except all those wealth creators, had their wealth created by those who sweated for them........US!!!!!! !! ourcoalition
  • Score: 13

10:17am Tue 11 Feb 14

redwing says...

The "equity loans and property investment provider" quoted is a leech in this corrupt system of gross housing shortage. They couldn't idly profit otherwise. They make their money out of continually rising property prices and are rubbing their greedy mitts with glee not "warning" of house price inflation! So what place do they have in this article, Argus? For goodness sake do your homework.
The "equity loans and property investment provider" quoted is a leech in this corrupt system of gross housing shortage. They couldn't idly profit otherwise. They make their money out of continually rising property prices and are rubbing their greedy mitts with glee not "warning" of house price inflation! So what place do they have in this article, Argus? For goodness sake do your homework. redwing
  • Score: 3

11:31am Tue 11 Feb 14

rayellerton says...

It needs a massive programme of council house building, comparable to post WW2 for lower paid workers and local young families who are being driven out... we won't see it though as Brighton is seen as a nice little bolthole for well heeled Londoners, or a fun place for students...whose numbers are increasing each year..
It needs a massive programme of council house building, comparable to post WW2 for lower paid workers and local young families who are being driven out... we won't see it though as Brighton is seen as a nice little bolthole for well heeled Londoners, or a fun place for students...whose numbers are increasing each year.. rayellerton
  • Score: 5

4:52pm Tue 11 Feb 14

dingdong2 says...

The easy solution is to follow the USA and introduce capital gains tax on any property sale. People have made money for nothing anyway given the housing market has simply increased - therefore they'd still be 70% better off even after paying 30% tax on their profits.

This would transform the UK - income tax could be lowered and the government could use some of the funds to invest properly in new housing stock.

In Hackney some families now own houses worth millions after buying their council house for practically nothing in the 80s.
The easy solution is to follow the USA and introduce capital gains tax on any property sale. People have made money for nothing anyway given the housing market has simply increased - therefore they'd still be 70% better off even after paying 30% tax on their profits. This would transform the UK - income tax could be lowered and the government could use some of the funds to invest properly in new housing stock. In Hackney some families now own houses worth millions after buying their council house for practically nothing in the 80s. dingdong2
  • Score: 0

8:25pm Tue 11 Feb 14

Maxwell's Ghost says...

The reality is there are too many people in the world and in this city. Hopefully the housing shortage will lead to more careful family planning.
Recently the argus featured a story about new council properties being let to new tenants, one had seven kids for goodness sake.
Condoms and contraception are free in the UK.
The reality is there are too many people in the world and in this city. Hopefully the housing shortage will lead to more careful family planning. Recently the argus featured a story about new council properties being let to new tenants, one had seven kids for goodness sake. Condoms and contraception are free in the UK. Maxwell's Ghost
  • Score: 3

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