Housing, Homelessness and Benefits Strategy - Basingstoke and ...

Return to Return Contents to ContentsAverage House Prices in Basingstoke and Deane - 31.03.08Quarter 3 Quarter 4Change fromQ3 to Q4Change fromQ3 to Q4Oct-Dec 2007 Jan-Mar 2008 £ %Average £258,462 £242,308 £16,154 -6.3%Detached £405,238 £396,557 £8,681 -2.1%Terraced £200,759 £192,137 £8,622 -4.3%Flat £150,972 £142,775 £8,197 -5.4%Change in averagehous epriceAnnual Change asat end of QuarterOct-Dec 2007 Jan-Mar 2008-6.0% -6.3%5.2% 0.4%*source: Land Registry of England and WalesBasingstoke and Deane has an affordability ratio of 8:1 (bottomquarter house price : bottom quarter earnings). Affordability isslightly better than for the South East as a whole (9:1) and whencompared to its nearest neighbours, e.g. West Berkshire 17 (9.44:1),but in practice this makes little difference because the gapbetween earnings 18 and house prices is still so large that most ofthe bottom 25% of earners in the borough are priced out of themarket.Statistics32% familyhousholds by 2026Doubledhouse prices since 19958:1 ratioof affordability4.31 timessalary requiredLikewise when the average price of a 2/3 bed dwelling iscompared against the average household income of those aged20 to 39, it is apparent that the average household in this agerange would have to borrow 4.31 times their salary to purchasea 2/3 bed dwelling in the Borough – again showing that for manylocal people buying a home outright is currently not an option.Even in the current market of falling house prices it is unlikely thatthis will benefit many local people as any savings which may bemade are likely to be consumed by the corresponding increasein the cost of living – as such, owning a home is not expected tobecome more affordable during the lifetime of this Strategy.Private rentPrivate sector rent for a two bed property in the Borough is atleast £650 per month.Based on 25% of income being used for rent, the annual incomerequired in Basingstoke and Deane to rent in the private sector is£33,000. This means that 41% or 27,000 households are unableto rent as their income is too low.Averagehouse prices23