Essex: House Prices Leaving Earnings Behind

11 February 2014, 00:00

Average yearly earnings in Essex would have to rise by more than £25,000 a year to keep up with rising house prices, according to housing charity Shelter.

It says if wages in the county had risen at the same rate as house prices, in 2012 they would have stood at £48,548 rather than the actual figure of £22,985. 

The charity says the dispartity is making it harder for people to be able to afford to a buy a house and is calling for the Government to build more affordable homes to aleviate the situation. 

Chief Executive of Shelter, Campbell Rob, 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."