Property is beyond buyers' budgets (From Bicester Advertiser)

Property is beyond buyers' budgets

5:36pm Wednesday 11th November 2009

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OWNING your own home in Oxfordshire is just a dream for most people living in the county, according to a report published this week.

The National Housing Federation report, Home Truths 2009, found that last year the £293,128 average cost of a house in the county was 13.2 times the county’s £22,246 average wage.

In Oxford the wage to price ratio was even worse at 15.4, based on figures of £334,000 and £21,653.

Federation spokesman Peter Jones said: “Even though prices have dropped over the past year they are increasing again now.

“The recession has increased housing need because fewer houses are being built and credit is hard to come by.”

The report found Oxford was the most unaffordable place in the county in which to buy a home, while the most affordable district was Cherwell, where the average house cost £233,644 — or just 10.8 times the average wage.

Earlier this year a report commissioned by the Local Government Association called Cities Outlook 2009, based on 2007 prices, found that a house in Oxford was 13 times the average salary.

At that time Oxford City Council leader Bob Price said: “The jobs are available in Oxford, but the homes aren’t.”

He added: “Oxford continues to face severe challenges in terms of the provision of affordable and appropriate housing for all sections of the community.”

Now the federation is calling on the Government to continue injecting high levels of funding into social housing despite threatened public-spending cuts.

The report said: “Social housing is part of the solution to the housing and economic crisis.

“Even as public spending tightens, the Government must remember this crucial fact.”

In West Oxfordshire, the average price of a house last year was £258,927 or 11.3 times the average wage of £22,864, according to the NHF report.

In South Oxfordshire, residents would have to find 15.2 times their £22,781 wage to meet the average price of £346,417, while in the Vale of the White Horse it was 12.5 times the average wage of £23,842 to meet a price of £297,425.

Frank Webster, of the Summertown office of letting agents Finders Keepers, said: “It is fair to say that many of our tenants are frustrated house-hunters — frustrated due to the lack of stock and frustrated due to the lack of available finance and the ever increasing prices.”

Stuart Wallworth, of estate agents Thomas Merrifield, which has branches in Witney and Oxford, added: “First-time buyers must have money behind them these days – perhaps from their parents – or they have got a problem buying a home.

“Buyers need a 10 or 15 per cent deposit these days or it is impossible to get a mortgage.”

He said shared equity schemes were becoming increasingly popular, although buyers still needed a small deposit.

He said: “At the Aspire estate in Witney where there are 143 apartments over the shops at the new Marriotts Walk shopping centre, housebuilder Linden Homes will take a 15 per cent share in the property and this can act as the deposit.

“And the money is not repayable until the property is sold.”

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