UP to 30 per cent of properties in St Helens’ new developments are classed as being "affordable" according to the Local Plan, but at what price point does "affordable" start?
The challenge of buying homes is an ever-growing issue, particularly in the cost-of-living crisis when inflation and interest rates have both been climbing
According to The House of Commons Library: “The need for subsidised housing provision has long been recognised.
"The cost of private sector housing that meets acceptable standards, compared with the level and distribution of incomes and assets, means significant numbers of households lack the resources to make a demand for decent housing effective in the market.
“Without subsidised housing, these households may fail to obtain housing of a decent standard.”
However, the government website sets out that there is “no agreed definition of affordable housing,” adding that “this is the definition used by local planning authorities when making provision within their areas to meet local demand/need for affordable housing”.
With this in mind developments are being built across St Helens and further afield in a bid of addressing a housing crisis.
In St Helens, the Office of National Statistics data suggests that out of 56,000 in some kind of employment, the median wage, which is the middle number of all salaries is £27,545 a year in St Helens - compared to the national median of £27,756.
So, in light of this, what is a realistic affordable home and what prices are the builders of new homes classing them at? Research shows that some "affordable" new-build homes in St Helens are being marketed at £299,950.
Firstly what are the statistics for housing in St Helens?
The average St Helens house price in May was £181,968, Land Registry figures show – a 1.1% increase on April.
First-time buyers in St Helens spent an average of £162,900 on their property in April-May – £9,300 more than a year ago, and £49,300 more than in May 2018.
By comparison, former owner-occupiers paid £204,600 on average in May – 25.6% more than first-time buyers.
Owners of terraced houses saw the biggest rise in property prices in St Helens in May – they increased 1.2%, to £139,483 on average.
So what does the council have to say about affordable housing?
A St Helens Council spokesperson said: “Our definition for affordable homes is set out in the Local Plan and is based on the National Planning Policy Framework that includes– social and affordable rent, starter homes, discounted market sales housing and other affordable routes to home ownership.
“In our Local Plan we require developments of 10 or more homes to provide up to 30 per cent of properties to be affordable as outlined above.
“The type and percentage of affordable homes delivered depends on several factors including location and the type of land being developed.
“This local definition reflects the existing national policy but would consider any future changes in Government policy on affordable housing.
“Whilst developers have to work in the framework outlined above, the Council recognises that current house prices present a challenge for many residents and will continue to encourage developers to deliver affordable homes in the borough."
What did St Helens South and Whiston MP Marie Rimmer say?
St Helens South and Whiston MP Marie Rimmer said: "£290,000 is a lot of money for local residents. Particularly for first-time buyers. And with what the Tories have done to mortgages, it makes things even worse.
"The Tories have failed on housing. They have had thirteen years and all they have given local residents is a huge mortgage hike.
“House prices are going through the roof, and this is particularly hard on first-time buyers. Especially young families looking to make a town their home.
“The best way to make homes of all kinds more affordable is by building more. More houses to buy and more social housing. It is supply and demand. Right now there is a real shortage of houses so developers can charge what they want.
“The same is true for renting. The way the planning system works, it is very much in favour of the developers.
“Housing is a policy that needs to be corrected on a national level.
"Keir Starmer has set out how Labour will build more houses to stop generation rent becoming a permanent reality. By building more houses, we can get more local residents on the housing ladder in St Helens.”
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