APPENDIX 1
Extract from Appendix 4 of "North
West Household Growth Estimates Study", Nathaniel Lichfield
& Partners on behalf of North West Regional Assembly, 2005
". . . 4.32 There is a strong relationship
between housing need and affordability. The extent to which affordable
housing pressure varies across the North West is considered further
in Figures 4.1 and 4.2. Figure 4.1 demonstrates how affordability
is an issue for many areas of the North West, in particular Cumbria/North
Lancashire, Cheshire, South Manchester and western parts of the
Wirral, based on average dwelling prices in 2004.
4.33 The impact of changing prices on affordability
is the subject of figure 4.2. This compares average prices in
2004 with the income required to support a mortgage, assuming
that for a property to be affordable, the purchase price is less
than 3.5x a single income (an ODPM-recognised threshold for affordability).
Although this is a simplification of the relationship between
household finances and property prices, for instance it does not
take into account multiple incomes or existing equity, it further
reinforces the notion that accessing affordable accommodation
across large parts of the North West is a major problem. The maps
also demonstrate how affordability can vary within districts,
an important point which should not be overlooked.
4.34 A simple review of average house prices
(for Q1 2005) relative to mean incomes indicates that there is
only one district in the North West (Burnley) where average prices
are less than 3.5x mean income, suggesting that affordability
is a problem across the region. Reflecting information in Figures
4.1 and 4.2, a total of 21 authorities have average prices, which
are at least 7 times mean income (Table 4.11).
Table 4.11 Ratio of average house prices
to mean incomes
Ratio
| Districts |
<5
| Barrow-in-Furness, Blackburn with Darwen, Burnley, Copeland, Hyndburn, Manchester, Pendle
|
| 5 to 7 | Blackpool, Bolton, Bury, Chorley, Ellesmere Port and Neston, Halton, Knowsley, Lancaster, Liverpool, Oldham, Preston, Rochdale, Salford, St. Helens, Tameside, Wigan
|
| 7 to <9
| Allerdale, Carlisle, Chester, Crewe and Nantwich, Fylde, Macclesfield, Rossendale, Sefton, South Ribble, Stockport, Vale Royal, Warrington, West Lancashire, Wirral, Wyre
|
| 9 to more | Congleton, Eden, Ribble Valley, South Lakeland, Trafford
|
| |
Sources: Annual Survey of Hours and Earnings 2004, ODPM;
Land Registry Q1 2005 House Prices.
|
