Gap Between LHA And Rents Putting Private Rents 'Out Of Reach'

CIH research reveals in some areas the gap between the shared room rate of the local housing allowance (LHA), which single people who are under 35 and renting in the private sector receive to contribute to their housing costs, and the cheapest private rents in the area, means virtually all of the properties are out of reach. The research shows that in the 46 rental markets in England where the cash shortfall was greatest less than a quarter of private rented homes were available at the LHA. In 17 of those areas ten per cent or less of the market is affordable and in six five per cent or less is affordable. Read more on the CIH website.

Starter Homes Will Be Out Of Reach For Majority Of Needy Families

Discounted starter homes could be out of reach for the majority of families in need of an affordable home in many parts of the country. First-time buyers will be able to buy 200,000 new starter homes over the next five years at a minimum discount of 20 per cent to the market value. Discounted prices will be capped at £450,000 in London and £250,000 elsewhere. The LGA said the national starter homes scheme could help some people onto the housing ladder but that crucial details are yet to be confirmed. It is concerned it will help the fewest numbers of people in areas where the housing affordability crisis is most acute and will be out of reach for many people in need of an affordable home in the majority of local areas. Read more on the LGA website.

Salaries Of Up To £100,000 Needed For First-Time Buyer 'Help To Buy' Mortgages

First-time buyers are having to boast salaries of more than £100,000 - almost four times the national average - to take advantage of new state-backed mortgages, it has emerged. Labour warned that home ownership was “increasingly out of reach for young people on low and middle incomes” as Government figures exposed the relatively high wages needed to take advantage of its Help to Buy scheme. A CLG analysis shows the average applicant to the scheme was on just over £47,000 - with the figure rising to just short of £65,000 for Londoners. By contrast, the average annual salary is £26,500. Read more on the Huffington Post website.