Home buyers in Taunton and West Somerset priced out of the market

In Taunton, it would cost 7.6 times the average yearly earnings (£19,692) to reach the price of the average lower-quartile house, at £150,000. In West Somerset, it would cost nine times the average yearly earnings (£17,295) to reach the average lower-quartile house, at £155,950.

The figures, from the Office for National Statistics (ONS), suggest 58 per cent of rural areas have lower-than-average incomes.

In total, 77 per cent of rural local authorities had house prices of more than the national average, 6.8 times the average income.

David Orr, chief executive of the National Housing Federation said: “We often hear about the housing crisis in London, but many rural areas are suffering silently from seriously unaffordable housing – the countryside is rapidly becoming no country for young men.

“This is bad for communities, and chokes off the opportunities for young people.

“Building affordable housing helps breathe new life into rural communities, and gives young people the future they deserve.”

Shaun Spiers, chief executive of the Campaign to Protect Rural England, said: “Genuinely affordable, quality housing is vital to a living countryside, but too much of rural England is fast becoming the preserve of the better off.

“Rural areas are different, which is why policy should be ‘rural proofed’. Rural areas have fewer affordable homes than urban areas; they tend to have lower wages and higher house prices; and it is hard to build new homes in villages, often for very good reasons.

“We need to retain the stock of rural social housing and use neighbourhood planning to identify sites for new homes affordable in perpetuity.”

The figures came as charity Shelter revealed that more than a third of working families in the South West could not afford to pay their rent or mortgage for more than a month if they lost their job.

Shelter believes that high housing costs don’t leave working families with any money spare to save for an emergency. In the event of a job loss, unable to quickly find a new one, the strain on their household budget could be too much.

Campbell Robb, Shelter chief executive, said: “These figures are a reminder that sky-high housing costs are leaving hundreds of thousands of working families in the South West stretched to breaking point, and barely scraping by from one paycheque to the next.”

“Any one of us could hit a bump along life’s road, and at Shelter we speak to parents every day who, after losing their job or seeing their hours cut, are terrified of losing the roof over their children’s heads too.”

Hopeful buyers are turning to government-run schemes for their first or next house. A total of 1,807 homebuyers in Somerset have used the government ‘help to buy’ scheme sinc launch three years ago.

According to new figures released by the Homes and Communities Agency, almost 80 per cent of those using the scheme were first-time buyers.

The scheme encourages anyone, first-time buyers or existing owners, to put down five per cent as a deposit for their new home under the value of £600,000.

The government then lends 20 per cent of the value in an interest-free equity loan for five years.

Andrea Pilgrim, sales director for Barratt Homes, said: “Somerset has produced some strong results for the help to buy scheme and it is great to see the districts achieving such high figures for the scheme in the county.”

“Help to Buy has proved so helpful to so many homebuyers and we would encourage anyone looking to buy a home with lower upfront costs to get in touch.”

But is the problem with house prices or low average salaries?

Michael Dukes, head of the residential department at Greenslade Taylor Hunt, said: “All new homes schemes are helping people get on the property ladder tremendously.

“Each major housing site has to be made up of 25 per cent affordable houses.

“This provides mixed communities and helps people get on the ladder that otherwise wouldn’t be able to.

“Seven times the average salary is very high, but that could be more a reflection on earnings rather than house prices.

“Starter homes ranging between £180,000 and £200,000 are still selling well despite the Brexit decision, houses ranging between £180,000 and £200,000 in price are not struggling to sell.

“We don’t suffer from people buying second homes and holiday homes in this area, some councils in the South West have had to contend with that, but it hasn’t impacted us.

“Whether by accident or design, the 25 per cent rate of affordable houses seems to work well. It makes economic sense and allows for the developments to go ahead.

“If this figure were to be raised to provide more affordable housing, then the developers wouldn’t be able to build the houses. A 35 per cent rate would put a lot of the schemes in jeopardy.”

Although the rate is usually 25 per cent, councils can build 100 per cent affordable housing estates, as is the case at Taunton Deane Borough Council (TDBC). This year it has been working in association with Knightstone Housing, South Western Housing Society and Stonewater. as well as Cllr Terry Beale, executive councillor for housing services, said: “The council is committed to providing affordable homes across Taunton Deane.

“The total number of housing completions achieved in Taunton Deane in the past year was 883 – the highest since the turn of the century – and of these the total number of affordable homes completed was 222.

“The council has made significant investments in housing and is unique in building its own stock of affordable properties in the first house-building programme in Taunton Deane for more than 20 years.

“The council also works in partnership with housing associations which are delivering dozens more new affordable homes.

“It is vital that we provide affordable housing for those who cannot stretch to the full market price for a home of their own and for those who need modern, affordable homes to rent.”