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1. Cross tenure view on housing affordability Resolution Foundation Shared Ownership Event Richard Donnell, Director of Research – 20 November 2013 2. What…
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  • 1. Cross tenure view on housing affordability Resolution Foundation Shared Ownership Event Richard Donnell, Director of Research – 20 November 2013
  • 2. What products/tenures work across local markets ? £50,000 Buy outright (85% LTV) Private rent Affordable rent (63% market rent) LCHO 35% initial sale Gross household income £45,000 £40,000 £35,000 £30,000 £25,000 £20,000 £15,000 £10,000 £5,000 (All pricing for an average 2 bed property) Coventry Rugby Ipswich Northampton Thanet Norwich South Norfolk Mid Suffolk Bedford Ashford Milton Keynes Source: Hometrack Rother Warwick Maidstone Stratford Wealden Bexley Croydon Tandridge £0 Specialist insight on residential property value, risk and opportunity © Hometrack 2013 2
  • 3. Income required to access housing – SE11 (2 bed) £100,000 Gross household income £90,000 £80,000 £70,000 £60,000 £50,000 £40,000 £30,000 £20,000 £10,000 £0 Affordable rent (50% OMRV) 80% Private rent Shared Shared ownership ownership (LQ price, (average 25% sale) price, 25% sale) Private rent lower quartile Private rent average Buy outright lower quartile Buy outright average Source: Hometrack calculations Specialist insight on residential property value, risk and opportunity © Hometrack 2013 3
  • 4. Help to Buy (MIG) costs up to 30% more than renting £1,800 Average rent Upper quartile rent Costs £ per month - 2 bed > Help to Buy mortgage rates put buying costs up to 30% higher than renting > £1,400 Costs per month of buying and renting a 2 bed Help to Buy 95% LTV 5% MR £1,600 > Help to buy attractive to highest income renters rather than mass market £1,200 £1,000 £800 £600 £400 £200 GB Y&H W Mids Wales S West S East Scot N West N East London East E Mids £0 Source: Hometrack Specialist insight on residential property value, risk and opportunity © Hometrack 2013 4
  • 5. Hometrack 6th Floor, The Chambers Chelsea Harbour London SW10 0XF enquiries@hometrack.co.uk www.hometrack.co.uk Specialist insight on residential property value, risk and opportunity © Hometrack 2013 5
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