Workers on an average salary in Brighton and Hove would need a 219 per cent pay rise to afford a mortgage, a new report from the National Housing Federation revealed.
The South East Home Truths 2017/18 report said an average home in the city costs around £394,512, which is 14 times the typical salary of £28,226.
The report also revealed that the cost of renting privately has added pressure on people’s income, with average monthly rents at £1,292 swallowing up around 55 per cent of private renters’ income.
It added that 27 per cent of Housing Benefit recipients are in work, but are unable to afford their rent.
And it said one of the reasons for the growing crisis in the city is down to a large shortfall of new housing.
Dave Smith, external affairs manager for the National Housing Federation, said: "The housing market has seen a relentless rise in the gap between house prices and people’s salaries. Brighton and Hove is no exception. Attaining a mortgage is increasingly unrealistic and private sector rents make saving up that bit more difficult.
"As this year’s Home Truths report shows, it is more important than ever for the sector to be able to deliver homes that are truly affordable. If we want to get serious about ending the housing crisis, we need to start looking at unlocking more land so we can build homes faster."
Hyde, a housing association, and Brighton and Hove City Council, said their joint venture to deliver 1,000 homes in the city could help to meet the housing need.
Tom Shaw, operations director at the Hyde Group, said: “The delivery of more homes of all types in Brighton and Hove is important to meet demand. Hyde has set up a partnership with Brighton and Hove City Council to significantly increase the supply of new affordable homes in the area. We are investing over £60m to build 1,000 new low cost homes for sale and rent specifically for local people earning the typical local wage.”
Councillor Anne Meadows, chair of the council’s housing and new homes committee, said: “Building affordable rented new homes for local people is a key priority for Brighton and Hove City Council. There is a huge demand for housing in the city and with the supply of low cost rented homes not keeping pace with demand, we’re having to look at innovative solutions to build much-needed new homes.
“The joint venture is the biggest commitment to affordable housing in the city for a generation. Alongside our New Homes for Neighbourhoods programme building new council housing, it will deliver decent and genuinely affordable homes for local residents and create a significant number of jobs and apprenticeships.”
To read The South East Home Truths 2017/18 report, click here.