Montgomeryshire Liberal Democrats

ÖPIK HOLDS TOP LEVEL MEETING ON HOUSING CRISIS

Lembit Öpik, Liberal Democrat Housing Spokesperson and MP for Montgomeryshire, is to meet with local councillors and council officials next week, to discuss the present crisis in housing.

On Friday 26th September he will meet with Andrew Hall, Ian Fraser and Councillor Graham Brown in Welshpool to discuss the difficulties they are facing in Montgomeryshire in housing local residents.

Ahead of the meeting, Lembit commented:

"We predict that by the end of this year 45,000 people in the UK will lose their homes because they can't meet payments on their mortgages.

"Yet, the social housing stock in the UK has not increased enough to house those ALREADY on the social housing waiting list, let alone the expected 5 million in 2010!

"In Wales, only one house in 25 is social housing in rural areas.

"Furthermore, we know that the average price of rural housing in Wales is among the highest priced in the UK. Powys has the third highest housing price of all Welsh local authorities. The average is £196,185, while the average urban house in Wales costs £152,698.

"What really worries me is that, average annual earnings in Powys are £26,564. Along with Pembrokeshire, we're the least affordable local authority in Wales. In blunt terms, this means the average household would have to borrow around seven times more than their annual salary to pay for their home. If they become home owners at all, it's quite likely they also become slaves to their mortgage.

"Working with local councillors and the local council, I'll do my best to assist those on the frontline of the housing crisis to weather the storm of the credit crunch. Our first task is to increase the housing stock for sale or rent. We need to take this step by step to bring this crisis to an end."

Ends/diwedd

Notes to editor:

Welsh Housing information has been obtained from the recent Halifax Welsh Rural Housing Review:

• The average level of house prices in rural areas is £186,105, 22% higher than the average urban house price of £152,698.

• The average property price in rural areas is 6.5 times average annual earnings compared with a ratio of 5.3 in urban areas

• Isle of Anglesey recorded the sharpest rise in house prices across rural areas since 2003 (120%), followed by Gwynedd (98%) and Carmarthenshire (83%)

• Monmouthshire is the most expensive rural LA in Wales (£223,793), followed by Pembrokeshire (£200,892) and Powys (£196,185)

• Pembrokeshire and Powys are the least affordable rural local authorities in Wales where the average house price that is 7.4 times local average annual earnings,

• Denbighshire is the most affordable rural area with an average house price: earnings ratio of 5.6 followed by Gwynedd (5.7)

• First time buyers account for just 28% of all rural buyers compared with 40% in urban areas

• 4% of the housing stock is social housing in rural areas compared with 6% in urban areas

Table 1: Housing Affordability in Rural Local Authorities

Local Authority House Prices 2008* £ **Average Earnings 2008 £ Price to Earnings Ratio

Pembrokeshire 200,892 26,972 7.4

Powys 196,185 26,564 7.4

Isle of Anglesey 181,358 26,627 6.8

Ceredigion 186,796 27,571 6.8

Carmarthenshire 157,392 26,368 6.0

Monmouthshire 223,793 38,135 5.9

Gwynedd 164,025 28,576 5.7

Denbighshire 155,923 28,000 5.6

Rural Wales 186,105 28,850 6.5

Source: Halifax House Price Database, ONS, Halifax estimates

*12 Months to June.

** Based on ONS average earnings figures for April 2007, which have been inflated by national average earnings growth to calculate 2008 estimates at local authority level. Earnings figures relate to the average for full-time male employees.

Table 2: House Price Growth in Rural Local Authorities1 in the last 5 years

Local Authority House Prices in 2003 (£)* House Prices in 2008 (£)* 5 year % Change

Isle of Anglesey 82,532 181,358 120%

Gwynedd 82,708 164,025 98%

Carmarthenshire 86,044 157,392 83%

Pembrokeshire 114,384 200,892 76%

Denbighshire 92,850 155,923 68%

Ceredigion 117,586 186,796 59%

Monmouthshire 160,185 223,793 40%

Powys 142,584 196,185 38%

Rural Wales 114,699 186,105 62%

Source: Halifax House Price Database

*12 Months to June.

Table 3: First Time Buyers (FTBs) in Rural Local Authorities

Local Authority % Housing Market accounted for by First Time Buyers House Prices 2008 (£)*

Powys 17% 196,185

Isle of Anglesey 22% 181,358

Denbighshire 26% 155,923

Ceredigion 29% 186,796

Monmouthshire 29% 223,793

Pembrokeshire 29% 200,892

Carmarthenshire 37% 157,392

Gwynedd 38% 164,025

Rural Wales 28% 186,105

Source: Halifax House Price Database

*12 Months to June.

WELSH LIBERAL DEMOCRATS DEMOCRATIAIDD RHYDDFRYDOL CYMRU