A Rising Market- a New Policy

1st January 2006

T. Wyn Jones

2005 saw another positive year in the Property Market in our area. Unlike some areas of the UK the average house price saw an increase. Good news for most, but for first time buyers and local people on low incomes it is becoming increasingly difficult to get that foot on the first rung of the ladder.

But it seems help is at hand. Since the autumn of last year South Shropshire District Council introduced a moratorium on all new planning applications for residential developments resulting in only those planning applications which provide for at least 50% of the development to be affordable homes being granted permission. This has and will continue to have a huge impact on new developments across our area and hopefully means that more affordable homes will be available for purchase or rent.

It is a sign of the times that Government policy and the Local Authority’s recognition of a huge housing need in the area has lead to what seems to some a draconian planning policy, but it does illustrate the difficulties of local people who can no longer afford to buy homes in the towns and villages in which they grew up.

The local Housing Associations are responding to this need, building more homes and offering them for sale on a Shared Ownership basis. South Shropshire Housing Association for example are highly committed to the policy of providing affordable homes for local people and their latest development at Wheeler Road, Ludlow where they are offering 11 brand new homes on a Shared Ownership basis has generated a huge amount of interest.

For many first time buyers living off a local wage means that they are unable to obtain a high enough mortgage to purchase a “starter home” - the average price of a two bedroom modern terrace home is in the region of £120,000.

Thus Shared Ownership allows first time buyers and local people the opportunity to get a foot on the property ladder at an affordable level with the opportunity to increase their share as their own circumstances improve.