sharing the spoils: richard donnell presentation
DESCRIPTION
Richard Donnell presents at the event, Sharing the spoils: bringing home ownership into reach for low to middle income households:TRANSCRIPT
Cross tenure view on housing affordability
Resolution Foundation Shared Ownership EventRichard Donnell, Director of Research – 20 November 2013
2© Hometrack 2013
Specialist insight on residential property value, risk and opportunity
What products/tenures work across local markets ?
Source: Hometrack
£0
£5,000
£10,000
£15,000
£20,000
£25,000
£30,000
£35,000
£40,000
£45,000
£50,000
Ta
ndrid
ge
Cro
ydo
n
Be
xley
Wea
lden
Stra
tford
Ma
idst
one
War
wic
k
Rot
her
Ash
ford
Milt
on
Ke
ynes
Bed
ford
Mid
Su
ffolk
So
uth
Nor
folk
Nor
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Tha
net
No
rtham
pto
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Ipsw
ich
Rug
by
Cov
ent
ry
Gro
ss h
ou
seh
old
inco
me
Buy outright (85% LTV)Private rentAffordable rent (63% market rent)LCHO 35% initial sale
(All pricing for an average 2 bed property)
3© Hometrack 2013
Specialist insight on residential property value, risk and opportunity
Income required to access housing – SE11 (2 bed)
Source: Hometrack calculations
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Affordablerent (50%OMRV)
80%Private
rent
Sharedownership(LQ price,25% sale)
Sharedownership(average
price,25% sale)
Privaterent -lower
quartile
Privaterent -
average
Buyoutright -
lowerquartile
Buyoutright -average
Gro
ss h
ouse
hold
inco
me
4© Hometrack 2013
Specialist insight on residential property value, risk and opportunity
Help to Buy (MIG) costs up to 30% more than renting
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£200
£400
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£800
£1,000
£1,200
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£1,800
E M
ids
Eas
t
Lond
on
N E
ast
N W
est
Sco
t
S E
ast
S W
est
Wal
es
W M
ids
Y&
H
GB
Co
sts
£ p
er m
on
th -
2 b
ed
Average rent
Upper quartile rent
Help to Buy 95% LTV 5% MR
Source: Hometrack
> Costs per month of buying and renting a 2 bed
> Help to Buy mortgage rates put buying costs up to 30% higher than renting
> Help to buy attractive to highest income renters rather than mass market
5© Hometrack 2013
Specialist insight on residential property value, risk and opportunity
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