More affordable homes needed in North Yorkshire amid pandemic-induced price surge

According to research from Lloyds Banking Group, more than half are expecting house prices to continue to rise over the next three years.

The pandemic has prompted a surge in house prices in the north, climbing by 17.3% since March 2020.

This increased demand and lack of affordable housing has resulted in 60% agreeing that people cannot access affordable and quality homes in their region.

The top concerns include; unaffordable house prices (60%), lack of social housing being built (47%) and high deposits (43%). Other considerations include a lack of rental properties (38%), too few houses being built (27%) and economic issues caused by the pandemic (26%).

Across the region, both homeowners and renters agree that house prices are the biggest issue facing the market and are sceptical that the industry can deliver the affordable, quality homes needed to accommodate the increased demand in the area post-pandemic.

With the average house price now at almost £230,000, issues around affordability are likely to get worse.

Beyond affordability, many respondents suggested that new homes in their local area aren’t being built in places where people want to live (34%) – with nearly half (45%) frustrated that new homes aren’t meeting the needs of the local area.

Emily Cox, Lloyds Banking Group’s Ambassador for the north, said: “House prices and transaction volumes, even among first time-buyers, have grown significantly during the pandemic. However, this research also shows that many people in the north consider the continued strength of prices as the biggest factor preventing people from accessing quality and affordable homes.

“At the same time the pandemic is reshaping what we want from our homes, but many people in the North feel that currently where, and how, homes are being built is not meeting the needs of their local communities.

“Understanding these local trends, will be vitally important in ensuring the homes being built keep pace with the changing needs of individuals and local communities.”

The North covers the North West and North East regions of the UK, as well as Yorkshire and The Humber.