Building hundreds of houses in Wool will deliver none of this
'Affordable' does not mean affordable, as you know the word.
For PDC, 'affordable' means £250,000
For the rest of us, affordable means £150,000*
That's a gap of £100,000 - the Affordability Gap
Affordable: ADJECTIVE Inexpensive; reasonably priced
Oxford English Dictionary
Purbeck District Council uses the work 'affordable' many times in the consultation document, but, for them, 'affordable' does not mean 'Inexpensive, reasonably priced'; for PDC 'affordable' means 80% of market value. And in Purbeck that means about £250,000.
To be affordable in Purbeck a home should cost £150,000* at most. Will any of the hundreds of houses proposed for Wool will be affordable? Will any cost under £150,000? No. Here is further detail.
This consultation justifies the building of large numbers of new homes on the basis that the homes will be affordable for local people, for our young people, for our carers, and for the homeless. The proposed homes will not be affordable.
Data published last year showed that Purbeck District has the greatest discrepancy between high property prices and low incomes of all Districts in the UK outside of London and worse even than some London Boroughs. In order to afford an average priced home in Purbeck, a resident on average income would need a mortgage of 16 times that income. This is never going to happen!
And there is no evidence that building this large number in Wool will somehow cause prices to drop. It won’t.
We need to distinguish between Need on the one hand, and Demand on the other.
NEED: There is a need in Wool for about 16 homes; 24 are to be built by a housing association near Dorset Police HQ; so the need is taken care of.
DEMAND: There is demand here for houses because investment in property is both safe and lucrative. Dorset is an attractive place to own a second home, or a buy-to-let.
Where is the evidence that building more houses in Wool will lower house prices? Many buyers prefer a new home. Just look at London - there are now more houses than households. Have London prices dropped? Demand is stoked there by the unchecked flow of money from overseas – from Russia & China for example. Unchecked in both senses of the word.
Demand will be stoked too by the proposed second homes policy, which aims to stop people owning a second home in the Area of Outstanding Natural Beauty. This will just push up the demand for houses in Wool, conveniently close to but outside the AONB. House prices will increase.
Building hundreds of houses in Wool will not result in affordable houses for local people, for young people, for carers, or for the homeless.
It will simply create bricks and mortar
for wealthier people to store their money safely.
*Average Dorset salary £22,500. Mortgage 5 times earnings (generous), deposit 25%.