Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Barrow residents claim houses prices relatively cheaper

Barrow homes

In Barrow, homes became less affordable as wages decreased by 2 per cent in 2021, while house prices rose by 9 per cent

Houses are still relatively cheap, despite worsening earnings to house price ratio, according to Barrow residents.

Each year, the Office for National Statistics (ONS) calculates housing affordability by comparing the median house price in a local authority area to the median full-time annual income of people who live there.

The higher the ratio is, the less affordable homes are to buy.

The median is used instead of the mean average to ensure the figures are not skewed by extreme highs or lows.

In Barrow, homes became less affordable as wages decreased by 2 per cent in 2021, while house prices rose by 9 per cent.

The analysis shows that the average house price in Barrow is now £138,000, while the average annual salary sits at £34,664, meaning house hunters need 4.0 times their wage to buy to a home.

In 2020, the figure stood at 3.6x.

Some residents argued that flaws in the system contributed to this crisis.

David Armstrong said: Very worrying when you consider that Barrow-in-Furness has, in recent years, been regarded as one of the cheapest places to live in England and Wales.

Janine Adams said: I’ve just found out if I stay in rented and apply for Universal Credit, I’d get over £700 a month on top of my wage, yet if I get a mortgage I would lose over £500 of that. Nothing supports people to do better these days.

However, some were quick to point out that, relative to other places, Barrow can be more affordable.

Steven Fletcher said: Barrow, in terms of housing affordability, is still the second most affordable place out of six regions in Cumbria.

Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.