KEETCH CONCERNED BY CONTINUED INCREASE IN HOUSE PRICES

12.46.45pm GMT Tue 9th Aug 2005

Paul Keetch, Member of Parliament for Hereford, is extremely concerned by the affordability of housing in Herefordshire. Recent information provided by the Halifax shows that house prices have risen in his constituency by 13% on 2004 prices, well above the national average, while salaries in the county continue to lag behind the national and regional levels.

Commenting on the findings, Mr Keetch said:

"This information from the Halifax is another blow to young house buyers in the county - prices are spiralling out of control while earnings continue to lag behind the rest of the country.

"In the past year as house prices continue to slow down nationally, in Herefordshire prices have jumped by 13% - up a staggering 127% over the last 5 years. Yet the average wage in the county is around £472.80 compared to £558.60 in the UK as a whole.

"This increase has resulted in the average price of a house in Hereford constituency now being over £190,000. That is again more than the national average of £175,000 or the regional average of £155,000.

"There is a chronic shortage of affordable housing in the county and this information is bound to further exacerbate the situation. How on earth can low income families, agricultural or factory workers afford to buy here?

"I would like to see Herefordshire Council making more effort to address this situation locally with affordable housing schemes. In the public sector to involve Housing Associations and create, for example, incentives for single occupiers to vacate larger properties for family units to live in - this might then alleviate the problems we have escalating in Herefordshire with those waiting for housing and unable to buy," the MP added.

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