House prices and affordability
Herefordshire is the second worst area within the West Midlands region for housing affordability, where house prices at the lower end of the housing market are 8.6 times higher than lower quartile annual earnings. Provision of subsidised housing is therefore a priority for Herefordshire that needs to be addressed through partnership working between Herefordshire Council and Registered Providers.
Figures, including trends in house prices, affordability levels and how Herefordshire compares with other areas can be found in the ‘house price market statistics’ Excel file in the related documents box, top right.
Herefordshire is consistently one of the worst areas of the West Midlands for housing affordability. The preferred measure for house price affordability is the ratio of lower quartile house price to lower quartile earnings. For 2020 the ratio for Herefordshire was 8.8, that is, for those on lower quartile earnings, a house at the bottom end of the market would cost them 8.6 times their annual earnings. This is the second worst affordability level within the West Midlands region (unitaries, counties and metropolitan boroughs).
The latest Housing Market Area Needs Assessment demonstrated that there is a notable need for affordable housing and it is clear that the provision of new affordable housing is an important and pressing issue in Herefordshire and confirms that affordable delivery should be maximised where opportunities arise.