The average house price in Cambridge is now more than 16 times the typical salary and stands at a staggering half a million pounds, a new report from the National Housing Federation has revealed.
The report, which provides local data on the housing market in the East of England, reveals that the average house price in the city is now £501,572
This is almost 17 times the average salary in Cambridge of £30,056 – with the city ranking at number three of the five most expensive areas to buy in the East of England, behind St Albans and Three Rivers.
The National Housing Federation, which is the voice of affordable housing in England, said the figures “highlight the bleak reality” that potential homeowners face and show how “dysfunctional the current housing market is”.
The report comes after the News told how Cambridge is the 'most unequal UK city' in terms of income distribution.
Regional figures for house prices are slightly better – with an average house price of £288,000 in the East of England.
This represents more than 10 times the typical salary – with only those earning upwards of £65,000 a year able to afford the average mortgage.
With the average regional salary now set at £28,000, the typical worker would need a staggering £37,000 pay rise (130 per cent) to get a mortgage for the average home.
Claire Astbury, external affairs manager for the National Housing Federation in the East of England, said: “This year’s Home Truths figures highlight the increasingly bleak reality that local people in the East of England are confronted with daily.
“The fact that they would require an increase of 130 per cent in their salary to be able to afford a typical mortgage just shows how dysfunctional the current housing market is and the extent to which it does not work for the average worker.
"Housing associations are a vital part of the solution to the housing crisis.
“The sector is buoyed by the additional funding and flexibility secured in the Autumn Statement and is ambitious about delivering even more homes.”
According to the East of England Home Truths 2016/17 report, housing costs in the East of England continue to rise, making it unaffordable for many working households to rent or buy a home.
In addition, the region has a growing and ageing population. Between 2014 and 2039, it is estimated that the number of households aged 65 and over will increase by 62 per cent, from 759,000 to 1,230,000.
This is the third biggest increase behind London and the South East.