Property prices in Cambridgeshire are 15 times higher than average annual earnings, making them the least affordable in the whole of England.

County Councils Network (CCN), figures show the average house price in Cambridgeshire is 14.6 times higher than average annual wages in December 2018.

This is the highest price to wage ratio in all of England’s 27 counties and almost double that of the national average, which stands at 8.2.

The average house price in Cambridgeshire, as of December 2018, is £438,911 – almost £200,000 more than the national average and double that of cities.

County leaders are  now calling on the Government issue new planning reforms to tackle what is being dubbed, an ‘affordability crisis’.

Leaders of county councils say a ‘fragmented’ planning system is holding back development in counties, such as  Cambridgeshire, pushing up house prices.

This is compounded by annual wages in those areas being £1,700 lower than the national average.

To combat this Cambridgeshire County Council is calling for more joined-up planning, as county service areas such as education, school transport, highways, and care.

Cambridgeshire County Council’s Deputy Leader, Councillor Roger Hickford said: “Cambridgeshire County Council wants to continue to support growth, which we believe to be in the long-term interests of the local economy, but we are acutely aware that while this growth places a major burden on all local authorities it falls disproportionately to those like us, with care (children’s and adults), education (schools and home to school transport) and highways responsibilities.

 “That is why we are continuing to campaign, alongside the CCN for a fairer funding deal overall and add our voice to the calls for a more joined up and strategic planning regime.”

Affordability levels in Cambridge is making life extremely tough for those on low incomes.
Affordability levels in Cambridge are making life extremely tough for those on low incomes

Combating the housing crisis

The counties with the largest house prices to yearly wage ratios are all in the south east: Cambridgeshire (14.6), Surrey (14), Hertfordshire (12.8), Buckinghamshire (12.8), and West Sussex (12).

 In each of these areas, the ratio has widened since 2016, when Oxford Economics did a similar survey for CCN.

In contrast, the top five most affordable urban areas outside London are: Southend (10.5), Bristol (9.6), Bournemouth (8.6) Portsmouth (7.3) and Southampton (7.1).

Cllr Philip Atkins, County Councils Network spokesman for housing, planning, and infrastructure, said: “We have long been concerned that house prices in county areas are becoming increasingly unaffordable, with millions of young people locked out of home ownership and the situation rapidly worsening.

"Building a variety of homes, more quickly, with the right infrastructure to support development will help ease the affordability crisis that is spreading from London.

The government’s drive to tackle this issue is welcome but planning reforms to date do not go far enough – bolder change is needed to deliver the homes the country desperately needs."