Affordability
The average house prices in North Tyneside have risen over recent years and now stand at:
| All Property Types | Detached houses | Semi-detached houses | Terraced houses | Flats and maisonettes |
|---|---|---|---|---|
| £161, 274 | £287,082 | £175, 525 | £151, 760 | £98,832 |
Source: Land Registry 2020
| District | Lower Quartile House Price | LQ Gross Earnings per week | Annual Gross Earnings | LQ Income to House Price ratio |
|---|---|---|---|---|
| North Tyneside | £118, 965 | £425 | £22,110 | 5.38 |
In North Tyneside in 2019, full-time employees could typically expect to spend around 5.38 times their workplace-based annual earnings on purchasing a home. Coupled with the requirement for large mortgage deposits, buying a home is still unattainable for some households.
Renting in the private sector is an alternative option for households to consider. The average rent for a flat is £489 per month and for a house it is £659 per month, with an average monthly property rent of £556.
| Beds | Count of rents | Mean | Lower quartile | Median | Upper Quartile |
|---|---|---|---|---|---|
| 1 | 170 | £442 | £390 | £425 | £475 |
| 2 | 930 | £530 | £450 | £518 | £575 |
| 3 | 390 | £679 | £575 | £650 | £775 |
| 4 | 70 | £990 | £700 | £900 | £1,100 |
| All | 1570 | £571 | £450 | £550 | £650 |
Source: VOA, 2019
Private tenants who are on a low income may be eligible to receive local housing allowance to help with their rent costs. Criteria does apply. For 2020/21 the following rates apply for North Tyneside:
| Number of bedrooms | Weekly amount | Calendar monthly amount |
|---|---|---|
| Shared accommodation/under 35 | £70.19 | £304.99 |
| 1 bedroom | £97.81 | £425.01 |
| 2 bedrooms | £109.32 | £475.02 |
| 3 bedrooms | £126.58 | £550.02 |
| 4 bedrooms | £182.95 | £795.00 |
With housing options limited for some, it is critical that social and affordable rent tenancies must be affordable for existing and prospective tenants. Housing providers must work with applicants to ensure that the tenancy offered is affordable to them, through the completion of robust financial assessments. Tenants must be able to meet their rent payment contribution for the duration of their tenancy. In some circumstances, it may be possible to apply for a discretionary housing benefit payment. This is a temporary measure only.
Prior to 2016, the rent policy was set at the discretion of the local authority following government guidance. The Welfare Reform and Work Act 2016 introduced a compulsory 1% rent reduction on existing social rent levels for four years. This period has now ended, with social rent levels reverting back to CPI + 1% increase each year.
| Social rent | Council | Registered provider |
|---|---|---|
| Bedsits | £56.83 | £65.38 |
| One bedroom | £65.65 | £71.65 |
| Two bedrooms | £73.31 | £81.96 |
| Three bedrooms | £80.88 | £90.42 |
| Four bedrooms | £86.08 | £98.89 |
| Five bedrooms | £90.56 | £106.87 |
| Six or more dwellings | £107.17 | £142.23 |
| All dwellings | £74.91 | £81.17 |
Source: LAHS 2019 and NROSH 2020
Despite reduced rental income, housing providers have continued to provide quality social housing, maintained to a good standard.
The Authority supports the use of affordable rents where they form part of a framework agreement with Homes England to deliver affordable housing. However, social housing landlords should be able to evidence an understanding of how this will meet the needs of tenants and have clear policies for ensuring tenants can afford and sustain this rental product and are not trapped into benefit dependency.
An affordable rent is defined as 80% of the open market rent. The number of homes available for affordable rent in North Tyneside has increased over recent years, as housing providers have used Homes England grant funding programmes to support the delivery of new homes.
| Affordable rent | Council | Registered provider |
|---|---|---|
| Bedsits | £0.00 | £96.06 |
| One bedroom | £80.61 | £83.62 |
| Two bedrooms | £96.79 | £99.47 |
| Three bedrooms | £107.34 | £112.53 |
| Four bedrooms | £0.00 | £117.80 |
| Five bedrooms | £0.00 | £0.00 |
| Six or more bedrooms | £0.00 | £0.00 |
| All dwellings | £94.50 | £101.61 |
Source: LAHS 2019 and NROSH 2020