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Residental Mortgages By Postcode In GB

Wednesday, August 13, 2014

Value Of Residential Mortgages In Parts Of GB Show How Lower Paid Workers Are Priced Out Of Housing Market And Need Council Houses For Rent

These figures also show the parts to the country which will be hardest hit when interest rates go back to normal levels says GMB.

The postcode area in Britain with the highest value of residential mortgage loans outstanding at the end of December 2013 was London SW 19 covering Wimbledon with £2.8billion borrowings. Next was London SW18 Wandsworth and SW11 Battersea with over £2.7 billion each and SW 6 Fulham with £2.68 billion. See table below for top 10 areas in Great Britain.

These figures are from a new analysis by GMB of the value of residential mortgage loans outstanding at the end of December 201 in 2,883 postcode districts across Britain. See notes to editors 1 for the source of this data.

This analysis is part of GMB’s campaign to show the extent to which millions of lower paid workers are priced out of the housing market and can never afford to buy a home and that the most cost effective way of providing homes for them is for councils to build houses for rent. Set out as a pdf on the GMB website at the foot of this release at www.gmb.org.uk  are the top 10 postcode areas and the bottom 10 postcode areas for the value of residential mortgage loans outstanding at the end of December 2013

TOP 10 POSTCODE AREAS IN BRITAIN FOR VALUE OF MORTGAGES OUTSTANDING

Postcode area and district

Contains (council in brackets)

Value of lending, £ - 2013 Q4

     

South West London SW19

Wimbledon (Merton)

£2,803,007,367

South West London SW18

Earlsfield (Wandsworth)

£2,747,370,960

South West London SW11

Battersea (Wandsworth)

£2,740,084,155

South West London SW6

Fulham (Hammersmith and Fulham)

£2,682,202,424

Croydon CR0

New Addington (Croydon)

£2,637,451,929

North London N1

Islington

£2,423,022,797

East London E14

Poplar (Tower Hamlets)

£2,284,875,641

North West London NW3

Hampstead (Camden)

£2,140,504,769

South West London SW15

Putney, Roehampton (Wandsworth)

£2,083,374,523

Slough SL6

Maidenhead (Maidenhead)

£2,068,567,450

National and Regional figures for the value of residential mortgage loans outstanding at the end of December 2013 are as folllows:

Great Britain - £902bn

North East - £26.2bn

North West - £81.4bn

Yorkshire & the Humber - £58.4bn

East Midlands - £44.8bn

West Midlands - £62.1bn

Eastern - £60.9bn

London - £231.9bn

South East - £163.2bn

South West - £79.9bn

Wales - £28.7bn

Scotland - £64.4bn

Martin Smith, GMB National Organizer, said “These figures on borrowing on houses in parts of the country shows the extent to which of millions of lower paid workers are priced out of the market and can never afford to buy a home.

These figures also show the parts to the country which will be hardest hit when interest rates go back to normal levels.

Millions of families need houses for rent. Council housing for rent is the most cost effective way of providing decent homes for these families.

Using expensive private sector landlords funded by taxpayers to provide these houses for rent needs to be phased out.  Nearly two million lower paid households are housed in private rented dwellings at an annual cost to taxpayers of nearly £10 billion per year to private landlords in housing subsidies.  This is waste on an industrial scale.

The country needs a target for new build homes of 250,000 per year plus a minimum of 30,000 empty homes brought back into use. At least 80,000 of the target need to be in the social housing sector. This cannot be done without a major programme of council house building. See notes to editors 2  for programme adopted by GMB Congress last month on housing.

An incoming Labour Government from 2015 must make affordable housing a central part of its economic and social strategy. Some of the strategic and institutional changes will take time to put into full effect but the intention needs to be clear from the start with an immediate emergency programme and legislative action from the first session of the new Parliament.”

End

Contact: Martin Smith 07974 251 722 or Lisa Johnson, GMB Political Officer on 07900 392 228 or Cath Speight, GMB Political Officer on 07506 711 925 or GMB Press Office 07974 251 823 or 07921 289 880

Notes to editors

1 Source The figures come from a joint data reporting exercise covering residential mortgages coordinated by the British Bankers’ Association and the Council of Mortgage Lenders (https://www.cml.org.uk/cml/statistics/postcode). Participating lenders are Barclays; Clydesdale and Yorkshire Bank; HSBC; Lloyds; Nationwide; Santander UK and RBS. These participating banks represent about 73% of the total residential mortgage market.

The figures are the value of residential mortgage loans outstanding at the end of December 2013. The figures will include most buy to let activity and borrowing by home-owners.

2 GMB Congress Housing Policy

The country needs a target for new build homes of 250,000 per year plus a minimum of 30,000 empty homes brought back into use. At least 80,000 of the target need to be in the social housing sector. This cannot be done without a major programme of council house building.

GMB Congress is calling for strategic changes in policy to deliver this ambitious target as follows:

  • All Housing Policy and resources for England focussed in one Whitehall Department
  • A long Term Plan to switch over 20 year Government support from Housing Benefit to New Build and improvement
  • Establishment of City Region level Housing Delivery Bodies with equivalent bodies in Devolved Administrations and for Rural Housing

GMB Congress also calls for action on specific policy areas as follows:

  • Halt the integration of Housing Benefit into Universal Credit
  • Integrate and Redirect Support Guarantee Schemes from Help to Buy to Help to Build
  • Fundamental Review of Social Housing ‘Affordable Rents’ Policy
  • Stalled Developments of over 6 months face sanctions or be transferred
  • Local Authority borrowing powers for housing to be redefined and the cap removed
  • Introduction of Housing Bonds for Local Authorities, Housing Associations and Developers of Affordable Homes
  • Start a Financial Conduct Authority Review of the Mortgage Market to achieve greater stability and equity
  • Start discussions with Pension Funds on commitments and regulation to direct capital into all forms of affordable housing
  • Start discussions with construction industry on shortages of finance, land and skilled labour and how to overcome them.
  • Compulsory Acquisition of Empty Homes
  • Regulation of Private Rented Sector
  • Changes to Planning Laws on land designation, mixed communities and social housing
  • Legislative Basis for Housing Commissions at City Region level
  • Separation of Regulatory and Funding Roles of HCA and establishment of an Affordable Homes Commission
  • Improved Building Regulation on Housing Design
  • Legislative Basis for Rural Housing Commission
  • Affordable Homes Commission and Rental Market Regulator
  • Housing Bank
  • New Towns

 


 

 

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