Cornish housing market stalls, but buyers still need 10 x earnings to buy a home
The latest research from over-50s property specialists, Regency Living, has revealed that despite boasting the fifth most affordable average house price in the South West, those looking to purchase property in Cornwall are facing a tough task, with the average house price sitting at over ten times the average income in the area.
The research by Regency Living analysed current housing market affordability based on the income to house price ratio required across Cornwall and how this compares to the national benchmark.
The latest Government house price data shows that whilst the national picture may be improving, the Cornish housing market has remained largely static over the last year, with house prices falling by -0.4%.
In fact, just four other areas have seen greater declines, with the average house price down across Mid Devon (-0.7%), Exeter (-1.7%), South Hams (-3.1%) and Torridge (-5%).
In contrast, the average house price across East Devon has soared by 7.4% in the last year, with Stroud (+7.3%) and West Devon (+6.8%) also seeing sharp rates of annual growth.
Cornish income to house price ratio sits at 10 times annual earnings
At £299,580, the current average house price in Cornwall is one of the more affordable found across the region. However, further analysis by Regency Living shows that local homebuyers trying to climb the Cornish property ladder still face a very tough task indeed.
In fact, the average house price of £299,580 is over ten times (10.1) the average annual earnings in Cornwall (£29,804).
To put this into perspective, the same income to house price ratio sits at 9.7 across the wider South West region and at just 8.5 across England.
Over-50s facing tough task when looking to climb the ladder
Cornwall remains a particularly popular destination for the over-50s and the figures from Regency Living show that they face an even tougher task than the average homebuyer, with the average over 50 requiring 10.4 times their annual income to cover the cost of the average home in Cornwall.
Park homes providing more affordable route to retirement
No surprise then, that for many, downsizing to a Cornwall park home has become the path to a happy retirement.
According to Regency Living, the South West as a whole is home to an estimated 19,660 residential park homes - the second highest total of all regions of England. Some 3,449 of these are found within Cornwall, with the residential park home housing market across the county estimated to be worth £2478.3m
The draw? Well the average residential Cornwall park home boasts an average price of just £138,670. This means that not only does the average over-50s homebuyer require just 4.8 times income to cover the cost, but those downsizing from the average detached Cornwall home can release £294,283 in equity to help them enjoy their later years.
A Regency Living spokesperson commented:
"Cornwall is an incredibly popular destination for many reasons and it's no surprise that the area is home to the highest number of second homeowners in the nation.
Of course, the downside to this popularity is that the housing market has become increasingly unaffordable for Cornish homebuyers and today, the average house price sits at over ten times the average earnings, despite the fact that the rate of house price growth has largely stalled over the last year.
Affordability is one of the driving factors that we see week in, week out, when it comes to Cornwall's silver downsizers and their decision to opt for a park home property purchase.
The average park home is considerably cheaper than the price of a bricks and mortar property and, not only do they benefit from all of the same modern day luxuries, but they also value the ready made, close-knit community that's waiting for them when they move in."
Want to know more about the benefits of the residential park home lifestyle?
Join the Regency Living team at Meadowlands Court for their open weekend on Saturday 21st and Sunday 22nd September - Widemouth Bay, Bude, Cornwall EX23 0NA.
Meet the team, explore the development and ask any questions you may have.
Find out more: Affordable Coastal Homes for Sale in Cornwall | Meadowlands Court by Regency Living | Regency Living (regency-living.com)
