Average house prices in Dijon Avenue – next to the new “Lowfields Green development – are around £191,000. A 3 bedroomed semi is estimated to be worth between £188,000 and £208,000 according to the Zoopla web site. Prices are similar in nearby Lowfields Drive.
The announcement that the new “Clover” three bed, 94 sq. mtr, semi would cost £295,000 raised many eyebrows. With average salaries of £26,000 a year in York, that means a working couple would be able to borrow a maximum of £234,000 with repayments set at £1109 per month. They would also need a deposit of £60,000.
So we can safely say that the houses aren’t aimed at first time buyers.
Shape homes are offering a “shared ownership” option on some smaller properties. Two 2-bedroomed semi-detached houses (The Burdock) are for sale for between 25%-75% of the whole sale price of £225,000 (for example, a 30% share would cost £67,500). The Council have already completed deals elsewhere in the City for about 30 shared ownership homes. In most of those cases the prospective occupant identified a propriety that was available on the open market and asked the Council to buy half. The occupiers then pay part mortgage and part rent.
Finally seven “social rent” properties will be available. Two are 2-bedroomed semi-detached houses and there are five 2-bedroomed semi-detached bungalows. Rent levels for the properties have not been revealed, although they will be much less than the £800 pm commercial rents being asked for similar properties in the area. Applicants will need to be on the housing waiting list although it is possible that preference will be given to Council tenants seeking to downsize from larger properties (freeing them, in turn, for family occupation).
By way of comparison, a new 3 bed semi on the prestigious Old Bowling Green site on Front Street is listed for sale at £310,000 It has 90 sq. metres of floorspace and is arguably better located than the houses at “Lowfields Green”. Building work on the site will also conclude shortly.
Quite how the £295,000 price for the Lowfields semi has been arrived at was not made clear in the business case figures published by the Council.
It can only serve to stoke house price inflation at a time when many are feeling the pressures arising from the health crisis.
Some cross subsidy of the rented units was expected across the whole site.But that doesn’t explain the £50,000 premium apparently now being sought.
The Council may also point to high standards of thermal efficiency, but it would take over 100 years to repay the extra “up-front” costs through energy bill savings.