HOUSE prices in South Derbyshire have risen at more than double the rate of salaries, according to a new study.
The shock findings from the Housing Federation revealed that between 2002-12 house prices increased by 68 per cent – far in excess of the 26 per cent of that of salaries in the same period.
Private lettings also increased by 35 per cent leading to fears that demand for houses outstrips supply.
The federation said a similar picture is painted across Derbyshire and the whole of the East Midlands, where fewer homes were built last year than in almost any other UK region.
Kate Warburton, who manages external affairs for the federation, said the lack of houses across the region could have damaging knock-on effects.
She said: “The East Midlands has fallen behind in terms of house building and rising house prices and private rents are testament to that fact.
“As demand outstrips supply, the region’s housing crisis is not only making life extremely difficult for people living and working in the region, but it is also affects employers and businesses and risks holding back economic growth.”
The federation also warned that the rising housing costs mean more people rely on Government help just to stay in their homes.
Each new home built is thought to bring in £69,000 to the East Midlands and create 1.6 jobs in the wider community.
But just 49 per cent of the 18,700 homes needed each year from 2013-21 were built last year.
Across the East Midlands there has been a 93 per cent increase in the amount of Housing Benefit claimed since 2009.
This brings the total handed out in the UK to £24 billion, which could have been put towards affordable homes rather than heading straight into the pockets of private landlords, the federation has claimed.
Despite the gloomy statistics, South Derbyshire has previously bucked the national trend for the number of affordable homes built.
In November it was revealed bricks and mortar had been put in place on 120 homes in 2012-13.
This marked an increase from the 100 affordable home which were built the year before, and bucking the UK trend of a 26 per cent drop.