Housing crisis in Midlands makes life 'harder than ever' - NHF

Published by Julien Tremblin for 24dash.com in Housing and also in Local Government

The Midlands are heading towards a major housing crisis as homes in the region cost more than eight times the average annual salary, new research by the National Housing Federation (NHF) shows.

In its Home Truths reports for the East and West Midlands published today, the NHF warned that, as a result of unaffordable house prices, rising rents and under-investment in affordable housing, living in the Midlands is now “harder than ever”.

The average home in the East Midlands costs £164,921, more than eight times the average annual wage of £19,947.

The average home price in the West Midlands reaches £177,913 or more than nine times the average salary of £19,864.

 The NHF also warns that the “affordability gap” is set to worsen in both regions as the gulf between supply and demand continues to grow.

To fix what it calls a “broken housing market”, the Federation is calling on the Government to make a renewed commitment to building the homes the country needs, identify housing as a key driver for economic activity and deliver a reformed planning system that encourages the building of more affordable homes.

Recent figures by the HCA showed the number of affordable home starts in the country had fallen by 97 per cent in the six months to September.

Gemma Duggan, West Midlands Lead Manager for the NHF, said: ‘This year’s Home Truths report shows that - despite a deep recession - house prices in the region remain out of reach for thousands of households.

‘As unemployment is on the up and benefits are set to be slashed, private sector rents also look set to rise. To cap it all, we’ve also seen the fastest rise in homelessness of any region and one in 16 social housing households is overcrowded. Lack of supply is at the root of the problem.”

Shadow housing minister Jack Dromey said: “This damning report by the National Housing Federation lays bare the true nature of the growing housing crisis gripping the West Midlands and the country. Housebuilding is down, homelessness is up, we have a mortgage market where people can’t get mortgages and rents are soaring in the private rented sector.

"The Government’s housing policies are failing and George Osborne's mismanagement of the economy is making things worse, holding back housebuilding.

"Labour's five point plan for jobs and growth would introduce a bank bonus tax to fund 100,000 jobs for young people and build 25,000 more affordable homes."