'Housing gap as big as Bournemouth looms'

Published by 24publishing for 24dash.com in Housing and also in Central Government, Communities, Local Government

A new report is warning that a housing gap as big as Bournemouth is looming with housebuilding figures forecast to drop below 100,000 this year.

That warning has come from a group of property experts led by consultants Tristan Fitzgerald Associates (TFA) and property adviser BNP Paribas Real Estate.

Its research - which has been formulated from the responses of 291 local authorities - reveals that council housebuilding targets equate to just 185,000 homes a year, despite 232,000 new households forming in England each year.

The targets have been reduced by 13% following the scrapping of Regional Spatial Strategies, the reports says.

Tim Cann, head of residential at BNP Paribas Real Estate, said: “With more than 1.8 million households on council waiting lists for new homes, the third Housing the Nation report revealed that the Government is again on track to miss its targets, by a worryingly large number. To put this into perspective, losing 85,000 homes is like losing a town the size of Bournemouth. As the UK continues to lack the new housing it requires, effective changes need to be made in order to accommodate those still waiting for affordable housing.”

The research revealed that only 110,000 new homes were actually completed in England in 2011, whilst current new home completions in the first quarter of this year are 18% lower than the same period last year.

This, it warns, could lead to annual completions in 2012 falling below 100,000 for the first time since the height of the recession in 2009.

The report - which also received input from the British Property Federation; Linden Homes; Taylor Wimpey and Redrow Homes - has put forward a number of recommendations, including releasing green belt land in the south east and pump prime development in the North.

It also wants to publicise league tables on housing targets and delivery by local authorities with penalisation for those falling below targets. It also wants the creation of a special ‘development projects team’ within the Government to prevent major schemes being stalled by burdensome local demands.

Dan Angell, account director at Tristan Fitzgerald Associates, added: “Although the UK economy continues to struggle, the Government cannot afford to be complacent when it comes to the creation of new homes. In order to keep the housing market alive, the Government needs to introduce swift changes which will ensure that current housing targets are not only met, but that they are not further reduced."