NHF: Overcrowded housing affects nearly one in twenty people in the West Midlands

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Tuesday, 26, Feb 2008 12:00

The affordable housing crisis in the West Midlands is getting worse, and rural communities are hardest hit according to new research launched today by the National Housing Federation.

Over 250,000 people live in overcrowded homes in the West Midlands, and with no hope in sight for hundreds of people in need of warm, decent housing they can afford to live in, the Federation has warned the region continues to face dire housing need.

First time buyers face a life on hold, as getting a typical mortgage for an average priced home in West Midlands requires an income in excess of £45,744 - rising to £71,000 in some parts of the region. With average incomes at around £18,075, many people have no hope of ever owning their own home.

126,629 West Midlands households are on waiting lists for an affordable home.

Families face many months, and in some cases years of waiting and wondering when they will have a decent home. The situation can be even worse for families living in unsuitable cramped accommodation, and the uncertainty in the housing market, which could see many families evicted, leaves families feeling bleak about their housing prospects.

Hometruths West Midlands : The real cost of housing 2007-2012 warns that more and more people are left struggling to find a home of their own, with no sign of hope for the future.

Further research shows that:

* Families in parts of the West Midlands will need to earn up to 14.4 times their annual salary to be able to access a mortgage and to buy their own home.

* By 2012 the average West Midlands house price will cost over £237,000 compared to £168,500.

* In more than 40% of local authority areas, house prices now stand at over 10 times median incomes.

* House prices in the West Midlands have risen 4.5 times faster than incomes in the last ten years.

* West Midlands house prices have risen more quickly than the national average over the last five years.

* House prices in predominantly rural parts of the region cost over 11.5 times local incomes, compared to nine times earnings in more urban areas.

* Homes at the cheapest end of the market still cost over six times regional earnings and require a salary of nearly £30,000 to purchase.

* The West Midlands saw the fastest percentage growth of second homes in the country in 2005/6.

* Oxford Economics forecast further price rises of 35% in the West Midlands by 2012.

* There are 126,629 (nearly 127,000) households waiting for a suitable social home in the West Midlands, an increase of 36% in five years.

* Nearly 12,000 households were accepted as homeless by local authorities in the region over the last year and over 1600 households are in temporary accommodation.

Gina King, Head of Region, National Housing Federation said:

'The current housing market means we face an unhappy prospect of longer waiting lists, more overcrowding and more adult children unable to move away from the parental home, and in rural areas this is a real problem for many families.

Figures tell us that high demand from a fast growing population, and continued under provision of new housing supply will maintain pressure on an already over inflated housing market, and this will mean that house prices will inevitably keep on rising.

We welcome the recent Government commitment to increase affordable housing supply, and support the delivery of around 6,000 new social homes a year outlined in the draft revision to the regional spatial strategy. However our concern remains that the region is still selling off more social homes than we build each year, and that only 18% of local authorities in the region have seen any increases in social housing in their area in the last five years. For every two social homes built, three were sold through right to buy and other government backed sales programmes.'

' With a significant government investment in new social housing coming through, it is incumbent on housing associations to be inventive and maximise the number of new homes built. Equally, local councils need to release affordable land more quickly for new social house building and so help meet this enormous challenge.

ENDS

For further information please contact Dawn Cummins, 07860 168639, dawnc@housing.org.uk

Notes to editors

* The National Housing Federation represents 1300 not for profit housing associations in England. Together our members provide 2 million affordable homes for around 5 million people.

* In the West Midlands the Federation represents 170 housing associations, who own and manage 274,000 homes on behalf of around half a million people - more than 10% of the regional population.

West Midlands (Met County) house prices, average wage required and waiting lists by local authority

Dawn Cummins

Regional Communications Officer

National Housing Federation Central Region

Tel:0121 634 1530

Mobile:07860 168639

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The National Housing Federation represents 1,300 not-for-profit housing associations. Collectively, our members provide two million homes and community services for five million people. www.housing.org.uk.

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