The housing shortage in the East is pushing house prices and private rents out of reach for local workers, according to a new report – with the crisis set to get even worse by 2020.
Home Truths 2014: East of England from the National Housing Federation warns that while the average salary in the region rose by just 25% in the last ten years, house prices rocketed more than twice as fast, by 58%. A gross annual income of £53,929 is now needed for the average mortgage in the East, well over double the average salary of £21,9231.
Private rents are also soaring as demand increases from those priced out of buying a home. Rents in the East are expected to rise faster than anywhere else by 2020, up 49%. St Albans and Waveney have been particularly hard hit in recent years, with rents rising 55% and 44% respectively over the last 10 years.
Home Truths 2013/14: East of England also found that:
Rising housing costs are hitting the public purse, with a 96% increase in working people claiming housing benefit in the East since 2009
Only half of the homes the region needs are being built, with 28,211 new households expected to form in the East each year but just 13,960 homes built in 2012/13.
A quarter of young adults aged 20-34 in the region are living with their parents.
The number of households led by over 64s is set to rise by 23% in the East by 2021
Every home built brings £97,866 into the East of England and creates 2.1 jobs directly and in the wider community.
Homelessness is becoming more of a problem in the East of England, rising 32% in the past two years.
The National Housing Federation launched Home Truths 2014: East of England in Parliament on 13 March. Local politicians and representatives of the region’s Local Enterprise Partnerships will attend to hear how they can help ease the housing crisis and support continuing economic growth in the region.
Claire Astbury, East of England external affairs manager for the National Housing Federation, says: "High house prices, rising rents and low and stagnant wages in the East of England are not only making life extremely difficult for people living and working in the region, but they are also affecting employers and businesses and risk holding back economic growth.
“We need Local Enterprise Partnerships to work with councils, housing associations and others to take a strategic lead on getting more homes built at the right price in the right places, which will help revitalise communities and create jobs.
“Local people also have an important role to play. Those who want more housing in the East of England need to contact local councillors and say ‘Yes to Homes’.
“With more support, housing associations across the East of England can be real catalysts for change for local communities. They are in it for the long term and can actively drive forward a balanced economic recovery.”
