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Wiltshire homes out of reach at up to 11 times local incomes
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GreenSquare chief executive David Ashmore has spoken in support of a new report from the National Housing Federation (NHF) showing that, three years into the housing slump, homes in Wiltshire and Swindon are still out of reach for thousands of households.
'South West Home Truths 2010' warns that house prices in the region increased by 8% in the year to June 2010, and that a 90% mortgage on an average home here now requires an income of over £54,000.
The report was being launched at a special reception at the Jubilee rooms at the Palace of Westminster this afternoon, with MPs from across the South West in attendance to hear how the region is struggling to meet housing need.
It comes after the Government’s decision to cut the affordable housebuilding budget by 60% in the Spending Review.
David Ashmore, who is also chair of the South West NHF regional committee, said: “Thousands of ordinary families across Wiltshire and the South West will now be denied a home because of these cuts.
“Housing associations built nearly a third of all new homes in 2009/10 and they house one in every 11 households in the region. Despite these cuts we will work as hard as we can with the Homes and Communities Agency and local authorities to try to provide affordable housing where it is so desperately needed.”
The NHF is warning that while affordable housing is clearly no longer a priority for the Government, it remains a priority for thousands of South West families unable to afford a home. The average home in Wiltshire costs £227,454 (11.2 times the average individual income of £20,275) while even in Swindon you can expect to pay £159,256 - 7.4 times the average wage of £21,382.
Home ownership on the open market remains out of reach for many in the county, with even homes in the lowest quartile costing an average of £145,000 in Wiltshire and £115,000 in Swindon. Furthermore, the gross annual income needed to secure a mortgage in Wiltshire stands at £58,488 and £40,952 in Swindon.
It’s not surprising then that people throughout the county are turning to social housing, with 22,440 households in Wiltshire and Swindon on waiting lists.
The latest government projections suggest that new households are forming at a rate of 32,000 a year in the South West, but in 2009/10 just 13,340 new homes were built in the region. This mismatch between housing supply and demand is causing huge problems for the area, and the situation looks set to get much worse.
Announcements earlier this month warned that the Government’s decision to ditch regional housebuilding targets and other parts of the planning infrastructure will result in hundreds of thousands of planned homes being axed across the country. Almost 53,000 are being abandoned in the South West alone.
The report also highlights the expected rise in older people in the region. More than 22% of the South West population is already of state pension age and above – the highest proportion of any region. Home Truths states that by 2031 the population aged over 85 is expected to grow by almost 90%, warning of a significant impact on the requirement for specialised housing and care.
The National Housing Federation is calling on the government to:
- Ensure the new planning system requires all local authorities to robustly assess housing need and meet it, incentivising local communities to build more homes
- Give housing associations flexibility in asset management so they can raise more private funds to pay for homes and community services.
Catherine Brabner, South West regional manager for the National Housing Federation said: ‘Housing need throughout the South West is reaching desperate levels, and it’s clear that Wiltshire is no exception. Even in Swindon, where homes cost 7.4 times average incomes, home ownership remains just a dream for many.
“With the government bringing in swingeing cuts it’s clear that affordable housing isn’t a priority for the Government. That, combined with the axing of Regional Spatial Strategies and the challenges of the current economic climate, is going to make it increasingly hard for local authorities to ensure housing needs in their areas are being properly assessed and met.
“We are urging Swindon Borough and Wiltshire councils – as well as local authorities throughout the wider region, to keep it high on their agenda. It’s vital that they continue to work with their local housing associations to ensure the supply of affordable homes doesn’t dry up. As public sector funding gets tighter than ever housing associations are a key part of the solution to meeting housing need and delivering other vital community services.”
[published online 01/11/10]
