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East of England

HOME TRUTHS 2012

The housing market in the East of England


East of England

More homes would boost our local economy We are simply not building enough homes in the East of England. Last year 32,000 new families formed1 but only 15,620 new homes were built.2 This lack of homes is affecting the lives of young people and families and holding back the regional economy. The shortage of new homes keeps house prices high and pushes up mortgage deposit costs, even as the economy suffers and wages stay the same. People unable to buy their own home are being pushed into the private rented sector, which in turn is driving up rents to increasingly unaffordable levels. And as costs soar in the private rented market, more pressure is heaped on the limited supply of social rented housing. The East of England needs more homes across all housing types. We need to provide suitable homes for the increasing numbers of older people in the region, and more affordable homes for younger families, including in rural areas where housing waiting lists are growing fast. The East of England is a powerhouse of the national economy, but its competitiveness and productivity are hampered by the shortage of new homes. The Government’s latest measures to speed up new development are helpful, but longer-term solutions are needed.

What the Government should do The Government should recognise the widespread economic benefits that investment in more new affordable homes in the East of England will deliver. 2 | Home Truths 2012


HOME TRUTHS 2012 Housing associations are ready and able to play their part and deliver more homes. The Government has recently put in place some welcome, important short-term measures, including a debt guarantee. But now broader, long-term solutions are needed. Housing associations could do much more if there was a ready supply of public land available to build on, if they had more certainty over rent levels after 2015 so they could raise the additional finance needed to build, and if red tape preventing them from using their homes and other assets flexibly and productively was cut.

To stem the chronic housing shortage, the National Housing Federation calls for: ■ The rapid release of publicly owned land to housing associations so they can build homes. For the quickest economic impact the Government must immediately release small parcels of brownfield sites, which can be delivered more quickly than larger sites. Each of these could be capable of delivering up to 100 new homes. Based on the Government’s own data,3 we have already identified land equivalent to two cities the size of Norwich that could be built on. ■ The Government should provide certainty on its long-term plans for investing in social housing. Currently housing associations are struggling to plan beyond 2015, when the current programme ends. Without certainty that there will be Government support for new homes, it is too high risk for housing associations to commit to new development. One way that the Government could create some certainty is by Home Truths 2012 | 3


East of England

retaining the present rental formula for housing associations until 2020, allowing them to commit to delivering new homes in the future. ■ The Government must also cut red tape to allow housing associations to unleash their entrepreneurial skills. For example, housing associations need more freedom to be innovative in the use of their assets and their ability to raise finance. The flexibility to take an imaginative approach would allow housing associations to build more homes. ■ We know people want more homes built, and we need to encourage their voices to be heard above those of the NIMBYs. Public support for more homes is vital. That’s why we’ve launched our new campaign, Yes to Homes. Visit www.yestohomes.co.uk to join the campaign.

The evidence ■ The average house price in the East of England in 2011 was £232,504, nearly 11 times the median regional income of £22,022.4,5 ■ House prices in the region have risen more than three times faster than incomes since 2001 and the cost of a mortgage deposit is now more than 4.5 times higher than 10 years ago.4,5,6 ■ The proportion of households owning their own home in the East of England is expected to drop sharply from nearly 70% today to 59% in 2025. The East of England will move from having higher than average to lower than average home ownership rates.7 4 | Home Truths 2012


HOME TRUTHS 2012 ■ Private sector rents are set to rise by 64% in the East of England in the next 10 years, the second largest increase in the country, as demand in the sector continues to grow.7 ■ The number of households in the East of England is expected to grow by 27% by 2033, the largest percentage rise of any region. There will be a 58% increase of over-65s, the second largest of any region.1,8 ■ 5,270 households were accepted as homeless by local councils in the region in 2011/12, a rise of 25% on the previous year. Homelessness has now leapt by 44% in just two years.2

Sources 1. Household Projections, 2008 to 2033, Communities and Local Government 2010 2. CLG statistics, 2012 3. National Land Use Database 4. Land Registry data, 2001 and 2011 5. Annual Survey of Hours and Earnings (ASHE), Office for National Statistics (ONS) 2001 and 2011 6. National Housing Federation research, using Homes and Communities Agency (HCA), Tenant Services Authority (TSA), Land Registry, CLG statistics, or Valuation Office Agency Rent Officers data for year ending 31 March 2012 7. Housing Market Analysis for the National Housing Federation, Oxford Economics, August 2012 8. 2008-based Subnational Population Projections, ONS 2010

Note The facts in this booklet use the latest available official government statistical sources at the time of going to print. In some areas, the National Housing Federation has carried out additional analysis to draw out the social and economic implications of the figures. The commentary is our own. Some of this data is © Crown copyright.

Home Truths 2012 | 5


East of England

Average (mean) house prices 2011¹

Average (median) incomes 2011²

Gross annual income needed for a mortgage (75% at 3.5x)1,

Ratio of house prices to incomes1,2

Average weekly private sector rent for a 3 bedroom house or flat 2011/126

£236,518 £232,504 £211,731 £219,219 £161,049 £153,426 £208,233 £182,811 £235,773 £317,942 £212,499 £144,731 £200,477 £284,364 £243,740 £218,752 £220,644 £351,480 £209,098 £252,701 £202,811 £359,064 £192,427 £251,593 £238,736 £170,285 £328,309 £312,786 £246,157 £308,226 £319,318 £361,682 £262,436 £416,173 £188,713 £374,519 £246,455 £312,045 £182,951 £176,434 £194,275 £143,090 £181,836 £204,500 £162,293 £205,480 £201,053 £234,897 £168,682 £148,570 £213,247 £217,865 £249,767 £168,643

£21,346 £22,022 £20,764 £24,045 £20,764 £19,932 £21,154 £24,112 £23,353 £24,955 £22,412 £19,401 £23,104 £24,991 £23,343 £23,057 £22,948 £30,529 £22,334 £24,435 £21,850 £26,359 £19,349 £26,822 £24,846 £20,478 £23,899 £25,386 £23,748 £23,962 £26,140 £24,237 £27,269 £30,914 £22,766 £25,490 £27,331 £23,696 £18,465 £16,583 £20,124 £16,505 £18,502 £18,028 £18,725 £21,086 £19,453 £19,937 £17,441 £17,254 £20,634 £20,613 £20,935 £18,252

£50,682 £49,822 £45,371 £46,976 £34,511 £32,877 £44,621 £39,174 £50,523 £68,130 £45,536 £31,014 £42,959 £60,935 £52,230 £46,875 £47,281 £75,317 £44,807 £54,150 £43,460 £76,942 £41,234 £53,913 £51,158 £36,490 £70,352 £67,026 £52,748 £66,048 £68,425 £77,503 £56,236 £89,180 £40,439 £80,254 £52,812 £66,867 £39,204 £37,807 £41,630 £30,662 £38,965 £43,821 £34,777 £44,031 £43,083 £50,335 £36,146 £31,836 £45,696 £46,685 £53,522 £36,138

11.1 10.6 10.2 9.1 7.8 7.7 9.8 7.6 10.1 12.7 9.5 7.5 8.7 11.4 10.4 9.5 9.6 11.5 9.4 10.3 9.3 13.6 9.9 9.4 9.6 8.3 13.7 12.3 10.4 12.9 12.2 14.9 9.6 13.5 8.3 14.7 9.0 13.2 9.9 10.6 9.7 8.7 9.8 11.3 8.7 9.7 10.3 11.8 9.7 8.6 10.3 10.6 11.9 9.2

£176 £168 £164 £186 £173 £138 £196 £200 £172 £236 £176 £139 £154 £199 £195 £202 £177 £273 £197 £205 £179 £268 £210 £186 £206 £165 £212 £249 £261 £244 £245 £298 £205 £310 £190 £332 £261 £251 £141 £146 £147 £126 £142 £141 £162 £137 £146 £160 £180 £134 £148 £175 £142 £124

ENGLAND EAST Bedford UA Central Bedfordshire UA Luton UA Peterborough UA Southend-on-Sea UA Thurrock UA Cambridgeshire Cambridge East Cambridgeshire Fenland Huntingdonshire South Cambridgeshire Essex Basildon Braintree Brentwood Castle Point Chelmsford Colchester Epping Forest Harlow Maldon Rochford Tendring Uttlesford Hertfordshire Broxbourne Dacorum East Hertfordshire Hertsmere North Hertfordshire St. Albans Stevenage Three Rivers Watford Welwyn Hatfield Norfolk Breckland Broadland Great Yarmouth King's Lynn and West Norfolk North Norfolk Norwich South Norfolk Suffolk Babergh Forest Heath Ipswich Mid Suffolk St. Edmundsbury Suffolk Coastal Waveney

Footnotes to tables 1. Land Registry, 2011. 2. Annual Survey of Hours and Earnings (ASHE), 2011. 3. Communities and Local Government Housing Statistics Live Tables, 2011. 4. Homes and Communities Agency, Regulatory and Statistical Return, 2011. 5. Homes and Communities Agency completions data, 2010/11. 6. Valuation Office Agency Rent Officers data, year to March 2012

6 | Home Truths 2012


HOME TRUTHS 2012 Total rented local authority homes 2011続

Total rented housing association homes 20114

1,725,905 162,988 0 5,206 8,180 0 6,160 10,312 12,724 7,268 0 4 0 5,452 44,877 11,503 49 2,860 1,535 22 6,273 6,647 9,888 0 1 3,221 2,878 34,004 425 10,594 15 175 3 5,119 8,286 17 59 9,311 21,844 0 0 6,049 7 11 15,766 11 19,684 3,502 6 8,174 3,418 0 0 4,584

2,319,386 235,340 11,098 9,552 3,740 14,840 3,234 1,414 27,011 4,437 5,051 5,345 9,116 3,062 43,737 5,330 10,300 958 475 9,836 4,091 1,716 1,725 2,878 2,720 2,451 1,257 51,569 5,172 2,577 7,515 7,140 10,574 2,067 1,948 5,234 6,164 3,178 41,000 8,020 4,731 1,583 9,304 6,206 4,886 6,270 28,145 1,537 3,888 4,599 1,214 7,791 6,323 2,793

All new housing association homes completed with HCA funding 2010/115 49,196 5,501 349 263 181 349 2 93 895 117 114 99 370 195 813 154 119 4 3 59 125 136 97 0 0 23 93 1,055 44 69 91 45 74 115 189 40 358 30 701 131 45 56 156 88 127 98 742 119 114 115 71 161 41 121

New lettings made by local authorities 2010/113

New lettings made by housing associations 2010/114

Households on waiting list 20113

Households accepted as homeless 2011/123

146,388 12,863 0 386 579 0 540 899 971 649 0 0 0 322 3,533 826 0 194 123 0 564 469 667 0 0 353 337 2,408 0 748 0 0 0 298 714 0 0 648 1,983 2 0 529 0 0 1,452 0 1,564 325 0 642 273 0 0 324

176,660 17,580 936 635 295 1,318 200 147 2,099 310 350 441 674 324 3,074 368 780 33 15 579 419 147 133 185 144 162 109 3,195 426 156 472 321 552 223 198 188 401 258 3,230 671 436 145 586 528 424 440 2,451 169 417 483 125 603 422 232

1,837,042 160,267 3,093 3,604 4,900 7,650 4,287 2,252 19,607 6,869 1,512 2,874 3,983 4,369 35,720 3,007 3,853 2,514 1,311 5,502 4,864 5,451 3,138 1,490 1,040 2,635 915 33,173 3,100 5,926 2,395 2,185 2,487 2,256 5,124 2,104 4,346 3,250 31,107 2,680 3,273 5,490 5,257 3,300 6,919 4,188 14,874 1,725 1,346 4,704 1,855 1,966 1,613 1,665

50,290 5,270 211 169 415 267 87 180 597 112 146 73 173 93 1,259 255 137 25 56 170 271 60 110 19 58 70 28 874 119 96 40 79 93 75 48 73 146 105 708 72 154 118 87 94 153 30 500 78 93 144 50 64 6 65

Home Truths 2012 | 7


National Housing Federation Lion Court 25 Procter Street London WC1V 6NY Tel: 020 7067 1010 Email: eastofengland@housing.org.uk Website: www.housing.org.uk

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The National Housing Federation is the voice of affordable housing in England. We believe that everyone should have the home they need at a price they can afford. That’s why we represent the work of housing associations and campaign for better housing. Our members provide two and a half million homes for more than five million people. And each year they invest in a diverse range of neighbourhood projects that help create strong, vibrant communities.

The National Housing Federation runs iN business for neighbourhoods in partnership with members to promote the neighbourhood work of housing associations.


Home Truths 2012 East of England