The media is full of reports that we are in the grip of a housing crisis. The government is taking more and more action to try to address it through schemes like Help to Buy and reforming the planning system.
But what is the evidence that a housing crisis even exists? This blog reveals 11 reasons why.
1. House prices are rising incredibly fast.
In real terms, they are 132% higher than in 1975 and 68% higher than in 2000 according to Nationwide.
2. Young people are less and less likely to own their own home.
A report by The Economist revealed that in 1991, 36% of those aged between 16 and 24 lived in homes they owned themselves. By 2012, that figure had fallen to just 10%. Over the same period, the proportion of those aged between 25 and 34 who owned their own home fell from 67% to 39.5%.
3. First time buyers are getting older.
The latest English Housing Survey identifies that the average age of a first time buyer is now 33.
4. Young people no longer expect to buy a home.
43% of those in private rented accommodation don’t expect to ever be able to buy a home, with the vast majority citing affordability as their main concern.
5. Help from family and friends is becoming crucial.
37% of first time buyers needed help from family and friends (through a gift, loan or inheritance) to help them afford to buy.
6. Single people really struggle to afford housing.
80% of first time buyers are couples – a single income just isn’t enough to get a mortgage in most cases.
7. You need to be wealthy to buy your first home.
The top 40% of earners account for 72% of all first time buyers.
8. The cost of housing benefit is growing rapidly.
In 1990, the annual housing benefit bill was just over £5bn. Last year it reached £25bn despite efforts by the coalition government to reduce it. It is the fastest growing part of the benefit bill.
9. 675,000 homes are classed as overcrowded.
That means they have fewer bedrooms than they need, even assuming that children will share bedrooms up to the age of 20.
10. 80,000 children spent Christmas 2013 in temporary accommodation.
That’s according to research by housing charity Shelter.
11. We aren’t building enough new homes.
This is the root cause of the housing crisis. The latest projections from government estimate that 214,000 new households will be created every year until 2039. To help stop prices rising and make homes more affordable, it is estimated that we need to build between 250,000 and 300,000 new homes every year. Yet in 2015, less than 143,000 new homes were built. That isn’t a new problem either – it is almost 30 years since more than 200,000 new homes were built in a year.
With the government trying so hard to address the housing crisis and encourage more homes to be built, now is an ideal time to promote your site for residential development. The Strategic Land Group are specialists in promoting land through the planning system on behalf of land owners – and all at our cost and risk. If you know of a site that we might be able to help with, then get in touch today.