by Mark Johnston
The National Housing Federation (NHF) has warned that a chronic under supply of homes is plunging the house market in to crisis. A study by the National Housing Federation (NHF) predicts that home ownership in England alone will fall from 67% to 63.8% over the next decade.
Oxford economics commissioned research recently that showed home ownership has been steadily falling for the last 10 years and this could decline further from its current rate. This forecast is based on assumptions that affordability will worsen as employment and wages fall and house prices rise over the next 5 year.
First time buyers saving for a deposit are finding it too hard with incomes falling and unemployment high. Also banks are cautious about lending making mortgages harder to obtain.
Economic experts have said that the difficulties of saving a deposit and obtaining a mortgage are one side of the problem; the other side is housing supply making it a catch 22 situation.
An under supply of properties has caused steep prices in private rental sector and therefore huge social housing waiting lists. The government has been called on to take action in the light of a housing market crisis.
The government says it is investing £4.5 billion in to lower cost homes which is set to deliver up to 170,000 new homes over the next 4 years. The housing minister, Grant Shapps announced plans to release thousands of acres of public land for house building.
The number of new homes built last year was the lowest since 1923 recent figures suggest. Some private builders suggest that local authorities planning systems is too restrictive stopping them building homes in reasonable locations.
Shelters Mr Robb said that building new houses would not only deliver homes people desperately need it will also drive growth and create many much needed jobs.
big part of the housing scene.
The past decade has seen the emergence of the buy to let landlord and they are now a
Critics argue that the rapid growth of the buy to let industry has crowded out many first time buyers. With increasing numbers of people ‘locked’ out of the housing market and the population still growing the balance of supply and demand has tipped firmly in favour of landlords.
Private rents are therefore rising steeply and the average rent is just over £700 a month, this is mainly due to many first time buyers being unable to find enough mortgage finance and so turning to private renting.
If current trends are projected forward then by 2025 home owners could be below 60%. While by as early as 2020 the private rental sector could well include more than 20% of all households.
Chief executive of the National Housing Federation (NHF) David Orr says” with ownership in decline, rents rising rapidly and social housing waiting lists at a record high, it is time to face up to the fact that we have a totally dysfunctional housing Market.
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