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Lack of Affordable Homes will Force 70,000 Households a Year Out of the Market

November 17, 2015
Housing

lego-houseA new report by estate agent Savills warns that a lack of affordable homes to buy or rent will exclude 350,000 households from the housing market by 2020. 70,000 new households every year will not be in a position to rent or buy unless they are given assistance in some way.

The research used current incomes and prices assuming that households can pay up to 30% of their income on housing costs. Figures were also based on 200,000 new properties being constructed in England every year. Last week official figures showed that whilst the number of new homes constructed in 2014-15 had increased by 25%, the figure of 155,080 was still well below the target.

Chris Buckle, associate director at Savills research, told The Guardian: “There can be no question that we need to boost house-building volumes, but these new homes need to be built across a variety of tenures to put homes within reach of those in greatest need. Our concern is that new policy will result in a greater shift from sub-market rental products towards more expensive shared ownership and Starter Homes accessible only to those on middle incomes.”

The problem is most acute in London and the South East where property prices continue to rise. The average property price in England and Wales is now £292,572, a 6.2% increase on this time last year.

You can read the full report HERE