A report by What House? highlighted important facts of a new study by the National Housing Federation which shows that home ownership in the East of England is on the decline, as it is forecast to drop to less than 65% by 2021, while house prices are predicted to increase substantially during the next five years.
The study highlighted the fact that rental costs for the private rental sector has increased sharply, raising fears that a whole generation could be excluded from home ownership in the East of England which includes new homes in Norfolk and Suffolk, especially as rents and prices are expected to rise during the next few years. The National Housing Federation also represents England’s housing associations and is predicting the downward trend in the availability of new homes will continue.
Home ownership levels in the East of England were at 71.9% in 2010, but study which includes forecasts carried out by Oxford Economics highlights the fact that the average house price will increase by over 25% during the next five years, from £221,800 in 2011 to £278,500 in 2016. The study forecasts that average rental values will also increase by 21% during the same time period, from £458 a month to £556 a month by 2016.
The National Housing Federation found that the government needed to make a substantial investment into affordable new homes in East of England, and suggested that surplus public land could be used, and that local authorities should regularly assess their housing needs.
Federation assistant director Kate Dodsworth said “Like the rest of the country, the East of England is paying a high price for a totally dysfunctional housing market. It’s clear that homeownership is increasingly becoming the preserve of the wealthy, and for the millions locked out of the property market the options are becoming increasingly limited as demand sends rents rising sharply and social homes waiting lists remain at record levels.”
She went on to highlight the fact that the crisis centered on a chronic lack of new homes, and that ministers should make public land available to housing associations. Kate also pointed out that rising household bills and rental prices would impact buyers trying to save for a deposit.
What House? is a leading property website which features thousands of new homes for sale in Essex, Norfolk and the rest of the UK. It provides the latest property news, home valuations and property mortgage advice. It’s annual What House? Awards is the longest established new homes awards in the UK which has recognised UK house builders and developers across 23 categories over the last 30 years.