home truths 2013/14: east midlands

8/12/2019 Home Truths 2013/14: East Midlands

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East Midlands

home truthsthe housing market inthe East Midlands

2013/14


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England appears to be emerging from recession,but the recovery is distorted. Parts of the countryare experiencing growth and in some places thelocal housing market is overstretched and isstarting to overheat. Meanwhile other areas are

at a relative standstill with little or no economicgrowth. Economic recovery is not reachingeveryone in the East Midlands.

The East Midlands was one of the English regions with thelowest number of new homes built during 2012/13. Less than

half (49%) of the new homes needed are being built eachyear1,2, pushing up the regions house prices and rents.

The average East Midlands home costs over eight times theaverage local wage3,4 and is expected to cost 212,300 by 2020 a rise of more than 25%5.

More people are being forced into the private rented sector,

but the East Midlands is also expecting the second largest risein rents of any English region up 45% by 20205.

With comparatively low wages in the East Midlands 20,0364

on average housing costs are increasingly unaffordable.Since 2009 the region has reported a 93% rise in housingbenefit claims by working people6.

A distortedeconomicrecovery

2 | #hometruths14

Only 49% of the newhomes needed in the

East Midlands arecurrently being built,pushing up houseprices and rents.


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EAST MIDLANDS | 3

Across the North East just over half (54%) of the new homesneeded are actually being built each year. This is storing upmore problems for the future. The average North East homealready costs more than seven times the average income,pushing more people into the private rented sector. Yet privaterents are also unaffordable for many and are predicted to rise by30% by 2021.

Between 2011 and 2013 the East Midlands hasseen a 2.8% increase in new businesses7 butunemployment remains a problem with 180,500people (6.5% of the regions working agepopulation) out of work in 2012/138.

Young professionals and families are struggling to afford ahome of their own and there is not enough suitable housing forthe regions growing older population. In rural parts of the EastMidlands, households led by under-35s are expected to rise by9% between 2011 and 2021, while households led by people aged65 and over are predicted to rise by 27%1.

Building more homes in the East Midlands would give the localeconomy a major boost. Every new home built brings 69,045into the East Midlands and creates 1.6 jobs directly and in thewider regional economy9. Nearly 80% of businesses surveyedacross the country said a lack of affordable housing is stallinglocal economic growth and 70% warned it would affect their

ability to attract and keep workers10.

We need local people who want more housing to contact localcouncillors and say "Yes to Homes" (www.yestohomes.co.uk).

More homeswould kick

start theEast Midlands

economy


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Government must invest in building more homeswhere they are needed, and at prices thateveryone can afford. Rising rents and houseprices, as well as higher levels of unemploymentand low or stagnant wages, mean more and more

people need help with their housing costs.

Housing benefit currently costs taxpayers 24bn a year andmost of it goes to private landlords rather than towardsbuilding new homes6. For a fraction of that, the Governmentcould support areas experiencing economic growth by buildingmore affordable homes.

In areas where high housing costs could be stalling economicgrowth and creating problems for employers, Local EnterprisePartnerships working with local authorities, housingassociations and others must take a strategic lead on gettingmore homes built, revitalising communities and creating jobs.

Housing associations are in it for the long term. With moresupport, they can be real catalysts for change for localcommunities and help drive forward a balanced economicrecovery for the East Midlands.

The solution

4 | #hometruths14


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EAST MIDLANDS | 5

Across the North East just over half (54%) of the new homesneeded are actually being built each year. This is storing upmore problems for the future. The average North East homealready costs more than seven times the average income,pushing more people into the private rented sector. Yet privaterents are also unaffordable for many and are predicted to rise by30% by 2021.

The evidence

! Across the East Midlands, 18,753 new households areexpected to form each year between 2013 and 20211.

! In 2012/13 9,160 new homes were completed in the region 1,350 by housing associations2.

! Private rents are expected to rise by 45% in the EastMidlands by 20205. Gedling and Rutland have seen rises of7% and 10% respectively over the last four years, withfurther increases of 44% and 42% predicted by 20205.

! The average house price in the region in 2012 was 162,693 59% higher than the average for 20023.

! The East Midlands has seen a 93% increase in workingpeople claiming housing benefit since 20096.

! Every new home built in the East Midlands adds 69,045 to

the regional economy

9

.! Every new home built in the region creates 1.6 jobs directly

and in the wider regional economy9.

Sources:1 Household population projections by district, England, 1991-2021, interim 2011-based

Department for Communities and Local Government (DCLG) April 20132 Live Table 253, Permanent dwellings started and completed, by tenure and district

DCLG 2012/133 Simple average house prices Land Registry data4 Annual Survey of Hours and Earnings (ASHE) Office for National Statistics (ONS) 2012

provisional results5 Projections for the National Housing Federation Oxford Economics 20136 Housing benefit statistics (Stat-Xplore) Department for Work and Pensions (DWP)7 Inter Departmental Business Register (IDBR) ONS 20138 Model-based estimates of unemployment ONS (Crown Copyright Reserved)9 Economic impact database, Centre for Economics and Business Research (CEBR)

for National Housing Federation10 Survey for National Housing Federation ComRes 2013


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Average (mean)weekly private

sector rents20121

Average (mean)house prices

20122

Average(median)

incomes 20123

Ratio of houseprices to

incomes2,3

Households onwaiting list

20124

East Midlands

ENGLAND

East Midlands

Derby UA

Leicester UA

Nottingham UA

Rutland UA

Derbyshire

Amber Valley

Bolsover

ChesterfieldDerbyshire Dales

Erewash

High Peak

North East Derbyshire

South Derbyshire

Leicestershire

Blaby

Charnwood

Harborough

Hinckley and Bosworth

Melton

North West Leicestershire

Oadby and Wigston

Lincolnshire

Boston

East Lindsey

Lincoln

North Kesteven

South Holland

South Kesteven

West LindseyNorthamptonshire

Corby

Daventry

East Northamptonshire

Kettering

Northampton

South Northamptonshire

Wellingborough

Nottinghamshire

Ashfield

BassetlawBroxtowe

Gedling

Mansfield

Newark and Sherwood

Rushcliffe

162.69

120.23

108.69

111.46

113.08

157.38

119.77

116.08

108.46

110.08139.38

116.31

117.69

123.69

134.77

128.54

140.08

122.77

141.00

122.77

132.23

129.23

134.08

115.62

119.54

104.08

107.54

127.62

118.38

128.31

109.85130.85

119.08

144.69

138.00

121.85

129.69

169.38

122.08

119.08

110.77

109.15124.38

123.23

111.92

116.54

144.69

242,535

162,693

141,701

137,594

119,066

267,602

161,776

158,663

109,181

135,781244,597

139,882

172,117

162,962

175,648

184,131

175,137

181,832

230,325

169,675

201,531

164,268

164,780

153,679

134,660

147,018

130,438

165,018

150,135

177,540

149,503179,313

135,502

225,837

184,911

158,397

161,075

248,284

160,226

155,921

120,993

139,196150,631

151,620

113,730

167,612

224,496

21,429

20,036

21,445

17,779

18,330

22,672

20,836

20,233

18,403

18,75621,512

20,977

21,892

21,856

21,533

20,784

22,589

20,368

22,287

20,582

17,987

20,613

20,348

18,933

16,032

17,196

17,566

19,906

20,764

20,337

19,13120,701

19,443

24,684

21,554

21,024

19,609

21,523

19,838

20,145

18,470

19,85423,582

21,086

16,786

18,798

24,981

11.3

8.1

6.6

7.7

6.5

11.8

7.8

7.8

5.9

7.211.4

6.7

7.9

7.5

8.2

8.9

7.8

8.9

10.3

8.2

11.2

8.0

8.1

8.1

8.4

8.5

7.4

8.3

7.2

8.7

7.88.7

7.0

9.1

8.6

7.5

8.2

11.5

8.1

7.7

6.6

7.06.4

7.2

6.8

8.9

9.0

1,851,426

121,452

6,632

7,707

12,067

401

21,888

2,893

1,995

2,1373,202

2,730

5,171

2,203

1,557

10,324

1,482

2,626

1,545

1,515

848

808

1,500

19,344

2,042

6,133

2,748

1,384

2,393

3,696

94820,480

2,603

2,051

1,190

2,377

7,601

1,801

2,857

22,609

3,235

3,8562,254

2,220

4,402

5,367

1,275

Footnotes to tables

1 Private Rental Market Statistics Valuation Office Agency (VOA), year to March 2012

2 Land Registry sales data 20123 Annual Survey of Hours and Earnings (ASHE), Office for National Statistics (ONS) 2012

4 Live Tables Department for Communities and Local Government (DCLG)

5 New build completions data HCA 2012/13


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Homelessacceptances

2012/134

All new HAhomes

completed withHCA funding

2012/135

Total HArented homes

20136

Total LA rentedhomes 20134

Unemploymentrate 2012/137

HA supportedhousing 20136

% increase inworking

housing benefitrecipients

August 2009 to

August 20138

50,241

3,415

169

93

481

-

354

61

-

8032

45

41

19

76

267

1

164

25

-

38

39

-

588

13

110

199

33

23

180

30963

30

27

52

48

626

51

129

500

26

7510

56

180

119

34

26,547

1,350

98

38

7

17

225

22

20

092

0

0

14

77

125

16

49

0

14

7

39

0

374

20

80

61

106

54

41

12458

78

22

0

114

188

16

40

8

0

00

8

0

0

0

2,392,124

131,993

7,547

10,419

9,730

1,754

22,632

7,017

1,028

1,4103,897

6,488

1,099

797

896

13,141

3,088

2,752

2,981

1,620

608

1,559

533

22,481

5,286

6,982

1,694

1,137

934

1,828

4,62026,637

1,036

4,697

4,965

1,993

4,125

3,849

5,972

17,652

1,847

1,1981,138

5,048

2,313

2,084

4,024

1,681,782

183,539

13,491

22,139

27,636

1

30,174

4

5,293

9,6470

2

4,089

8,115

3,024

16,841

0

5,823

0

3,414

1,878

4,464

1,262

21,867

0

0

7,905

3,832

3,917

6,209

420,670

4,837

0

0

3,784

12,047

2

0

30,720

6,876

6,9184,631

222

6,575

5,465

33

6.4%

6.5%

8.1%

9.9%

10.3%

2.9%

5.4%

5.5%

5.4%

6.4%3.5%

6.0%

5.6%

5.2%

4.6%

4.8%

4.5%

5.0%

3.4%

5.1%

4.0%

5.7%

5.7%

6.0%

5.5%

6.3%

7.6%

4.8%

5.6%

5.2%

6.6%6.3%

7.9%

4.7%

5.8%

6.5%

7.2%

3.1%

7.5%

6.1%

7.6%

6.3%5.8%

6.9%

6.4%

5.8%

4.1%

412,250

32,507

2,028

1,740

3,230

531

7,637

2,646

304

6361,390

1,971

389

181

120

3,673

1,394

508

1,051

190

146

242

142

3,922

1,103

1,142

477

208

75

436

4815,046

93

1,036

1,150

248

787

1,064

668

4,700

427

388172

1,349

419

516

1,429

96%

93%

85%

97%

28%

52%

82%

78%

76%

68%85%

106%

58%

104%

98%

102%

97%

108%

101%

79%

87%

100%

174%

122%

152%

72%

111%

-

130%

84%

73%108%

164%

123%

65%

114%

109%

103%

88%

97%

136%

98%82%

83%

97%

67%

123%

6 Statistical Data Return - Homes and Communities Agency (HCA) 2013

7 Model based estimates of unemployment ONS 2012/13

8 Housing benefit statistics (Stat-Xplore) Department for Work and Pensions (DWP)


8/8

The National Housing Federation is the voiceof affordable housing in England. We believethat everyone should have the home theyneed at a price they can afford. Thats why we

represent the work of housing associationsand campaign for better housing.

Our members provide two and a half millionhomes for more than five million people.And each year they invest in a diverse rangeof neighbourhood projects that help createstrong, vibrant communities.

Further information:National Housing Federation (Bristol)Tel: 0117 929 [email protected]

National Housing FederationLion Court25 Procter StreetLondon WC1V 6NY

Tel: 020 7067 1010

www.housing.org.ukwww.yestohomes.co.uk

Find us or follow us on: #hometruths14

home truths 2013/14: east midlands

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