East Midlands
HOME TRUTHS 2012
The housing market in the East Midlands
East Midlands
Homes shortage must be tackled We are building less than half the number of houses needed in the East Midlands. Last year, around 22,000 new families formed but only 9,930 new homes were built.1 The shortage of new homes keeps house prices high and pushes up mortgage deposit costs, even as the economy suffers and wages stay the same. With people unable to buy their own home, more people are being pushed into the private rented sector, which in turn is driving up rents to increasingly unaffordable levels. And as costs soar in the private rented market, more pressure is heaped on the limited supply of social rented housing. The number of homeless families is up almost 25% in the past two years1 and private rents are expected to rise faster than in any other region over the next 10 years.5 The East Midlands needs more homes affordable to people in all wage brackets. We need suitable homes for the growing numbers of homeless and overcrowded families, and many more affordable homes, including in rural areas where house prices are particularly high compared to incomes. The Government’s latest measures to speed up new development are helpful, but longer-term solutions are needed.
What the Government should do The Government and the whole housing industry need to take a long-term view, tackling the market difficulties with a joined-up approach. Addressing the lack of houses – the supply shortage – is crucial to ensure we have a healthy, sustainable, affordable housing market across all tenures (home ownership, private rent and social housing) that 2 | Home Truths 2012
HOME TRUTHS 2012 strengthens the economy in the East Midlands and meets people’s aspirations rather than defeats them. Housing associations are ready and able to play their part and deliver more homes. The Government has recently put in place some welcome, important short-term measures, including a debt guarantee. But now broader, long-term solutions are needed. Housing associations could do much more if there was a ready supply of public land available to build on, if they had more certainty over rent levels after 2015 so they could raise the additional finance needed to build, and if red tape preventing them from using their homes and other assets flexibly and productively was cut.
To stem the urgent housing shortage, the National Housing Federation calls for: ■ The rapid release of publicly owned land to housing associations so they can build homes. For the quickest economic impact the Government must immediately release small parcels of brownfield sites, which can be delivered more quickly than larger sites. Each of these could be capable of delivering up to 100 new homes. Based on the Government’s own data8, we have already identified land across England equivalent to two cities the size of Leicester that could be built on. ■ The Government should provide certainty on its longterm plans for investing in social housing. Currently housing associations are struggling to plan beyond 2015, when the current programme ends. Without certainty that there will be Government support for new Home Truths 2012 | 3
East Midlands
homes, it is too high risk for housing associations to commit to new development. The Government could create some certainty by retaining the present rental formula for housing associations until 2020, allowing them to commit to delivering new homes in the future. ■ The Government must also cut red tape to allow housing associations to unleash their entrepreneurial skills. For example, housing associations need more freedom to be innovative in the use of their assets and their ability to raise finance. The flexibility to take an imaginative approach would allow housing associations to build more homes. ■ We know people want more homes built, and we need to encourage their voices to be heard above those of the NIMBYs. Public support for more homes is vital. That’s why we’ve launched our new campaign, Yes to Homes. Visit www.yestohomes.co.uk to join the campaign.
The evidence ■ The number of households in the East Midlands is expected to increase by 22,000 a year from 2012 to 2033, a rise of 23%. The region is building just 45% of the new homes it needs each year to meet new housing demand.1 ■ The average house price in the East Midlands in 2011 was £161,000, over eight times the average regional income of £20,030. The cost of a mortgage deposit is over 4.5 times higher than 10 years ago – a 25% deposit on the average home in the region now costs £40,249.2,3 4 | Home Truths 2012
HOME TRUTHS 2012 ■ Private sector rents in the East Midlands are expected to rise by 67% in the next 10 years – an increase of £342 per month, the biggest in the country.5 ■ 116,439 households are on social housing waiting lists in the region. 40,000 families were living in overcrowded homes in 2011 – overcrowding has increased by around 18% a year over recent years. 1,6 ■ Homelessness in the region has increased by 24% in the last two years – nearly 3,800 households were accepted as homeless by local authorities in the East Midlands during 2011/12.1 ■ Housing associations in the East Midlands provide affordable homes for almost 139,250 families, housing one in every 14 households in the region. Housing association rents average £78.81 a week, just two thirds of the £120 weekly cost of an equivalent home in the private rented sector.1,4,7
Sources 1. Communities and Local Government (CLG) statistics, 2010, 2011 and 2012 2. Land Registry data, 2011 3. Annual Survey of Hours and Earnings (ASHE), 2011 4. Valuation Office Agency rent officers’ data, year to March 2012 5. Housing market analysis for National Housing Federation, Oxford Economics, August 2012 6. English Housing Survey: Households report, CLG, July 2012 7. Homes and Communities Agency, Regulatory and Statistical Return 2011 8. National Land Use Database
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East Midlands
ENGLAND East Midlands Derby UA Leicester UA Nottingham UA Rutland UA Derbyshire Amber Valley Bolsover Chesterfield Derbyshire 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 Lindsey Northamptonshire Corby Daventry East Northamptonshire Kettering Northampton South Northamptonshire Wellingborough Nottinghamshire Ashfield Bassetlaw Broxtowe Gedling Mansfield Newark and Sherwood Rushcliffe
Average (mean) house prices 2011¹
Average (median) incomes 2011²
Gross annual income needed for a mortgage (75% at 3.5x)1
Ratio of house prices to incomes1,2
Households on waiting list 20113
£236,518 £160,997 £136,075 £139,232 £118,314 £251,836 £156,782 £153,474 £107,903 £130,689 £237,277 £136,129 £176,053 £167,940 £163,340 £185,767 £177,895 £185,744 £230,496 £172,309 £188,518 £167,925 £177,361 £152,766 £129,879 £145,876 £129,873 £161,244 £143,184 £177,461 £159,646 £178,530 £132,381 £222,237 £187,827 £151,876 £156,589 £249,075 £156,892 £156,608 £121,157 £141,662 £149,079 £158,015 £115,712 £166,772 £224,118
£21,346 £20,030 £20,342 £17,035 £18,756 £22,724 £20,587 £20,394 £18,143 £19,968 £22,152 £19,984 £22,292 £20,998 £20,639 £21,362 £22,651 £21,325 £22,625 £21,320 £17,794 £21,195 £20,862 £18,975 £16,437 £18,808 £17,103 £19,874 £20,816 £19,536 £19,656 £21,086 £18,361 £25,090 £22,318 £21,299 £20,374 £23,005 £19,911 £19,999 £17,950 £19,427 £22,651 £20,670 £17,410 £18,294 £24,227
£50,682 £34,499 £29,159 £29,835 £25,353 £53,965 £33,596 £32,887 £23,122 £28,005 £50,845 £29,171 £37,726 £35,987 £35,001 £39,807 £38,120 £39,802 £49,392 £36,923 £40,397 £35,984 £38,006 £32,736 £27,831 £31,259 £27,830 £34,552 £30,682 £38,027 £34,210 £38,256 £28,367 £47,622 £40,249 £32,545 £33,555 £53,373 £33,620 £33,559 £25,962 £30,356 £31,946 £33,860 £24,795 £35,737 £48,025
11.1 8.0 6.7 8.2 6.3 11.1 7.6 7.5 5.9 6.5 10.7 6.8 7.9 8.0 7.9 8.7 7.9 8.7 10.2 8.1 10.6 7.9 8.5 8.1 7.9 7.8 7.6 8.1 6.9 9.1 8.1 8.5 7.2 8.9 8.4 7.1 7.7 10.8 7.9 7.8 6.7 7.3 6.6 7.6 6.6 9.1 9.3
1,837,042 116,439 5,775 7,519 9,616 365 22,139 2,820 1,180 3,317 3,000 2,670 4,890 2,527 1,735 6,299 811 1,623 846 1,002 612 690 715 20,979 2,283 7,162 3,305 1,352 2,308 3,440 1,129 17,507 1,962 2,058 1,084 1,378 7,618 1,868 1,539 26,240 4,909 4,190 983 1,084 9,581 4,920 573
Footnotes to tables 1. Land Registry, 2011 2. Annual Survey of Hours & Earnings (ASHE), 2011 3. Communities and Local Government Housing Statistics Live Tables 4. Homes and Communities Agency, Regulatory and Statistical Return 2011 5. Homes and Communities Agency Completions data, 2010/11 6. Office for National Statistics model-based estimates of unemployment, 2012 (Crown Copyright reserved)
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HOME TRUTHS 2012 Unemployment rates (% of eligible population) April 2011 to March 20126
Homeless acceptances per 1,000 population 2011/123
All new housing association homes completed with HCA funding 2010/115
Total rented housing association homes 20114
Total rented local authority homes 2011 3
New lettings made by housing associations and local authorites 2010/113
Percentage of homes that are second homes 20113
8.1% 8.0% 9.3% 12.5% 13.3% 4.4% 7.7% 8.3% 8.8% 9.7% 4.6% 9.1% 6.1% 7.4% 6.2% 5.9% 5.5% 6.4% 4.4% 7.1% 5.1% 6.3% 5.8% 7.2% 8.8% 7.2% 10.5% 5.5% 6.9% 5.6% 7.9% 6.7% 8.9% 5.5% 6.0% 6.6% 7.6% 4.6% 7.3% 7.9% 10.5% 8.4% 7.3% 7.1% 11.4% 6.4% 5.1%
2.3 2.0 1.6 0.9 4.8 2.6 1.3 1.0 1.7 2.1 1.3 0.8 0.6 0.6 2.4 1.5 0.1 1.9 0.5 2.0 3.2 2.1 1.1 1.8 0.4 1.6 3.3 0.9 0.4 4.0 0.8 3.9 1.4 1.3 1.8 1.1 7.7 1.8 5.4 1.2 0.3 1.0 0.1 1.3 3.0 2.3 0.9
49,196 4,013 243 460 255 28 372 89 24 10 64 79 18 4 84 552 73 187 112 48 53 59 20 1,010 75 61 179 200 71 200 224 757 111 42 109 202 124 65 104 336 51 24 81 21 42 102 15
2,319,386 128,267 7,259 10,759 9,311 1,748 22,210 6,929 949 1,392 3,837 6,523 1,033 733 814 12,392 2,927 2,559 2,861 1,549 581 1,440 475 21,594 5,213 6,870 1,560 968 844 1,661 4,478 25,683 883 4,643 4,942 1,750 3,860 3,671 5,934 17,311 1,750 1,156 1,074 4,999 2,225 2,109 3,998
1,725,905 185,713 13,802 22,357 28,441 1 30,463 23 5,344 9,781 0 9 4,106 8,154 3,046 16,901 0 5,835 0 3,431 1,893 4,481 1,261 21,910 0 0 7,932 3,819 3,917 6,239 3 20,821 4,809 0 0 3,803 12,201 0 8 31,017 6,974 6,942 4,646 216 6,687 5,545 7
323,048 30,586 2,530 4,510 3,432 165 4,141 376 493 1,153 327 408 418 580 386 2,974 192 1,134 241 474 263 484 186 3,854 295 428 835 504 367 847 578 3,858 482 299 390 591 1,456 183 457 5,122 1,097 892 600 366 1,339 623 205
1.09% 0.56% 0.13% 0.72% 0.70% 1.01% 0.69% 0.55% 0.09% 0.63% 2.96% 0.14% 0.86% 0.39% 0.45% 0.53% 0.28% 1.03% 0.48% 0.47% 0.30% 0.25% 0.42% 0.77% 0.29% 2.22% 0.33% 0.46% 0.40% 0.45% 0.39% 0.39% 0.07% 0.80% 0.62% 0.41% 0.25% 0.53% 0.22% 0.38% 0.30% 0.26% 0.76% 0.23% 0.13% 0.33% 0.64%
Note The facts in this booklet use the latest available official government statistical sources at the time of going to print. In some areas, the National Housing Federation has carried out additional analysis to draw out the social and economic implications of the figures. The commentary is our own. Some of this data is Š Crown copyright.
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National Housing Federation 101 Victoria Street Bristol BS1 6PU Tel: 0117 929 7388 Email: midlands@housing.org.uk Website: www.housing.org.uk
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The National Housing Federation is the voice of affordable housing in England. We believe that everyone should have the home they need at a price they can afford. That’s why we represent the work of housing associations and campaign for better housing. Our members provide two and a half million homes for more than five million people. And each year they invest in a diverse range of neighbourhood projects that help create strong, vibrant communities.
The National Housing Federation runs iN business for neighbourhoods in partnership with members to promote the neighbourhood work of housing associations.