Access to affordable housing in the North East is becoming tougher while greater investment is needed to rescue the thousands of people caught on social housing waiting lists, according to the National Housing Federation.
Under new figures revealed today in The Home Truths Report, house prices slumped by 7% in the North East in the year to June 2011, but rising unemployment, low incomes, increasing unaffordable mortgage deposits and rising private sector rents are leaving families unable to buy or rent.
Waiting list times for families stand at three years- three times longer compared to 10 years ago and with average North East wages standing at £19,120, it would cost 7.5 times more to afford the average house price of £144,121.
Average rents in the private sector are also set to rise in the next five years by 13.9% in the North East and the Federation is calling on Government to renew their commitment to building homes in the region, offer greater support through a reformed planning system, ensure tighter regulation of the private rented sector and abandon plans for an overall family benefits cap.
Monica Burns, the National Housing Federation’s lead manager for the North East, said”
‘Caught in an impossible can’t buy/ can’t rent dilemma, North East families face life-changing years on social housing waiting lists. With the lowest number of new homes for 90 years, the only things we are building up are long-term problems for schooling, health and jobs.
‘The North East desperately needs a strong social housing sector to help economic development. The Government must act quickly so more affordable homes are built and empty homes are brought back into use before the North’s broken housing market gets any worse.’
