industry news
Association calls for a “renaissance” in council house building
The Local Government Association has commented on the urgent need for new council houses to address affordable housing needs which will become more acute in the wake of Brexit. Peter Box, the LGA’s housing spokesman,
said: “Bold new action is needed in the wake of the UK’s decision to leave the European Union. National and local government must come together around our joint ambition to build homes and strong, inclusive communities. "A renaissance in house building by
councils must be at the heart of this bold new action. The private sector clearly plays a crucial role but it cannot build the homes we need on its own, and will likely be further restricted by uncertainties in the months and years ahead.” The LGA said the economic uncertainty
facing housebuilders following the UK's vote to leave the European Union could make it difficult for private developers to rapidly build enough homes on their own. Box said that the housing crisis was
deepening with affordability becoming difficult for a wider range of the population: “The housing crisis is affecting more and more families every year. For many, studying hard and succeeding in work will no longer guarantee an affordable and decent place to live.” Research by the LGA research has
revealed that demand for affordable homes will be much higher should the country fail to train the millions of higher skilled and higher paid jobs that are projected to be created by 2024. Even if the country is able to achieve full
employment in 2024, around 4 million working people will need some type affordable housing as wages struggle to keep pace with house prices.” He added however that councils were
able to bring huge benefits “beyond bricks and mortar” by investing in housing. “Investment in housing has significant wider benefits and we want to build the right homes in the right places that can generate growth and jobs, help meet the needs of our ageing population, and provide the infrastructure, schools and hospitals that enable communities to thrive.” He added: "We must be freed to make this
change happen." The LGA found the last time the country
was building more than the 250,000 houses that it is estimated the nation currently needs was in 1977/78 - when councils built 44 per cent of new homes. Private developers in England have built an average of 90,000 a year since 2009/10.
A million more young people are likely to find themselves living with their parents over the next decade, according to insurance company Aviva. With rents and house prices continuing to
rise beyond the reach of many young adults, the main reason given for the predicted growth in multi-generational households is the affordability of housing, the company said. The study is Aviva’s inaugural ‘Home’ report,
and it focuses on the changing face of UK households. It forecasts that 3.8 million people aged between 21 and 34 years old will be living with their parents by 2025, a third more than at the moment. The number of households containing two
or more families is also expected to rise, from 1.5 million to 2.2 million. Aviva’s figures assume house prices will continue to rise at the same rate they have done over the last 10 years.
Company
While shared living may not appeal to everyone, there are others who highlight the advantages of sharing their living space with others. Two in three (66 per cent) people currently in this situation say the benefits far outweigh the disadvantages, according to Aviva’s report. The main advantages are said to include
having other people around for company (72 per cent), cheaper shared living costs (62 per cent) and more people to share chores (56 per cent). Only 12 per cent of those already in a multi-generational household say the disadvantages outweigh the benefits, compared to 21 per cent of all UK adults. “Multi-generational living is often seen as a
necessity rather than a choice, particularly when adults are forced to move back in with their family to help save for long-term goals like buying their own house,” said Lindsey Rix, who is managing director of personal lines at Aviva UK. “But rather than being an inconvenience,
our report shows it is often a positive experience, with shared living costs reducing
10 | HMM July 2016 |
www.housingmmonline.co.uk
financial strain and the added benefit of constant company.”
Overcrowding
Figures from the 2011 census show that 1.1 million households in England and Wales were officially overcrowded. In London 11.3 per cent of all homes were overcrowded, rising to 25 per cent in the London borough of Newham, the worst affected area in the country. Affordability of housing appears to play a
huge role in people’s decision to stay living with their family or moving back in with them. When asked about situations when they might consider this living arrangement for six months or more, saving for a house deposit (57 per cent) was the second most common reason given, beaten only by caring for an unwell relative (71 per cent). While two in five (42 per cent) of all UK
adults believe living as part of a multi- generational household would be a positive arrangement, this rises to 66 per cent of those already living in this type of household, suggesting there is a gap between people’s perceptions of multigenerational living and the reality.
Housing problems
In a separate research project for housing charity Shelter, 59 per cent of 18-44 year olds in Britain say they will be forced to put their lives on hold because of housing problems. Housing issues are also shown as stalling life milestones like career progression, having children and retirement. The Shelter and YouGov study of adults
under 45 was carried out as part of the Great Home Debate. It revealed the housing shortage is reshaping how millions of people live their lives and creating entirely new timeframes for when they hit life milestones. Housing problems are a key factor in
stalling people’s careers, with one in five (19 per cent) saying they had experienced or expected a delay in finding job opportunities.
Huge growth in multi-generational households forecast
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