Midlands needs 45,000 new homes to meet housing needs, says report

THE housing crisis in the West Midlands is worsening because nowhere near enough new homes have been built in the past five years, a national federation says.

The National Housing Federation says 45,000 more new homes should have been built in the region over that period to meet the need.

Kate Warburton, the federation’s external affairs manager, said: “Every new statistical release paints a bleaker picture of the current state of the housing market. The reasons for the situation we are in are varied and complex, but one thing is clear – we simply haven’t built enough homes as a nation. This year’s findings for the West Midlands are a stark reminder of this.”

Its Home Truths 2016/17 report said that in Birmingham alone, the five-year deficit of homes needed stands at 18,000.

Last year, less than 12,500 homes were built in the region, far below what is required to accommodate the 19,000 new households that are formed each year.

House prices vary widely, from £330,000 in Stratford-upon-Avon to £112,000 in Stoke-on-Trent.

The report, which provides data on the housing market in the West Midlands, reveals that many people are priced out of home ownership.

While the average salary in the West Midlands is below the national average of £25,000, only those earning upwards of £45,000 a year can now afford the typical mortgage.

The average home costs around £197,600, almost eight times the local typical salary, rising to nearly 11 times in areas like the Malvern Hills and Wychavon.

The cost of renting privately has added pressure on people’s income. Average monthly rents now stand at £607, but also vary greatly across the region from £450 to more than £800.