North ‘could lose out on thousands of homes’

THE NORTH could miss out on thousands of new homes a year and billions of pounds in growth because of the flawed way the Government assesses future housing demand, research suggests today.

Homes for the North, an alliance of 18 of the largest northern housing associations, says the system for judging the number of homes needed favours southern England.

Its research released today says the methodology predicts how many homes an area needs using old data from historical projections “put together during a period of sluggish economic growth”.

The study by consultants Lichfields suggests the North could lose out on 13,340 homes a year, £2.37bn in economic output and £19m in council tax revenue.

Carol Matthews, who chairs Homes for the North, said: “The way future housing need is planned for fails to recognise future growth prospects of cities across the North. This needs to be addressed immediately. Failure to do so will hold the North back – and it is the next generation who will pay the price.”

Shadow Housing Secretary and Wentworth and Dearne MP John Healey MP said: “Ministers’ flawed housing targets are a cap on northern aspiration.”

A spokesman for the Ministry of Housing Communities and Local Government said: “Our new approach is not a target, and we want to see ambitious northern councils building far more homes.

“We want to see the North thrive with thousands more homes, jobs and better transport links.”

YORKSHIRE’S MOST expensive city, where house prices outstrip average wages by nearly 10-fold, is behind a scheme to put more of its residents on the housing ladder.

York Council is sponsoring a shared ownership programme which will allow 65 househunters to buy between a quarter and three-quarters of a property and pay rent on the value of the rest.

The programme is being run in partnership with the Government’s Homes England agency, which funds new, affordable housing.

The average price of a house in York is £263,000 – around £80,000 more than the region as a whole, but average earnings are only slightly higher, at £26,000.

Buyers would need to earn a combined salary of just over £60,000 to afford an 80 per cent mortgage in York – around £20,000 more than in Yorkshire as a whole.

Privately-rented accommodation in the city is estimated to be about £300 a month more than in the rest of the county.

Council officials say that high demand and low supply has increased ownership prices beyond the reach of many residents.

Coun Helen Douglas, the council’s executive member for housing, said: “We’re aiming to help households buy a share in the home of their choice with the council. Offering eligible residents the freedom to choose their own home for shared ownership is a new and innovative approach to delivering more, affordable options.”

The scheme allows buyers to choose a property on the open market and apply to the council for funding, or to pick one of four city centre apartments in Fishergate converted by the council.

Similar schemes are run by housing associations across the country and the Government allows councils to run their own shared ownership programmes.

The terms require applicants to have a combined income of less than £80,000-a-year and to not currently own a property.

Homes eligible for the York scheme must be on the market for £200,000 or less and within the city boundaries.

Homes England’s regional head of ownership, Dilys Jones, called the programme an “innovative approach to affordable home ownership making existing and new properties accessible to local people in an area with high property values”.

According to the National Housing Federation, some 200,000 affordable homes have been made available by housing associations in Yorkshire, but only 5,300 of them are in York.

In May this year, a survey commissioned by landowners behind a proposed housing development on the outskirts of the city reported that 81 per cent of residents wanted affordable housing to be a priority for the council. Only three per cent said no new development was needed.

We aim to help households buy a share in the home of their choice. Coun Helen Douglas, York council’s executive member for housing.