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England 'is in need of over 200,000 new homes a year'

icteesside.co.uk 26/10/05

A recent report by the Town and Country Planning Association entitled Housing the Next Generation - Household Growth, Housing Demand and Housing Requirements examines how the number of households in England is expected to grow over the next 15 years and the principal reasons for that growth.

Growth in the number of households is the major determining factor on demand for additional housing, but as well as building for new households, dwellings that are demolished need to be replaced and the current backlog of unmet housing need reduced.

It is estimated that the number of households in England will rise by about 3.5 million between 2001 and 2021, an increase of around 175,000 households per annum, 150,000-160,000 of which can be directly related to population growth and to change, while 15,000-20,000 are the result of an increase in the propensity of people to live on their own.

The rising number of households is attributable in part to shrinking household sizes, rising divorce rates, increasing longevity and the rise in immigration rates.

Overall this means that more than 200,000 new homes will need to be provided each year to address the existing backlog and meet the future needs, a figure which the Town and Country Planning Association considers to be one third more than the number of new homes currently being built.

On this subject the Office of the Deputy Prime Minister as part of its response to the Barker Review has analysed the ability of 30-34-year-old couples to purchase an average flat in their area. The results indicate that by 2026 the proportion of couples in their 30s able to afford to buy is destined to fall by a third. The analysis also showed that the level of home ownership among people younger than 30 has fallen and the figures indicate that 23% of first time buyers are now relying on gifts and family loans to access the housing ladder, compared to just 4% 25 years ago.