East of England housing challenges
House prices and affordability are a significant issue. Purchasing a house remains a pipe dream for many people, with average house prices five times the average income.
While the local housing market has undoubtedly been affected by the recent economic downturn, house sales have held up satisfactorily. The local demand for affordable housing remains high. With almost 3,000 households on the housing register in July 2014 it is evident that the demand continues to outstrip the delivery of new, affordable housing.
Whilst we have made excellent progress in achieving our mission, the issues set out below represent a clarion call for Luminus and the social housing sector generally to redouble our efforts to build more high quality affordable homes.
- The average house price in 2013 was £258,118, which was 9 times the median regional income of £27,000.
- House prices in the region have risen more than three times faster than incomes since 2001. The cost of a mortgage deposit is now more than 4.5 times higher than 10 years ago.
- The proportion of households owning their own home is expected to drop sharply from nearly 70% today to 59% in 2025.
- Private sector rents are set to rise by 64% in the next 10 years, the second largest increase in the country, as demand in the sector continues to grow.
- The number of households is expected to grow by 27% by 2033, the largest percentage rise of any region. There will be a 58% increase of over-65s, the second largest of any region.
- 160,267 households are currently on the waiting list.