MAJOR CRISIS IN HOUSING JUST ROUND THE CORNER

12.00.00am BST (GMT +0100) Tue 26th Sep 2006

Lib Dem Housing Chief, Cllr Roger Battye (Dalton Ward) is deeply concerned by the findings of a top level housing report which was launched at the National Housing Federation's Annual Conference in Birmingham yesterday.

The reports details how:

(i) The growth in the number of new households in the UK will soon exceed the number of homes being built to accommodate them unless there is a "substantial increase in the rate of house-building" (2) (i.e.) without action there will be a massive housing shortage.

(ii) That the number of affordable homes being built is not enough to meet the needs of over a million households currently living in unsuitable accomodation, a figure which is increasing by 50,000 each year. (3)

(iii) That mortgage costs have just equalled their record 1990 peak (3rd of income) meaning that 33.3% of the adult working households in the UK (40 and under) cannot afford to buy their own homes, even at the bottom end of the market. (4)

Cllr Battye says: "The findings of the report are disturbing reading"

Cllr Battye says: "There are three key issues here."

"There is clearly a lack of affordable accomodation being built. Councils and Housing Trusts need to be given the ability to build the amount of affordable housing that is needed to meet demand. Over a million people are currently living in unsuitable accomodation increasing by 50,000 a year. If nothing is done, then people will be living in slums again. I remember the slums and do not want this situation to be revisited in Kirklees or anywhere else. "

"There is also an issue of waste. Recent figures have indicated that there are 700,000 homes currently standing empty across the UK whilst 100,000 people live in temporary accomodation and 1 in 10 children live in crowded conditions. In Kirklees we have lobbied the council to take action on the 4,500 homes that are currently standing empty in the district and a scheme is currently being drawn up to do this. We are pleased by the outcome of our campaign in Kirklees but hope that all council's across the country will now do this as a way to tackle the impending crisis in housing highlighted by this report".

"Finally, 1000's of prospective first time buyers are currently being prevented from getting on the first rung of the housing ladder by huge property prices and mortgage costs. The report confirms that it has never been more expensive to buy your first home. It also says that there has been a sharp increase in the number of court orders for repossessions since 2003. This says to me that there are more and more people getting mortgages who then struggle financially as they have to deal with other competing financial pressures, including, most likely, some sort of other debt, such as student loans, before eventually being dragged under. I believe this is the reality faced by many first time buyers and this is what is forcing them to delay, and I don't blame them. In my view the government needs to be seen to do more to reduce people's reliance on borrowing, particularly amongst the young, and to stabilise the housing market".