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"Housing and Planning Bill: The End of Affordable Housing

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1 "Housing and Planning Bill: The End of Affordable Housing
"Housing and Planning Bill: The End of Affordable Housing?“ Dr Roberta Blackman- Woods MP, Shadow Minister for Local Government and Planning

2 Building Annual housing starts totalled 144,280 in the year to June 2016; during the same period, completions totalled 139,030. Starts are up on the low that we saw in 2009 in the immediate aftermath of the global financial crash, but they remain 26 per cent below the 2007 peak of 183,600; similarly completions are 28 per cent below their 2007 peak of 177,650. With completions totalling approximately 140,000, we’re looking at an additional 860,000 homes needing to be built over the rest of the Parliament, which equates to roughly 215,000 per year, that means an increase in completions of 53% (Shelter)

3 Average House Prices Most of the sales in York over the past year were terraced properties which on average sold for £226,956. Semi-detached properties had an average sold price of £229,720 and detached properties averaged at £356,178. York, with an overall average price of £245,534. In the past year house prices in York were 3% up on the year before and 16% up on 2013 when they averaged at £211,343. Source: Right Move

4 A similar story across the UK….

5 Averages Price For Renting
Average wages vs average rent Experts say housing should cost no more than 30% of take home pay £550: 30% of average monthly take home wage in England £694: Average rent for one-bed flat £867 Average rent for three-bed home £760 Average rent for two-bed home £641 Average rent for a studio flat £382 Average rent for house share Source: Office for National Statistics

6 House price to income ratio
In April 2016, the average house price was £202,436. The ratio of average house prices to average earnings continues to increase growing from 5.84x average earnings in March to 5.89x average earnings in April 2016. This is the highest ratio since 2008, when the UK was entering a recession. Source:

7 Households by tenure

8 Shelter’s Report on Starter Homes
In more than half (55%) of local authority areas, less than one in ten available properties are affordable to a working couple with children on average wages. There are seven local authority areas where no available properties are affordable to a working couple with children on average wages.

9 https://england. shelter. org

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12 The impact on Social Housing
Forced sale of higher value homes, right to buy and lack of building are combining to stretch social housing to it’s limit. Analysis shows that to raise the estimated £4.5bn a year needed to fund the generous discounts that make Right to Buy work, the average council could be hit with an annual £26 million bill. Estimates suggest that this could force the sale of 23,500 council homes in England in just one year. Birmingham is set to be the hardest-hit area, as it would have to raise around £145m a year – which would involve selling off 1,190 homes (Shelter).

13 Source: Department for Communities and Local Government

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16 Pay To Stay 70,255 households will earn above the £31,000 income threshold outside London and £40,000 inside the capital. 9.3 per cent of households living in council housing in the south east will see their rent increase along with 7.7 per cent in the east of England and 5.3 per cent in the north east. Average monthly rent uplifts would be £72 for households outside of London and £132 a month inside. Affected households will see their rent increase by an average of £1,065 a year. Increased rents are expected to generate just £75 million annually, before making deductions for significant administrative costs. Originally the Government had forecast returns of £365 million in 2017/18. -Savills for the Local Government Association


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