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Housing shortage 'risks crowding' | Housing shortage 'risks crowding' |
(about 13 hours later) | |
A lack of new homes being built in Britain has left millions of people living in overcrowded conditions, the National Housing Federation has said. | A lack of new homes being built in Britain has left millions of people living in overcrowded conditions, the National Housing Federation has said. |
The organisation claims the economic downturn has led to a 30% decline in house building in the past two years. | The organisation claims the economic downturn has led to a 30% decline in house building in the past two years. |
Industry figures suggest 122,000 new homes will be built in the year to April 2010 - fewer than at any time since 1923, excluding the war years. | Industry figures suggest 122,000 new homes will be built in the year to April 2010 - fewer than at any time since 1923, excluding the war years. |
The UK needs a million new homes to be built, the federation says. | The UK needs a million new homes to be built, the federation says. |
No privacy | No privacy |
Michael Miah and his family, live in Oldham, Greater Manchester, and are among the estimated 2.3 million people living in overcrowded conditions. | Michael Miah and his family, live in Oldham, Greater Manchester, and are among the estimated 2.3 million people living in overcrowded conditions. |
Ten members of the family, including a son with severe learning difficulties, squeeze together in a three-bedroom flat. | Ten members of the family, including a son with severe learning difficulties, squeeze together in a three-bedroom flat. |
One day our dreams will come true - to have a big house and a happy family, with no arguments Michael Miah | One day our dreams will come true - to have a big house and a happy family, with no arguments Michael Miah |
Mr Miah's bedroom has space for two double beds pushed together. | Mr Miah's bedroom has space for two double beds pushed together. |
"My two young children sleep on this side. Me and my wife sleep on that side," he said. | "My two young children sleep on this side. Me and my wife sleep on that side," he said. |
Privacy is out of the question, and there is no room for the seven children to do any homework. There is mould on the walls. | Privacy is out of the question, and there is no room for the seven children to do any homework. There is mould on the walls. |
"One day our dreams will come true," he said. "To have a big house and a happy family, with no arguments." | "One day our dreams will come true," he said. "To have a big house and a happy family, with no arguments." |
But Mr Miah and his family have already been on the waiting list for 16 years. | But Mr Miah and his family have already been on the waiting list for 16 years. |
Empty sites | Empty sites |
House-building peaked in the UK in 1964/65, when the industry put up 387,000 new homes, many in high-rise blocks that were later discredited. | House-building peaked in the UK in 1964/65, when the industry put up 387,000 new homes, many in high-rise blocks that were later discredited. |
By 2007/8 that number had fallen to 176,000. | By 2007/8 that number had fallen to 176,000. |
There isn't enough mortgage finance around John StewartHome Builders Federation | There isn't enough mortgage finance around John StewartHome Builders Federation |
"We already have a problem in the housing market," says the NHF's David Orr. | "We already have a problem in the housing market," says the NHF's David Orr. |
"This is rapidly turning into a crisis." | "This is rapidly turning into a crisis." |
The immediate problem is not a shortage of sites, the major problem holding back the development is the lack of availability of mortgages. | The immediate problem is not a shortage of sites, the major problem holding back the development is the lack of availability of mortgages. |
On most new housing estates, developers build about 60% of homes for private buyers while 40% are made affordable or are sold in shared ownership schemes. | On most new housing estates, developers build about 60% of homes for private buyers while 40% are made affordable or are sold in shared ownership schemes. |
But if they cannot sell the private houses, the public ones will also not get built, meaning affordable loans are key. | But if they cannot sell the private houses, the public ones will also not get built, meaning affordable loans are key. |
"There isn't enough mortgage finance around," says John Stewart of the Home Builders Federation. | "There isn't enough mortgage finance around," says John Stewart of the Home Builders Federation. |
"Banks typically require a 20% or 25% deposit. Many first-time buyers just can't find that kind of money." | "Banks typically require a 20% or 25% deposit. Many first-time buyers just can't find that kind of money." |
One example is a former margarine factory in London's docklands where developers had planned to build 1,800 new homes. | One example is a former margarine factory in London's docklands where developers had planned to build 1,800 new homes. |
Last year they pulled out of the project, opting to wait until the economic situation improved. | Last year they pulled out of the project, opting to wait until the economic situation improved. |
The site, on a bend of the River Lea, remains shrouded by hoardings, and there is little hope of building getting started soon. | The site, on a bend of the River Lea, remains shrouded by hoardings, and there is little hope of building getting started soon. |
The industry accepts that the government has put extra resources into house building. | The industry accepts that the government has put extra resources into house building. |
Stimulus measures have included the Kickstart scheme to try and get mothballed sites up and running again, and Homebuy Direct to support would-be buyers. | Stimulus measures have included the Kickstart scheme to try and get mothballed sites up and running again, and Homebuy Direct to support would-be buyers. |
But the industry fears that the Department of Communities and Local Government will come under pressure to reduce budgets next year by about 18%. | But the industry fears that the Department of Communities and Local Government will come under pressure to reduce budgets next year by about 18%. |
Cuts on that scale would be disastrous, it says, and would lead to even more overcrowding in Britain's existing housing stock. | Cuts on that scale would be disastrous, it says, and would lead to even more overcrowding in Britain's existing housing stock. |
This report can be seen on BBC One's Breakfast from 0600 GMT on Saturday 6 February and on the BBC News Channel. | This report can be seen on BBC One's Breakfast from 0600 GMT on Saturday 6 February and on the BBC News Channel. |