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| Families priced out as number of affordable homes drop by 26% | Families priced out as number of affordable homes drop by 26% |
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| The number of affordable homes created in England plummeted by 26% in 2012-13, while the number of new homes in the social rented sector dropped by a third, according to official figures which underline the country's housing crisis. | The number of affordable homes created in England plummeted by 26% in 2012-13, while the number of new homes in the social rented sector dropped by a third, according to official figures which underline the country's housing crisis. |
| Although separate figures from the Department for Communities and Local Government (DCLG) show a strong start to the government's Help to Buy scheme and an uplift in the number of new homes being started in the last quarter, housing campaigners said the fall in affordable homes spelled disaster for struggling families. | Although separate figures from the Department for Communities and Local Government (DCLG) show a strong start to the government's Help to Buy scheme and an uplift in the number of new homes being started in the last quarter, housing campaigners said the fall in affordable homes spelled disaster for struggling families. |
| A total of 42,830 affordable homes were provided during the year for rent and purchase, DCLG said, compared with 58,100 in the 2011-12 financial year. Of these 39,400 were newbuilds – a drop of 25% on the 52,830 built the previous year. Newbuilds are an increasingly important part of provision, accounting for 92% of affordable homes, the highest level since 1991-92. | A total of 42,830 affordable homes were provided during the year for rent and purchase, DCLG said, compared with 58,100 in the 2011-12 financial year. Of these 39,400 were newbuilds – a drop of 25% on the 52,830 built the previous year. Newbuilds are an increasingly important part of provision, accounting for 92% of affordable homes, the highest level since 1991-92. |
| The number of 17,580 social rented homes delivered dropped significantly from the 37,680 delivered in 2011-12 and although the decrease was partially offset by the 6,960 new affordable rented homes delivered, overall, the number of affordable rental properties decreased by 36% to just 24,550. | The number of 17,580 social rented homes delivered dropped significantly from the 37,680 delivered in 2011-12 and although the decrease was partially offset by the 6,960 new affordable rented homes delivered, overall, the number of affordable rental properties decreased by 36% to just 24,550. |
| In London where the housing crisis is particularly bad as prices and rents have spiralled upwards, the number of affordable homes dropped by around 30%. | In London where the housing crisis is particularly bad as prices and rents have spiralled upwards, the number of affordable homes dropped by around 30%. |
| Campbell Robb, chief executive of the housing charity Shelter, said: "The number of affordable homes built has fallen significantly, spelling disaster for the thousands of families we see every day who are struggling to cope with soaring housing costs. | Campbell Robb, chief executive of the housing charity Shelter, said: "The number of affordable homes built has fallen significantly, spelling disaster for the thousands of families we see every day who are struggling to cope with soaring housing costs. |
| "Unless we see decisive action from the government to build more affordable homes, more people across the country will find themselves priced out of a stable home." | "Unless we see decisive action from the government to build more affordable homes, more people across the country will find themselves priced out of a stable home." |
| Separate figures showed that almost 6,000 homes have been bought through the first phase of the government's Help to Buy programme, with purchases helping to boost the constructions of new homes. | Separate figures showed that almost 6,000 homes have been bought through the first phase of the government's Help to Buy programme, with purchases helping to boost the constructions of new homes. |
| Developers have been reporting strong interest from buyers using the Help to Buy scheme and the figures confirm that housing starts have been increasing since its launch in April. | Developers have been reporting strong interest from buyers using the Help to Buy scheme and the figures confirm that housing starts have been increasing since its launch in April. |
| Housingbuilding starts in England were up by 8% in the third quarter of the year, at an estimated 32,230, and the annual figure to September was up 16% year-on-year at 117,110. The number of new homes started by private builders stood at 28,580, up 29% on the same period last year and the highest number started in a quarter since the start of 2008. However, the number of homes completed was down by 8% by 107,950. | Housingbuilding starts in England were up by 8% in the third quarter of the year, at an estimated 32,230, and the annual figure to September was up 16% year-on-year at 117,110. The number of new homes started by private builders stood at 28,580, up 29% on the same period last year and the highest number started in a quarter since the start of 2008. However, the number of homes completed was down by 8% by 107,950. |
| Housebuilding plummeted in the years following the financial crash, and completions remain 40% below their peak in the three months to the end of March 2007. They are also well below the number that campaigners suggest are needed to meet supply, with a thinktank recently putting the figure at 300,000 a year. | Housebuilding plummeted in the years following the financial crash, and completions remain 40% below their peak in the three months to the end of March 2007. They are also well below the number that campaigners suggest are needed to meet supply, with a thinktank recently putting the figure at 300,000 a year. |
| The first part of the Help to Buy scheme was designed to boost construction by offering homebuyers an interest-free loan worth up to 20% of the cost of a newbuild property, allowing borrowers to secure homes with just a 5% deposit. | The first part of the Help to Buy scheme was designed to boost construction by offering homebuyers an interest-free loan worth up to 20% of the cost of a newbuild property, allowing borrowers to secure homes with just a 5% deposit. |
| Figures from the Department for Communities showed that in the first six months there were 5,375 properties bought with the support of the scheme, with a total value of £1.04bn. | Figures from the Department for Communities showed that in the first six months there were 5,375 properties bought with the support of the scheme, with a total value of £1.04bn. |
| Although the scheme is open to existing homeowners who are looking to move, the majority of those buying property were first-time buyers, who accounted for 4,948, or 92% of purchases. | Although the scheme is open to existing homeowners who are looking to move, the majority of those buying property were first-time buyers, who accounted for 4,948, or 92% of purchases. |
| The average price of a property bought under the scheme was £194,167, with an average equity loan of £38,703. However, 26 buyers took advantage of the lack of an income cap and high limit on property values and bought homes costing between £500,000 and £600,000 and 132 of those using the scheme had a household income in excess of £100,000. | The average price of a property bought under the scheme was £194,167, with an average equity loan of £38,703. However, 26 buyers took advantage of the lack of an income cap and high limit on property values and bought homes costing between £500,000 and £600,000 and 132 of those using the scheme had a household income in excess of £100,000. |
| Matthew Pointon, property economist at Capital Economics, said Help to Buy had helped stimulate a recovery in housebuildling but there would not be a rapid return to pre-crisis levels of construction. | Matthew Pointon, property economist at Capital Economics, said Help to Buy had helped stimulate a recovery in housebuildling but there would not be a rapid return to pre-crisis levels of construction. |
| "After half a decade of stagnation, the housebuilding sector finally appears to be turning the corner, which is good news for the economy," he said. | "After half a decade of stagnation, the housebuilding sector finally appears to be turning the corner, which is good news for the economy," he said. |
| "The Help to Buy equity loan scheme has turbo-charged the recovery, and will have helped those buyers who have been able to access the scheme. But labour and material constraints will prevent building companies responding in full to this jump in demand, and the result will be higher house prices. Indeed, more builders are now reporting rising newbuild prices than at any time since 2004." | "The Help to Buy equity loan scheme has turbo-charged the recovery, and will have helped those buyers who have been able to access the scheme. But labour and material constraints will prevent building companies responding in full to this jump in demand, and the result will be higher house prices. Indeed, more builders are now reporting rising newbuild prices than at any time since 2004." |
| The Home Builders Federation (HBF) said the biggest constraint on supply since 2008 had been people's inability to buy and that the equity loan scheme was delivering around 2,500 reservations a month. | The Home Builders Federation (HBF) said the biggest constraint on supply since 2008 had been people's inability to buy and that the equity loan scheme was delivering around 2,500 reservations a month. |
| Stewart Baseley, HBF executive chairman, said: "If people can buy, builders will build. Help to Buy is allowing people who can afford to buy a home to do so, meaning builders can get on with building the homes the country needs." | Stewart Baseley, HBF executive chairman, said: "If people can buy, builders will build. Help to Buy is allowing people who can afford to buy a home to do so, meaning builders can get on with building the homes the country needs." |
| However, Paula Higgins CEO of the HomeOwners Alliance, said the government needed a sustainable approach to resolving the housing crisis. "Schemes like Help to buy are definitely helping to fuel demand but the real issue is supply and the UK hasn't been building enough for 30 years," she said. | However, Paula Higgins CEO of the HomeOwners Alliance, said the government needed a sustainable approach to resolving the housing crisis. "Schemes like Help to buy are definitely helping to fuel demand but the real issue is supply and the UK hasn't been building enough for 30 years," she said. |
| "Without increasing new housing all of these schemes are just papering over the cracks without doing anything to solve the long-term problems." | "Without increasing new housing all of these schemes are just papering over the cracks without doing anything to solve the long-term problems." |
| The second stage of Help to Buy, which offers lenders a taxpayer-backed guarantee to allow them to offer 95% mortgages went live at the start of October and has so far led to around 2,000 offers on homes. It is available on existing homes and has been criticised for fuelling demand for property but not supply. | The second stage of Help to Buy, which offers lenders a taxpayer-backed guarantee to allow them to offer 95% mortgages went live at the start of October and has so far led to around 2,000 offers on homes. It is available on existing homes and has been criticised for fuelling demand for property but not supply. |
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