Bournemouth housing crisis set to deepen as plans for 1500 homes are slashed

28 Jun, 2012

In Bournemouth:

Planned house-building slashed by 1,500Current house-building has fallen 70% in the last six years86% of the homes needed for local families are being builtNo of families on social housing waiting lists increased almost 5x in 10 yearsAverage house prices have almost doubled in 10 years from £99k to £194k

New research released today reveals that planned housing numbers in Bournemouth have been reduced by 9% following the scrapping of the Regional Spatial Strategies and the introduction of the new planning system. This reduction is 75 homes per year which, over the 20 year period of the Regional Spatial Strategies, amounts to 1,500 homes.

Meanwhile, the report reveals that house-building in Bournemouth has plummeted by 69% over the past 6 years and currently just 86% of homes needed to meet expected household formation are being built.

Average house prices in the area almost doubled in the last decade, from £99,313 in 2000/01 to £194,53 – more than 8x average income - in 2010/11.  A lower quartile priced house – those most often bought by first time buyers – costs £147,438 in Bournemouth meaning that young families need to find around £25,000 deposit to get a foot on the property ladder.

Meanwhile, pressure on the area’s social housing is growing with the waiting list soaring from 1,624 families in 2001 to 8,047 families last year.

Stewart Baseley, Executive Chairman at HBF said today:

“While historically Bournemouth has been a relatively pro-growth area, the increasing pressure on its social housing waiting list and the huge fall in house building over the last six years is of real concern. Instead of reducing planned housing numbers it is crucial that more homes are built, particularly for younger families and first time buyers.

“On top of the obvious social benefits - increasing affordability and easing the pressure on social housing waiting lists - building the homes Bournemouth needs would create hundreds of local jobs.”


click here to open South West Housing Crisis Report

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Notes to Editors:

The Home Builders Federation (HBF) is the representative body of the home building industry in England and Wales. HBF’s members account for some 80% of all new homes built in England and Wales in any one year, and include companies of all sizes, ranging from multi-national, household names through regionally based businesses to small local

Useful stats

Permissions for fewer just 36,761 new homes were approved in Q1 2012 in England, compared with 40,000 in Q1 2010 and against a quarterly housing requirement of nearly 60,000 based on the Government’s household projections. In Q1 2006 over 60,000 permissions were granted by local authorities1.8 million families (5 million people) are currently on Local Authority waiting lists in EnglandFTBs aged between 22 and 29 have to save 45% of their take home pay every month for five years to afford a depositThe number of households is projected to grow from 21.7m in 2008 to 27.5m in 2033, a rise of 5.8m (27%), or 232,000 per year. (DCLG Household Formation Projections.)Jobs Calculator:
Each home built creates 1.5 full-time jobs -Michael Ball reportIncreasing house-building by 130,000 units per year (to Government household projection levels) would create 195,000 jobs.HBF estimates twice that number of jobs are created in the supply chain – close to 400,000 jobs.Over the last three years, home builders have invested more than £1billion in shared equity schemes to help maintain housing construction whilst helping close to 30,000 first time buyers get a foot on the ladder.HBF’s  Housing Market Report (May’11) shows that 91% of house builders now see the lack of mortgage availability as a ‘major constraint;’ on their ability to sell, and thus build, homesAccording to Government figures, even in its current crisis state, housing supply accounts for around 3% of UK GDP and provides between 1 and 1.25 million jobs in the UK.The number of new homes completed in England in 2010 slumped 13% on the previous year – itself the lowest peacetime number on record since 1923.18% of females and 29% males aged 20-34 still live with parents – ONS social trends - over 1 million women and 1.7 million men aged between 20 and 34 are still living at homeWhilst over 80% of people believe Britain needs more homes, particularly for first time buyers, only 50% of people would welcome more homes in their area - NHMB survey, Nov 2010.

South West Housing Crisis Report - June 2012