Bristol housing crisis set to deepen as plans for 10,000 homes are slashed

28 June, 2012

In Bristol:

Planned house-building slashed by 10,000 – more than a quarterThe plans will mean just 38% of the homes needed for local families are being builtThe current house-building shortfall means Bristol is losing out on over £14M annually in Gvmnt fundingAverage house prices have almost doubled in 10 years from £86k to £170k

New research released today reveals that planned housing numbers in Bristol have been reduced by 28% to 1,320 per annum following the scrapping of the Regional Spatial Strategies and the introduction of the new planning system. This reduction is by 505 homes per year which, over the 20 year period of the Regional Spatial Strategies, amounts to 10,100 homes.

Meanwhile official government projections reveal that the number of households in the area is expected to increase by 3440 annually meaning that the planned housing numbers will meet just 38% of annual need.

Average house prices in the area more than doubled in the last decade, from £86,363 in 2000/01 to £170,750 – almost 6.5x average income - in 2010/11. 

The social housing waiting list in Bristol has fallen slightly over the last ten years but still remains very high with 11,167 families waiting for a suitable home.

The report also examines the financial rewards Bristol would receive from building the homes it clearly needs. The Government’s new incentive for house building, the New Homes Bonus, could see funding for the area increase significantly at a time when cuts are being made to budgets across most service areas.

If enough homes in the Bristol were built to meet household projections the local authority would see around £14 million extra funding every year compared with their current New Homes Bonus allocation.

Stewart Baseley, Executive Chairman at HBF said today:

“Bristol is suffering from a serious under supply of housing. It is crucial that more homes are built, particularly for younger families and first time buyers. It is a concerning that the local authority has reduced its housing targets significantly and important that they recognise the responsibility they have to communities in their area.

“On top of the obvious social benefits - increasing affordability and easing the pressure on social housing waiting lists - building the homes Bristol needs would bring in millions of pounds from central government and kick-start the local economy.”


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.