Housing shortage hitting local workers

16th century house at The Street, Hessett

16th century house at The Street, Hessett

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The housing shortage in Bedfordshire is pushing house prices and private rents out of reach for local workers, according to a new report – with the crisis set to get even worse by 2020.

Home Truths 2014: East of England from the National Housing Federation warns that while the average salary in the county rose by just 27% in the last ten years, house prices rocketed more than twice as fast, by 58%2. A gross annual income of £47,298 is now needed for the average mortgage in the county, double the average salary of £22,6961.

Private rents are also soaring as demand increases from those priced out of buying a home. Rents in the East are expected to rise faster than anywhere else by 2020, up 49%3.

Home Truths 2013/14: East of England also found that:

· Rising housing costs are hitting the public purse, with a 96% increase in working people claiming housing benefit in the East since 20094

· Only half of the homes the region needs are being built, with 28,2115 new households expected to form in the East each year but just 13,9606 homes built in 2012/13.

· A quarter of young adults aged 20-34 in the region are living with their parents.

· The number of households led by over 64s is set to rise by 23% in the East by 2021

· Every home built brings £97,866 into the East of England and creates 2.1 jobs directly and in the wider community.

· Homelessness is becoming more of a problem in the East of England, rising 32% in the past two years.

 

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