45,000 too few homes built in the West Midlands in the last five years
01 February 2017
Last year alone, less than 12,500 homes were built in the West Midlands region, which is far below what is required to accommodate the 19,000 new households that are formed each year. Across Shropshire and Telford & Wrekin 1320 new households a year are formed - that’s 30,000 new households by 2039. Across Staffordshire 2228 new households a year are formed - that's over 50,000 new households by 2039.
As outlined in the Home Truths 2016/17 report, the housing market in the West Midlands is characterised by its diversity – from ambitious cities and their urban surroundings, to historic market towns and small rural communities. House prices vary widely including more locally, £219,000 in Shropshire to £164,000 in Telford & Wrekin to £112,476 in Stoke-on-Trent (the least expensive place to buy in the West Midlands).
The report, which provides local data on the housing market in the West Midlands, reveals that many people are priced out of home ownership. While the average salary in the West Midlands is below the national average of £25,000, only those earning upwards of £45,000 a year can now afford the typical mortgage. The average home costs 8.5 times the typical salary in Shropshire, 6.9 times in Telford & Wrekin and 7.4 times the typical salary in Staffordshire.
The cost of renting privately has added pressure on people’s income. Average monthly rents now stand at £579 in across Shropshire, £569 in Telford & Wrekin and £567 across Staffordshire.
Home Truths 2016/17 reveals the most expensive and least expensive places to buy a home in the region. You can read the report on the right.
As a sector, housing associations are working to end the region’s crisis, completing over 3,500 new homes, and having started to build almost 5,000 more. They built more than 40,000 homes across the country in 2015/16, 29% of all new homes in England. Housing associations have ambitions to work with Government to build thousands more new homes across the country.
More locally The Wrekin Housing Trust completed 512 homes last year and is set to provide a further 1,332 homes by 2023 across Shropshire and Staffordshire.
David Hall, Head of Property at The Wrekin Housing Trust said “Seeing many of our new schemes of quality affordable housing already come to fruition, with a further 1,332 in the offing across Shropshire and Staffordshire, is evidence of our commitment to meet the affordable housing gap in the West Midlands. We welcome every opportunity to provide more much needed affordable new homes, be it for families just starting out or retirement housing, for example, our new ShireLiving schemes”.
Kate Warburton, External Affairs Manager for the National Housing Federation in the West Midlands, said: “Every new statistical release paints a bleaker picture of the current state of the housing market. The reasons for the situation we are in are varied and complex, but one thing is clear: we simply haven’t built enough homes as a nation. And this year’s Home Truths findings for the West Midlands are a stark reminder of this.
“Housing associations are a vital part of the solution to the housing crisis. The sector is buoyed by the additional funding and flexibility secured in the Autumn Statement and is ambitious about delivering even more houses.”