MORE HOMES NOT THE ANSWER TO RISING HOUSE PRICES

New research published today shows that even a 60% increase in South East house building will not stop prices rising, says the South East England Regional Assembly.

Figures from the National Housing and Planning Advice Unit risk confusing people by suggesting that we can simply build our way out of a crisis in house prices says Assembly Chairman Cllr Keith Mitchell CBE.

He said:

"A close look at the figures shows that a 64% increase in building to 46,000 homes a year would still see South East prices rise from 8x average salary to 11x average salary in 2026. The figures also ignore the cost of services and infrastructure for new homes and cut across the democratic process of agreeing regional housing figures.

"Over the past three years the Assembly has carefully considered housebuilding alongside infrastructure, environmental, demographic and economic needs but these new figures are based on a purely economic theory."

He added:

"Against a housing stock of 3.5 million homes in the South East, adding a few thousand more every year will have almost no impact on house prices. The affordability crisis needs a range of solutions - but Government investment in affordable housing is the most important in terms of making homes more affordable. Money is needed for schemes such as part-rent part-buy and social rented homes, but even that is only part of the solution. We also need substantial Government funding to deliver the schools, hospitals and transport services that will be needed to support any increase in new homes."

Contacts

Lesley van Dijk, Assembly PR Executive - 01483 555223

Heather Bolton, Assembly Communications Director - 01483 555220

Notes to editors:

South East Housing

• The South East England Regional Assembly has prepared a 20 year planning vision covering the region's need for homes, jobs, transport and environmental protection to 2026. A review of the Plan by independent inspectors recommends 32,000 homes a year are needed in the region.
• The National Housing and Planning Advice Unit (NHPAU) report published on 26 October calls for the region to test housing numbers ranging from 36,000 a year to 46,000 a year.
• The 64% increase quoted above compares the 46,000 homes a year figure with NHPAU's baseline figure of 28,050 homes a year which is a previous regional target.

The South East England Regional Assembly

1. The Assembly is a partnership of councils and communities in the South East region. It was established in January 1999 to give a representative voice to the region, which covers Berkshire, Buckinghamshire, East and West Sussex, Hampshire, Isle of Wight, Kent, Oxfordshire and Surrey.
2. The Assembly is made up of 112 members including elected councillors nominated by the region's local authorities and 37 representatives from other sectors of the community (including business, trades unions, education, housing, health, sports, culture, tourism, faith groups, environmental, community and voluntary organisations) as well as the New Forest National Park Authority.
3. The Assembly has six roles:
1. Regional Planning
   preparing and delivering the South East Plan
2. Regional Housing
   the Regional Housing Board decides housing investment priorities
3. Regional Transport
   the Regional Transport Board decides transport investment priorities
4. Advocacy
   pressing the South East's interests in London and Brussels
5. Accountability
   scrutinising SEEDA's plans and impact
6. Alignment
   co-ordinating regional policies and decisions.

Our vision is for a distinctive, outward-looking, accessible region of prosperous, sustainable communities, with a high quality of life and environment.

Last updated: 26 October 2007