How many homes does the North need?
Carol Matthews, Deputy Chair of Homes for the North
| Homes for the North
The Deputy Chair of Homes for the North writes ahead of an upcoming parliamentary reception to discuss the future of the Northern housing market.
The housing market is in desperate need of reform. To date much of the debate surrounding the issue of supply and demand has focused on London and the South East: sky-rocketing prices, poor quality rentals, a lack of space for families looking to buy a 2 or 3 bed place. Media commentary tends not to focus on housing in the North of England.
However, upcoming independent research indicates that the housing deficit in the North is reaching crisis point. Thriving cities like Manchester and Leeds are in particularly dire need with projected demand expected to soar over the next decade. Increasingly, people are even being priced out of renting and buying due to a lack of available housing. The North will never compete with the South economically if this housing shortfall isn’t tackled.
One of the biggest problems facing the housing market is an over-reliance on ‘volume builders’ such as Barratt, Taylor Wimpey, and Persimmon. These companies are typically financed by private equity, meaning that the money can only be raised on the promise of a high return to investors. This model poses two big problems to Britain’s housing market. The first is that volume builders are extremely sensitive to political and economic uncertainty. The second problem is that these volume builders tend to focus on high-value properties in order to generate the quick-buck returns their investors demand. This may be good for investors, but it’s bad for local people looking to rent or buy in the North.
Unlike ‘volume builders’, housing associations answer to the needs of local areas, not investors. Housing associations build where there is clear demand, not the potential for high returns. In the last recession, volume builders’ construction numbers fell by 59%; housing associations’ output only fell 3% - only housing associations can weather political fluctuation to provide homes where they are needed. However, they need the right political grounding in order to provide homes where they are sorely needed in the North.
Combined authorities need to be given a bigger role in identifying potential sites for homes, and a housing target needs to be set for the North. Government needs to recognise the necessary link between homes, infrastructure, and economic growth in an area. Building homes is a sign of faith in an area’s prospects.
To learn more about how Britain can plan for sustainable, assured house-building in the North, join us at a Homes for the North Parliamentary reception on Wednesday 13th September. We’ll be discussing a new piece of independent research: “Housing and a rebalanced economy: how many homes does the North need?” and the future of the Northern housing market.
To attend, please RSVP by email.
Speakers include:
Kevin Hollinrake – MP for Thirsk and Malton
Carol Matthews – Deputy Chair of Homes for the North and CEO of Riverside
The Rt Hon Sajid Javid MP – Secretary of State for Communities and Local Government
Where:
Terrace Dining Room A – House of Commons. Please arrive via the security gate at Cromwell Green.
When:
Wednesday 13th September, 7- 8:30 pm.
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