Next Generation Faces Being ‘Locked Out' of Housing, Labour Warns

Labour is warning that the region's next generation faces being locked out of housing as the Tory-led government fails to deliver new affordable homes.

Between 2005 and 2010 the Labour government delivered an additional 256,000 affordable homes in England; the Tory-led government is aiming to deliver just 150,000 by 2015. Over 6,800 North East families and first-time buyers benefited from access to a new affordable or social home in the five years up to 2010.

 

Now, young people living in private rented accommodation are having their incomes squeezed by the rising cost of living and new figures show that rents in the North East have risen by 6.4% to £513, the highest percentage increase outside of London, making it harder than ever to put money aside to save for a deposit. Figures from the government show that the average deposit that first-time buyers need to save for is £26,027

 

Labour has a plan to put a tax on bankers' bonuses to boost the supply of additional 25,000 affordable homes across the country for both social rent and low cost home ownership.

 

Tom Blenkinsop, Labour's MP for Middlesbrough South and East Cleveland and member of the House of Commons Treasury Select Committee, said:

"Rising rents are putting a real squeeze on families and young people across the North East which is making it harder for people who want to own their own home to save for a deposit. Young people in this region are facing some of the steepest rises in rent in the country. The Tory-led government's failure to deliver more homes is putting home ownership further out of the reach of people in my constituency and across the entire region. In order to lend to get a motgage, you need to have saved for a deposit. Not many have surplus income to save. And therefore cant get a mortgage"

 

Labour's Shadow Housing Minister, Alison Seabeck MP said:

"The Tory-led government is planning on delivering over 100,000 fewer additional affordable homes in England by 2015 than Labour did in the last parliament. Across the country young people face being locked out of the chance to own their own home because of the shortage of new affordable housing. The Tories should listen to Labour, tax bankers' bonuses and build the homes that we need."

 

ENDS

Notes to editors

1.        Between 2005 and 2010 Labour delivered an additional 256,000 affordable homes http://www.communities.gov.uk/documents/housing/xls/1406058.xls
2.        Figures from DCLG on first-time buyer incomes & deposit levels. http://www.communities.gov.uk/documents/housing/xls/140993.xls  
3.        Figures on average rent levels and annual increases compiled by LSL Property Services, survey of 18,000 properties - Rental values refer to the actual values achieved for each property when let during the month.
4.        Labour has proposed taxing bankers' bonuses to boost the supply of new affordable homes, including for low-cost home ownership. MPs will have the chance to vote on this plan when the Finance Bill returns to the House of Commons, probably in early July.