January 14 2008
Report sets out some home truths

Leading housing association bpha is backing a report by the National Housing Federation calling for the creation of more affordable homes to meet Bedfordshire’s housing crisis.

The Home Truths report, published today (Jan 17), shows house prices in the East of England are set to hit an average of £340,000 by 2012.

Prices in the region increased 295 per cent between 1996 and 2006 and are now around 10.7 times average incomes at £232,000. The research also shows that prices in the region are to rise more quickly than in any other region over the next five years.

bpha, which owns and manages more than 13,000 homes in the region, including more than 9,000 in Bedfordshire, is calling for more investment in affordable housing to help alleviate the problem.
The housing association is building homes for affordable rent and shared ownership at a range of sites in the county, including Freemans Common, Shortstown and the Wixams.

John Cross, chief executive of bpha and also chair of the National Housing Federation, said: “The £712m investment promised in new housing in the region in the coming years will help us produce around 8,000 social homes, which is still 75 per cent less than we need.

“Even at the cheapest end of the market homes cost seven times median regional incomes. We face a real housing crisis, and one which will not go away overnight.

“We are committed to building new affordable homes in new and existing communities in Bedfordshire, but also continue to campaign for more funding to meet the rising demand.”


Case study – the shared owners

As house prices continue to rise, the popularity of shared ownership schemes has also risen. As the Government-appointed HomeBuy agent for Bedfordshire, bpha provides a ‘one-stop shop’ for those seeking a low cost alternative to home ownership.

When teacher Simon Cutting and his girlfriend Elke Rockey wanted to move in together, they struggled to find anywhere that they could afford in the local area.

Steven and his six-year-old son, Aiden, were still living with Steven’s parents in Bedford and Elke was living in a one-bedroom flat In Milton Keynes. The maximum they could afford was around £130,000 – which at best would buy a small two-bedroom house in the Bedford area.

Elke had heard about the shared ownership scheme offered by bpha through a friend and realised that they would qualify because Steven was a teacher. Keen to make the most of the opportunity, the couple decided to apply in April 2007.

By September 2007, Steven, Elke and Aiden had moved into their three-bedroom home in Sharnbrook, Bedfordshire. Worth £170,000 the property was much bigger than anything they could have previously afforded.

Elke said: “The people at bpha were so helpful in explaining the scheme and applying was really straightforward. I would thoroughly recommend it to anyone who is in a similar situation.”

The couple used the Open Market Homebuy scheme, which helps people to buy a home of their choice on the open market thanks to an equity loan, and a further interest free loan to meet the shortfall.

For more information about low cost home ownership, contact bpha’s sales and marketing team, Keyhomes East, on 0845 456 6757 or visit www.keyhomes-eaast.org.uk

Case study – the renters

The call for more investment in affordable housing also aims to help those on the waiting list for an affordable rented home.

Julie Brassington, husband Paul and their three children were all living in a one-bedroom flat when they applied to join the local housing waiting list.

As well as being overcrowded, the first floor flat - which could only be accessed by an outside staircase - became a nightmare for former carer Julie after she ruptured a disc in her back and started to need a wheelchair to get around.

The family had been renting the flat privately, and simply couldn’t afford to rent a suitable home with the single income from Paul’s job as an HGV driver.

The family - including children Carly (now 25), Ashley (17) and Charlotte (14) - were offered a three-bedroom home in Raglan Green, Bedford, by bpha within two years of joining the waiting list.

Julie, 48, said: “I just couldn’t believe it, we couldn’t be happier. We were living on top of each other before. No one had their own space. This home has enough room and a lovely garden. It also has a room downstairs which I can use as a bedroom.

“It has really improved our quality of life and is somewhere to call home.”

Bedfordshire statistics

Average house prices in Bedfordshire are £223,180 (figures taken from latest Land Registry information - July to September 2007)

The average salary in the county is £28,947 (figures taken from the Annual Survey of Hours and Earnings