Experts Warn Of Housing Timebomb In Haringey

October 06

Buying a house in Haringey now costs over ten times the average salary of local people, according to figures released today by the London Housing Federation and Metropolitan Home Ownership (MHO). With the average property in Haringey costing over £415,000, a local person would need to be earning £112,000 a year to qualify for an affordable mortgage.

London’s Housing Timebomb, compiled by the London Housing Federation, paints a worrying picture for would-be first-time buyers. A housing market forecast, commissioned by the Federation from Oxford Economic Forecasting, predicts that house prices across London will rise by a further 34 per cent by 2011.   

The report reveals that Haringey’s housing situation is already dire. There are 19,930 people on waiting lists for affordable housing, and 5,309 in temporary housing. The number of affordable homes being built is still being outstripped by those lost through Right to Buy; last year 6,037 new affordable homes were funded by the Government and 11,549 were sold off.

Housing associations are striving to meet the needs of those priced out of the market with affordable rented and shared ownership homes.

HomeBuy agents, Metropolitan Home Ownership, in partnership with Tower Homes and the Department for Communities and Local Government (DCLG), launched the Housing Options scheme in April 2006 to make the process of buying an affordable home as simple as possible. The greatest benefit of the Housing Options scheme is that customers only need to fill in a single application form on the website, www.housingoptions.co.uk, to gain access to homes from all the different housing associations and some private developers.

The Housing Options website can be used to find out about developments like MHO’s Eclipse in Wood Green, which offers people on incomes from £21,500 the opportunity to get that vital first foot on the housing ladder. Becky Dungworth, a teacher who works in Islington, bought a 25% share of a spacious two bedroom ‘penthouse’ apartment, with views of Alexandra Palace, in March 2006.

“Before, I just had a room in a flat,” says Becky. “Having my own place has meant I find my job easier, because I’ve got somewhere I can go home to and chill out in. It’s important to have somewhere you feel comfortable in. It’s made me more relaxed and that feeling has spilled over into other parts of my life.”

There are two apartments still remaining at Eclipse. For further information visit the Housing Options website at www.housingoptions.co.uk.

Graeme Moran, Director of Metropolitan Home Ownership, said:

“By prioritising affordable new build development in the capital, the Government can address both immediate and future housing need. Increasing the supply of new affordable homes will generate revenue which can be recycled and used to fund the development of more affordable housing, increasing the benefit both to Londoners and to the public purse.”

Berwyn Kinsey, Head of the London Housing Federation, said:

“London is facing a housing timebomb. House prices, already sky-high, are expected to rocket by another £100,000 over the next five years, making it even harder for people to get on the housing ladder.

“Londoners are increasingly left with the choice of expensive rented accommodation, living in house shares or with parents, or leaving the capital altogether. Many thousands more are homeless or living in overcrowded conditions as demand for affordable housing outstrips supply. The irony is that, even as we are building more affordable homes, they are being sold through Right to Buy.

“We are calling on the Government to make housing a priority in the 2007 Comprehensive Spending Review. Without the necessary investment in new homes, London’s housing timebomb will explode.”