The local housing market in Reading is under severe strain and is set to worsen, according to Sovereign Housing Association.

The National Housing Federation in conjunction with the region’s Chartered Institute of Housing, has published The South East’s Housing Timebomb: Affordability and Supply 2006-2011, an annual update of official key housing facts and figures in the South East.

New projections by Oxford Economic Forecasting published in the report show that house prices will continue to spiral upwards across the region, fuelled by a severe lack of housing supply and a growing population. By 2011, the average house price in the South East of England will be over £322,000.

The report also shows that despite the higher than average earnings in the South East, householders in Reading already face house prices that are more than eight times typical salaries.

The average house price in Reading at the end of 2005 was nearly £200,000, and the gross income needed for a mortgage was more than £53,000 a year.

Sovereign Housing Association managing director Paul Crawford said: “We’ve seen our customer profile change rapidly in Reading in recent years, as more and more people find themselves unable to buy their own property, or even rent privately.

“These figures show how important it is to provide a wider range of homes in the Reading area, especially in sustainable locations.”

Derek Cash, Head of South Region for the National Housing Federation, said: “Many more affordable homes are urgently needed to avert the South East’s growing housing crisis. The lack of sufficient housing supply is pushing house prices up more and more, putting a huge strain on the existing affordable housing stock.

“Our projections may seem like good news for current homeowners in the region, but they actually spell disaster and not just for tomorrow’s first time buyers. People will be unable to find a home in the area where they grew up, and key public sector workers will have to move to cheaper parts of the country to ease their housing problems, making essential public services in the region more vulnerable.

“This will not help build the balanced neighbourhoods required for sustainability, which will have devastating consequences on communities - both rich and poor alike.

Published 25 October 2006
[Back to News] [Back to top]