The Long Read: – Our local housing crisis & a potential solution.
Housing and access to housing are probably the single biggest issues in the district. It is also a national issue as well we know. The Cabinet Member responsible for Housing in the Folkestone & Hythe District Council (FHDC) is Cllr Alan Ewart-James (pictured).
Now it may seem obvious but it has to be said, to get onto the housing ladder or even rent a home you’ve got to have money. Relatively low household income levels in the district means that many households struggle to access the local housing market without some form of financial assistance either from the state in the form of rental deposits and housing benefit, or family members assisting with a deposit to buy or rent a home.
The average annual gross household income in the Folkestone & Hythe District is currently approximately £34,710, which is 9.6% below the overall figure for Kent. The average household income of households within the lower quartile (lowest 25%) in the district is approximately £19,235, again below both national and regional averages. And note they are talking about households, meaning more than 1 person.
The current overall average house price for the district currently stands at approximately £309,000 (November 2017). Average house prices are currently nine times the current average household income for the district (above national and regional levels). Affordability for newly forming households looking to the housing market is even more problematic and average prices are closer to 9.5 times the average household income. Access to homeownership including low cost home ownership, such as shared ownership, is consequently beyond the financial means of many households not currently in homeownership. So how many locals will be able to purchase on a mortgage, or through shared ownership, a flat in Sir Roger’s de Haan’s seafront development?
Report C17-58 makes it very clear that due to Government Welfare Reform, Benefit caps and Local Housing Allowance caps limit the number of private rented properties locally that are affordable, therefore the number of working homeless households looks set to grow. And the high cost of home ownership has created higher competition for private rented housing and increased rental costs, meaning this option is no longer affordable for many households.
Conditions within the mortgage market continue to impact on the ability of many first time buyers to access the housing market, including the ability of buyers on lower incomes to access homes available for shared ownership in the district. Most lenders at present require buyers to provide deposits of, on average, at least 17% or £18,000 when taking up a new mortgage product. This presents particular difficulties for first time buyers looking to access entry level home ownership in the district. Average current entry level values for homes in the district are approximately £124,000 for 2 bedroom flats and £219,000 for a three bedroom home. Households looking to purchase an entry level 2 bedroom home would require an income of approximately £35,000 and deposit savings of approximately £21,000.
Whilst employment levels have increased in the district, the employment available within the district is relatively low paid and mainly service based. Do remember that Cllr Dick Pascoe (Con) and former Lib Dem) said of the old Silver Spring site; Young people here are desperate for work, and will the accept minimum wage
Now with an attitude like that, that’s why people have problems either renting or buying a house, because Tories like Dick are quite content for “Young People” to accept the minimum wage while the owner of the site can take his cash offshore presumably. Dick should be demanding more, much more for our young people within the district.
So what we’d like to know Cllr Ewart James is just exactly how will our local children and grandchildren be able to buy or rent in their communities, when all the indicators suggest it will be highly unlikely they will be able to afford to.
Now turning our attention the private rented sector, accessing it is also likely to be increasingly difficult for households on lower incomes in the district. The SHMA(Part 1) has shown that 73% of newly forming households in the district each year are already unable to afford to access entry level private sector rented accommodation. The evidence to date suggests that an increasing number of households will be required to spend in excess of 35% of their gross household income in order to meet their housing costs, putting their overall household costs under considerable strain particularly in current conditions of rising inflation and pay stagnation.
The worst housing conditions in the district are found in the private sector. 11,618 dwellings are privately rented (of which 1,403 have at least one category. 1 hazard, equating to approximately 12% of private rented sector. (Category 1 hazards are the most serious form of housing hazard under the Housing Health and Safety Rating System). What action if any have the FHDC taken against these 1,403 properties?
Moving on, the highest concentrations of properties with hazards are in the
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North Downs West Ward (Cllr Susan Carey (Con) pictured left & Cllr Jennifer Hollingsbee (Con))
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Walland and Dengemarsh Ward (Cllr Clive Goddard (Con) pictured left & Cllr Len Lawes (UKIP))
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East Folkestone Ward (Cllr Frank McKenna (Ind) pictured left, Cllr Claire Jeffrey (Con) pictured centre & Cllr Carol Sacre (UKIP) areas of the district.
A remarkably good idea and one that would fit well into the old Gas Works site and within Romney Marsh villages and towns…
Stoke Newington is served by Hackney Council which is Labour controlled
http://mginternet.hackney.gov.uk/mgMemberIndex.aspx?FN=PARTY&VW=LIST&PIC=0
And here’s what must be one of the loneliest Nasty Party Associations who appear to ignore the modular homes idea.
https://www.hackneyconservatives.org.uk/news
Can you see a pattern forming here ?
Sadly the areas of deprivation in Shepway with the poor quality and availability of affordable rents/homes is lowest are served by Conservative Councillors. The people including the people affected by the policies which you rightly challenge and suggest alternatives, sadly either voted for or more likely did not vote. I believe Councils can build homes, Housing Associations can build homes but interference from Central Government prevents this happening. I agree if one of the alternative political parties in Shepway offered a workable policy on improving housing in Shepway they just might be in with a shout at the elections in 2019.