With a wide range of housing developments schemes featured in local and national news, the demand for affordable housing continues to increase. The COVID-19 pandemic has harmed the current market. Because it forced projects to stop and the development of certain schemes to help those struggling to become homeowners.
So we discuss what current statistics suggest and the future of the affordable housing market.
Government policy & current housing statistics
With the target of 300,000 homes a year by the mid-2020s, the Government have acknowledged and are working towards an increase in the demand for housing. Pre-pandemic, they successfully added around 244,000 homes to the total housing stock. However, Savills’ have predicted that the government’s supply will be 20% less than suggested.
According to ONS, the average monthly rent in England was £730. In terms of buying, a full-time employee could expect to spend 7.8 times their annual workplace-based earnings on purchasing their next home.
These figures suggest an increasing need for affordable housing. This is because the housing market continues to stabilise following the pandemic.
Affordable housing at a glance
In terms of affordable housing, Homes England (a body that assists with government decision making related to housing) Strategic Plan for 2018-2023 states that:
“Our mission is to intervene in the market to ensure more homes are built in areas of greatest need, to improve affordability.”
This will be accomplished by working towards freeing land and supporting builders. So housing can be created where it’s needed, and increasingly the housing market’s diversity.
The Scottish Government support their local housing marketing through the Affordable Housing Supply Programme. They did not meet their target for their last parliamentary term due to the impact of the pandemic. However, they continue to strive to invest £3.44 billion in social and affordable housing between 2021-2022 and 2025-2026.
At time of publication we could not find the defined strategies for Wales and Northern Ireland. However, there are various affordable homes schemes supported here and in the rest of the UK. These schemes are still readily available to help. They include the Help to Buy Equity Loan and Shared Ownership. Own Your Home allows you to research the current help available, both in general and to your specific needs by answering some basic questions.
Where are we finding the demand for affordable homes?
According to our statistics during Q3 2021, the top 5 places researched for affordable rent (both under and over 55s) were:
- Birmingham
- London
- Liverpool
- Manchester
- Leeds
Additionally, we found shared ownership was most popular in:
- Manchester
- Milton Keynes
- Stockport
- Swindon
- London
These popular cities experience high demand, so prices tend to be higher. With good transport links, living outside the city may be a more suitable option for people hoping to move here.
It’s important to be informed of the options available to you. With plenty of government-supported schemes, affordable housing can be accessed by a wide range of people. You can find out more by visiting our Blog for reading material on different schemes and using our affordable homes search tool to find properties near you.
