Housing crisis ‘at its worst since 1922′

More people are languishing on housing waiting lists than ever before due to a chronic shortfall in new house-building.

The National Housing Federation (NHF), which represents housing associations, published research on Saturday highlighting an insufficient number of homes built in every region of the country since 2002.

It claimed a record 4.5 million people were on housing waiting lists and more than 2.5 million people were living in overcrowded conditions.

NHF chief executive David Orr said: “Failure to build the right number of homes across the country means that thousands of households are needlessly being condemned to the misery of poor and unsuitable housing.

“The depressing results of our research show that too few homes were being built in every region even during the boom years and that urgent action is required to get housebuilding back on track in every single part of the country.

“If we fail to build the right number of homes now, we will simply store up more problems for the future. Waiting lists will grow and homelessness and overcrowding will get worse.”

Oldham West and Royton Labour MP Michael Meacher has been campaigning about the issue for years.

“Aside from World War II, the number of homes being built this year is the lowest since 1922 and the recession has had a devastating impact,” he said.

“The whole housing situation is dire and it’s by far the greatest need in Britain today.

“Not only does there need to be more money allocated for new builds but the large number of homes lying empty should be discovered and brought back into use.”

Housing targets are currently drawn up by regional assemblies – in London by the mayor – in consultation with local authorities, government housing agencies and regional government offices.

A Communities and Local government spokesman said: “Since June Housing Minister John Healey has given the go-ahead for £4.2 billion government investment for councils, housing associations and private developers to build over 75,000 much-needed new homes across the country.

“The government’s ambition to build three million homes by 2020 is a measure of the scale of housing needed across the country and the challenge that still lies ahead.”

Taken from Morning Star

Home repossessions hit 14-year high

The number of people who had their homes repossessed reached a 14-year high during 2009, figures have shown.

The Council of Mortgage Lenders (CML) said 46,000 homes were repossessed last year, the highest number since 1995.

That was an increase of 6,000 on the total for 2008, but was lower than the CML’s most recent forecast of 48,000.

Lenders took 10,200 properties into possession in the fourth quarter of 2009 – 13% lower than in the third quarter.

In December 2008 the CML had predicted 75,000 homes would be repossessed in 2009.

However, in an interview with Radio 5 live, Housing Minister John Healey caused controversy when he said that, for some people, having their home repossessed was the best thing that could happen to them.

The shadow housing minister Grant Shapps said ministers had “lost touch with reality” and called on Mr Healey to apologise to “the tens of thousands of families who have lost the roof over their heads”.

‘Challenging year’

In terms of payment difficulties, 188,300 mortgages ended the year with arrears equivalent to at least 2.5% of the outstanding mortgage balance, the CML said.

As it has turned out, things are not nearly as bad as they were in the housing slump of the early 1990s.

Thanks to a combination of ultra-low repayment costs, tougher court rules on repossessions, and a variety of government schemes, fewer people than anticipated are either in arrears with their mortgages or have been evicted.

Last year’s 46,000 repossessions were just 61% of the total recorded in the peak year of 1991, when lenders seized 75,500 homes.

And in the past few months the position has started to improve. The CML’s statistics show that short-term arrears and home seizures eased off as 2009 wore on.

But lenders are worried it may not last. About 75,000 borrowers are stuck with stubbornly high arrears.

Any rise in interest rates may well be too much for both them and their lenders, prompting a fresh bout of repossessions.

This was lower than the total of 195,000 it had forecast, and 3% lower than at the end of the third quarter of 2009. But it still marked a 3% rise on the end of 2008.

CML director general Michael Coogan said: “The fact that mortgage arrears and possessions did not rise as much as we feared in 2009 is testament to the effect of low interest rates and a great deal of concerted effort by lenders, government and the advice sector to help borrowers to address financial difficulties when they occur.”

As a result, the CML said that its current forecast for 2010 of 205,000 arrears cases and 53,000 properties taken into possession may be “a little pessimistic”.

However, Mr Coogan added: “We are not out of the woods yet – 2010 will still be a challenging year for many borrowers, and some households will inevitably find their finances being squeezed if and when interest rates do eventually rise.”

The housing charity Shelter said the number of homes being repossessed was still “completely unacceptable”.

“Behind each one of these numbers is a heartbreaking story of a family losing their home and having to rebuild their lives,” said Campbell Robb, the charity’s chief executive.

“The tragedy is most people simply do not need to be repossessed. By giving clear help and advice to homeowners at risk of repossession, Shelter and other organisations successfully helps almost four out of five households avoid the immediate loss of their home when facing court proceedings.”

Court actions

Separately, figures from the Ministry of Justice showed that the number of potential repossessions in the pipeline in England and Wales is falling.

The number of possession actions – the first stage of an attempted repossession by a lender – launched in the courts in the fourth quarter of 2009 was 20,061. The number was 15% fewer than in the previous three months and 26% fewer than at the same time last year.

The number of possession orders agreed by judges also fell to 16,928 – 15% fewer than in the previous quarter and 42% down on the same period of 2008.

In November 2008, the government introduced the mortgage pre-action protocol which said lenders would have to demonstrate to the courts that they had exhausted all possibilities before going ahead with a repossession.

And last year, the government launched the mortgage rescue scheme, which permits not-for-profit housing associations to buy homes from people struggling to pay their mortgage and then allows them to continue living there by paying “affordable rent”.

Meanwhile, the Treasury Committee said that it would be launching a follow-up inquiry into mortgage arrears after publishing an initial report in August 2009.

The inquiry will focus on households struggling with mortgage arrears and those at risk of repossession.

Taken from BBC News

Homeless young people speak out

Homeless, forgotten, sleeping where they can. Wearside’s homeless young people need support.

Today they had their say on plans for a new £1million centre to train, support and house homeless 16- to 21-year-olds in Dundas Street, Monkwearmouth.

Charity Centrepoint says it will create a top-class facility to help give the young people a better start in life, but residents have mounted a campaign against the centres, fearing it will add to the area’s problems.

Councillors will hear both sides at a meeting before making a decision on Centrepoint’s planning application, but two homeless young men have told the Echo that too often the voices of those in need go unheard.

The Echo has given them false names to protect their identity.

David, 21, gave up his £200-per-week job in a factory in Doncaster and moved to Sunderland two years ago to live with his girlfriend. But the relationship ended soon after, leaving him homeless.

Now he bunks in with friends where he can, constantly moving round addresses in Sunderland, Washington and Murton.

He thinks it is vital that Centrepoint gets its facility off the ground as soon as possible to help people in his situation.

He said: “We’re labelled as thugs or druggies or trouble-makers. There are only a few people who give us that label, but we’ve got to live with it until we get to a certain age and situation and it just gets passed on to someone else.

“But I think as long as there is proper security and surveillance at the centre, there won’t be any trouble.

“A lot of us are lucky because we have care-of addresses, so we can get Jobseeker’s Allowance, but it’s hard to find a job and somewhere to live.”

David is one of the youngsters getting help from Wearside Women in Need’s Housing Action Programme (Haps), which works with 16- to 25-year-olds who are homeless or at risk of homelessness.

Many have support needs around drugs, alcohol or mental health issues.

Haps has 38 accommodation spaces, but operates a waiting list.

Peter is another homeless young man getting help from the organisation.

He said there was a desperate need for facilities such as the one proposed by Centrepoint – especially in the Washington and coalfields areas.

Peter had to leave his family home in Washington after falling out with his parents and siblings. He now sleeps where he can.

He wants to see Centrepoint build its homelessness centre in Washington.

“There are a lot of other homeless people in Washington and they have to go through to Sunderland for support. There are more hostels there, but there’s not much here.

“It’s further away, and if you have people here – friends or family – it’s taking you further away from them.”

Rich-poor divide ‘wider than 40 years ago’

The gap between rich and poor in the UK is wider now than 40 years ago, a government-commissioned report says.

“Deep-seated and systemic differences” remain between men and women and minority groups in pay and employment, the National Equality Panel found.

It said in areas such as neighbourhood renewal, taxes and education, policy action was needed to limit inequality.

The issues raised would need “sustained and focused action”, Equalities Minister Harriet Harman said.

“But for the sake of the right of every individual to reach their full potential, for the sake of a strong and meritocratic economy and to achieve a peaceful and cohesive society, that is the challenge that must be met,” she added.

Earning power

Apparent discrimination against people from ethnic minorities was revealed in the report, with those from nearly every minority group less likely to be in paid work than white British men and women.

The panel – set up by the government in 2008 – found that despite women up to the age of 44 having better qualifications than men, men were still paid up to 21% more per hour.

But the authors pointed out that some of the greatest differences come within social groups.

Among women, many work part-time, earning less than £7.20 an hour, much less than the median pay of £9.90 across the country.

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“Most political parties and people subscribe to the ideal of ‘equality of opportunity’,” panel chair Professor John Hills, of the London School of Economics, told the BBC.

“The challenge that our report puts down to all political parties is how do you create a level playing field when there are such large differences between the resources that different people have available to them.

“Things that allow you to buy a house in the catchment area of a good school or allow you to help your children get on the housing ladder. These are very big differences.”

The study said that the type of job and pay a parent had could have a cumulative effect throughout a person’s life, setting them on “tracks that make all sorts of differences”.

By retirement, the difference between rich and poor can be “colossal”, the report added.

The panel pointed out that half of those who have worked in the top professions have net assets worth more than £900,000, while a 10th of those who have had unskilled jobs have property, savings and possessions worth less than £8,000.

BBC social policy correspondent Gillian Hargreaves said the report would make “awkward reading for the government” as Labour had made tackling inequality a priority.

Theresa May, shadow minister for women and equalities, told the BBC that Labour’s policies had failed.

“It is shocking that after 13 years of a government that wanted to focus on child inequality, we’re still in this situation,” she said.

“Labour has had a one-dimensional approach, looking at the symptoms, not the causes. For example, one in six children are growing up in a workless household. We need policies that can make equality a reality.”

The Liberal Democrats’ children, schools and families spokesman, David Laws, said Gordon Brown’s government had “run out of ideas for tackling the lack of opportunity for so many children and the chasm that separates the rich from the poor”.

Full report – An anatomy of economic inequality in the UK [4 MB]

Summary – An anatomy of economic inequality in the UK [1.79 MB]

Taken from BBC News

Homeless turn to A&E for help

The problem of homeless people sleeping on Britain’s streets may have been transferred to hospitals, according to a new study.

Although the Government claims that the number of people sleeping rough has fallen by three-quarters since 1988, figures obtained from 173 hospital trusts under the Freedom of Information Act reveal mounting pressure on the NHS from the homeless.

In England, a homeless person is admitted to hospital for problems related to drugs or alcohol every three hours. A total of 13,872 people with “ no fixed abode” were admitted to hospital over the last five years for drug or alcohol misuse. Total drug and alcohol related admissions of homeless people have risen by 117 per cent since 2004.

The stastistics were obtained by the Conservative Party’s Homelessness Foundation, which includes the Shelter, Crisis and other homeless charities.

In a forthcoming report, seen by The Independent, the group says that six out of 10 hospital trusts have seen drug and alcohol-related admissions among the homeless rise in the last five years. More than 10 per cent of these patients were young people; in some areas up to 40 per cent of those admitted were under 25.

The report says: “Alcohol and drug dependency is, in many cases, what has led people to the streets but it also creates a vicious circle which makes the process of finding accommodation that much more difficult. The side-effects, both medical and non-medical that come with regular abuse of drugs and alcohol makes it virtually impossible for these most vulnerable of people to seek help. Appointments are missed, the lack of an address makes registering for help difficult and turning towards crime becomes ever more likely.”

The report says that recent change to the method of counting rough sleepers appears “slanted rather more towards political objectives” of getting the numbers down rather than the reality reported by homelessness groups.

Grant Shapps, the shadow Housing Minister, said: “Failing to confront the extent of homelessness in the United Kingdom leaves our frontline services like the NHS struggling to cope. Our report demonstrates how drugs and alcohol often play a major role in perpetuating the chaotic lives lived by people trapped in homelessness. It’s time to introduce policies that could start to make a difference like targeting cut price high strength larger sold by supermarkets at less than it costs to buy a bottle water.”

The Department for Communities and Local Government said last night: ” We recognise that there is more that needs to be done to meet the complex needs of rough sleepers, which is why through our ‘No One Left Out’ rough sleeping strategy we are working with the Department of Health to further improve their access to health and social care services. “

A spokesman said homeless people should be helped by personalised support packages addressing all areas of their lives and should be discharged from hospital to appropriate accommodation.

Some 39 per cent of rough sleepers have an alcohol problem and 42 per cent a problem with drugs. The Salvation Army believes the Government’s alcohol policy is failing the homeless, as it focuses on binge drinking, rather than aiming to address the underlying health problems caused by alcohol.

Taken from The Independent

More than 300,000 homes “lying empty”

More than 300,000 privately owned homes have been lying empty across England for lengthy periods while millions of families stagnate on lengthy housing waiting lists.

According to new figures released by high street bank Halifax, the number of empty homes in England reached its highest level for five years during 2008.

But when homes that have been empty for less than six months are added the real figure is double this.

A huge number of private homes have been left empty despite the four million people in the country on the housing waiting list – a figure the Local Government Association expects to increase by another million in the next two years.

The figures were released as TUC general secretary Brendan Barber called for an empty property tax of five times the usual council tax – an average of £5,875 – on up to a million homes left vacant by absentee landlords to help meet the costs of the financial crisis.

Mr Barber said: “It’s a scandal so many homes are standing empty when the queue for social housing is growing and a chronic housing shortage is pushing prices well above their pre-recession levels and out of reach of many potential home owners.

“These empty properties, often bought for purely speculative purposes or as a vehicle for tax avoidance by overseas landlords, contribute to our housing crisis and fiscal deficit.”

Economist Suren Thiru said the number of empty homes had increased recently following several years of decline.

“In many cases, high levels of long-term empty homes reflect relatively high levels of deprivation, low average earnings and high unemployment,” he said.

A spokesman for the Department of Communities and Local Government added that councils must do more to deal with empty homes and have strengthened their role so they can work with owners to bring properties back into use.

Where no alternative can be reached, councils have a last resort – empty dwelling management orders (EDMOs) – to allow councils to get empty homes occupied without forcing a change of ownership.

Taken from Morning Star

Sunderland families hit by home repossessions

A staggering 165 homeowners faced losing their properties in a three-month period, new figures revealed today.

The latest data showed that between April and June, there were 190 claims for repossession by lenders against people in Sunderland, of which 87 per cent saw court orders issued.

The news comes as the Government today launched an advertising campaign across Wearside to reach those struggling to pay mortgages.

As reported in the Echo last month, Sunderland was named as one of 22 UK “hot spots” for home repossessions.

The city was the only area in the North East to feature in the Government’s list.

And it is feared that the number of repossessions could be even worse than official figures suggest.

Coun Michael Dixon, the Tory group spokesman on housing strategy, said: “It could be a lot higher if it took into account the people in difficulties who are selling their properties to developers cheaply, and live in them as tenants.”

Council tax records show that 175 repossessed homes stand empty on Wearside.

Coun Dixon said he would like to see the council buy many of the city’s repossessed homes and make them available to those in greatest need through social housing.

The new Government advertising campaign is the second stage of the national Mortgage Help campaign, launched by Housing Minister John Healey last month.

“The worst thing any struggling homeowner can do is bury their head in the sand,” said Mr Healey.

“I want anyone in Sunderland concerned about paying their mortgage to know that practical and impartial advice is available online and over the phone.

“Our message today is clear. It’s your home – let’s keep it that way.”
The council said it welcomed any assistance to prevent people from becoming homeless.

Neil Revely, Director of Health, Housing and Adult Services, said: “Since January, no one who has sought the help of the council in these circumstances has become homeless.”

Concerned homeowners can go to http://www.direct.gov.uk/mortgagehelp or call the National Debtline free on 0808 808 400

Taken from Sunderland Echo

City’s young homeless to get beds at £1m centre

A charity is planning a new £1million centre to house homeless young people in Wearside.

Centrepoint plans a purpose-built home for 16 to 21-year-olds in Dundas Street, Monkwearmouth.

It is hoped the housing charity’s facility will help cut the number of young people sleeping rough or staying in bed and breakfasts in the city.

The “supported housing project” would provide both accommodation and training to help break the cycle of homelessness.

In the past year, 59 homeless young people were sent to live in bed and breakfasts – often outside the city – at a cost of £35,000 because there was nowhere else for them to stay.

The new housing project would help Sunderland City Council meet its target of not having any 16 or 17-year-olds living in bed and breakfast accommodation by next year.

It would also minimise the number of under-18s sleeping rough by providing emergency accommodation.

Councillors are set to hand over the Dundas Street site – valued at £75,000 – for free to Centrepoint and the council will also help the charity in bidding for £832,000 in funding to help pay for the home.

Maxine Edney, chief operations officer at Centrepoint, said the new building would not just provide a place for young people to stay with 24-hour support, but also education on everything from nutrition to job-searching skills.

She added: “We recognise that young people are often not just homeless but have other support needs and reasons contributing to their homelessness.

“Also we wanted to work with young people to look at why their relationship with their families has broken down and, if possible – and we know it isn’t always possible – see if they can maintain a relationship with their parent or other family.”

Ms Edney said Centrepoint had won a top award for its comprehensive support and training, and also worked with young people to help them become part of their community.

“That helps break down the ‘them and us’ situation which can occur when people think there’s a ‘hostel in their street’, for example,” she said.

Work on the new centre – which will also be open to those leaving the care system – could start as soon as February next year, and be complete by the following February.

Centrepoint is a national charity working to improve the lives of socially excluded, homeless young people and provides a range of accommodation-based services.

It is already contracted by the council to provide an “immediate access supporting housing project” for young people in the city.

Its Sunderland operation is presently based in Mowbray Road, Hendon – but its planning permission is due to run out in March.

The building is also deemed unsuitable because of its size, layout and state of repair.

In the past six months 37 young people have joined the service and 15 have left, but there is still a big short-fall in the amount of spaces available.

Senior councillors on Sunderland’s ruling cabinet are recommended to approve the hand-over of the Dundas Street site to Centrepoint – subject to terms to be agreed by the council – at a meeting at Sunderaland Civic Centre today.

Taken from Sunderland Echo