Everyone loses in housing shortage says minister

Posted: 23 Nov 2006 10:49:47 GMT

The government has warned that the 'haves' of the property market will ultimately suffer alongside the 'have nots' if opposition to new home building continues

The government has warned that the 'haves' of the property market will ultimately suffer alongside the 'have nots' if opposition to new home building continues.

Housing minister Yvette Cooper said that 14,000 homeowners were already forced to draw equity from their home to cover the cost of property for themselves or family.

Since 2000, the number of under-30s in rented accommodation has grown from 33 to 41 per cent and the number buying homes has fallen from 40 to 34 per cent.

If the country is to return to the recent 70 to 80 per cent pattern of homeownership then it will have to accept new housing, said Ms Cooper.

The UK requires 200,000 new homes a year to keep pace with household growth, say government figures. Currently, 165,000 are built every year, up from 130,000 in 2001.

"It won't just be young people who lose out if we don't build the new homes the next generation needs," said Ms Cooper. "Their mums and dads will feel the heat too.

"People's chances of home ownership should not depend on whether or not their parents or grandparents were homeowners before them.

"That's why we need to support more homes, and more shared ownership schemes, to give people a first step on the ladder."

© Houseladder Ltd