SW firms must fight for more homes

As more powers shift from Whitehall to town halls, the South West Housing Initiative (SWHI) is rallying businesses to call for politicians to shape UK devolution in a way which will solve the region’s housing crisis. This crisis is having a detrimental impact on businesses.

SWHI, a partnership of housing professionals committed to combating the region’s housing crisis, said that employees will increasingly struggle to find affordable homes near where they work. Businesses are already struggling to retain staff and recruitment is becoming more challenging. The average house price in the South West is now 9.6 times the average income. In the North West and the North East, the ratios are 7.4 and 6.1 respectively. Devolution is the chance to help solve this but individual businesses need to raise this issue with politicians.

Wayne Morris, Chair of SWHI said: “As devolution takes shape, our region will be competing against other areas of the UK for funding. Recent NHS devolution agreements in the North West suggest housing is also competing against other sectors for funding.

“The shortage of homes in the South West is having a direct impact on the region’s economy and on businesses. It puts pressure on employees trying to find an affordable home near where they work, on household budgets and affects their working lives – all of which inhibits businesses.

“A measure of success for devolution is whether it solves this housing crisis and today we are writing to businesses to raise this issue with us so we can deliver this message to politicians.”

Simon Nunn, Assistant Director, External Affairs and Member Relations at the National Housing Federation (NHF) said: “Devolution is likely to bring different outcomes and structures in different parts of the country. The South West needs strong political leadership and commitment to end the housing crisis in the region, to deliver effective strategic planning functions and hold fast on delivering the housing numbers it needs.”

Anne Hayward, Partner, Clarke Willmott LLP – a founding member of SWHI – said: “The benefits of funding and support that devolution is bringing to the Northern cities and London are clear. Unless the South West makes a strong case to central Government, the region risks being side lined and losing out on the help it needs in delivering more homes.”

Ian Price, Assistant Director Wales and South West, CBI said: “The South West was deeply affected by the recession, with 45,000 net job losses between 2009 and 2013, more than any other region in England. At the same time, the region is a key growth driver of the UK’s housebuilding market, with more than 16,000 homes built locally in 2013/4. But there’s still an acute shortage of homes and the virtuous circle of employment growth and new homes is desperately needed to the region’s recovery. The CBI is backing the SWHI in its call to politicians to keep this issue high on the political agenda and is inviting the business community to add weight to the argument.”

Chris Garcia, Chief Executive, Heart of the South West LEP said: “The South West’s rural heartland needs an economic boost and a shortage of homes in the right places is one of the factors we are addressing. Local people often can’t afford homes close to where they can work and a lack of public transport means they can’t travel to areas where there is work. We aim to create the right conditions for growth to generate high value jobs through investment in infrastructure and skills; and housing is an important part of the mix that connects people, places and business to enable the South West to compete on a global platform.”

The SWHI is asking local businesses to get involved by contacting SWHI Co-ordinator, John Baker by email jbaker@peterbrett.com or call 0117 928 1560.