Growing impact of the credit crunch on South East homes
03/03/09
A new report from the CIH South East indicates that house price inflation is steeper in the South East (7.9%) compared to the UK average (5.1%). Other recent data shows house repossession orders have increased by 10%; during the last quarter of 2008 (4,855 orders), as the credit crunch continues to affect the South East.
However, despite an average annual house price fall in the South East approaching £38,0003, the region continues to be faced by challenges of housing affordability - mainly due to the lack of mortgage products - and a growing pressure on rented and social housing. This is particularly the case in areas such as Buckinghamshire, South Hampshire, Sussex coast and all rural areas across the South East.
Current available data on waiting lists for social housing in the South East shows an increase of 32,000 people between 2004 and 2007, up 200,0004. Overall, across the UK, the waiting lists are expected to rise significantly to five million by 2010 as repossession levels increase and more people default on their mortgage repayments.
Many of these issues and more will be debated in the South East's largest housing conference and exhibition in Brighton, with over 1,000 delegates scheduled to attend. Claire Martin, CIH South East's incoming chair said:
'The UK housing market is going through unprecedented times; house price growth stands at -9.4%; mortgage lending is down 67.1%; and repossessions are up 41%;. House building in England has continued to decline - down 37 per cent compared with 2007 and 43%; below their 2005-06 peak. Against this challenging national background, this week's conference will look at how the South East can minimise the impact of the current economic downturn on housing and communities across the region, and prepare for the future.'