Give first-time buyers a chance (From Echo)

Give first-time buyers a chance

2:11pm Tuesday 15th January 2008 in News

BASILDON is falling drastically short of housing targets, leaving the district's first-time buyers with little hope of getting on the property ladder.

Since 2001, the council has consistently failed to meet the Government target of building 535 new homes a year, managing an average of 255.

Now an independent report suggests the council sets up a "local housing company" to speed up the building of new homes.

It says a council-run firm could get funds together quicker than private housing associations, allowing it to speed up the building of new homes and the revamping of estates.

The report also says there is a need for more upmarket housing to attract wealthier outsiders to boost the local economy.

The council-commissioned report, states: "There are now significant affordability barriers. Entry-level house prices are approximately eight times the earnings of someone trying to get on the ladder."

The report, by consultants GVA Grimley, also claimed 45 per cent of those people not already on the ladder could not afford to purchase the cheapest houses - while 30 per cent cannot even afford to rent.

It stated: "Future provision of affordable housing must provide people with the opportunity of a decent home which they can afford."

Basildon Labour Group leader Nigel Smith said the report confirmed his party's criticism of the Tories' eagerness to build more luxury flats in Basildon and Wickford.

He said: "We have planning approvals and applications for hundreds of expensive flats in the town centres, which are unsuitable for families and too expensive.

"There is no provision of affordable homes, merely cash contributions for cheaper homes elsewhere which are seemingly not being built."

Mr Smith said new flats being built were attracting buyers from London in search of homes cheaper than in their area.

However, Tony Ball, Tory councillor responsible for housing, said the report also called for a greater mix of homes which proved his party were getting it right. He said: "It suggests more aspirational homes, and says there is a shortage of larger properties, particularly in Basildon.

"We are building 700 new homes in Wickford and 3,500 in Basildon.

"Ten per cent of these will be affordable."

He said a local housing company run by the council was an option because it would give the council more control over developments.

• Plans to build 93 luxury flats were put on ice because they included no low-cost homes.

Councillors were set to vote over proposals from Hawkstone Properties to transform former Car Park 3 in Southernhay, Basildon, into flats and three shops.

But the vote was postponed after a row erupted over the lack of affordable homes.

The developer agreed to contribute £398,000 to low cost housing elsewhere in the district, but Labour councillors argued plans for town centre homes should cater for locals struggling to get on the property ladder.