Housing slump takes its toll

Don Frame and Ian Craig

April 03, 2009

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THE number of new homes being built across Greater Manchester has slumped because of the recession.

In Manchester the number of home planning applications to councils almost halved from 277 to 146 last year.

In Stockport 442 applications were approved during 2007 but only 48 had been granted during the first six months of last year.

The figures have been released as MPs are urging the government to take urgent action to prevent a housing crisis in the north west.

Members of the Commons Local Government Committee have been warned by the North West Housing Forum that strong evidence is emerging that the credit crunch is having a serious impact on housing.

Mortgage

Last year there were 18,644 mortgage possession orders nationwide - an increase of 23 per cent over the previous year.

The number of new homes built across Greater Manchester is down in every one of its 10 districts.

In Wigan there were 249 applications submitted in 2007 but last year during the first eight months of the year - the latest available statistics - there were only 128.

In Tameside there were 149 planning applications last year, compared with 170 the previous year, but the difference between numbers of potential new homes was far greater.

The 170 applications in 2007 involved a total of 2,071 new properties, while the 149 applications last year were for a total of only 807.

Developments

In Oldham there were 155 planning applications last year, of which 20 were classed as major developments involving more than 10 properties.

But in 2007, 203 applications were submitted to the council, of which 45 were major developments.

In Trafford the gap was narrower with 144 planning applications last year compared with 158 the previous year.

In Salford there were 17 fewer applications last year, with 142 compared with 159 in 2007.

Bolton council has seen planning applications for just 68 new homes in the current financial year. In 2007 it received applications to build 1,833 properties.

Rochdale received 142 planning applications last year, compared with 181 in the previous year, while Bury received 73 applications last year, and the same number the previous year.

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local_lass, Burnage (03/04/2009 at 08:57)

What is the point of building new homes when older homes are standing empty and can't be sold?
Is there a housing shortage or not?
There is a very simple solution to this. Local councils should be able to buy up ex-coucncil and other properties and return them to social housing. Propiing up the housing market and reducing the waiting lists for council houses in one stroke.

If we could sell our house, we could buy another - maybe even a new build! and once the builder start selling, they will need to build more again.

Jay B, oldham (03/04/2009 at 10:26)

Several projects around the oldham area have just stopped. the business is still going but they just seem to not want to build the houses.
this is because the price of materials are high at the momment and the fact they cannot sell them.
although they can sell them, just not at the overhyped prices they want to.
the councils need to start forcing these companies to start building again. this is why our countrys chrashing!

the need for housing is still there! just not at the dear prices they want to charge for them!
its time th

Redtooth, Manchester (03/04/2009 at 12:37)

local_lass, Burnage - If they stopped the right to buy at 2/3 to even 50% of the market value then we might still have enough housing to go around.... people have been stitching the system for years getting on the social housing and then selling at a massive profit and reaping the rewards especially in London

zarquon, bramhall (03/04/2009 at 13:32)

Indeed housing is a major problem, in Stockport where I am, the Councillors seem to advocate large developments which have all failed supposedly due to funding. The North West Regional Assembly allocates new housing targets which are not being met in Stockport in order to achieve deliverable supply according to Planning Policy Statement 3 and since preference is given to large developers at planning meetingsfor approval, individualsand smaller develops miss out on opportunities to contribute to housing needs. It is a case of who you know! The policies followed at local level need to reflect those at national level, in Stockport, the evidence is clear that this is not happening. That is why there are so many homeless people and others awaiting social housing, something that Margret Beckitt and previously Caroline Flint is keen to see happening, yet the Councillors mainly Lib Dem and Conservative are not.

Angie33 , Manchester (03/04/2009 at 13:36)

A good start to free up some housing would be to take back all the flats that are used only for a benefit drop.

The Truth (03/04/2009 at 16:39)

"Housing shortage" is a fallacy that has been perpetuated for years by political/housing/planning strategists who number crunch all day producing statistical projections when the real work on delivery is done by those in development control. The market is now telling us there is far too much housing for sale, particularly apartments, and the high demand was falsely reinforced by mass investors and speculators. There WILL be some specific shortage's but it is not across the board.

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