The chronic housing crisis – characterised by high property prices and a dearth of affordable homes – is stifling economic recovery across the South West, businesses have warned.
The "sky-high" cost of renting and buying is making it difficult for firms to recruit staff, according to a survey of more than 1,000 employers commissioned by the National Housing Federation (NHF).
Four out of five (80%) of those polled in the region said the lack of affordable housing is stunting economic growth in local communities with 70% warning it is affecting their ability to attract and keep workers.
NHF lead manager in the region Sarah Carr said recovery is being held back by a lack of homes which has pushed up prices and rents "beyond reach". She said less than half of the 240,000 homes needed were being built nationally.
"Building more homes can kick-start local economies faster than any other industry, create jobs and can keep local shops or pubs open," she added. "It could be the crucial difference between a thriving community and a dead ghost town. If things don't change, employers will simply move taking away desperately needed jobs."
The ComRes report also found that 55% of managers think the availability of affordable housing would be important if they were moving to another area or expanding business. Around three quarters of the sample said house prices are a problem in their area, and that building more homes would stimulate the local economy and bring in more business and custom.
Employers also had an urgent message for local enterprise partnerships (LEPs) to focus efforts in housing.
Out of the 61 quizzed, 42 said local investment in affordable housing should be part of LEP strategies when distributing the Government's Local Growth Fund.
Tim Jones, chairman of the Heart of the South West LEP, said that "critically important" issue was "right on the front burner" for the organisation. He added: "It has so been a missed opportunity by the Government but they have got the message now and in the next 12 months we will see a lot of money thrown at the housing industry. We have been saying for a long time the lessons of the Great Depression must be learned – we built our way out in the 1930s with 300,00 houses a year creating a third of all employment. The construction industry can turn the tap on fairly quickly and if we can activate the market it is a win-win situation."
A recent NHF report by the National Housing Federation put the average house price in the South West for a first-time buyer in 2012 at £161,046, rising to £234,582 by 2020.
Nationally, rents are set to rise by around 6% a year as interest rates and house prices rise, climbing 32% by 2018, Richard Copus, spokesman for the South West branch of the National Association of Estate Agents, said the housing market was "creaking" with market activity still 40% down on where it should be, though he added that there were signs of improvement. He claimed local anti-development campaigns in towns and villages, so-called "nimbyism" was holding back many affordable developments.
"In Holne, where I live, it took at least six years to get a scheme for six affordable homes through – the nimby brigade is small in number but highly articulate," he added. "Planning needs to be eased for the rented sector – we need a whole rainbow mix of different types of housing."