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 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 per cent) of those polled in the region said the lack of affordable housing is stunting economic growth in local communities with 70 per cent 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 – potentially out of the country."
The ComRes report also found that 55 per cent of managers think the availability of affordable housing would be important if they were moving to another area or expanding their business.
Around three quarters of the sample said house prices are a problem in their area, adding that building more homes would stimulate the local economy and bring in more business and customers. The 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.
A recent 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 per cent a year as interest rates and house prices rise, climbing 32 per cent by 2018,
Richard Copus, spokesman for the South West branch of the National Association of Estate Agents, said housing market activity was 40 per cent down on where it should be and claimed anti-development campaigns, so-called "nimbyism" was holding back many affordable developments
He added: "Planning needs to be eased for the rented sector – we need a whole rainbow mix of different types of housing."
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