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3m extra homes 'still not enough' 3m extra homes 'still not enough'
(about 2 hours later)
England is heading for a housing crisis despite the government's pledge to build an extra three million homes by 2020, according to a report.England is heading for a housing crisis despite the government's pledge to build an extra three million homes by 2020, according to a report.
The independent body set up to advise ministers on new homes said at least 250,000 more are needed to help tackle the shortfall. The independent body set up to advise ministers on new homes said at least 250,000 more were needed.
It said average prices in England are more than seven times average salaries. The National Housing and Planning Advice Unit said average prices in England were more than seven times average salaries.
They are set to reach nine-and-a-half times the average salary by 2026, the report suggested. And it said they were set to reach nine-and-a-half times this by 2026.
Bleak outlookBleak outlook
The National Housing and Planning Advice Unit added that, even if the extra homes are built, their affordability will still get worse. It added that, even if the extra homes were built, their affordability would still get worse.
Professor Stephen Nickell, who helped write the report, told the BBC that the 270,000 figure being called for had to be seen in context.Professor Stephen Nickell, who helped write the report, told the BBC that the 270,000 figure being called for had to be seen in context.
"If you'd like to put this sort of thing into perspective we built more than that number back in the 1930s in Britain when we had a considerably smaller population."If you'd like to put this sort of thing into perspective we built more than that number back in the 1930s in Britain when we had a considerably smaller population.
"And most other countries in the developed world, proportionately speaking, build houses at a faster rate than we do.""And most other countries in the developed world, proportionately speaking, build houses at a faster rate than we do."
The report comes on the same day as Housing Minister Yvette Cooper is expected to unveil funding to encourage local councils to help create the millions of affordable new homes that are needed.The report comes on the same day as Housing Minister Yvette Cooper is expected to unveil funding to encourage local councils to help create the millions of affordable new homes that are needed.
Ms Cooper will announce that councils intending to build the most new houses will be given £1,100 per home, and this may increase to £5,000 by 2010/11.Ms Cooper will announce that councils intending to build the most new houses will be given £1,100 per home, and this may increase to £5,000 by 2010/11.
Empty propertiesEmpty properties
Also included in the plans is a £510m fund to help bring empty homes back into use.Also included in the plans is a £510m fund to help bring empty homes back into use.
Councils who aggressively target empty properties, including through compulsory purchase orders, will share in the fund to help pay for the projects.Councils who aggressively target empty properties, including through compulsory purchase orders, will share in the fund to help pay for the projects.
There are an estimated 670,000 homes and properties currently standing empty, and nearly 300,000 in England that are long-term vacant.There are an estimated 670,000 homes and properties currently standing empty, and nearly 300,000 in England that are long-term vacant.
The initiative will funnel extra money to regions where the increase in new homes is more than 0.75% of the existing stock.The initiative will funnel extra money to regions where the increase in new homes is more than 0.75% of the existing stock.
Last week Ms Cooper gave a stark warning to councils, saying that a refusal to build new homes in their area would be a "betrayal of first-time buyers".Last week Ms Cooper gave a stark warning to councils, saying that a refusal to build new homes in their area would be a "betrayal of first-time buyers".
She is also to warn that "outdated regional housing targets" will be no excuse for local authorities not to build new homes.She is also to warn that "outdated regional housing targets" will be no excuse for local authorities not to build new homes.