Urgent need for new affordable homes

Latest Government statistics on house prices add further weight to the National Housing Federation's call for a dramatic increase in affordable housebuilding.

The House Price Index published by Communities and Local Government shows that the average house price in the England in January stood at £212,845, up from £193,707 in January 2006.

David Orr, chief executive of the National Housing Federation, said: "Rising property values are good news for those lucky enough to be on the housing ladder already, but they spell misery for many thousands of people unable to afford a decent home. This isn't just a problem for first-time buyers; rampant housing inflation also means higher private rents and increasing strain on our shrinking affordable housing stock. There are currently 1.6 million households on housing waiting lists. This figure will soar unless the Government can get a grip on our affordability crisis.

"We desperately need to build more homes. This year's Comprehensive Spending Review should give housing associations the resources to deliver 210,000 new affordable homes over the next three years if we are to stand a chance of meeting housing need in this country."