Central South – A Call for Housing Change

Published: August 14 2024

The re-introduction of regional planning and the establishment of a new office for the Central South are among the recommendations laid out in a new document that shines a light on the current housing crisis affecting our region.

Central South – A Call for Housing Change is a thought-provoking document that has been compiled by Business South’s Housing Group.*

Regional snapshot

• Housing affordability remains problematic with average ratios ranging up to 9.7 x an average salary in parts of the region
• Rents reflect the national picture with tenants in Southampton, for example, having to pay over £1,120 per month
• Affordable housing waiting lists are significant across the region, particularly in a number of key urban areas central to current and future economic activity

As part of the scene-setting for the paper, business leaders and heads of academic organisations from across the region were invited to give their input on how the current housing situation is affecting their businesses.

Case studies

Home Grown Hotels has taken a direct step into the local housing markets in which it operates and now, effectively, runs a separate property business which holds multiple homes. This separately registered business does not seek to generate profit but instead acquires existing homes, which it can subsequently let to staff at what it sees as fair and reasonable rates. This approach, help the business to secure the staff it needs across the board, including niche and harder to fill roles like sommeliers.

HGH is also supporting new staff members with advanced payments, which allows for initial deposits to be able to be readily paid. Across the business, HGH considers it is currently ‘intervening’ in the housing situations of around 5-10% of its staff at peak times.

While Cyclife Aquila Nuclear said high housing costs in our region are making candidates think twice about roles they are advertising.

Dr Nara Ringrose, People Director at Cyclife Aquila, said:

“The existing housing situation is actively impacting on the Central South’s ability to attract and retain talent, which in turn affects the ability of businesses like ours to achieve future growth plans and to play our role in the region’s economy.”

Business South Group CEO, Leigh-Sara Timberlake said the housing document had been compiled in response to the questions that many are asking – how can we attract more talent to our region? And where are they going to live when they decide to settle here?

“Having a safe, warm place that you can call home is central to the way we live and crucial for the future growth, prosperity and stability of our region.”

“It has been a fascinating process pulling together the content for this report and we hope it will help keep housing at the top of the agenda,” she said.

Mark Perry, CEO of VIVID and chair of the Business South Housing Group, explained:

“We’re seeing much debate and discussion around the housing crisis nationally and this is only to be welcomed.

“For the Central South, however, it’s vital that our own regional housing story is told as part of the current debate – and how intrinsically important having more good quality new homes is to seeing the region able to play its role in the economic and social fabric of the UK.

“If we don’t see the Central South’s housing challenges addressed, then working to see progress made in tackling other issues will be limited and will only get the region so far,” he said.

At a Glance – recommendations

In the immediate to short term, we see a need to:

• Make improved use of existing planning powers
• See improved consultee collaboration and the introduction of new standing advice
• Build educational capacity locally to help our own skills and resource base
• Strengthen obligations on utility providers while seeing the Central South as one of Ofgem’s future Regional Energy Strategic Planners
• See a new long term funding deal for Central South authorities with planning functions at the heart
• Give recognition to our own Central South GOOD housing design principles

In the medium to longer term, we consider there’s a need for:

• Regional planning to be reintroduced
• The establishment of a new office for the Central South
• The current local plan system to be streamlined
• A regional infastructure fiscal incentive to be considered
• A potential affordable housing bonus scheme to be introduced

A full copy of the report can be accessed here.