Lack of affordable homes hits economy

At the same time, firms and businesses were unable to expand because of the 'huge negative impact' caused by lack of housing.

A report by the business support organisation Sussex Enterprise has been submitted to local authorities, to form the next stage of on-going consultation over the new South East Plan.

It claimed that Sussex businesses had been unable to create between 3,000 and 6,000 jobs over the last year due to a lack of housing, as they could not recruit the right level of workers needed to expand.

"This means that between 100m and 180m of economic output has not been generated over this period as a result of the problem," said the report.

The key findings showed that although house prices had been increasing rapidly, average earnings had increased more slowly.

In 1999, average house prices in Sussex were five times the average wage. However, by 2003 average house prices had increased to eight times the average wage.

"This means that all areas of Sussex now have an average mortgage affordability gap for a single first-time buyer of 88,194," it continued.

Full story in West Sussex Gazette, October 6