09 Aug 2016

Population in the Ipswich area set to rise to 148,200 by 2036

        

Ipswich faces a predicament. The population is growing and the provision of new housing isn’t keeping up. With the average age of a Ipswich person being 38.0 years (compared to the East of England average of 40.2 years old and the national average of 39.4 years of age), the population of Ipswich is growing at an alarming rate. This is due to an amalgamation of longer life expectancy, a fairly high birth rate (compared to previous decades) and high net immigration, all of which contribute to housing shortages and burgeoning house prices.

 

My colleagues and myself work closely with Durham University and they have kindly produced some statistics specifically for the Ipswich Borough Council area. Known as the UK’s leading authority for such statistics, their population projections make some startling reading…


buy to let

 

For the Ipswich Borough Council area ... these are the statistics and future forecasts

136,489

139,906

142,882

145,553

148,259

 

2016 population           136,489

2021 population           139,906

2026 population           142,882

2031 population           145,553

2036 population           148,259

 

The normal ratio of people to property is 2 to 1 in the UK, which therefore means...

 

We need just under 6,000 additional new properties to be built

in the Ipswich Borough Council area over the next 20 years.

 

Whilst focusing on population growth does not tackle the housing crisis in the short term in Ipswich, it has a fundamental role to play in long-term housing development and strategy in the town. The rise of Ipswich property values over the last six years since the credit crunch are primarily a result of a lack of properties coming onto the market, a lack of new properties being built in the town and rising demand (especially from landlords looking to buy property to rent them out to the growing number of people wanting to live in Ipswich but can’t buy or rent from the Council).

 

Although many are talking about the need to improve supply (i.e. the building of new properties), the issue of accumulative demand from population growth is often overlooked. Nationally, the proportion of 25-34 year olds who own their own home has dropped dramatically from 66.7% in 1987 to 43.8% in 2014, whilst 78.2% of over 65s own their own home. Longer life expectancies mean houses remain in the same hands for longer.

In the short to medium term, demand for a roof over of one’s head will continue to grow in Ipswich (and the country as a whole). In the short term, that demand can only be met from the private rental sector (which is good news for homeowners and landlords alike as that keeps house prices higher).

 

In the long term though, local and national Government and the UK population as a whole, need to realise these additional millions of people over the next 20 years need to live somewhere. Only once this issue starts to get addressed, in terms of extra properties being built in a sustainable and environmentally friendly way, can we all help create a socially ecological prosperous future for everyone.

Rents Team