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16/03/06 - Household growth boosted by people living by themselves.

An increase in people living by themselves will account for 72% of annual household growth up to 2026 says the latest household projections published today by the Office of the Deputy Prime Minister.

The figures also show significant increases in household growth in the North and Midlands compared with previous projections. The new household projections of households for England and the regions to 2026 show the number of households in England is projected to increase from 20.9 million in 2003 to 25.7 million in 2026. This amounts to 209,000 new households a year of which 150,000 are single person households. Just under a quarter of this increase in single person households is amongst the 55-64 age group.

The projections are higher than previous projections due to higher household growth in the North and Midlands with 20,000 additional households a year compared to previous forecasts. Growth in the four southern regions accounts for 60% of annual household growth, however it has fallen slightly compared to previous projections. This supports the case, made in the government's response to the Barker Review of Housing Supply, for more affordable, high quality homes across the country.

The government announced in its response to the Barker Review that it should increase new house building to 200,000 a year by 2016. Currently 160,000 new homes are built each year, which despite significant increases is still lower than in previous generations. Research shows that if the current rates of building continue, the pressure on house prices will be such that in 20 years, the proportion of 30-year old couples able to afford their own home will drop from over 50% to nearer 30%.

Housing minister Yvette Cooper says: "We have an ageing, growing population with more people living alone and if we don't build more homes to meet that need we will see house prices rise further pushing first-time buyers out if the market. These figures show how important it is to build new homes for the next generation in every region."

"As the Barker Report set out, we also need more houses in all regions of the country. Rising housing demand is not just a Southern phenomenon. As last week's publication of the State of the Cities report has indicated, many cities in the north and west are developing successful economies and reversing the decline in population growth."

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