Bermuda Housing Corporation needs more power to tackle soaring house prices, the issue of vacant homes and future accommodation needs for seniors, according to the Sustainable Development Roundtable.The advisory group wants Government to set up a policy unit within the BHC, to carry out research and develop a better approach to managing Bermuda’s housing stock.It points to figures showing the cost of housing has risen 175 percent in 15 years, meaning homes are now 3.5 times more expensive in Bermuda than the rest of the developed world.The SDRT also notes the Island has no accurate record of its stock of vacant or derelict properties, making it difficult to manage the topic of housing on a national level.In its report to Cabinet on housing, SDRT further stresses the need to plan for a forecasted large increase in seniors.After listing a succession of concerns over prices, vacant homes and seniors, the paper states: “Institutional arrangements should be thoroughly reviewed to establish an administrative structure with powers and adequate resources to respond to current and future housing challenges facing Bermuda.“These arrangements should allow for a more broad-based, integrated approach to managing Bermuda’s housing stock in the interests of all residents of the Island.“An effective organisation would deal effectively with the wide spectrum of housing issues facing Bermuda and it is therefore critical that the organisational response be appropriate for the task.“There is a need for a coordinated and comprehensive approach to housing policy and this is likely to require the establishment of new administrative arrangements.“The SDRT recommends that the Bermuda Housing Corporation’s mandate and resources be expanded to absorb and be responsible for administering the full range of housing matters.“This would be underpinned by the establishment of a policy unit that has an understanding of the complex social and economic factors discussed above including, affordability, returning vacant homes to the market, forecasting demand based on the economic performance and preparing for the growth in the seniors population.”The report was put together following wide consultation with groups including numerous Government departments and quangos, external bodies such as Bermuda Employers’ Council, and members of the public.It has been presented to Cabinet by Environment Minister Marc Bean but its recommendations are not binding; the SDRT forwarded a copy of the report to The Royal Gazette to share its findings and invite feedback from the public.On house prices, it states: “Bermuda’s limited developable land mass, high population density and strong demand for housing have combined to drive housing prices up by approximately 175 percent over the last 15 years.”Stating the average house cost has soared from $400,000 in 1993 to about $1.1 million in 2010, the report continues: “Not only has the purchase price risen at an alarming rate, census data between the last two recording periods, 1991 and 2000, indicate an overall increase in median rental value by 28 percent, with three or more bedrooms units increasing by 57 percent.”It says home ownership has increased from 52 percent of owner-occupied Bermudian households in 2000 to 69 percent now, exceeding the 65 percent target set by the Sustainable Development Implementation Plan.Meanwhile in 2008 an average 26 percent of household income was spent on housing, which compares favourably with similar jurisdictions.However, based on the average gross income of just under $52,000, it takes 21 times the average salary to cover the cost of buying a home in Bermuda.The report states: “In the rest of the developed world, it takes about six times the average annual salary of the working population to meet the purchase price. This makes the cost of housing in Bermuda about 3.5 times more expensive than in the developed world.”It goes on: “The limitations on empirical data covering our housing market makes it difficult to conduct a full assessment of the market.“However the SDRT has used some of the qualitative data available to advise that almost half of Bermuda’s residents believe that the housing situation in Bermuda is serious or urgent where price and availability are the major factors influencing housing views.”Regarding vacant and derelict homes, the report states: “Accurately quantifying the number of homes that are vacant and therefore not part of the available housing stock has been a constant weakness in housing discussions.“Although there has been some work done on quantifying the number of derelict homes across the Island, this too is not a readily known quantity and has also been a difficult statistic to measure, apart from the census, and therefore address with any meaningful mitigation measures.“The absence of these two measures adds to the challenges and complexity of managing this important national issue.“An appropriate housing information management system could go some distance to capturing relevant data such as this and providing sound analysis to support actions for example to bring vacant and derelict homes to market and conversely accept that some homes will not be available for occupancy.“The SDRT is of the view that Government should assess the feasibility of acquiring and facilitating the redevelopment of derelict homes.“Of course there will always be a number of homes that are withdrawn from the market by landlords who have no interest in bringing them to market.”Other issues addressed by the report include the implications of job creation, with the SDRT concluding the high population density impacts upon quality of life through overcrowding and restrictions on affordable housing.Anyone with queries or comments can e-mail sdd@gov.bm.Useful websites: www.sdbermuda.bm