County is grappling with change

by Nic Rigby
BBC News

The Port of Harwich has helped businesses to grow in Essex

Essex has dramatically changed over the past 40 years because of a huge influx of London commuters, a BBC commissioned study suggests.

The county has seen business benefits from being close to the capital, but this has also led to high house prices.

The Changing UK study found that in 2006 the average selling price for a house was £214,000 - the ninth highest in the country.

The survey also found that Essex saw 4,810 housing completions in 2006.

The population of Essex has increased by 13.3% between 1981 and 2006, the University of Sheffield study found.

Professor Michael Sherer, the director of the Essex Business School at the University of Essex, said being a neighbouring county to London had helped its growth.

"There has also been a huge increase in the number of commuters," he said.

"More and more people decided it made economic sense to live 30/40 miles from London in houses for half the price they'd pay in the city."

Basildon in Essex has benefitted from economic investment

The county also has the container ports of Harwich and Tilbury and Stansted Airport.

He said Essex had benefited through European Union investment in Basildon, Thurrock and Southend via the East of England Development Agency.

It is also set to reap benefits from being close to the 2012 London Olympics.

John Clayton, chief executive of Essex Chamber of Commerce, said the county had been less affected by the economic downturn than other parts of the country, though the lack of skilled staff was a concern.

"We have members who want to expand, but are held back by the lack of skilled workers," he said.

Housing bubble

One aeroplane maintenance company has 30 skilled posts unfilled, said Mr Clayton.

But Prof Sherer said that even before the recent economic downturn, the county was facing problems with its housing stock.

"We do see in this area a lot of property that is unsold. Over the last year to 18 months the housing bubble has burst. People have not been able to sell them as fast as they wanted to."

He said the downturn had also seen a collapse in the lettings market, with rental prices down 25% over the last few months.

Essex County Council is concerned about the plans for the expansion of the Essex - where more than 100,000 new homes are being planned.

Stephen Castle, deputy leader of Essex County Council, said: "We feel the Government is trying to impose growth on the county which the county does not need.

"Our challenge is to ensure any development does not repeat the mistakes of some of the new towns."