Bob Line B.Line Housing Information Leicester www ...

Bob Line B.Line Housing Information Leicester www ...

East Midlands Councils Housing Market Assessment : the next generation 25th April 2013 Melton Mowbray Baptist Church Bob Line B.Line Housing Information Leicester Housing Market Assessments the next generation what do they need to cover key outputs what are the controversial aspects at present what methodologies should they use what is current guidance, will it change, how ?

SHMAs should develop, enable or provide (2007 guidance) long-term strategic views of housing need and demand to inform spatial strategies local authorities to think spatially about the nature and influence of the housing markets in their local area; robust evidence to inform policies aimed at providing the right mix of housing across the whole housing market both market and affordable evidence to inform policies about the level of affordable housing required, including the need for different sizes of affordable housing support authorities to develop a strategic approach to housing through

consideration of housing need and demand in all housing sectors assessment of the key drivers and relationships within the housing market; draw together the bulk of the evidence required for local authorities to appraise strategic housing options ensure the most appropriate and cost-effective use of public funds. Which means ? Gather extensive data and evidence, handle and interpret it to :- Understand local housing market systems

including spatially Derive some key magic numbers - Additional housing required housing targets Type and size mix Tenure mix Affordable Housing required - but magic numbers are a myth

Additional housing required housing targets controversial Based on Household Projections, .. household projections are produced by applying projected household representative rates to the population projections published by the Office for National Statistics. CLG projections , or Popgroup, Cambridge Econometrics, Edge Analytics, etc

Typically additional housing required is equated to crude increase in number of households, + some slack . CLG projections free and official detailed data for modelling and analytical purposes r-modelling-and-analytical-purposes Latest set 2011-2021 -

ONS interim (population) projections are not in the usual schedule of releases but have been produced to meet specific user requirements for an updated set of projections which incorporate data from the 2011 Census but are only required to 2021 ..\..\CIH\Planning for Housing group\CLG household projections 2013\East_Mid lands_unrounded.xls Examples- totals How to convert household

projections to housing requirements Demographic demand and housing need how do new additions to stock address demographic demand and/or need not a simple process, planning doesnt engage with it enough

most newly emerged household unlikely to be able to access new properties filtering down required how much, and how fast, does filtering down work Deriving type and size mix from household projections Unpicking, and interpreting the household projections 10

Detailed unrounded x tabs 2011 Detailed unrounded x tabs 2021 Link it, Simplify it , Graph it Rushcliffe from Chart 21: Comparison of broad household types and ages: 1991, 2008 & 2033 14000 12000

8000 6000 4000 2000 1991 2008 2033 . 1991 2008 2033

. 1991 2008 2033 . 1991 2008 2033 . 1991 2008 2033 Source: DCLG Households2

. 1991 2008 2033 75-84 65-74 55-64 45-54 35-44

25-34 0 15-24 Number of households 10000 . 1991 2008 2033

. 199 Lifestages and housing careers Doesnt always apply, may be differences and variations along the way but broadly generally applies Housing mix estimates You can estimate the mix required if you assume: Households require the dwelling type appropriate to them

in size & type ( affording it is another issue ) They are keener to upsize when they need to than downsize when they could you can estimate the extent to which larger homes are released for growing households ( largely families with children) by downsizers ( largely empty nesters) If they are not released more family units are needed to offset this You can vary downsizing and other factors with evidence based judgments 15

Examples of housing mix estimates 16 Adjusted for aspiration Result is for all households, so compare to all stock Housing Need

- for ( PPS3) Affordable Housing Basic Components of Need Need from emerging households unable to afford to buy or rent PRS without HB + Backlog need from existing households in unsatisfactory, insecure, unsafe or unaffordable housing / years policy period + Need arising from existing households falling into need - total less supply of affordable housing new & relets,

low cost sales ..\..\HSN, HSA\HSNversions\Example_Bramleybased_LA_needs_model2010.xls Affordability v affordable housing PPS revisions 2011-02-23 The terms affordability and affordable housing have different meanings. Affordability is a measure of whether housing may be afforded by certain groups of households. Affordable housing refers to particular products outside the main housing market.

Creates a dumbbell market Insufficient middle range family housing to help create balanced provision Subsidised social rented Higher value ,

higher cost market housing flats, larger detached => oversupply Spatial understanding sub areas Get the geography right to make it all clearer Sub-markets potentially provide us with the organising principle we seek Pryce G, 2007

Administrative boundaries: housing submarkets do not respect administrative boundaries, yet it is at this level that much data is collected and analysis undertaken. We need to separate the two. Spatial scale: sub-markets can exist at any scale Methods: there has been no agreed way to identify or describe sub-markets. Housing submarkets

Need by submarket Developers business model purchase an option on land; obtain planning permission; may trade land with planning permission borrow money to acquire the site and build a first amount of homes; sell completed units in a phased way to pay back the loan; complete the remainder of the planned units during

which time profits can be taken; move on to another site and repeat the overall process Developer behaviour gaming the planning system ? Push for release of more land, through higher numbers, based on crude total demographic change Cherry pick it, land trade , appeal on plum sites

with 5 (6) year land supply trump card. Squeeze down or delay AH and middle range market housing push more towards Affordable Rent to get higher price for AH build large expensive Executive Homes drip feed completed units onto the market so as to maintain local price levels Will not, - cannot - , deliver volumes required to improve

supply:demand balance ? Future Guidance Taylor Report - Review of Government Planning Practice Guidance Updating the Strategic Housing Market Assessment (SHMA) and Strategic Housing Land Availability Assessment (SHLAA) guidance, to underpin the delivery of the National Planning Policy Framework in plan making and ensure it is used effectively. CLG say we will be reviewing the SHMA guidance, the timetable has not yet been confirmed, but it will form part of the review of all planning related

guidance. . The outcome will be an appropriate and easy to use set of guidance, focussing on issues that require national expression, to support implementation of the Framework. ' focussing on issues that require national expression' means focusing on issues that need some form of articulation/guidance at a national level rather than be left to local interpretations which can provide an inconsistent approach It will not always be the case that the guidance should come from Government in some cases professional bodies may be the most appropriate bodies to publish guidance. The Government has been clear that until such time as the guidance review is complete, the existing guidance where relevant can still be used.

Updating SHMAs ? Census data now available Guidance could take ages Many Core Strategies getting stuck and knocked back at EiPs Start planning now ?

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