A Detailed Investigation Into the Affordable Housing Needs of Oakthorpe, Donisthorpe & Acresford
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A DETAILED INVESTIGATION INTO THE AFFORDABLE HOUSING NEEDS OF OAKTHORPE, DONISTHORPE & ACRESFORD Produced by The Leicestershire Rural Housing Enabler in conjunction with Oakthorpe, Donisthorpe & Acresford Parish Council March 2012 1 Contents Summary ………………………………………………………………………… 3 Introduction …………………………………………………………………… 3 1. Purpose of the Survey …………………………………………………. 4 2. House Prices and existing affordable stock…………….. 6 3. Survey Results ……………………………………………………………….. 8 Household Respondents Tenure of all Residents Property Types Desirability Migration Ethnicity Percentage in Favour of Comments 4. Housing Needs Analysis ……………………………………………… 15 5. Conclusion ………………………………………………………………………. 17 6. Contacts …………………………………………………………………………. 19 Appendix 1. Additional affordability data………………..20 2 Summary An affordable housing need survey was carried out in the Parish of Oakthorpe, Donisthorpe & Acresford in November 2011. Results obtained showed there was a need for up to 9 affordable homes for local people enabling them to be suitably housed within their community This could be developed on a Rural Exception Site, if this was available and subject to Parish Council and Homes & Communities Agency support Introduction The Rural Housing Enabler works with Parish Councils and Local Authorities in order to investigate the needs for affordable homes in villages. The first step in this process is to undertake housing need survey which will give an overview of the current housing situation in a village, and provide detail of the need for local affordable homes. The Leicester and Leicestershire Strategic Housing Market Assessment states that, “Housing need is high in most rural areas (of the county) some 250 additional affordable homes per year are currently needed in rural areas.” The report continues that between 35 and 45 of these should be built within villages in North West Leicestershire to meet current demand. Further information may be found at www.oakleaves.org.uk, the website of the Leicestershire Rural Partnership. 3 During October 2011, the Rural Housing Enabler and Oakthorpe, Donisthorpe & Acresford Parish Council worked together to deliver a Housing Needs Survey form to every household in the village. Oakthorpe, Donisthorpe & Acresford currently has a population of 2346 (2001 Census). Since this census 102 homes have been built in the village, all were provided for sale on the open market. There are about 1250households within the parish. Enough survey forms (1300) were produced for distribution to each household throughout the parish with spares for others requesting a form. 1. Purpose of the Survey 1.1 The survey was conducted in order to obtain clear evidence of the housing need in the parish of Oakthorpe, Donisthorpe & Acresford. This evidence can then be used, along with evidence from other sources, to inform the Parish Council and North West Leicestershire District Council on what type and tenure of affordable housing is required to meet local needs. 1.2 One option of meeting a village’s housing need is through the construction of a purpose built affordable housing development using the exception criteria set out in Planning Policy Supplement 3 (PPS3).This is known as a Rural Exception Site. These small sites, usually between 6 and 12 homes, are located on, but outside, the village boundary and have two special features: 1. Priority is given to households with a strong local connection as defined in an S106 “Local Lettings” Agreement. 4 2. Homes remain affordable in perpetuity* * On rural exception sites there is no “Right-to-buy” and 80% of equity in a home is maximum that can be owned on Shared Ownership properties. There is mention of exception site criteria in the North West Leicestershire Local Plan. To develop affordable rural homes by any method there must be accurate details of affordable housing need within the parish. The support of the Parish Council for any subsequent affordable housing scheme is essential to the process. 1.3 Secondly, the information can be used positively in the planning process in that it provides a foundation on which to negotiate planning gain opportunities with developers. In short, it gives planners evidence which can be used to obtain an element of local needs housing in negotiations with house builders should such properties arise in the village. 1.4 The information obtained from such a survey is also valuable at the local level, particularly in relation to the Parish Council’s activities. Such information can be acted upon locally and taken on board in the decision making process when housing issues arrive. 5 2 House Prices and Affordable Housing Stock 2.1 The Government’s objective to deliver a better balance between housing demand and supply is not being met in rural England. There would seem to be an increasing imbalance in supply and demand for rural housing, in particular within smaller rural settlements. As a consequence, affordability is a very real issue in many parts of rural England. In the most extreme case, average house prices are around ten times the local average income. 2.2 As there have been very few house sales in the villages over the past few months, the approach taken is to review the asking prices of properties on the market at present. The following is purely illustrative. Figures are taken from rightmove.co.uk. Starting with the least expensive home starter home in the Parish, this is a 2 Bed link terraced house in Donisthorpe with an asking price of £117,000. There is some doubt as to this asking price being achieved in the present financial climate. Assuming a mortgage was available and a three-and-a-half times income multiplier, if the buyer had a £20,000 deposit, then an income of over £28,000p.a. would be required to purchase this home. (There is a 3-bed terraced home in Oakthorpe on the market at £100,000. This would require an income of £26,000p.a. if the buyer had a 10% deposit and a mortgage was available.) 2.3 Hypothetically then, to purchase an entry level property in Oakthorpe, Donisthorpe & Acresford, i.e. 2Bed house – should one be available - an income of over £28,000p.a. would be required (assumes 3.5 income multiplier). This 6 figure assumes a deposit c.20%. If 100% mortgage was needed an income of over £33,000p.a. would be necessary. This may not be available. 2.4 To assist in clarifying this, the table below (Fig. 1) shows household income per annum in the parish of Oakthorpe, Donisthorpe & Acresford (Source: CACI paycheck2007): Figure 1 Numbers of households in which income range Income range in £ per Number of annum households in range £0 – 10,000 110 £10,000 > 20,000 247 £20,000 > 30,000 252 £30,000 > 40,000 189 £40,000 > 50,000 125 £50,000 > 60,000 79 £60,000 > 70,000 49 £70,000 > 80,000 30 £80,000 > 90,000 18 £90,000 + 30 2.5 Bearing in mind the figures in paragraph 2.3, the table above shows that about half of the households in the parish could comfortably afford an entry level home if they were not already satisfactorily housed. 2.6 Existing Affordable Housing in the Parish Information from North West Leicestershire District Council Strategic Housing Team states that there are 187 Local Authority rented and 12 Housing Association homes in the Parish. 7 3 Survey Results 3.1 The following sections of this report detail the responses from the questionnaires distributed and returned during October 2011 in the parish of Oakthorpe, Donisthorpe & Acresford. 3.2 Respondents’ individual details have been kept confidential and any identifiable attributes have not been included in the results. Any comments that have been made may have also been edited so as not to identify individual circumstances. 3.3 The following results are a snapshot in time and provide the parish and North West Leicestershire District Council with an insight into the parish in terms of current housing need, the desirability of the village and the current level of facilities serving the local community. 3.4 A total of 219 survey forms were received giving a return rate of about 20%. This is a normal response for this type of survey, when considering that only people who have housing need or who are interested in commenting on local matters respond. 3.5 Household Age Range Respondents 3.5.1 (Figure 2) the largest number of replies (48%) came from households that contained people aged 45 to 74 years old. Under 25 year olds represented about 34% and households containing members between 30-44 years of age represented about 23%of replies. 8 Figure 2 Age range people in respondent’s households 3.5.2 The Commission for Rural Communities report ‘State of the Countryside 2010’ found that the proportion of people aged 15 – 29 in rural areas had fallen from 21% to 15% in the past 20 years. The full report may be found at www. ruralcommunities.gov.uk. 3.6 Tenure of all Respondents The current household tenure of all respondents is given in the table below (Figure 3). It is easy to see that owner/occupiers were by far the largest tenure group accounting for 85%, of which 52% had a mortgage. 9 Figure 3 Tenure of respondents 3.7 Property Types 3.7.1 The table, below (Figure 4), shows that the majority of respondents came from households in 3 bed houses (40%). 4 bed houses represented 25% 10 Figure 4 Property types 3.8 Desirability 3.8.1 The following two charts detail respondents’ answers to the desirability questions. The answers to these questions allow us to build up a picture of life within Oakthorpe, Donisthorpe & Acresford. From this we can gain an indication of whether any affordable housing that is subsequently provided in the village will be sustainable, i.e.