AP1-1 Affordable Housing-10Dec20
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AP1-1 AP1: Affordable Housing The Inspector would like information of housing affordability, with particular relationship to North East Mendip, as defined on page 10 in Document SDM44. In particular, the following information would be helpful: 1. Housing affordability indicators, e.g. ratio of house prices to average earnings. 2. Affordable house completions over the past few years. 3. Housing waiting list figures. Background 1. The Council do not hold or monitor affordability data at a sub-district level. 1 The Council have therefore set out local data and mapping using ONS data. The latest releases on housing affordability were published in March 2020 and refer to data collated as at March 2018. The figure in SDM44 uses parish boundaries, so that an exact alignment is not possible. Maps showing the extents of LSOA and MSOA used have been included within this response2. 2. The ONS statistical release of affordability data relies on sampling undertaken as part of the Annual Survey for Hours and Earnings (ASHE) update to earnings information which is used to modify the 2011 census dataset. Due to the length of time that has elapsed since the last census, statistical variance is more likely. However, it is the most reliable data source available at the present time. 3. A recent uplift in house prices has been widely reported in the national press. This has been generally attributed to Government stimulus to the housing market in the form of a stamp duty holiday to April 2021. Data on house prices to March 2020 is available from the ONS and has been included for context. It is not considered appropriate to use more recent data due to the statistical reliability of Land Registry data in the short term; there are frequently amendments to reported data due to delays in transaction information inherent to the property sales process. This house price data is also most reliable at district level, but LSOA and MSOA data has been used in accordance with the request for sub-district information. Question 1: Housing affordability indicators, e.g. ratio of house prices to average earnings. 4. Figure 1.1 shows that median house prices in Mendip District are less affordable to those with a median income than is experienced across both the South West region and England. 5. Data from the ONS is presented in Figure 1.2 and mapped at Appendix 1. This shows that the highest ratios of house prices to median earnings are experienced in the MSOA Mendip 001, Rode Mells and Woodland. In this area the median house price to median earnings ratio is 13.04, which exceeds the Mendip District ratio of 11.0. The ratio for MSOA Rode, Mells and Woodland is commensurate with the adjoining MSOA in Bath and North East Somerset MSOA 10, Bathavon 1 There is a detailed discussion of housing affordability for Mendip in the analysis contained within the Mendip, Sedgemoor, South Somerset and Taunton Deane Strategic Housing Market Assessment, October 2016 (Submission Document SD24). 2 There are limitations inherent in applying the ONS dataset to sub-district level geographies for plan making purposes. The primary limitation is that the spatial building blocks of the data collation are "lower super output areas" (LSOA), and these areas do not align with either parish or settlement boundaries. These LSOA are grouped to provide "medium super output areas" (MSOA), of which there are fourteen in Mendip. Again, these groupings do not align with sub district administrative boundaries. 1 AP1-1 North and South which has an affordability ratio of 12.66. Figure 1.3 shows the location of the MSOA areas. House prices 6. Further information on house prices, correct to March 2020 is provided to supplement the 2018 affordability data. Figure 1.4 shows the location of the LSOA corresponding to the north/north east of the district and Figures 1.5 and 1.6 illustrates the median house prices in these areas. The data indicates that median house prices in the north/ north east of Mendip District are consistently higher than found in the rest of the district and are commensurate with those in the neighbouring LSOA 010G in Bath & North East Somerset District. This supports previous analysis of Housing Market Areas (HMA) as identified in the report Housing Market Areas and Functional Economic Market Areas in Somerset (2015) (SD25); Figure 1 of SD25 identifies a Bath HMA which includes the north/north east of Mendip. Figure 1.1: District wide comparison of the ratio of median house price (year ending Mar 2018) to net annual household income (equivalised) before housing costs (financial year ending 2018). Source Office for National Statistics, 20203 3 https://www.ons.gov.uk/peoplepopulationandcommunity/housing/datasets/ratioofhousepricetoresidencebasedearn ingslowerquartileandmedian 2 AP1-1 Figure 1.2: Ratio of median house price (year ending Mar 2018) to net annual household income (equivalised) before housing costs (financial year ending 2018). Source Office for National Statistics, 20204 MSOA MSOA Name Ratio of Median House Price to Median Income (All Properties) as March 2018 Mendip 001 Rode, Mells and Woodland 13.04 Mendip 002 Stratton, Holcombe and Highbury 9.21 Mendip 003 Frome North 7.8 Mendip 004 Frome North (West) 8.67 Mendip 005 Draycott, Westbury and Wookey 9.86 Mendip 006 Oakhill, Horrington and Chewton Mendip 7.56 Mendip 007 Frome South & East 8.56 Mendip 008 Wells Town 7.56 Mendip 009 Shepton Mallet 6.53 Mendip 010 Evercreech and Nunney 9.11 Mendip 011 Glastonbury Town 7.93 Mendip 012 Glastonbury West and Street South 8.93 Mendip 013 Pilton, Butleigh and Alhampton 12.19 Mendip 014 Street Village 7.27 Figure 1.3: Location of Medium Super Output Areas in Mendip District (2011 Census Geography) Draycott, Westbury & Wookey Evercreech and Nunney 4 https://www.ons.gov.uk/peoplepopulationandcommunity/housing/datasets/housingaffordabilityratiosformiddlelayer superoutputareas 3 AP1-1 Figure 1.4: Location of Lower Super Output Areas (LSOA) in the North/North East of Mendip District and Bath 10G (2011 Census Geography) Figure 1.5: Median house prices in LSOA (year ending Mar 2020). Source Office for National Statistics, 20205 5 https://www.ons.gov.uk/peoplepopulationandcommunity/housing/datasets/medianpricepaidbylowerlayersuperoutp utareahpssadataset46 4 AP1-1 Figure 1.6: Median house prices in LSOA (year ending Mar 2020). Source Office for National Statistics, 20206 LSOA Broad area Mar-20 Bath and North East Somerset 010G Freshford £ 492,100 Mendip 001E Norton St Phillip/ Faulkland £ 422,500 Mendip 002A Chilcompton £ 380,000 Chewton mendip/ Binegar/ Gurney Slade Mendip 006A Oakhill £ 326,000 Mendip 002E Kilmersdon / land adj Midsomer Norton £ 325,000 Mendip 001B Beckington £ 290,000 Mendip 010A Leigh on Mendip/ Coleford £ 285,000 Mendip 002D Stratton on the Fosse /Holcombe £ 283,000 Mendip 001A Rode £ 275,000 Mendip 002C Lipyeate £ 240,000 Mendip 002B Highbury (Coleford) £ 217,500 Somerset £ 232,000 Bath and North East Somerset £ 322,998 Mendip £ 260,000 England £ 245,000 South West £ 255,000 6 https://www.ons.gov.uk/peoplepopulationandcommunity/housing/datasets/medianpricepaidbylowerlayersuperoutp utareahpssadataset46 5 AP1-1 Question 2: Affordable house completions over the past few years. 7. Data showing the number of affordable housing completions in the parishes shown in the figure of page 10 of SDM44 from 2006 onwards is shown in Figure 2.1. The figures relate to permanent self- contained dwellings only, including all types of affordable housing. Definitions of the different types of affordable housing can be on the Council website7. The source of the data is the Mendip Housing Land Availability Monitoring (developer and site survey). Figure 2.1: Affordable Housing Completions in the North/North East of Mendip District Number of affordable dwellings completed Village 1st April 2006 to 31st March 2020 Beckington 22 Binegar / Gurney Slade 0 Chewton Mendip 0 Chilcompton 50 Coleford 28 Faulkland 5 Holcombe 8 Kilmersdon 1 Mells 0 Norton-st-Phillip 8 Oakhill 0 Rode 0 Stoke-st-Michael 0 Stratton on the Fosse 0 Total completions 122 7 https://www.mendip.gov.uk/article/7349/Types-of-Affordable-Housing 6 AP1-1 Question 3. Housing ‘waiting list’ figures. 8. As of the 25th November 2020 there were 1,703 applicants to the Mendip housing register, Homefinder Somerset. Of these applicants, 86 were in need of social or affordable rented housing and specified one of the villages in the North/North East of the district. The number of applicants for each village is shown in Figure 3.1. Figure 3.1: Applicants to Homefinder Somerset specifying villages in the North/North East of the District as preferred location. Number of applicants on Homefinder Village Somerset Beckington 10 Binegar / Gurney Slade 3 Chewton Mendip 3 Chilcompton 22 Coleford 26 Faulkland 0 Holcombe 3 Kilmersdon 4 Mells 3 Norton-st-Phillip 2 Oakhill 0 Rode 3 Stoke-st-Michael 3 Stratton on the Fosse 4 Total Applications 86 7 AP1-1 Appendix 1: Map showing the median income to median house price ratio in Mendip District in the context of affordability for surrounding local districts Source: https://www.ons.gov.uk/peoplepopulationandcommunity/housing/datasets/housingaffordabilityratiosfor middlelayersuperoutputareas 8 AP1-1 Appendix 2: Affordable housing completions 2006 to 2020 Mendip District Net Affordable dwellings completed 2006-2020 (NB figures relate to year end as at 31st March) Town 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total for Dwellings with Planning Period Permission that were either Not Started