Ipswich Housing Market Area Strategic Housing Market Assessment Strategic Housing Market Assessment Commissioned by Babergh, Suffolk Coastal & Mid Suffolk District Councils. August 2012 Commission and published by Babergh, Mid Suffolk and Suffolk Coastal District Councils with data supplied by Business Development, Suffolk County Council Ipswich Study Area SHMA Update August 2012 1 CONTENTS Strategic Housing Market Assessment .......................................................................................... 1 Executive Summary ................................................................................................................... 5 Context .................................................................................................................................. 5 Unaffordable housing discourages young people from forming households .......................... 5 National housing policy affects the local supply of affordable homes ..................................... 6 Demographic Change with the Ipswich HMA ......................................................................... 6 Housing Market within the Ipswich HMA ................................................................................ 7 Population and Household Projections .................................................................................. 8 Housing Needs within the Ipswich HMA ................................................................................. 8 Needs of specific groups of people ........................................................................................ 9 New housing supply: vital to delivering more affordable homes ............................................. 9 1. Introduction ......................................................................................................................... 10 Why an update is needed .................................................................................................... 10 Difference between Housing Needs Assessments and SHMAs ........................................... 10 Structure of the Update Report ............................................................................................ 11 2. The Housing Market Area and Haven Gateway .................................................................. 12 2.1 Determining the Housing Market Area ...................................................................... 12 2.2 Co-ordination of effort with the Haven Gateway ........................................................ 13 3. Research into Stakeholder Views ....................................................................................... 14 Summary ............................................................................................................................. 14 Results of previous research ............................................................................................... 14 4. Policy and Strategic Context ............................................................................................... 15 4.1 Institutional, Financial and Policy Reforms ............................................................... 15 4.2 Economic Context ..................................................................................................... 19 4.3 Neighbouring SHMAs ............................................................................................... 20 CONCLUSIONS .................................................................................................................. 21 5. Demographic and Economic Data ...................................................................................... 22 5.1 Step 3.1.1 Demography and Household Types ........................................................ 22 5.2 Population – Historical Change ................................................................................. 22 5.3 National Migration ..................................................................................................... 24 5.4 International Migration: Immigration and Emigration ................................................. 27 5.5 Ipswich HMA Ethnicity Profile ................................................................................... 29 5.6 Ipswich HMA Age Profile .......................................................................................... 30 5.7 Household Structure ................................................................................................. 31 5.8 Housing Types .......................................................................................................... 33 5.9 Changes in Tenure and Household Composition 1991-2001 .................................... 33 5.10 Social Trends ............................................................................................................ 33 5.11 Projections for Households ....................................................................................... 33 5.12 National and Regional Economic Policy (Step 3.1.2) ................................................ 34 5.14 Levels of Housing Benefit ......................................................................................... 35 5.15 Employment Levels and Structure - Step 3.1.3 ........................................................ 36 5.16 Skills and Education ................................................................................................. 39 5.17 Incomes and Earnings .............................................................................................. 40 5.18 Future Economic Performance ................................................................................. 42 5.19 Economic Development Aspirations ......................................................................... 44 CONCLUSIONS .................................................................................................................. 46 6. Current Housing Stock........................................................................................................ 47 6.1 Dwelling Profile ......................................................................................................... 47 6.2 Population Density .................................................................................................... 48 6.3 Household Size......................................................................................................... 48 Ipswich Study Area SHMA Update August 2012 2 6.4 Total Dwelling Stock ................................................................................................. 48 6.5 Housing Tenure ........................................................................................................ 50 6.6 Housing Types .......................................................................................................... 51 6.7 Housing Size ............................................................................................................ 52 6.8 Second Homes ......................................................................................................... 53 6.9 Vacant Dwellings ...................................................................................................... 53 6.10 Overcrowding ........................................................................................................... 55 6.11 Stock Condition......................................................................................................... 55 6.12 Housing Needs Surveys ........................................................................................... 55 6.13 Shared Housing ........................................................................................................ 56 6.14 Communal Establishments ....................................................................................... 56 CONCLUSIONS .................................................................................................................. 56 7. The Active Housing Market ................................................................................................. 57 7.1 Introduction ............................................................................................................... 57 7.2 Overall Price of Home Ownership ............................................................................. 57 7.3 Purchase Prices by Property Price ........................................................................... 61 7.4 Entry-Level Purchase Prices ..................................................................................... 64 7.5 Overall Cost of Private Renting ................................................................................. 66 7.6 Trends in Rental Costs ............................................................................................. 67 7.7 Entry-Level Private Rental Costs .............................................................................. 68 7.8 Overall Cost of Social Rented Property .................................................................... 69 7.9 Social Rents by Property Size .................................................................................. 70 7.10 Trends in Social Rent Costs ..................................................................................... 71 7.11 A Comparison of Housing Costs by Tenure .............................................................. 72 7.12 Housing Affordability ................................................................................................