Asked by: Adam Holloway (Conservative - Gravesham)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, for what reason the new standard method for assessing local housing need uses a house price to workplace-based earnings ratio rather than a house price to residence-based earnings ratio.
Answered by Christopher Pincher
The consultation on changes to the current planning system set out the elements we want to balance when determining local housing need, including meeting our target of building 300,000 homes, tackling affordability challenges in the places people most want to live, regenerating brownfield sites, and renewing and levelling up our towns and cities.
The affordability adjustment used in the proposed standard method is based on the median house price to workplace-based earnings ratio, published annually by the Office for National Statistics. The house price to workplace-based earnings ratio compares the median salary earned in a local authority against the median house price in that same authority area. We have consulted on each element of the indicative formula, including affordability, and are considering carefully how they work together to achieve an appropriate distribution.
The proposals were out for consultation until 1 October 2020. Following consideration of the consultation responses received, the Government will publish a response.
Asked by: Adam Holloway (Conservative - Gravesham)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, what comparative assessment he has made of the effect of using a (a) house price to workplace-based earnings ratio and (b) house price to residence-based earnings ratio on the assessed local housing need of towns where people commute to work in nearby cities.
Answered by Christopher Pincher
The consultation on changes to the current planning system set out the elements we want to balance when determining local housing need, including meeting our target of building 300,000 homes, tackling affordability challenges in the places people most want to live, regenerating brownfield sites, and renewing and levelling up our towns and cities.
The affordability adjustment used in the proposed standard method is based on the median house price to workplace-based earnings ratio, published annually by the Office for National Statistics. The house price to workplace-based earnings ratio compares the median salary earned in a local authority against the median house price in that same authority area. We have consulted on each element of the indicative formula, including affordability, and are considering carefully how they work together to achieve an appropriate distribution.
The proposals were out for consultation until 1 October 2020. Following consideration of the consultation responses received, the Government will publish a response.
Asked by: Adam Holloway (Conservative - Gravesham)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, how the drop off rate between permissions and completions will be calculated in the new standard method for assessing local housing need as part of the Government's proposed changes to the current planning system.
Answered by Christopher Pincher
We committed to reviewing the current formula for local housing need at this year’s budget and the proposals were out for consultation from 6 August until 1 October 2020.
Not all homes that are planned for are built, and the consultation noted that there is a drop off rate between permissions and completions. As part of the Planning for the Future consultation, we confirmed we will explore further options to support faster build out, as we develop our proposals for the new planning system.
Following consideration of the consultation responses received, the Government will publish a response. The response will set out any decisions and any associated proposed implementation.