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Strategic Housing Market Assessments

Approach

Strategic Housing Market Assessment (SHMA) guidance was published by the CLG in August 2007. The guidance appreciates that housing markets are dynamics and complex and recognises that SHMAs should provide valuable insights into how housing markets operate both now and in the future. TO be deemed robust and credible, SHMAs should provide, as a minimum, a set of core outputs (Table 1) and meet the requirements of a process criteria set (Table 2).

 

Table 1          Strategic Housing Market Assessment Core Outputs

Strategic Housing Market Assessment core outputs

1

Estimates of current dwellings in terms of size, type, condition, tenure

2

Analysis of past and current housing market trends, including balance between supply and demand in different housing sectors and priceaffordability. Description of key drivers underpinning the housing market and the nature of the market cycle

3

Estimate of total future number of households

4

Estimate of current number of households in housing need

5

Estimate of future households that will require affordable housing

6

Estimate of future households requiring market housing (including a profile of household types, and the size and type of housing required)

7

Estimate of the size of affordable housing required  including the likely profile of household types requiring affordable housing and the size, type and tenure required (social rented or intermediate)

8

Estimate of household groups who have particular housing requirements e.g.,  older people, black and minority ethnic groups and disabled people

  

Table 2          SHMA process checklist

Strategic Housing Market Assessment process checklist

1

Approach to identifying housing market areas is consistent with other approaches to identifying housing market areas within the region

2

Housing market conditions are assessed within the context of the housing market area

3

Involves key stakeholders including builders

4

Contains a full technical explanation of the methods employed, with any limitations noted

5

Assumptions, judgements and findings are fully justified and presented in an open and transparent manner

6

Used and report upon effective quality control mechanisms

7

Explains how the assessment findings can be monitored and updated

 

Our SHMAs are prepared in accordance with CLG SHMA Guidance and also take account of the CLG’s advice note ‘Identifying sub-regional housing market areas’ and relevant Government best practice. We also ensure that material required under PPS3 is delivered. PPS3 states (p.9) that Local Authorities need to set out in their LDFs:

·      The likely overall proportions of households that require market or affordable housing;

·      The likely profile of household types requiring market housing; and

·      The size and type of affordable housing required (including a view on tenure split between social rented and intermediate tenure i.e. shared equity and shared ownership).

In line with PPS3 Annex C, our SHMAs:

·      Estimate housing need and demand in terms of affordable and market housing;

·      Determine how the distribution of need and demand varies across the plan area, for example, as between the urban and rural areas;

·      Consider future demographic trends and identify the accommodation requirements of specific groups such as homeless households.  Black and Asian Minority Ethnic groups, first-time buyers, people with disabilities, older people, Gypsies and Travellers and occupational groups such as key workers, students and operational defence personnel.

We provide a tailored approach to SHMAs on the basis of local authority requirements. Our multi-method approaches ensure that requirements are met and a comprehensive range of data is provided to help with strategic decision making.

In line with the CLG guidance, SHMA outputs are framed around five key themes:

·      The current housing market;

·      The future housing market;

·      Housing need;

·      Housing requirements of specific groups (including older people); and

·      Future monitoring and developing planning for housing policies.

Additionally, we review the national, regional, sub-regional and local policy context as part of our SHMA work and review housing market boundaries,.

 

Track record

Our strong track record in the field of Strategic Housing Market Assessments and housing need/demand studies is demonstrated by the following list of past and ongoing projects by region

 

North East

Teesdale District Council HNS (2004)

Teesdale District Council SHMA (2008)

Tees Valley sub-regional HMA (2005)

Tees Valley SHMA (2008)

Tyne and Wear sub-regional HMA (2006)

Gateshead Housing Need/Support Survey (2006)

Darlington Local Housing Assessment (2006)

Hartlepool Local Housing Assessment (2007)

Sunderland Housing Market Assessment (2008)

Wear Valley SHMA (2008)

 

Yorkshire and the Humber

Barnsley (2008)

Bradford (2009)

Doncaster (2007)

Wakefield (2007)

Craven HNS (2005)

Hambleton HNS (2004)

Harrogate HNS (2007)

Harrogate SHMA (2009)

Richmondshire HNS (2005)

Ryedale HNS (2007)

Ryedale SHMA (2010 ongoing)

Scarborough sub-regional HMA (2007)

East Riding of Yorkshire HMA (2007)

Selby SHMA (2009)

 

North West

South Lakeland HNS (2006)

Rossendale HMA (2005)

Elevate Housing Market analysis (2004)

Tameside SHMA (2008)

Cheshire West and Chester SHMA (2009)

Cheshire East SHMA (2010 ongoing)

Rochdale (2010 ongoing)

Copeland (2010 ongoing)

 

Defending findings

We have experience of defending the findings of SHMAs at Planning Inquiries. We have attended Inquiries at Stockton, Middlesbrough, Harrogate and Hambleton. We have also been called as an expert witness to support the Lake District Planning Authority.