Housing: Construction

Ministry of Housing, Communities and Local Government written question – answered on 1st December 2020.

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Photo of Adam Holloway Adam Holloway Conservative, Gravesham

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.

Photo of Adam Holloway Adam Holloway Conservative, Gravesham

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.

Photo of Christopher Pincher Christopher Pincher Minister of State (Housing, Communities and Local Government)

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.

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