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3.1
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Government advice is that Local Planning Authorities should base their affordable housing requirement on up to date and robust information. Also in the case of a single housing market, is recommended that neighbouring local planning authorities should co-operate in the assessment of housing needs. To this end Plymouth City Council and South Hams District Council jointly commissioned consultants to undertake Housing Needs Study of Plymouth and South Hams, and to look at that part of the South Hams which is within the Plymouth Travel to work area. The original study was delivered in March 2000, and was updated February 2003 The findings of the original Housing Needs Studies were used to inform the preparation of both the Housing Strategy and the Local Plan. The updated study has been used in the preparation of this SPG.
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3.2
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Some Key findings from the updated Housing Needs Study are as follows:- - There is an estimated overall shortfall of 815 dwellings a year in the City
- Private sector housing constitutes 31% of the shortfall (253 dwellings) with the need for affordable housing accounting for the 69% balance. (562 dwellings annually)
- Approximately 12% of the shortfall is for social rented accommodation, but a further 42.5% may need to be provided this way if other forms of affordable housing are not viable.
- Private low cost or reduced cost market housing accounts for only 2.7% of the affordable housing shortfall.
- There is a greater need for more single person, and larger family , properties in both the private and subsidised housing sectors. The greatest demand being for larger subsidised family housing, and single and three-bedroom property in the private rented sector.
- There are identified housing needs registered for most areas across the city, with particularly high demand in some city waterfront areas.
- Of the households that moved within the last 2 years 72%moved from within Plymouth, the remainder moving into Plymouth from outside (3.1% moving in from The South Hams)
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3.3
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The greatest need, 69% of future development would be for social rented accommodation, and shared ownership opportunities. If one projects the annual estimated affordable housing shortfall (of 562 dwellings) forward over the next 10 years at the same rate, then the total affordable housing requirement for the plan period 2001-2011 is in the region of 5620 dwellings. Developers are therefore encouraged to join with RSLs in the development of new sites in order to try to satisfy this need.
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3.4
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In Plymouth in April 2002, the average gross annual wage was £21,328, which equates to £410 per week. However almost 50% of wage earners earned less than £350per week (£18,200p/a) and almost 23% earn less than £250 (£13,000p/a). with 10% earning less than £10,900
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3.5
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The Average property prices April June 2002, were £90,519, £81,345, and £59,184 for a semi detached, a terraced house, and a flat respectively. On this basis and using mortgage-lending rates the almost 50% of Plymouth residents who earn £18,200 could not afford the average semi, whilst 23% earning £13,000 p.a. could not afford to enter the housing market even for a flat.
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3.6
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This discrepancy between property prices and income levels has been increasing in recent years, thus increasing the gap between what people earn and what they can afford to buy. For example, the average house price increased by 55% between 1998 and 2001, whilst average gross weekly earnings have only increased by 21%. This gap is exaggerated in the case of the 10% of people at the lower end of the income scale, who have seen house prices in the lower quartile of the market increase by 67%.
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