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Robin Edwards Hampshire County Council and Chairman of the Demography Sub Group, South East England Regional Assembly. Household projections in the South East Regional Plan, and update on the EiP. Content.
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Robin EdwardsHampshire County Counciland Chairman of the Demography Sub Group, South East England Regional Assembly Household projections in the South East Regional Plan, and update on the EiP
Content • Household Projections in the preparation of the Regional Spatial Strategy for the South East Region • Regional Assembly’s response to the Official Household Projections at the EiP • House price inflation and housing supply
Timetable for Preparation of RSS • Mid 2003 - technical work commenced • April 2004 - Spring debates with stakeholders on policy options • Winter 2004-05 - consultation with South East region residents on draft policies and proposals • Mid 2005 - Publication of Draft Plan • Autumn 2005 - consultation with stakeholders on Draft Plan • Winter 2005/2006 - Analysis of comments and amendments to Plan • April 2006 - Submission of Final Plan • Summer 2006 - Submission of Responses to the South East Region Spatial Strategy • November 2006 - Examination in Public commences
Projections Timetable • Mid 2003 - official subnational population projections and household projections 1996 based • April 2004 - draft 2002 based subnational population projections published, and 2001 Census results available • Autumn 2004 - population and household projections required for inclusion in plan for consultation with S.E. region residents • Late 2005/early 2006 - timescale for official 2003 based household projections • Not possible to wait for official projections. Therefore, Regional Assembly Demography sub group chairman commissioned to produce updated household projections taking account of most recent data
Data Relative to 1996 based Subnational Population projections, draft 2002-based projections took account of: • 2001 Census base population • GAD 2002 based fertility and mortality rate projections • increased international net in migration • unattributable population change 2001 Census data allowed recalibration of: • marital status structure • household composition and household representative rates
Start of EiP Submitted Plan April 2006 28,900 Dwellings per annum 2006 to 2026 DCLG Household Projections March 2006 38,000 dwellings per annum 2006 to 2026
Criticisms levelled at Housing Proposals in the RSS for the South East • Dwellings proposals should be increased to be consistent with the official household projections • There was already a housing crisis in the South East. Therefore dwellings proposals should exceed number required to satisfy official household projections
Regional Assembly EiP response to Household Projections issue • 1. Zero Net Migration Projection 2006 to 2026 = 20,000 dwellings per annum • 2. 28,900 dwellings = 8,600 in migrant h/holds per annum 19,000 net in migrants) 5,700 and 12,500 if backlog cleared within first 10 years) • Therefore dwellings in excess of 28,900 not required to satisfy locally generated need, and any additions proposed would only draw in additional in migrants
Regional Assembly EiP response to Household Projections issue (cont) • 3. 2003 based household projections - not an assessment of housing need - ephemeral and subject to revision - 2004-based Subnational population projections - 2005 divorce rate - impact on one person households (change in one person households headed by divorced people 2001 to 2021 84,100 (1996 based), 211,300 (2003 based) - 1996 based household rep rates over projected one person households headed by males in 2001 by 16,000 • No requirement to slavishly follow household projections, and issues raised above indicate it would be very unwise to do so
Regional Assembly response to charge of "Housing crisis" in South East Indicators of Housing crisis: • overcrowding • sharing households • concealed households • homeless households • reduction in household formation rates
Overcrowding Households over One Person per Room South East Region Sources: 1991 Census, Table 42 & 2001 Census, Table 53 N.B. Censuses do not provide information on bedroom standard
Sharing Households not in Self Contained Accommodation All Regions 2003-04 Surveys Source: Survey of English Housing Table S136
Number of Concealed Families South East Region Sources: 1991 Census Table 88; 2001 Census Table 11 N.B Survey of English Housing does not provide information under this definition
Official Projections of Average Household SizeSouth East Region
House Price Inflation and Housing Supply • Barker Review of Housing Supply - high house price inflation in the UK results from a shortfall in supply • Martin Weale, Director of NIESR - "(house prices in the UK) are of the order of 20 per cent higher than can be explained by the interaction of supply and demand". National Institute Economic Review (Jan 2006) Barker Review failed to take account of: • 1. Owner occupiers perception of housing as an investment, not just a place to live • 2. Impact of the Buy to Let market
Housing as an Investment • Do you agree or disagree with the statement: • "Owning your own home is a good long term investment" • Agree - 96 per cent • Survey of English Housing 2004-05. • People are prepared to borrow to the maximum available to them, in the expectation of making a capital gain • Mechanisms and agencies involved: - income multiples - repayment periods - interest rates - estate agencies
Buy to Let Source: Council of Mortgage Lenders, July 2006
Household change by tenure England Source: ONS Labour Force Survey (DCLG Table S101) South East Region Source: ONS Labour Force Survey (DCLG Table S135)