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Housing: Construction

Question for Ministry of Housing, Communities and Local Government

UIN 119195, tabled on 23 November 2020

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 on

1 December 2020

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.