Strategic Housing Market Assessment
Transcription
Strategic Housing Market Assessment
Salford City Council Strategic Housing Market Assessment February 2012 CONTENTS Page Chapter 1 – Introduction 1 Page Chapter 2 – The current housing market 3 Stage 1 – The demographic and economic context 3 Step 1.1: Demography and household types Total population Components of population change Population change by area Age profile Recent changes in age Ethnicity Household composition Household age profile Household size profile Household type profile 3 3 4 4 6 8 13 13 14 16 18 Step 1.2: National and regional economic policy Economic output Mortgage rates Inflation rates Government funding for affordable housing 19 19 20 21 22 Step 1.3: Employment levels and structure Unemployment Qualifications Economic growth Employment Commuting patterns 22 22 24 26 27 30 Step 1.4: Incomes and earnings Income 36 36 Stage 2 – The housing stock 37 Step 2.1: Dwelling profile Tenure of dwellings Type of dwellings 37 37 41 Size of dwellings Housing completions Page 44 45 Step 2.2: Stock condition Decency in private sector housing Decency in social rented housing 50 52 54 Step 2.3: Shared housing and communal establishments 55 Houses in multiple occupation 55 Stage 3 – The active housing market 56 Step 3.1: the cost of buying or renting a property House prices House prices and sales value areas Council Tax bands Rental market Mortgages 56 56 61 65 67 70 Step 3.2: Affordability House price to income ratios Housing benefit 71 71 73 Step 3.3: Overcrowding and under-occupation 2001 Census Salford Housing Needs Assessment 2007 Private Sector Housing Stock Condition Survey 2010 74 74 75 77 Step 3.4: Vacancies, available supply and turnover Vacancy levels Length of time on the market Property transactions Turnover 79 79 80 87 89 Stage 4 – Bringing the evidence together 90 Economic Issues Commuting patterns Demographic issues Housing stock issues Housing market issues City centre housing market Edge of city centre housing market Inner city housing market Broughton Park 90 90 91 92 94 96 97 97 99 High value suburbs Mixed suburbs Little Hulton Overview Page 100 101 102 103 Page Chapter 3 – The future housing market 104 Stage 1: Projecting changes in future numbers of households 104 Methodology A – Regional Spatial Strategy Methodology B – Housing-led forecast Methodology C – Department for Communities and Local Government 2008-based household projections Methodology D – Greater Manchester Forecasting Model Methodology E – Greater Manchester Forecasting Model with additional growth Methodologies F and G – The Chelmer Model (as submitted by The Peel Group) Methodology F – Average level of net in-migration remain at a rate of 1,100 per annum Methodology G – Economic-led target of an increase of 34,700 jobs over the period 2011-2031 Comparison of household growth estimates Calculating the dwelling requirement from household growth estimates Comparison with the scale of housing proposed elsewhere in Greater Manchester Accuracy of population and household projections Projected changes in the age of households Projected changes in the type of households 104 105 106 109 113 117 119 120 122 122 126 129 135 136 Stage 2: future economic performance 138 National economic prospects Employment growth Occupation forecasts Local economic proposals Commuting patterns Consumer preferences 138 138 139 141 142 145 Stage 3: Future affordability and housing market performance 158 Household incomes Mortgage availability 158 159 House prices and transactions Affordability Development activity Private rented sector Capacity of the market to deliver new housing Impact of new housing on local housing markets Overview Future housing supply Page 160 160 161 161 162 163 164 165 Stage 4: Bringing the evidence together 168 Future scale of housing provision Future housing affordability 168 170 Chapter 4 – Housing need Page 172 Homelessness Vulnerable households Previous assessments of affordable housing need Updated assessment of need Stage 1: Current housing need (gross backlog) 173 173 174 175 176 Step 1.1: Homeless households and those in temporary Accommodation Step 1.2: Overcrowding and concealed households Step 1.3: Other groups Step 1.4: Total current housing need 176 Stage 2: Future housing need (gross) 178 Step 2.1: New household formation Step 2.2: Proportion of households unable to buy or rent in the market Step 2.3: Existing households falling into need Step 2.4: Total newly arising housing need (gross per year) 178 179 180 181 Stage 3: Affordable housing supply 182 Step 3.1: Affordable dwellings occupied by households in need Step 3.2: Surplus stock Step 3.3: Committed supply of new affordable units Step 3.4: Units to be taken out of management Step 3.5: Total affordable housing stock available Step 3.6: Annual supply of social re-lets Step 3.7: Future annual supply of intermediate affordable housing 182 182 183 184 184 184 177 177 178 Step 3.8: Future annual supply of affordable housing units Estimate of net additional affordable housing requirement Page 185 186 Stage 4: The housing requirements of households in need 187 Step 4.1: choices within the existing housing stock Existing stock Turnover of local authority stock Salix Homes stock turnover Social housing sales 187 187 187 188 189 Step 4.2: requirement for affordable dwellings of different sizes 2007 housing needs assessment Choice based lettings Households on the housing register, by number of bedrooms 190 191 193 Step 4.3: the private rented sector 195 Stage 5: bringing the evidence together 195 Step 5.1: Estimate of net annual housing need 195 Step 5.2: Key issues for future policy / strategy Homelessness Overcrowding Affordable housing need Requirement for different sized affordable dwellings Other housing that could address need 195 195 196 197 198 199 Step 5.3: Joining up across the assessment 201 Nat annual need and future annual change Determining an appropriate level of affordable housing 201 201 Chapter 5 – Housing requirements of specific household groups Family housing Housing provision in Broughton Park and Higher Broughton Older people Households with specific needs Gypsies, travellers and travelling showpeople Student housing Higher priced housing Page 203 203 211 214 217 223 227 232 Salford Strategic Housing Market Assessment – February 2012 1. Introduction 1.1 This strategic housing market assessment has been produced by Salford City Council. 1.2 It is intended to provide an objective analysis of the varied housing market issues affecting the city, assessing the existing housing market, recent changes, and future needs. In doing so, it draws on information from a wide range of sources, including nationally collated statistics, projections and forecasts, local surveys and studies, development monitoring, and published research. 1.3 The scope and detail of this strategic housing market assessment has been based on the relevant Government guidance1. However, some additional sections have been included, such as on the future potential housing supply in the city and likely future market performance. 1.4 Two strategic housing market assessments covering Salford were published in 2008, namely the: • North West Strategic Housing Market Assessment, commissioned by 4NW and prepared by a consortium of Nevin Leather Associates, Manchester Geomatics, the University of Sheffield and Inner City Solutions • Greater Manchester Strategic Housing Market Assessment, commissioned by the Association of Greater Manchester Authorities and prepared by Deloitte MCS Ltd and GVA Grimley 1.5 These strategic housing market assessments sets Salford within a broader context, and can be seen as complementary to this Salford Strategic Housing Market Assessment although some of the data they contain is now relatively old. Both the Greater Manchester and North West assessments split Greater Manchester into four housing market area, using the same boundaries, namely: • Greater Manchester Central, which consisted of Central Salford and Central and East Manchester • Greater Manchester North West, which consisted of Salford West, Bury, Bolton and Wigan • Greater Manchester North East, which consisted of North Manchester, Oldham, Rochdale and Tameside • Greater Manchester South, which consisted of South Manchester, Stockport and Trafford 1.6 Salford was therefore split across two housing market areas in these previous assessments. Where possible, information in this assessment has been provided for Central Salford and Salford West, enabling comparisons to be made. More detailed information relating to areas within Salford has generally used wards as the unit of analysis, as data 1 “Strategic Housing Market Assessments: Practice Guidance Version 2” – Department for Communities and Local Government (August 2007) 1 Salford Strategic Housing Market Assessment – February 2012 tends to be most readily available at this level. However, other geographies have also been used where appropriate or where data is not accessible for wards. 1.7 Comments received on this assessment will be used to inform a future update of it. 2 Salford Strategic Housing Market Assessment – February 2012 2. The current housing market 2.1 This section of the Strategic Housing Market Assessment analyses a broad range of demographic, housing and economic information that helps to provide an understanding of Salford’s current housing markets and recent changes in them. 2.2 The demographic and economic data is particularly useful in aiding an appreciation of the variables that influence the demand for different type of housing in different parts of the city. Information on commuting patterns helps to understand the way in which Salford’s economy and housing markets interact with those outside the city. 2.3 Detailed information on the type, condition, occupancy levels and affordability of housing within Salford assists in explaining the constraints and opportunities provided by the existing housing stock, and how this influences the functioning of the city’s housing markets. 2.4 An analysis is then presented that considers the complex interaction of these various factors, and some of the housing market challenges that this sets for the city. How these variables may change in the future is considered in detail in the next section. Stage 1: The demographic and economic context Step 1.1: Demography and household types Total population 2.5 The table below identifies how Salford’s population has changed over the last decade, and compares this with the position in 1921 when the city’s population was close to its peak. ONS Mid Year Population Estimate 1921 Total persons 341,267 Annual Change - 2001 217,000 2002 216,300 -700 2003 217,300 1,000 2004 218,100 800 2005 219,400 1,300 2006 220,900 1,500 2007 221,300 400 2008 223,000 1,700 2009 225,100 2,100 2010 229,000 3,900 Source: 1921 Census; ONS Mid Year Population Estimates 2001-10 3 Salford Strategic Housing Market Assessment – February 2012 2.6 The population of Salford in 2001 was 217,000, with this being 36.4% lower than it was in 1921. However, since 2002 there has been a continuous increase in population, with a total population gain of 12,700 people over the eight year period of 2002-2010. 60.6% of this growth was in the three years between 2007 and 2010. Although the population of the city is growing at a significant rate, it is still well below that recorded in 1921. Components of population change 2.7 The following table identifies the different components that have affected Salford’s population in recent years, namely migration in and out of the city (both to other places within the UK and internationally), and the number of births and deaths (the balance of which is referred to as natural change). Year PopuInternational lation Internal UK Migration Migration change In Out Net In Out Net 2003/04 800 10,800 10,900 -100 2,100 1,300 800 2004/05 1,300 10,500 10,700 -200 2,800 1,700 1,100 2005/06 1,500 11,000 10,800 200 2,100 1,400 700 2006/07 400 11,000 11,900 -900 2,100 1,500 600 2007/08 1,700 11,700 11,400 300 1,800 1,300 500 2008/09 2,100 11,600 11,800 -200 2,700 1,200 1,500 2009/10 3,900 12,200 12,000 200 3,600 1,200 2,400 Source: ONS Mid Year Population Estimate 2001 and 2010 2.8 Natural Change Births 2,700 2,800 3,000 3,100 3,300 3,300 3,500 Deaths 2,700 2,500 2,400 2,400 2,400 2,400 2,200 Net 0 300 600 700 900 900 1,300 The recent population growth in Salford has been driven by a combination of international migration and natural change, with both being particularly high in 2009-2010 (with net change of 2,400 and 1,300 people respectively). The gross figures for internal (UK) migration are actually much higher than for international migration and natural change, and so internal migration theoretically has the potential to have a much more significant impact on population change. However, in recent years it can be seen that it has alternated either side of zero, and so has actually had relatively little impact on the city’s population trend. Population change by area 2.9 The next table provides details of how the city’s population has changed since 2001, broken down by ward. Separate figures are set out for 2007 as this marked a significant change in some of the population trends affecting Salford, as can be seen by the comparison of the overall population change figures for 2001-2010 and 2007-2010. 4 Salford Strategic Housing Market Assessment – February 2012 Area Barton Boothstown and Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste and Seedley Winton Worsley Central Salford Salford West Salford Greater Manchester North West England Population (number of people) 2001 2007 2010 11,991 12,079 12,428 Change 2001-10 Number % 437 3.64 Change 2007-10 Number % 349 2.89 9,831 12,045 9,162 10,491 10,374 9,972 9,802 12,207 9,788 10,167 10,709 9,953 9,718 13,196 10,297 10,248 11,304 9,940 -113 1,151 1,135 -243 930 -32 -1.15 9.56 12.39 -2.32 8.96 -0.32 -84 989 509 81 595 -13 -0.86 8.10 5.20 0.80 5.56 -0.13 12,036 11,238 12,639 12,549 11,604 11,310 13,616 12,185 11,790 1,580 947 -849 13.13 8.43 -6.72 1,067 581 480 8.50 5.01 4.24 12,885 6,732 11,382 12,820 8,317 11,882 12,981 11,624 12,613 96 4,892 1,231 0.75 72.67 10.82 161 3,307 731 1.26 39.76 6.15 10,983 10,962 11,152 169 1.54 190 1.73 10,971 10,939 10,994 23 0.21 55 0.50 11,193 11,318 11,450 257 2.30 132 1.17 10,158 9,955 9,993 -165 -1.62 38 0.38 10,920 12,147 9,831 10,872 12,111 9,834 11,171 12,291 10,001 251 144 170 2.30 1.19 1.73 299 180 167 2.75 1.49 1.70 76,101 77,026 83,830 7,729 10.16 6,804 8.83 140,880 142,152 145,162 4,282 3.04 3,010 2.12 216,300 221,300 229,000 12,700 5.87 7,700 3.48 2,518,000 6,776,900 49,649,100 2,565,500 6,863,700 51,106,200 2,629,400 6,935,700 52,234,000 111,400 158,800 2,584,900 4.42 2.34 5.21 63,900 72,000 1,127,800 2.49 1.05 2.21 Source: ONS Mid-Year Population Estimates (experimental statistics at ward level); 2001 and 2010 Mid-Year Population Estimates; 2007 Revised MidYear Population Estimates 2.10 There was an increase in population in Salford over the period 20012010 of 5.87%, with this slightly exceeding the national increase of 5.21% and significantly above the regional increase of 2.34%. This is due to the relatively high growth in Salford during 2007-2010 (3.48%), whereas there was lower growth than in England as a whole between 2001 and 2007. 2.11 Within the city, the population gain was primarily in Central Salford, where there was a 10.16% increase, the majority of which was since 5 Salford Strategic Housing Market Assessment – February 2012 2007. There was still a reasonable level of population increase in Salford West, but this was considerably lower than for Central Salford, at 3.04%. 2.12 The scale of the increase in the ward of Ordsall clearly stands out, with an increase of 73% over the period 2001-2010, accounting for 39% of all population growth in Salford (and 49% over the period 2007-2010). There has also been significant population growth in Irwell Riverside (13%), Cadishead (12%) and Pendlebury (11%), and in the last three years Broughton (8%). This population increase reflects the areas where there have been significant levels of new housing completions, and regeneration activity (particularly in parts of Central Salford) . 2.13 Conversely, the population in five of the city’s wards fell between 2001 and 2010. The biggest decrease was in Langworthy with a fall of 849 people, representing an overall decrease by 6.72%. This is likely to be largely the result of a relatively high level of demolitions in this area during that period, associated with the Housing Market Renewal Pathfinder and Single Regeneration Budget funding. Age profile 2.14 Experimental statistics produced by the Office for National Statistics provides details of the age breakdown of the current population by ward, and enable comparisons to be made with the sub-regional, regional and national pictures. The proportion of people in each age group is set out below. Area Barton Boothstown and Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste and Seedley Winton Worsley 0-19 23.53 Proportion of population by age group 20-34 35-49 50-64 65-79 25.39 21.66 16.28 9.25 80+ 3.89 23.97 28.81 25.80 21.23 20.05 25.70 20.72 32.24 18.58 28.56 12.77 22.43 22.70 23.16 25.26 20.70 17.84 26.71 21.98 22.20 23.13 20.91 45.95 24.07 30.03 22.16 54.55 25.51 21.74 21.22 23.21 18.65 23.95 17.88 22.20 20.62 20.41 20.92 16.24 15.60 20.42 19.06 16.22 21.29 20.58 21.74 20.54 20.76 20.58 13.73 15.45 19.02 18.54 15.65 9.82 14.75 15.91 15.86 9.78 16.36 16.69 18.14 16.66 20.31 10.50 9.00 10.88 12.41 11.87 13.16 5.59 8.29 11.03 10.21 5.28 10.62 14.06 11.22 9.69 14.38 3.17 3.88 3.69 4.52 5.99 3.66 1.69 5.05 4.04 4.16 1.40 3.78 4.23 4.52 4.64 5.18 21.87 27.59 21.64 24.49 23.20 15.95 19.20 21.07 22.33 17.40 15.26 19.30 11.82 9.45 14.97 5.22 3.42 5.82 6 Salford Strategic Housing Market Assessment – February 2012 Area 0-19 Proportion of population by age group 20-34 35-49 50-64 65-79 80+ Central Salford Salford West 22.48 24.02 32.93 21.81 17.92 21.21 14.14 17.21 8.90 11.44 3.63 4.30 Salford Greater Manchester North West England 23.45 25.90 19.96 16.07 10.52 4.10 24.73 24.04 23.77 22.26 19.59 20.10 21.16 21.10 21.62 17.02 18.56 18.03 10.80 12.17 11.78 4.03 4.55 4.69 Source: ONS Mid-Year Population Estimates 2010 (experimental statistics at ward level) 2.15 Within Salford 23.45% of the population is under the age of 20. This is slightly lower than the proportions of 24.73%, 24.04% and 23.77% in Greater Manchester, North West and England respectively. There is relatively little difference between Central Salford and Salford West, with the former slightly below the city average (22.48%) and the latter slightly above it (24.02%). At a ward level there are some hot spots where there is a notable divergence from the city average in this age group. For example, there is a significantly above average proportion of people under 20 in Broughton, Kersal, Little Hulton and Winton. The proportion in Ordsall is very low at 12.77%, whilst it is also quite low in nearby Langworthy (18.58%). 2.16 The proportion of people aged between 20 and 34 in Salford is significantly above average (25.90% compared to averages of 22.26%, 19.59% and 20.10% for Greater Manchester, North West and England respectively). Central Salford as a whole has an extremely high proportion of adults between the ages of 20 and 34, particularly in the wards of Ordsall (55%) and Irwell Riverside (46%). In these two wards 67% of residents are aged 34 or under, with very few older people (around 7% of the population in these wards) over 65 as a result. 2.17 The proportion of people within the groups aged 35 and above in Salford is below the national and regional averages, although this is mainly due to the situation in Central Salford. Overall, the age distribution in Salford West is similar to that nationally and regionally, and the deviation at the citywide level is mainly due to Central Salford and particularly the wards of Ordsall and Irwell Riverside which have a very different age structure. 2.18 The proportion of people aged 65 and over in Salford (14.62%) is around the Greater Manchester average (14.83%), but lower than the North West (16.72%) and England (16.47) averages. The proportion in Salford West is above the city average, whilst the average in Central Salford is below the average. Worsley is the ward with the highest proportion of people aged 65 and older, with Ordsall being the ward with the lowest proportion. 7 Salford Strategic Housing Market Assessment – February 2012 Recent changes in age 2.19 The age structure of the city and its wards is not static, as is shown in the following series of tables. AGED 0-19 Area Barton Boothstown and Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste and Seedley Winton Worsley Central Salford Salford West Salford Greater Manchester North West England Number of people 2001 2007 2,970 2,877 2010 2,924 Change 2001-10 Number % -46 -1.55 Change 2007-10 Number % 47 1.63 2,529 3,282 2,523 2,556 2,202 2,853 2,415 3,236 2,615 2,274 2,167 2,611 2,329 3,802 2,657 2,176 2,267 2,555 -200 520 134 -380 65 -298 -7.91 15.84 5.31 -14.87 2.95 -10.45 -86 566 42 -98 100 -56 -3.56 17.49 1.61 -4.31 4.61 -2.14 2,949 3,951 2,724 2,557 3,810 2,229 2,821 3,929 2,190 -128 -22 -534 -4.34 -0.56 -19.60 264 119 -39 10.32 3.12 -1.75 3,873 1,329 2,871 3,695 1,344 2,777 3,707 1,484 2,829 -166 155 -42 -4.29 11.66 -1.46 12 140 52 0.32 10.42 1.87 2,523 2,529 2,532 9 0.36 3 0.12 2,748 2,636 2,546 -202 -7.35 -90 -3.41 3,021 2,943 2,892 -129 -4.27 -51 -1.73 2,364 2,059 2,069 -295 -12.48 10 0.49 2,607 3,648 2,088 2,336 3,387 2,161 2,443 3,391 2,164 -164 -257 76 -6.29 -7.04 3.64 107 4 3 4.58 0.12 0.14 19,398 17,786 18,845 -553 -2.85 1,059 5.95 36,213 34,872 34,862 -1,351 -3.73 -10 -0.03 55,700 52,800 53,700 -2,000 -3.59 900 1.70 660,100 1,741,200 12,327,700 647,700 1,690,700 12,351,800 650,200 1,667,400 12,417,500 -9,900 -73,800 89,800 -1.50 -4.24 0.73 2,500 -23,300 65,700 0.39 -1.38 0.53 Source: ONS Mid-Year Population Estimates (experimental statistics at ward level); 2001 and 2010 Mid-Year Population Estimates; 2007 Revised MidYear Population Estimates 2.20 Salford, Greater Manchester and the North West saw a reduction in young people aged 0-19 over the period between 2001 and 2010 compared to a slight increase nationally. There was a significant 8 Salford Strategic Housing Market Assessment – February 2012 reduction of 1,612 people aged between 0 and 19 in Central Salford between 2001 and 2007, although around two-thirds of this was regained in 2007 to 2010. The decline in Salford West was slightly lower in 2001-2007 (1,341 people), but that area has only seen a relative stabilisation in 2007-2010 rather than the recovery witnessed in Central Salford. 2.21 It is notable that in Broughton, 566 of the 989 population increase in 2007-2010 was in the age group 0-19 (57%). In contrast, only 155 of the 4,892 increase in Ordsall was in this age group (3%). Langworthy saw a particularly large reduction in the number of young people in 2001-2010 (20%), with Claremont (15%), Walkden South (12%), Irlam (10%) and Boothstown and Ellenbrook (8%) also quite significant. It is notable that three of these wards (Claremont, Walkden South, and Boothstown and Ellenbrook) are generally considered to be amongst the more settled and prosperous areas of the city. AGED 20-34 Area Barton Boothstown and Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste and Seedley Winton Worsley Central Salford Salford West Number of people 2001 2007 2,643 2,896 2010 3,156 Change 2001-10 Number % 513 19.41 Change 2007-10 Number % 260 8.98 2,100 2,787 1,812 1,965 1,986 1,944 1,774 3,044 2,007 2,116 2,261 1,962 1,734 3,524 2,263 2,275 2,615 2,078 -366 737 451 310 629 134 -17.43 26.44 24.89 15.78 31.67 6.89 -40 480 256 159 354 116 -2.25 15.77 12.76 7.51 15.66 5.91 4,554 2,076 3,375 5,505 2,478 2,973 6,256 2,933 3,540 1,702 857 165 37.37 41.28 4.89 751 455 567 13.64 18.36 19.07 2,466 2,400 2,307 2,674 3,660 2,654 2,876 6,341 3,218 410 3,941 911 16.63 164.21 39.49 202 2,681 564 7.55 73.25 21.25 2,172 2,207 2,424 252 11.60 217 9.83 2,103 2,135 2,333 230 10.94 198 9.27 2,232 2,478 2,658 426 19.09 180 7.26 1,728 1,849 1,864 136 7.87 15 0.81 2,193 2,415 1,629 2,546 2,710 1,531 2,736 2,852 1,595 543 437 -34 24.76 18.10 -2.09 190 142 64 7.46 5.24 4.18 19,350 22,322 27,605 8,255 42.66 5,283 23.67 27,537 29,138 31,666 4,129 14.99 2,528 8.68 9 Salford Strategic Housing Market Assessment – February 2012 AGED 20-34 Area Salford Greater Manchester North West England Number of people 2001 2007 46,900 53,500 531,400 1,317,000 10,157,700 546,400 1,304,200 10,139,400 2010 59,300 585,300 1,358,600 10,500,500 Change 2001-10 Number % 12,400 26.44 Change 2007-10 Number % 5,800 10.84 53,900 41,600 342,800 38,900 54,400 361,100 10.14 3.16 3.37 7.12 4.17 3.56 Source: ONS Mid-Year Population Estimates (experimental statistics at ward level); 2001 and 2010 Mid-Year Population Estimates; 2007 Revised MidYear Population Estimates 2.22 The growth in people aged between 20 and 34 in Salford has been very high during the period 2001-2010 compared to the national and regional levels in particular. Indeed, it effectively accounted for almost all population growth in Salford (12,400 out of a total of 12,700, although clearly other age groups increased as well because some others declined). The growth in Central Salford (8,255 people) was nearly double that in Salford West (4,129 people), despite the lower overall population (proportionately, this mean a 42.66% increase in Central Salford compared to 14.99% in Salford West). Although the growth in Salford West was less than in Central Salford, it is still significantly above the level in England (3.37%) and the North West (3.16%), and was also above the conurbation as a whole despite Greater Manchester having relatively high growth rates (10.4%) in this age group. 2.23 Between 2001 and 2010 in the Ordsall ward there was an increase of 4,892 people, with 3,941 (81%) of this being between the ages of 20 and 34. The very large population increase was therefore driven primarily by young adults, reflecting the attractiveness of Salford Quays to young professionals, and also regeneration activity focussed in other parts of the Ordsall ward which has attracted first-time buyers. Indeed, this age group has increased by 73% in just three years in this ward (2007-2010). In Irwell Riverside, the growth in this age group (1,702) has actually exceeded the total population growth for the area in the period 2001-2010 (1,580). All other areas of Salford have seen an increase, often significant, in this age group over the period 2001-2010, except for Worsley (although this area has seen an increase in the last few years) and Boothstown and Ellenbrook. It is possible that this situation in Worsley and Boothstown and Ellenbrook could reflect issues of affordability, or potentially the lifestyle associated with these areas of the city. This contrasts with the role of much of South Manchester, which is a similarly prosperous area to those two wards but appears highly attractive to young adults. 10 Salford Strategic Housing Market Assessment – February 2012 AGED 35-64 Area Barton Boothstown and Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste and Seedley Winton Worsley Central Salford Salford West Salford Greater Manchester North West England Number of people 2001 2007 4,446 4,668 2010 4,715 Change 2001-10 Number % 269 6.05 Change 2007-10 Number % 47 1.01 4,188 3,981 3,438 4,197 4,035 3,726 4,426 4,092 3,749 4,086 4,214 3,775 4,327 4,171 3,877 4,062 4,403 3,635 139 190 439 -135 368 -91 3.32 4.77 12.77 -3.22 9.12 -2.44 -99 79 128 -24 189 -140 -2.24 1.93 3.41 -0.59 4.49 -3.71 3,276 3,405 4,338 3,434 3,651 4,217 3,548 3,698 4,284 272 293 -54 8.30 8.60 -1.24 114 47 67 3.32 1.29 1.59 4,347 2,199 4,392 4,505 2,553 4,652 4,533 3,022 4,749 186 823 357 4.28 37.43 8.13 28 469 97 0.62 18.37 2.09 4,341 4,207 4,156 -185 -4.26 -51 -1.21 4,242 4,391 4,384 142 3.35 -7 -0.16 4,071 4,203 4,259 188 4.62 56 1.33 4,257 4,182 4,105 -152 -3.57 -77 -1.84 4,047 4,275 4,164 4,044 4,365 4,136 4,089 4,466 4,163 42 191 -1 1.04 4.47 -0.02 45 101 27 1.11 2.31 0.65 25,443 26,077 26,874 1,431 5.62 797 3.06 53,922 55,473 55,772 1,850 3.43 299 0.54 79,500 81,600 82,500 3,000 3.77 900 1.10 951,300 2,633,000 19,129,000 995,100 2,754,500 20,454,400 1,004,100 2,750,400 20,710,000 52,800 117,400 1,581,000 5.55 4.46 8.26 9,000 -4,100 255,600 0.90 -0.15 1.25 Source: ONS Mid-Year Population Estimates (experimental statistics at ward level); 2001 and 2010 Mid-Year Population Estimates; 2007 Revised MidYear Population Estimates 2.24 Growth in the age group between 35 and 64 has been slower in Salford over the period 2001-2010 than at the national, regional and subregional levels, with a growth of 3.77% compared to Greater Manchester (5.55%), North West (4.46%) and England (8.26%). However, growth has been slightly higher over the last few years than in Greater Manchester and the North West, possibly indicating a change in trends. Salford West appears to be largely responsible for this low growth rate, with Central Salford having a relatively high level 11 Salford Strategic Housing Market Assessment – February 2012 of growth in this age group in 2007-2010 of 797 people. Ordsall has again seen a proportionately high increase in this age group (37%), although this only accounts for 823 of a total increase of 4,892 people in the ward during the period 2001-2010 (17% of the ward’s total increase). Cadishead is the only area to see double digit growth in this age group (13%), and several areas saw a decrease (including Claremont and Langworthy within Central Salford). AGED 65+ Area Barton Boothstown and Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste and Seedley Winton Worsley Central Salford Salford West Salford Greater Manchester North West England Number of people 2001 2007 1,932 1,638 2010 1,633 Change 2001-10 Number % -299 -15.48 Change 2007-10 Number % -5 -0.31 1,014 1,995 1,389 1,773 2,151 1,449 1,187 1,835 1,417 1,691 2,067 1,605 1,328 1,699 1,500 1,735 2,019 1,672 314 -296 111 -38 -132 223 30.97 -14.84 7.99 -2.14 -6.14 15.39 141 -136 83 44 -48 67 11.88 -7.41 5.86 2.60 -2.32 4.17 1,257 1,806 2,202 1,053 1,665 1,891 991 1,625 1,776 -266 -181 -426 -21.16 -10.02 -19.35 -62 -40 -115 -5.89 -2.40 -6.08 2,199 804 1,812 1,946 760 1,799 1,865 777 1,817 -334 -27 5 -15.19 -3.36 0.28 -81 17 18 -4.16 2.24 1.00 1,947 2,019 2,040 93 4.78 21 1.04 1,878 1,777 1,731 -147 -7.83 -46 -2.59 1,869 1,694 1,641 -228 -12.20 -53 -3.13 1,809 1,865 1,955 146 8.07 90 4.83 2,073 1,809 1,950 1,946 1,649 2,006 1,903 1,582 2,079 -170 -227 129 -8.20 -12.55 6.62 -43 -67 73 -2.21 -4.06 3.64 11,910 10,841 10,506 -1,404 -11.79 -335 -3.09 23,208 22,669 22,862 -346 -1.49 193 0.85 35,000 33,500 33,500 -1,500 -4.29 0 0.00 373,200 1,081,700 7,835,600 376,500 1,114,700 8,160,600 390,000 1,159,500 8,606,300 16,800 77,800 770,700 4.50 7.19 9.84 13,500 44,800 445,700 3.59 4.02 5.46 Source: ONS Mid-Year Population Estimates (experimental statistics at ward level); 2001 and 2010 Mid-Year Population Estimates; 2007 Revised MidYear Population Estimates 12 Salford Strategic Housing Market Assessment – February 2012 2.25 In relation to people aged over 65 in Salford, there is a notable contrast with the national, regional and sub-regional trends. Salford has actually seen a reduction in this age group over the period 2001-2010 of 1,500 people, although the population level stabilised over the last three years of that period. The loss of people aged over 65 is an issue for the whole of the city, but particularly Central Salford which saw a 12% reduction in residents in this age group despite a 10% increase in the overall population. 2.26 Ordsall actually saw a small reduction in this age group, despite its population increasing by 73%, and Irwell Riverside saw a more significant reduction of 266 people in this age group despite an overall population increase of 1,580 people. However, there were also some significant decreases elsewhere in the city including Langworthy (20%), Barton (15%), Little Hulton (15%), Broughton (15%), Winton (13%) and Walkden North (12%). It is notable that all of these areas are relatively deprived. In contrast, Boothstown and Ellenbrook saw a 31% increase in this age group (compared to a reduction in the number of people in both the 0-19 and 20-34 age groups), and there was a 15% increase in Irlam (compared to a reduction in both the 0-19 and 35-64 age groups). Ethnicity 2.27 The table below provides a brief summary of the relative ethnic diversity of Salford. Proportion of population (%) Salford North West England White Minority White Minority White Minority Year British Ethnic British Ethnic British Ethnic 2001 92.6 7.4 92.0 8.0 86.8 13.2 2009 86.5 13.5 88.4 11.6 82.8 17.2 Source: ONS Mid Year Population Estimates 2010 2.28 In 2001, the vast majority of the population in Salford was of White British ethnicity (92.6%), with 7.4% being classed as Minority Ethnic. The proportion of White British people in Salford was higher than in the North West and England in 2001. Updated figures from 2009 show that the proportion of Salford’s population that is White British has fallen to 86.5%, with this below the North West average (88.4%), but above the England average (82.8%). Household composition 2.29 Data on household composition from the 2001 Census is shown below. 13 Salford Strategic Housing Market Assessment – February 2012 Household type One person - pensioner One person - non pensioner Family - pensioner only Family - couple Family - couple with children Family - lone parents Other - with children Other - all students Other - all pensioners Other Source: Census 2001 Proportion of population (%) Salford North West England 16.8 15.1 14.4 19.9 15.9 15.7 7.3 8.5 8.9 14.2 16.4 17.8 23.6 27.4 27.1 12.5 11.1 9.5 2.0 2.2 2.2 0.3 0.3 0.4 0.4 0.4 0.4 3.0 2.7 3.7 2.30 Although the data is now more than a decade old, it suggests that Salford has an above average proportion of single person households (accounting for around 37% of all households, compared to the average of around 31% in the North West and England). 58% of households in Salford are classed as being families, compared to the average of 63% in the North West and England. 2.31 Data earlier in this section on the age of the population indicated that Salford has a relatively low proportion of people aged 65 and over. However, this does not appear to translate into households, as the table above suggests that the city actually has a slightly higher proportion of all pensioner households (combination of the “One person – pensioner”, “Family – pensioner only” and “Other – all pensioners” groups) than at the national and regional level. This is solely down to the relatively high proportion of single person pensioner households. It is possible that this situation may have changed since the Census given the population age changes discussed above, and this seems to be borne out by the household age profile data in the next sub-section. Household profile Age profile 2.32 The table below is taken from the Department for Communities and Local Government’s 2008-based household projections, which provide a reasonably detailed breakdown of households based on the age of the household head, and compares the situation in Salford with that for the North West region as a whole. Age of household head 24 or less 25-34 35-44 45-54 Salford Households % of total in 2008 households 5,586 5.69 17,267 17.58 18,925 19.27 16,649 16.95 14 North West Households % of total in 2008 households 119,428 4.07 396,576 13.51 580,849 19.79 544,966 18.57 Salford Strategic Housing Market Assessment – February 2012 Age of household head 55-59 60-64 65-74 75-84 85+ Salford Households % of total in 2008 households 7,417 7.55 7,401 7.54 12,544 12.77 9,018 9.18 3,412 3.47 North West Households % of total in 2008 households 249,245 8.49 255,263 8.70 402,527 13.71 287,408 9.79 98,691 3.36 Total 98,219 100.00 2,934,953 Source: DCLG 2008-based household projections 100.00 2.33 When considering the age of the household head, it is apparent that Salford has a higher proportion of young households under the age of 35 than the North West as a whole (23.3% compared to 17.6%). However, for all other age groups, except for those aged over 85, the proportion in Salford is less than that for the North West. As would be suggested by the population age data, the number of households with a household head aged 65 or over is lower in Salford than for the region overall (25.42% compared to 26.86%). 2.34 The household projections data also enables an analysis to be made of how the age structure of households has changed in recent years, as shown below. Age of household head 24 or less 25-34 35-44 45-54 55-59 60-64 65-74 75-84 85+ Number of households in Salford 2001 2008 4,575 5,586 16,014 17,267 18,535 18,925 15,652 16,649 7,071 7,417 6,608 7,401 12,944 12,544 9,658 9,018 2,852 3,412 Change in number of households in Salford 2001-2008 % increase 1,011 22.10 1,253 7.82 390 2.10 997 6.37 346 4.89 793 12.00 -400 -3.09 -640 -6.63 560 19.64 Total 93,909 98,219 Source: DCLG 2008-based household projections 2.35 4,310 4.59 Between 2001 and 2008 there was a 4.59% increase in the total number of households from 93,909 to 98,219. Of this overall increase, a major element was the 22.10% increase in households where the age of the household head was 24 or less. There was also a large proportionate increase in the number of households aged over 85 (19.64%) although there was a big decline of 1,040 households in the 65-84 age group. There was a proportionally lower increase in the 35- 15 Salford Strategic Housing Market Assessment – February 2012 59 groups, although there was a significant numerical increase of 997 households in the 45 to 54 age band. 2.36 Overall, therefore, there has been quite a mixed picture, but this data suggests increasing pressures particularly for the youngest and oldest age groups. It would seem likely that such households are most likely to be affected by issues of affordability. Size profile 2.37 The DCLG household projections can also be used to provide a general indication of the size of households in Salford. However, the categories available mean that the exact size of households cannot be determined in all cases, only the minimum size (for example, there are three sub-groups that refer to “a couple and one or more other adults”, and several that refer to “3+ dependent children”). Size of household Single 2 person 3+ person 4+ person 5+ person 6+ person Other Salford Households % of total in 2008 households 40,841 41.58 25,370 25.83 13,701 13.95 8,124 8.27 3,818 3.89 260 0.26 6,101 6.21 North West Households % of total in 2008 households 1,020,529 34.77 866,954 29.54 445,236 15.17 299,264 10.20 120,804 4.12 12,983 0.44 169,182 5.76 Total 98,219 100.00 2,934,953 Source: DCLG 2008-based household projections 100.00 2.38 According to the DCLG 2008-based household projections, the household size most common in Salford is that containing a single person, with this category accounting for 41.58% of all households, compared to 34.77% at the North West level. When examining the other sizes of households, is striking that for all other household size categories Salford is below the North West averages. The most notable differences between Salford and the North West are in the proportion of 2 person households, with such households accounting for 25.83% of the stock in Salford, compared to 29.54% across the North West as a whole, although the differences for the 3+ person and 4+ person household sizes are also quite significant. 2.39 The next table uses the DCLG 2008-based household projections data again to identify the change in household size in recent years. 16 Salford Strategic Housing Market Assessment – February 2012 Size of household Single 2 person 3+ person 4+ person 5+ person 6+ person Other Number of households in Salford 2001 2008 34,844 40,841 23,736 25,370 14,891 13,701 9,289 8,124 4,214 3,818 387 260 6,549 6,101 Total 93,909 98,219 Source: DCLG 2008-based household projections Change in number of households in Salford 2001-2008 % increase 5,997 17.21 1,634 6.88 -1,190 -7.99 -1,165 -12.54 -396 -9.40 -127 -32.82 -448 -6.84 4,310 4.59 2.40 This suggests that although there was only a moderate increase in the overall number of households between 2001 and 2008 (4,310 households), there has been a significant increase of 5,997 single and 1,634 two-person households (although this may be affected by welfare reform changes which are likely to result in an increase in larger shared households). Over the same period however there was a fall in all other household sizes, particularly 6+ persons when considering the proportionate change (a fall of 32.82%), and 3+ person households numerically (a loss of 1,190 households). 2.41 The map below (using 2001 Census data) shows that the proportion of single person households is relatively high across large parts of the city, with particular concentrations in parts of Central Salford and most of Eccles (although not in north Eccles). To some extent the distribution of single person households reflects the concentration of apartments in these areas. The proportion of single person households is low within the Boothstown and Ellenbrook and Worsley areas (less than 20% of all households). 17 Salford Strategic Housing Market Assessment – February 2012 Type profile 2.42 The DCLG 2008-based household projections provide a detailed breakdown of household types, but these can be grouped together to identify the balance between households with dependent children and those without. This suggests that Salford has a higher proportion of adult only households than the region as a whole, and a lower proportion of households with dependent children. Type of household Adult only households Households with dependent children Salford Households % of total in 2008 households North West Households % of total in 2008 households 73,752 75.09 2,126,044 72.44 24,463 24.91 808,908 27.56 Total 98,219 100.00 Source: DCLG 2008-based household projections 2,934,952 100.00 2.43 In terms of the change in the number of households in these groups, as shown below, Salford has seen a significant increase in adult only households, compared to a reduction in the number of households with dependent children. 18 Salford Strategic Housing Market Assessment – February 2012 Type of household Adult only households Households with dependent children Number of households in Change in number of Salford households in Salford 2001 2008 2001-2008 % increase 68,072 73,752 5,680 8.34 25,838 24,463 -1,375 -5.32 Total 93,909 98,219 Source: DCLG 2008-based household projections 4,310 4.59 2.44 The map below shows that there is a relatively even distribution of households with dependent children across the city (according to the 2001 Census), suggesting that most areas of the city are reasonably attractive to families. The lowest levels are generally in the south-east corner of the city, although even in this area there are parts which do have quite high proportions of households with dependent children. Step 1.2: National and regional economic policy Economic output 2.45 The graph below shows recent data relating to national economic output (GDP) and the labour market. It can be seen that all three measures have seen a reduction since the first quarter of 2008, with 19 Salford Strategic Housing Market Assessment – February 2012 quite a significant drop in GDP. The limited decline in employment masks a greater fall in the total hours worked. GDP, employment and total weekly hours worked 102 Index (2008 Q1 = 100) 100 98 Employment 96 Total hours worked 94 GDP 92 90 2011 Q4 2011 Q3 2011 Q2 2011 Q1 2010 Q4 2010 Q3 2010 Q2 2010 Q1 2009 Q4 2009 Q3 2009 Q2 2009 Q1 2008 Q4 2008 Q3 2008 Q2 2008 Q1 88 Date Source: ONS Mortgage rates 2.46 The graph below shows monthly standard variable rate mortgage interest rates that households have typically being paying. It can be seen that there has been a significant reduction to around 4% since early 2009. This should have made housing more affordable, particularly for those already with a mortgage, but other pressures on household incomes and requirements for larger deposits are likely to have more than offset this for many households looking to move into owner occupation. 20 Salford Strategic Housing Market Assessment – February 2012 Standard variable rate mortgage 10 9 8 7 6 % 5 4 3 2 1 Jan-12 Jan-11 Jan-10 Jan-09 Jan-08 Jan-07 Jan-06 Jan-05 Jan-04 Jan-03 Jan-02 Jan-01 Jan-00 Jan-99 Jan-98 Jan-97 Jan-96 Jan-95 0 Date Source: Bank of England (Monthly interest rate of UK monetary financial institutions (excluding Central Bank) sterling standard variable rate mortgage to households (in percent) not seasonally adjusted) Inflation rate 2.47 The next graph provides data on the Retail Price Index (RPI), which includes housing costs within the measure of inflation. The Government has set the Bank of England a target rate of 2% for the Consumer Price Index (CPI), which is generally slightly lower than the RPI. 2.48 It can be seen that the RPI measure of inflation was high and relatively volatile between 1973 and 1993, but has since remained low and reasonably stable. However, after a negative rate of inflation in 2009, the rate has increased to around 5%. 21 Salford Strategic Housing Market Assessment – February 2012 Retail Price Index 30 Annualised inflation rate (%) 25 20 15 10 5 Ye ar 19 74 19 76 19 78 19 80 19 82 19 84 19 86 19 88 19 90 19 92 19 94 19 96 19 98 20 00 20 02 20 04 20 06 20 08 20 10 0 -5 Year Government funding for affordable housing 2.49 In the Comprehensive Spending Review of October 2010, the Government announced that there would be more modest capital investment in social housing over the spending review period, with the emphasis in the future on ‘affordable rent’2. Step 1.3: Employment levels and structure Unemployment 2.50 The table below compares the unemployment rate in Salford with the regional and national rates, expressed as the number of unemployed people as a proportion of the economically active population. Unemployment rate (% of economically active population) Year Salford North West England Apr 2004-Mar 2005 5.0 4.8 4.7 Apr 2005-Mar 2006 6.0 5.1 5.0 Apr 2006-Mar 2007 5.9 5.5 5.4 Apr 2007-Mar 2008 5.9 5.8 5.2 Apr 2008-Mar 2009 7.6 6.9 6.3 Apr 2009-Mar 2010 11.2 8.8 7.9 Apr 2010-Mar 2011 9.3 7.8 7.5 Sources: Annual Population Survey Data, and Model Based Estimates. ONS 2 “Spending Review” – HM Treasury (October 2010), p.49 22 Salford Strategic Housing Market Assessment – February 2012 2.51 Within Salford, the unemployment rate between 2005 and 2008 was consistently around the 6% level (of the economically active population). However, there was a big increase in the next two years, associated with the prevailing difficult economic conditions, followed by a reduction in 2010/11 but to a level still significantly above the prerecession levels. The pattern at the regional and national levels was similar, but it appears that the increase in unemployment rates has been greater in Salford. 2.52 The proportion of the working age population (16-64) claiming out-ofwork benefits shows a slightly different picture, as set out in the table below, with levels in Salford reasonably constant around the 17% to 18% level since 2005. There is a significant gap between Salford and the national average although this has reduced slightly over that period (in contrast to the unemployment rate data above). The proportion claiming working age benefits in Salford is also higher than the Greater Manchester and North West averages. Proportion of working age population (16-64) claiming outof-work benefits (%) Greater Date Salford Manchester North West England February 2005 17.7 15.4 14.8 11.4 February 2006 17.6 15.3 14.8 11.4 February 2007 17.3 15.1 14.5 11.2 February 2008 16.6 14.6 14.0 10.7 February 2009 18.4 16.3 15.6 12.3 February 2010 18.4 16.4 15.6 12.4 February 2011 17.6 15.6 15.0 11.9 Source: ONS/ NOMIS 2.53 The proportion of the working age population that is claiming Jobs Seekers Allowance or National Insurance Credits is also a useful measure of economic deprivation, as set out below. This is not the official measure of unemployment but provides information about disparities between different parts of Salford. The data is based on the old wards from 2003 rather than the current wards. Area (2003 wards) Barton Blackfriars Broughton Cadishead Claremont Eccles Proportion of working age population claiming Job Seekers Allowance or National Insurance Credits (September 2011) (%) 6.5 6.0 9.8 4.2 3.1 4.9 23 Salford Strategic Housing Market Assessment – February 2012 Area (2003 wards) Irlam Kersal Langworthy Little Hulton Ordsall Pendlebury Pendleton Swinton North Swinton South Walkden North Walkden South Weaste and Seedley Winton Worsley and Boothstown Proportion of working age population claiming Job Seekers Allowance or National Insurance Credits (September 2011) (%) 4.1 4.5 8.3 8.7 6.1 4.4 6.7 5.1 3.3 7.3 3.9 6.3 6.0 1.8 Salford Greater Manchester North West England Source: ONS/ NOMIS 5.2 4.8 4.4 3.8 2.54 The proportion of the working age population claiming Job Seekers Allowance or National Insurance Credits in Salford is significantly above the national average (5.2% compared to 3.8%). However, at a ward level, Worsley and Boothstown, Claremont and Swinton South are all below the national average, and Walkden South is only just above it, reflecting the relative prosperity of these areas. Interestingly, all of these areas saw a reduction in the number of people aged 0-19 over the period 2001-2010. 2.55 In contrast, Broughton, Little Hulton, Langworthy and Walkden North have the highest proportionate levels of claimants. These are amongst the areas that have the highest proportion of single person households and that have seen the largest decline in the number of older people over the period 2001-2010. It is unclear whether there is any relationship between these variables. Qualifications 2.56 The map below shows 2001 Census lower super output area (lower) data for the proportion of people aged 16 to 64 with no qualifications. It indicates that the main concentrations of people with no qualifications are primarily in the inner city areas outside the Regional Centre (such as Broughton, Ordsall and Pendleton). There are also reasonably large proportions of people with no qualifications in Salford West (particularly 24 Salford Strategic Housing Market Assessment – February 2012 Little Hulton), although there is a band running through the middle of Salford West where the general level of people with no qualifications is low. Broughton Park also stands out as an area in Central Salford where there is a low proportion of people with no qualifications. 2.57 The next map shows the distribution of people aged 16-74 with level 4/5 qualifications at the time of the 2001 Census (i.e. people with the equivalent of a degree or diploma). The map shows that the distribution of people with such qualifications is the opposite of that in the map above in relation to those people with no qualifications. As such the band running through the middle of Salford West and Broughton Park are characterised by very high proportions of people with level 4/5 qualifications. It is also apparent that parts of the Regional Centre (such as Salford Quays and Greengate) and some of the areas immediately around the Regional Centre (such as Trinity) have high levels of educational attainment. 25 Salford Strategic Housing Market Assessment – February 2012 Economic growth 2.58 The table below provides productivity data from the last decade, measured as gross value added (GVA) per head at current basic prices. Salford lies within the Greater Manchester South area, along with Manchester, Stockport, Tameside and Trafford. Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 GVA per head at current basic prices (£ per head) Greater Greater Greater North England Manchester Manchester Manchester West South North 16,354 9,883 13,353 12,629 14,745 17,274 10,245 14,010 13,225 15,459 18,222 10,608 14,688 13,838 16,281 19,231 11,172 15,500 14,544 17,218 20,107 11,746 16,247 15,192 18,073 20,636 12,195 16,753 15,655 18,678 21,372 12,691 17,395 16,382 19,642 22,229 13,197 18,108 17,165 20,649 22,403 13,110 18,177 17,344 20,962 21,709 12,562 17,567 16,884 20,498 % change Source: ONS 2.59 32.74 27.11 31.56 33.69 39.02 GVA per head is higher for Greater Manchester South, within which Salford lies, than for Greater Manchester as a whole (£21,709 26 Salford Strategic Housing Market Assessment – February 2012 compared to £17,567 in 2009), the North West (£16,884) and England (£20,498). This suggests that the wider economic area within which Salford lies is relatively prosperous. However, the economic disparity between the north and south of the conurbation is exacerbated in these statistics by the fact that the Regional Centre which drives sub-regional economic growth is located wholly within the Greater Manchester South area although its benefits are felt much more widely. 2.60 GVA growth between 2000 and 2009 has been much higher in Greater Manchester South (32.4%) than in the north of the conurbation (27.11%), although it was slightly lower than for the North West (33.69%) as a whole and quite significantly less than the increase at the national level (39.02%). 2.61 The table below compares the recent change in the number of active enterprises (defined as a business that has reported employment or turnover during the period) in Salford with the situation at the regional and national levels. Encouragingly, the growth in the number of active between 2007 and 2009 was greater in Salford than at the North West and England levels. Year 2007 2008 2009 % change Source: ONS Number of active enterprises Salford North West England 7,015 231,680 1,987,590 7,145 235,315 2,024,990 7,255 236,095 2,040,150 3.4% 1.9% 2.6% Employment 2.62 The table below provides details of how the number of employees has changed in Salford during the last decade, comparing this with the subregional, regional and national positions. Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 % Change 2000-2008 Salford 111,000 107,500 113,900 112,800 115,600 115,200 114,300 115,800 117,500 5.9% Total employees Greater Manchester North West 1,121,900 2,835,000 1,130,500 2,894,700 1,145,000 2,968,400 1,161,600 2,973,100 1,187,600 3,035,700 1,163,100 2,987,800 1,160,100 3,016,300 1,169,600 3,039,300 1,161,100 3,004,100 3.5% 6.0% 27 England 21,900,000 22,100,900 22,216,800 22,286,300 22,565,300 22,908,700 22,790,200 23,005,100 23,073,700 5.4% Salford Strategic Housing Market Assessment – February 2012 (Employees are defined as people employed by a business, and excludes the self-employed, Government-supported trainees and Her Majesty’s Forces) * data is rounded to the nearest 100 Source: ABI 2.63 Annual Business Inquiry data can be highly variable on a year on year basis, and comparisons of short-term trends should therefore be treated with caution. However, over the period 2000 to 2008, Salford has seen a proportionate increase in employee jobs similar to that at regional and national levels, and in excess of that for Greater Manchester as a whole. The ABI data suggests that in 2008 just over 10% of the total number of employee jobs in Greater Manchester were provided in Salford. 2.64 The next table provides details of the proportion of jobs in different economic sectors in Salford, and compares this with the proportion of the city’s working residents employed in those sectors. The data sets for jobs and working residents are derived from different surveys and so are not directly comparable numerically. However, they do give a general indication of the sectors that jobs in Salford are concentrated in, and the sectors where Salford residents are mainly employed. Jobs in Salford 2008 2009 2010 2010 Working Residents in Salford 2010 2010 (%) (%) (%) No. (%) Sector A: Agriculture and fishing ! 0.1 0.1 0.1 100 B,D,E: Energy and water 1.9 0.7 0.6 0.7 900 C: Manufacturing 11.3 7.1 6.7 5.8 7,100 F: Construction 8.3 7.4 6.7 5.3 6,500 G,I: Distribution, hotels and restaurants 19.5 19.3 19.8 25.0 30,800 H,J: Transport and communications 7.2 6.2 6.3 5.7 7,000 K-N: Banking, finance and insurance 14.3 28.4 27.6 28.1 34,600 O-Q: Public admin. education and health 29.4 28.1 26.2 26.0 32,000 R-U: Other services 7.2 2.8 3.2 3.3 4,000 Source: Business Register and Employment Survey/ Annual Population Survey/ SIC2007 No. ! 1,900 11,300 8,300 19,500 7,200 14,300 29,400 7,200 2.65 It can be seen that Salford residents are more focused within the manufacturing, construction, transport and communications, public administration, education and health, and other services sectors compared to the proportion of jobs in the city. In contrast, there is a far higher proportion of jobs in the banking, finance and insurance sector, which is the largest sector in Salford, than working residents in such jobs. There is also a relatively low proportion of working residents in the distribution, hotels and restaurants sector compared to the number of jobs in that sector in Salford. 2.66 The following table focuses on the number of jobs in each sector, and compares the Salford position with those for Greater Manchester and England. 28 Salford Strategic Housing Market Assessment – February 2012 Jobs by industry (2010) Greater Manchester England % No. % No. 0.1 700 1.4 338,700 1.2 13,700 1.1 254,300 8.5 101,000 8.6 2,066,600 5.0 59,500 4.8 1,152,300 Salford Sector % No. A: Agriculture and fishing 0.1 100 B,D,E: Energy and water 0.7 900 C: Manufacturing 5.8 7,100 F: Construction 5.3 6,500 G,I: Distribution, hotels and restaurants 25.0 30,800 22.9 271,300 22.9 H,J: Transport and communications 5.7 7,000 7.6 90,300 8.5 K-N: Banking, finance and insurance 28.1 34,600 22.7 268,800 21.2 O-Q: Public admin. education and health 26.0 32,000 27.4 325,100 26.8 R-U: Other services 3.3 4,000 4.6 54,100 4.7 Source: Business Register and Employment Survey/ Annual Population Survey/ SIC2007 5,527,900 2,060,000 5,104,500 6,461,900 1,137,900 2.67 Salford’s economy can be seen to have a relatively low proportion of jobs in manufacturing, transport and communications, and other services compared to the Greater Manchester and national levels. It is notable that these are also sectors where the proportion of Salford residents working in them is higher than the proportion of jobs in the city as discussed above. The banking, finance and insurance sector is significantly more dominant in Salford than at the Greater Manchester and national levels, whereas this is a sector where the city’s working residents have a much lower level of representation. 2.68 Although the distribution of jobs in the Salford economy shows some notable deviations from the Greater Manchester and England positions, the distribution of Salford’s working residents between the various economic sectors is much more similar to the sub-regional and national positions, as shown below. None of the sectors has a noticeably higher or lower proportion of working residents than at the Greater Manchester or England levels. Salford % No. ! ! 1.9 1,900 11.3 11,300 8.3 8,300 Working residents Greater Manchester % No. 0.2 2,100 1.3 14,700 11.1 129,600 7.4 86,000 England % No. 1.0 251,300 1.4 344,300 10.0 2,440,200 7.5 1,825,300 Sector A: Agriculture and fishing B,D,E: Energy and water C: Manufacturing F: Construction G,I: Distribution, hotels and restaurants 19.5 19,500 19.6 229,100 18.4 H,J: Transport and communications 7.2 7,200 8.5 99,100 8.7 K-N: Banking, finance and insurance 14.3 14,300 14.9 173,900 16.5 O-Q: Public admin. education and health 29.4 29,400 31.3 366,100 30.2 R-U: Other services 7.2 7,200 5.1 59,700 5.6 Source: Business Register and Employment Survey/ Annual Population Survey/ SIC2007 29 4,476,700 2,122,800 4,022,100 7,335,800 1,364,500 Salford Strategic Housing Market Assessment – February 2012 Note: Note: Note: Note: ‘!’ = Restricted data All figures have been rounded to the nearest 100 Total employment includes anyone aged 16+ that an organisation pays from its payroll(s), in return for carrying out a full-time or part-time job or being on a training scheme. It also includes working proprietors, defined as sole traders, sole proprietors, partners and directors The two datasets used in this table are collected as part of separate surveys, one of households (Annual Population Survey) and one of businesses (Business Register and Employment Survey), their results are not therefore directly comparable. ‘Jobs’ is the total number of employment opportunities in the city, whereas ‘working residents’ is the number of people residing in Salford who work in particular Industries (but do not necessarily work in Salford). Commuting patterns 2.69 Commuting data is very important for understanding the role of Salford’s housing markets, and how its economy interacts with the housing markets of surrounding areas. 2.70 The diagram below uses 2001 Census data to show the pattern of commuting movements in and out of Salford. Around 54% of the city’s working residents can be seen to work within the city, with the remaining 46% commuting to other districts for employment. There are some significant numbers of people commuting across local authority boundaries, particularly to and from Manchester, Trafford, Bolton, Bury and Wigan. It can be seen that there is a net outflow of commuters to Manchester and Trafford, with the level of commuting to Manchester being around double that to Trafford, and a net inflow from the rest of Greater Manchester and Warrington. 2.71 Following the diagram are two tables setting out details of the movements in and out of Salford’s wards, again using 2001 Census data. The first table identifies the proportion of each ward's workers who reside in different locations within and outside the city, and the second table sets out the proportion of each ward’s residents who work in different locations. 30 Commuting patterns in and out of Salford Source: 2001 Census 31 % of ward's workers residing in different locations Blackfriars Broughton Cadishead Claremont Eccles Irlam Kersal Langworthy Little Hulton Ordsall Pendlebury Pendleton Swinton North Swinton South Walkden North Walkden South Weaste Winton Worsley Location where workers live At home Barton Blackfriars Broughton Cadishead Claremont Eccles Irlam Kersal Langworthy Little Hulton Ordsall Pendlebury Pendleton Swinton North Swinton South Walkden North Walkden South Weaste Winton Worsley Salford Barton Location of jobs (% of ward's workers residing in different locations) 11.91 16.01 0.75 0.32 1.93 1.82 4.85 3.49 0.82 0.57 1.40 0.93 3.19 1.25 0.57 2.72 1.65 0.78 1.51 1.65 12.79 0.61 2.84 15.70 0.00 1.76 0.81 0.20 9.81 0.61 6.23 1.70 0.13 0.21 22.10 0.84 1.19 11.97 0.67 0.31 14.48 1.37 0.73 0.69 0.36 21.26 1.82 1.37 0.73 1.73 6.23 5.51 0.74 0.53 1.72 2.74 10.22 2.59 0.45 0.89 16.92 1.58 0.33 0.00 9.96 0.71 1.63 30.96 0.33 0.16 19.82 0.14 0.68 5.36 0.27 0.72 0.54 0.27 25.50 0.14 11.97 0.50 0.91 0.75 0.50 4.66 1.58 0.50 2.16 15.54 7.58 0.23 0.11 0.34 0.23 1.05 0.83 0.38 0.38 0.34 0.75 1.09 1.12 0.67 0.61 1.91 1.33 0.90 0.70 1.43 6.05 0.79 0.40 0.46 0.43 2.33 1.13 0.63 1.06 0.79 3.89 1.18 2.06 2.04 0.65 4.50 1.85 1.06 3.44 3.42 6.54 0.82 0.70 0.36 0.47 1.74 1.20 0.50 0.45 0.36 8.13 1.15 0.55 0.51 0.81 3.15 2.60 1.08 0.83 0.90 6.69 0.69 0.22 0.49 0.43 0.67 0.60 0.27 0.45 0.07 18.68 0.76 0.27 0.18 0.67 0.91 1.01 0.46 0.18 0.37 2.73 2.16 0.82 0.51 1.01 4.84 2.96 1.69 0.78 2.06 14.80 6.12 0.69 0.27 2.06 1.83 3.97 2.88 0.59 0.55 23.55 0.68 0.20 0.00 0.10 0.85 1.59 0.61 0.41 0.00 0.82 0.00 1.21 0.39 0.56 0.80 2.45 1.78 0.41 0.88 1.15 2.30 0.40 0.00 0.65 0.34 0.52 1.01 2.99 2.10 0.89 0.48 2.20 0.72 0.65 0.00 0.76 0.33 0.27 0.00 1.13 0.90 0.00 1.75 1.91 2.41 15.61 0.00 0.90 0.34 0.49 2.64 1.47 1.31 0.83 0.40 15.96 0.83 0.84 1.04 3.08 7.54 1.92 0.27 5.88 0.38 1.40 0.44 5.69 0.67 7.21 0.07 1.39 0.20 3.41 0.09 1.25 0.37 0.83 0.77 2.47 1.34 0.87 0.18 0.96 0.14 1.05 0.00 1.49 0.10 1.43 1.45 1.96 0.65 2.34 2.42 0.87 0.54 1.08 1.58 1.33 7.02 1.94 13.10 5.27 2.10 1.89 2.27 1.69 1.26 2.53 1.96 0.81 0.63 3.55 3.24 1.03 0.95 2.99 1.35 1.77 5.64 3.08 4.78 12.24 1.48 1.89 3.13 2.56 2.17 1.14 1.02 0.47 0.67 0.85 1.45 0.65 0.54 0.25 8.29 0.74 2.06 1.30 4.35 2.02 16.22 5.45 1.13 1.32 2.00 1.85 1.57 6.77 2.17 62.35 1.54 1.45 1.01 1.50 31.15 1.15 0.74 1.35 1.08 57.44 0.59 0.46 1.55 1.09 52.37 1.53 3.55 1.37 2.42 66.76 2.51 2.06 6.68 2.71 56.99 0.38 0.49 3.65 1.47 72.85 0.45 0.59 0.81 0.77 60.36 2.00 4.57 1.08 2.08 59.19 6.45 0.34 0.98 2.48 49.76 1.35 1.53 1.34 1.34 25.82 2.62 0.70 0.76 1.92 52.80 1.73 3.20 1.55 1.51 50.90 5.03 0.65 1.27 3.89 54.65 3.87 1.20 1.61 4.40 58.53 9.26 0.31 0.76 2.93 52.52 24.28 0.49 0.64 3.66 66.91 2.16 6.23 2.57 2.54 44.98 2.65 1.10 21.70 3.29 70.21 4.14 0.31 1.49 22.60 64.61 32 Cadishead Claremont Eccles Irlam Kersal Langworthy Little Hulton Ordsall Pendlebury Pendleton Swinton North Swinton South Walkden North Walkden South Weaste Winton Worsley Barton Location where workers live total Bolton 3.28 5.64 Bury 2.25 8.66 Manchester 3.85 11.38 Oldham 1.28 3.86 Rochdale 1.64 3.22 Stockport 2.32 5.22 Tameside 1.71 4.22 Trafford 8.81 6.91 Wigan 3.64 5.43 Warrington 1.82 1.46 Source: Census 2001 Broughton Blackfriars Location of jobs (% of ward's workers residing in different locations) 3.52 12.52 11.77 1.22 1.83 1.42 1.08 2.64 2.50 1.22 2.45 1.72 4.72 1.07 0.84 2.98 0.92 7.95 4.93 7.36 2.42 3.67 5.37 1.21 1.69 2.22 2.54 3.99 3.59 0.73 4.88 3.61 4.53 1.36 2.03 2.83 1.78 7.12 4.49 1.52 2.12 2.45 2.45 1.14 1.31 1.47 1.47 3.75 2.45 3.97 3.51 13.42 7.93 1.22 1.08 1.49 1.08 2.30 2.61 0.81 3.99 5.65 8.48 1.75 2.00 2.49 1.75 5.24 2.99 0.75 21.46 2.96 2.03 0.75 0.56 0.60 0.45 2.14 12.53 1.46 4.83 6.05 11.05 3.57 2.75 5.20 4.51 10.73 4.68 2.25 9.30 6.51 4.03 1.73 1.89 2.17 1.69 2.86 4.79 1.26 4.60 7.50 8.56 2.53 2.93 3.04 2.26 4.16 3.59 1.16 10.46 3.98 2.92 1.04 1.63 1.43 1.18 2.72 7.38 1.11 7.27 5.36 4.70 1.36 2.12 2.37 1.41 3.93 5.48 1.75 18.21 2.80 1.61 1.12 1.10 1.43 1.03 1.90 10.23 1.07 8.20 2.22 2.77 0.82 0.88 1.58 0.64 1.98 7.40 0.73 5.28 6.03 6.44 2.72 2.35 2.83 2.04 6.89 5.46 2.33 3.43 3.02 3.11 0.55 0.82 2.60 1.64 5.12 4.29 0.82 4.21 2.17 2.65 1.02 1.12 1.32 0.71 2.54 11.16 1.15 % of ward's residents working in different locations Blackfriars Broughton Cadishead Claremont Eccles Irlam Kersal Langworthy Little Hulton Ordsall Pendlebury Pendleton Swinton North Swinton South Walkden North Walkden South Weaste Winton Worsley Location where residents work At home Barton Blackfriars Broughton Cadishead Claremont Eccles Irlam Barton Location of jobs (% of ward's residents working in different locations) 7.72 10.37 2.70 0.21 1.87 0.79 8.46 0.67 5.76 0.69 13.10 1.38 0.20 0.59 1.60 0.20 7.91 0.38 6.57 9.71 0.42 0.71 1.47 0.00 7.38 1.34 1.76 0.00 26.19 0.22 2.83 4.55 6.19 0.88 5.88 0.45 0.69 9.09 3.14 0.22 8.21 2.70 4.11 0.24 1.13 0.89 13.47 0.60 6.77 2.13 2.13 0.07 12.44 0.74 3.75 12.39 10.40 0.54 4.47 3.43 0.76 0.43 0.71 0.14 5.43 0.60 7.80 0.34 0.57 1.62 2.22 0.11 6.28 0.71 2.17 0.19 0.59 0.40 1.83 0.37 5.48 0.00 3.89 0.51 0.00 0.97 1.24 0.00 6.94 0.56 5.03 0.28 0.51 1.21 2.39 0.23 6.17 0.36 7.23 1.10 0.52 1.68 1.55 0.19 7.14 0.78 3.56 0.57 0.61 1.13 3.15 0.31 7.55 1.17 4.04 0.20 0.49 1.44 3.53 0.31 6.49 0.69 2.78 0.15 0.69 0.46 2.08 0.26 8.21 0.70 2.58 0.23 0.37 0.51 2.24 0.09 6.82 1.18 4.89 0.30 0.59 2.36 3.68 0.24 6.62 3.88 2.59 0.41 1.51 0.69 9.07 1.37 9.50 0.84 2.57 0.22 0.71 0.82 2.46 0.37 33 Cadishead Claremont Eccles Irlam Kersal Langworthy Little Hulton Ordsall Pendlebury Pendleton Swinton North Swinton South Walkden North Walkden South Weaste Winton Worsley Barton Location where residents work Kersal 0.07 0.49 Langworthy 0.14 0.36 Little Hulton 0.14 0.10 Ordsall 4.71 6.88 Pendlebury 1.27 0.92 Pendleton 1.34 3.31 Swinton North 1.06 1.28 Swinton 1.50 1.02 South Walkden North 0.72 0.33 Walkden South 0.58 0.29 Weaste 4.64 2.49 Winton 3.10 0.49 Worsley 0.46 0.20 Salford total 52.52 41.65 Bolton 2.22 1.51 Bury 0.88 1.05 Manchester 12.41 34.61 Oldham 0.42 0.49 Rochdale 0.74 0.69 Stockport 1.52 1.47 Tameside 0.51 1.08 Trafford 23.82 9.07 Wigan 0.65 0.69 Warrington 0.76 0.59 Source: Census 2001 Broughton Blackfriars Location of jobs (% of ward's residents working in different locations) 4.98 0.38 0.15 0.15 0.28 0.97 0.24 0.38 0.13 0.13 13.38 0.61 0.11 7.05 0.19 0.00 0.00 0.82 0.41 0.38 0.65 0.94 0.23 0.25 0.34 0.59 0.26 0.07 0.13 0.32 0.35 1.48 0.37 0.27 0.23 0.34 0.38 5.23 1.34 4.19 0.15 2.83 0.75 0.80 0.48 6.16 2.81 3.81 0.44 4.94 1.57 1.80 0.22 3.68 0.96 1.13 0.24 3.07 1.75 4.00 0.34 10.06 2.07 6.33 12.92 2.86 1.80 1.27 0.00 19.15 1.09 1.98 0.39 4.49 18.30 2.48 0.29 7.91 1.87 11.94 0.82 4.85 9.60 1.86 0.59 5.42 6.47 2.48 4.80 3.00 3.13 1.39 2.30 3.37 2.45 1.14 0.24 7.68 1.32 4.22 0.53 5.13 1.08 1.55 0.90 3.44 1.83 1.01 0.84 0.65 1.67 1.33 0.61 0.59 0.75 3.32 0.58 5.38 0.68 14.30 4.38 5.28 3.76 0.97 1.45 2.97 1.21 1.14 3.07 2.92 1.33 1.11 1.92 2.45 0.97 5.28 1.23 5.83 11.36 2.48 2.93 1.83 1.86 3.41 0.92 0.47 0.52 0.54 0.26 0.47 0.11 10.00 0.12 1.02 0.29 1.84 1.08 15.74 5.54 0.38 0.69 1.79 0.25 1.97 0.25 0.00 0.55 2.34 1.12 0.07 0.52 7.76 0.69 0.43 0.65 5.45 1.73 0.93 0.33 3.42 1.37 0.39 0.14 1.73 0.31 0.28 0.45 7.23 0.45 0.00 3.48 2.39 0.59 0.96 0.12 2.80 0.16 0.00 0.67 3.77 0.34 0.72 0.39 4.03 0.10 0.10 1.21 4.13 0.72 0.72 1.02 4.78 0.92 1.05 3.89 2.28 0.63 1.28 10.67 2.69 0.78 1.63 0.43 15.58 0.64 0.24 0.43 4.88 9.70 0.90 1.64 3.23 0.99 9.12 49.10 1.63 2.47 30.14 0.75 1.13 1.00 0.88 7.74 0.54 0.42 55.43 1.64 1.09 10.48 0.30 0.67 0.84 0.37 13.99 1.34 6.83 55.70 1.81 1.78 17.93 0.67 1.12 1.50 0.86 10.97 0.95 1.05 54.24 2.54 1.05 16.66 0.83 0.69 1.65 0.95 13.03 0.85 1.27 54.39 1.35 0.81 11.30 0.39 0.59 1.52 0.48 19.26 0.41 3.96 48.56 0.92 7.85 26.71 0.73 0.85 1.35 0.92 6.62 0.71 0.50 55.58 1.13 1.39 20.99 0.68 1.13 1.13 0.90 11.87 0.68 0.57 54.80 13.45 1.80 10.13 0.93 0.93 1.43 0.47 7.95 2.86 1.18 39.86 0.97 1.90 29.14 0.70 0.70 2.60 1.05 13.21 0.93 1.63 60.79 4.18 1.69 13.87 1.05 0.95 1.18 0.69 7.84 1.46 0.89 49.19 1.23 2.39 23.56 0.77 0.97 0.87 1.39 9.04 1.26 0.61 63.62 3.91 1.60 13.38 0.66 0.88 1.13 0.59 7.45 1.19 0.82 59.23 3.73 1.81 14.07 0.66 0.90 1.51 1.05 9.46 1.08 1.30 57.82 12.51 1.74 9.57 0.74 0.91 1.17 0.78 6.80 2.06 1.22 52.67 8.14 1.69 13.74 0.88 0.94 1.53 0.64 8.46 2.88 1.61 55.43 1.69 1.61 17.84 0.64 0.81 1.59 0.86 12.25 0.91 0.73 54.97 2.39 0.92 12.68 0.41 0.55 1.27 0.67 19.54 0.92 1.25 48.41 5.01 2.23 15.76 0.92 0.79 1.96 0.68 10.99 3.42 1.97 34 Cross-boundary movements 2.72 Salford’s gross out-commuting is dominated by Manchester and then Trafford, and, although they may be important for individual areas, the districts of Bolton, Bury, Warrington, Stockport and Wigan are well behind for the city as a whole. 2.73 The significant flows into Manchester extend across the whole of Salford, with at least 9.5% of the working residents of every ward travelling to Manchester to work. At least 6.5% of working residents of every ward travel to Trafford. Trafford’s pull is only stronger than Manchester’s for Barton, Cadishead, Irlam and Winton. Manchester and Trafford’s pulls are exceeded by Bolton in the case of Little Hulton and Walkden North. Trafford is pushed into third place by Bury in the case of Kersal, and is only just ahead of Bolton for Walkden South. 2.74 Salford’s gross in-commuting is much more dispersed. No districts dominate in the way that Manchester and Trafford do as destinations for Salford residents to work, but there is significant gross incommuting from Manchester, Bolton, Trafford, Wigan and Bury. Bolton is the largest external source of workers for Little Hulton, Walkden North, Swinton North, Pendlebury, Walkden South and Swinton South (6 wards), Bury for Kersal and Broughton (2 wards), Manchester for Blackfriars, Ordsall, Pendleton, Claremont, Langworthy (5 wards), Trafford for Barton, Cadishead, Eccles, Weaste and Winton (5 wards), Warrington for Irlam (and just pushed into second by Trafford for Cadishead), and Wigan for Worsley (it also provides a large proportion to Little Hulton and Walkden North). 2.75 Gross commuting flows out of Salford only exceed 1,900 to three districts, but inflows exceed 1,900 from ten districts. Manchester and Trafford are similar, in terms of a much wider spread of in-commuting compared to more focused out-commuting. The impacts of commuting on the city are not just related to people working and/or residing in the city, and there are potentially significant commuting flows through Salford from Bolton, Bury and Wigan into Manchester and Trafford. East-West and North-South movements within Salford 2.76 Overall there is a net flow within Salford of 6,159 from Salford West to Central Salford. Gross outflows from Central Salford to Salford West are small, and the large majority are to the Eccles and Swinton and Pendlebury community committee areas. Every Salford West community committee area has a net outflow to each Central Salford community committee area. 2.77 Central Salford has very significant net inflows from the rest of Greater Manchester (12,986), exceeding 1,000 for all districts except Manchester, 2,000 for Wigan and Bolton, and 3,000 for Bury. The largest flows in both directions are to Manchester, which is also the only district to which there is a net outflow from Central Salford (1,551). The next highest flows in both directions are to Trafford, which has net 35 inflows to Central Salford (1,200). Manchester accounts for more than half of the flows from Central Salford to the rest of Greater Manchester. 2.78 In contrast, Salford West has very significant net outflows to the rest of Greater Manchester (7,252). Net outflows exceed 6,000 to Manchester and 5,000 to Trafford. There are net inflows from everywhere else except Warrington, with those from Wigan exceeding 2,000. Flows to and from Bolton are more significant than for Wigan, but are more evenly balanced (net inflow to Salford West of 937). 2.79 The net flow from North Salford (Walkden and Little Hulton, Swinton and Pendlebury, Pendleton, Kersal and Broughton) to South Salford of 4,703 is almost as significant as that from Salford West to Central Salford (6,159). South Salford has very significant net inflows from the rest of Greater Manchester (10,641), with the highest levels from Wigan, Bury and Bolton, although there are net outflows to Manchester and Trafford. The relationship of South Salford to Manchester is very similar to that with Trafford, with these districts being most important for both inflows and outflows. 2.80 In contrast, North Salford has quite high net outflows to the rest of Greater Manchester (4,907). Net outflows exceed 6,000 to Manchester and 3,000 to Trafford. There are moderate net inflows from Wigan, Bolton and Bury. Gross inflows are largest from Bolton, Wigan and Bury, but the gross outflows are very much larger to Manchester, Trafford and to a lesser extent Bolton. Step 1.4: Incomes and earnings Income 2.81 Household income data for 2011, set out in the table below, shows that Salford has a higher proportion of households in the £0 to £20,000 income band than Greater Manchester does (38.6% compared to 36.0%). There are slightly lower proportions in Salford in all of the other bands, with the biggest difference in the £40,000-80,000 bands (although this is still not a particularly large deviation). The data suggests that overall Salford households are slightly poorer than the Greater Manchester average. Household income £0-20,000 £20,000-40,000 £40,000-60,000 £60,000-80,000 £80,000-100,000 £100,000 and above Number of households % of households Salford Greater Salford Greater Manchester Manchester 39,185 406,810 38.6 36.0 34,439 383,819 33.9 34.0 15,584 185,726 15.3 16.4 6,766 83,750 6.7 7.4 3,063 38,611 3.0 3.4 2,501 31,657 2.5 2.8 36 Total 101,547 1,130,474 100.0 Source: CACI PayCheck 2011 household income data Figures do not add up due to rounding 2.82 100.0 The data for individual wards in Salford is shown below. Ward Barton Boothstown and Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste and Seedley Winton Worsley Median household income £22,724 £46,578 £17,772 £26,337 £31,142 £28,298 £26,811 £21,128 £24,539 £19,435 £20,418 £30,479 £25,690 £25,226 £27,058 £23,413 £30,101 £24,785 £23,696 £40,546 Salford £25,360 Source: 2011 CACI PayCheck household income 2.83 This data from CACI shows that the average household income in the city is £25,360. The Central Salford wards of Broughton and Langworthy have average household incomes significantly below the city average, although the neighbouring wards of Ordsall and Claremont are both significantly above average. The highest average household incomes by far are in Boothstown and Ellenbrook and Worsley in Salford West. However, five out of the thirteen wards in Salford West are below the average citywide median income, reflecting a relatively complex pattern of household incomes across the city. Stage 2: The housing stock Step 2.1: Dwelling profile Tenure of dwellings 37 2.84 The table below identifies the current distribution of tenures within the housing stock. Housing Stock by tenure as at 31 March 2011 Tenure Number of dwellings Private Sector 75,735 Housing Associations 21,170 Local Authority 10,522 Total 107,427 Source: Housing Flow Return 2010/11 2.85 % of total 70.6% 19.7% 9.8% 100.0% This shows that the housing stock within the city is predominantly in the private sector. Directly comparable data is not available at higher or lower geographical levels for 2011, so there is a reliance on older data from the 2001 Census as set out in the table below. Area Barton Boothstown & Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste & Seedley Winton Worsley Central Salford Salford West Proportion of dwellings by tenure (%) Registered Private Social rented Landlord Private and (RSL) / (owner other Local Housing occupied) rented Authority Association 54.3 13.3 26.6 5.8 90.9 4.5 4.3 0.3 28.9 17.3 35.2 18.6 62.6 8.9 26.4 2.2 83.7 8.8 2.7 4.7 59.2 14.8 22.2 3.8 66.2 6.2 23.5 3.6 35.6 18.0 38.0 8.4 58.0 20.5 15.1 6.4 29.5 18.9 36.5 15.2 37.1 9.9 49.6 3.4 23.6 24.1 43.8 8.6 58.2 10.3 26.5 5.0 65.3 10.3 22.4 2.1 69.2 10.0 18.8 1.9 52.2 9.9 35.7 2.2 78.6 6.0 13.4 2.0 56.8 13.3 21.4 8.5 52.6 11.4 32.9 3.2 90.9 4.8 2.9 1.4 44.2 63.0 38 17.2 9.5 28.0 24.5 10.6 2.9 Area Salford Greater Manchester North West England Source: 2001 Census Proportion of dwellings by tenure (%) Registered Private Social rented Landlord Private and (RSL) / (owner other Local Housing occupied) rented Authority Association 56.4 12.2 25.7 5.7 65.4 10.7 17.7 6.2 69.3 10.7 13.6 6.5 68.7 12.0 13.2 6.1 2.86 Salford can be seen to have a significantly lower proportion of private sector properties than at the sub-regional, regional and national levels, and a significantly higher proportion of social rented housing. The private rented sector is proportionately more significant in Salford than at the sub-regional, regional and national levels. 2.87 Within Salford, there is very significant deviation between the tenure profiles of different parts of the city. Worsley, Boothstown and Ellenbrook, Claremont and Walkden South can be seen to have very high proportions of owner-occupied dwellings. In contrast, more than half of the dwellings in Broughton, Little Hulton and Ordsall are in the social rented sector. Ordsall, Kersal, Irwell Riverside and Broughton, which are the four easternmost wards in the city, can be seen to have relatively high proportions of property in the private rented sector. There are also marked differences when comparing the tenure profile of Central Salford and Salford West, particularly the lower levels of owner occupation and a higher proportion of private rented dwellings in Central Salford. 2.88 The data in the two tables is not directly comparable as it is from different sources. However, it suggests that the overall proportion of Salford’s housing stock that is in the owner occupation / private renting sector has stayed similar at around 70%. The biggest change has been a fall in the local authority stock between 2001 and 2011, from around one-quarter to one-tenth of all dwellings in the city, and a significant increase in the proportion of RSLs / HAs dwellings over the same period. This change is primarily the result of the transfer of around 15,000 dwellings from city council ownership to City West Housing Trust (which is classed as an RSL) in October 2008. 2.89 Data from the 2001 Census can also be mapped at lower super output area (lower). The following maps show the levels of owner occupation and social renting. 39 2.90 The first map above shows that there are low concentrations of owner occupation across Central Salford, particularly in the south-east area. In addition there are also low concentrations of owner occupation in the 40 north-west of the city, primarily in Little Hulton and the surrounding areas. The high concentrations of owner occupation (above 80% of total stock) are in a band running across the middle of Salford West (up to Claremont in the east). 2.91 The second map shows that the spatial distribution of dwellings that are social rented is the opposite of that shown on the owner occupied map. The highest proportions of social rented dwellings are in the south-east and eastern parts of the city. In Salford West as a whole, there is a reasonably good mix of social rented dwellings amongst other tenures. In the band running across the middle of Salford West there is generally a low proportion of social rented dwellings, although this is unsurprising given that this area is dominated by owner occupied dwellings. Type of dwellings 2.92 Data on the type of dwellings can be found in the 2001 Census and is set out below. Area Barton Boothstown & Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste & Seedley Winton Worsley Central Salford Salford West Dwellings by type (% of total) SemiDetached detached Terraced house/ house/ house/ bungalow bungalow bungalow Flats 3.4 24.8 47.6 24.2 Caravan/ mobile/ temporary structure 0.0 45.2 3.8 10.2 7.8 11.1 9.0 2.0 11.9 2.9 6.8 2.5 9.0 3.9 7.5 3.7 13.8 3.6 4.6 25.2 38.9 14.5 51.4 61.0 30.1 55.1 21.2 33.4 11.4 36.3 10.9 50.0 44.3 55.6 37.1 53.4 35.7 45.4 54.5 13.9 51.4 27.5 22.5 23.3 29.0 46.8 16.6 38.1 39.6 34.3 24.6 37.7 26.3 42.3 26.1 33.7 33.1 13.6 1.9 29.7 10.9 8.8 35.6 6.9 29.2 38.1 47.4 17.2 52.0 16.3 14.2 10.5 16.5 6.8 27.0 17.0 6.6 0.1 0.6 0.1 0.0 0.0 0.0 0.8 0.0 0.1 0.1 0.3 0.1 0.0 0.1 0.4 0.0 0.0 0.0 0.0 3.5 9.4 19.2 37.8 26.8 26.7 25.1 13.0 0.2 0.05 41 Dwellings by type (% of total) SemiDetached detached Terraced house/ house/ house/ bungalow bungalow bungalow Flats Area Salford Greater Manchester North West England Source: Census 2001 8.6 13.2 17.6 22.5 37.0 38.1 36.6 31.6 32.5 32.7 31.7 25.8 21.7 15.9 13.8 19.7 Caravan/ mobile/ temporary structure 0.1 0.1 0.3 0.4 2.93 Salford has a relatively low proportion of detached dwellings, although there are reasonably significant concentrations in Boothstown and Ellenbrook and Worsley. Many locations have very low proportions of detached houses, with Barton, Broughton, Irwell Riverside, Langworthy, Little Hulton, Swinton North, Walkden North, Weaste and Seedley, and Winton all below 5%. The proportion of semi-detached houses in Salford at 37% is more typical of provision across Greater Manchester and the North West, and above the national level. More than half of all dwellings are semi-detached in Cadishead, Claremont, Irlam, Pendlebury, Swinton South, Walkden South and Worsley, reflecting the relatively suburban nature of these areas of the city. There is around double the proportion of semi-detached houses in Salford West than there is in Central Salford. 2.94 The proportion of terraced dwellings in Salford is also similar to that at the Greater Manchester and North West levels, but above that nationally. There are particular concentrations in some of those areas of the city with very low proportions of detached dwellings, such as Broughton (51%), Barton (48%), Irwell Riverside (47%) and Walkden North (42%). The proportion of terraced dwellings is similar across Salford West and Central Salford. 2.95 The proportion of apartments in Salford is higher than the national level, and significantly higher than the levels for Greater Manchester and the North West. Ordsall (52%), Langworthy (47%), Kersal (38%) and Eccles (36%) have particularly high proportions of apartments, although there are also significant levels in other parts of the city such as Barton, Broughton, Irwell Riverside and Weaste and Seedley. Apartment provision is very low in some of the more affluent areas of the city such as Boothstown and Ellenbrook (2%), Worsley (7%), Walkden South (7%) and Claremont (9%), with Irlam also have a low proportion (7%). The proportion of apartments in Salford West is around half that of Central Salford. 2.96 This geography of dwelling type can also be seen in the two maps below (also using 2001 Census data), with the first showing the proportion of dwellings that are detached and the second showing the proportion that are apartments. 42 2.97 It can be seen that the proportion of dwellings that are detached within Central Salford is very low, apart from in the areas to the fringe of it such as Claremont and Kersal. The highest proportion of detached 43 dwellings (over 40%) can be found in a central band running through Salford West, that includes the areas of Boothstown and Ellenbrook, Ellesmere Park, South Walkden and Worsley. 2.98 There are particularly high concentrations of apartments (over 40% of total stock) throughout Central Salford, and in the Eccles area, with some smaller concentrations of apartments in Salford West. As would probably be expected, those areas where there are high proportions of detached properties are generally characterised by low proportions of apartments. Size of dwellings 2.99 Data on the size of dwellings (by number of rooms) from the 2001 Census is shown below. Number of rooms by percentage of total stock 2 3 4 5 6 7 1.7 10.7 27.9 31.1 20.9 4.9 Area Barton Boothstown and Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste and Seedley Winton Worsley 0.1 1.1 0.1 0.7 1.1 0.1 0.6 1.1 2.2 0.2 1.1 0.2 0.1 0.4 0.2 0.3 0.4 3.8 1.5 1.6 2.7 1.4 3.4 3.1 4.1 1.7 3.1 2.7 0.9 0.9 1.8 1.5 2.0 14.7 7.8 4.7 17.1 5.2 12.3 14.3 16.9 9.8 18.2 8.9 7.8 5.8 11.5 4.8 12.5 25.1 18.3 10.7 17.9 16.3 35.4 24.0 33.2 23.4 39.1 24.1 23.2 18.2 22.1 15.3 25.8 28.1 31.6 34.6 18.4 44.4 32.0 19.0 23.8 32.6 24.5 34.9 39.0 35.6 34.7 28.2 25.1 16.0 29.7 30.9 21.0 22.9 12.1 15.8 14.0 24.1 10.8 20.9 21.0 28.1 23.9 31.6 14.9 6.6 6.7 10.8 9.9 6.2 2.2 7.5 3.4 5.3 2.1 4.9 5.8 7.1 4.0 11.3 19.3 4.5 4.2 6.0 12.0 3.5 1.8 15.2 2.4 2.8 1.1 3.4 2.2 3.9 1.8 7.0 0.7 0.2 0.2 2.4 1.3 0.7 10.3 10.0 4.8 20.3 17.4 8.4 28.1 37.7 18.4 24.2 25.9 34.6 8.6 5.1 15.7 5.3 2.4 17.1 Central Salford Salford West 1.1 0.3 3.2 1.5 13.2 8.4 27.0 19.3 27.0 31.9 17.6 25.1 5.8 7.5 5.1 5.9 0.6 2.1 10.1 22.1 30.2 22.4 6.9 5.6 0.6 0.5 0.9 2.1 1.8 2.5 8.7 7.7 9.2 21.8 19.2 20.0 30.0 29.0 27.1 21.8 23.1 20.5 8.1 9.4 9.2 7.0 9.3 10.6 Salford Greater Manchester North West England Source: Census 2001 1 0.5 44 8+ 2.5 2.100 Data on the size of dwellings paints a similar picture to the type, with prosperous locations such as Worsley (67%), Boothstown and Ellenbrook (59%), Walkden South (50%) and Claremont (48%) having the highest proportions of dwellings with six rooms or more. These areas also have very low proportions of dwellings with three rooms or fewer (all 7% or lower). Kersal has the third highest proportion of dwellings with 8 rooms or more, reflecting the large size of some households in the area that has resulted in big house extensions. 2.101 Ordsall (14%) and Irwell Riverside (16%) have very low proportions of dwellings with six rooms or more. Langworthy (23%), Ordsall (22%) and Eccles (21%) have the highest proportion of smaller dwellings (three rooms or less). 2.102 The size of dwellings in Salford West is generally larger than those in Central Salford. For instance, in Central Salford 45% of dwellings have between 1 and 4 rooms, whilst in Salford West the proportion is much lower at 30%. The proportion of dwellings by different sizes in Salford broadly matches the Greater Manchester, North West and England averages. Housing completions Scale and location 2.103 The city council monitors net residential additions to the housing stock on an annual basis, covering the period between 1 April and 31 March. This includes identifying gross new build completions, net change as a result of schemes involving a change of use / conversion, and losses to the stock as a result of demolitions. The net annual change between 2003 and 2011 is shown in the table below. Monitoring period 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 Total Average per annum Gross new build dwellings 1,071 1,585 1,104 2,164 2,766 1,950 699 683 Number of dwellings Change of Demolitions use and conversion – net change 63 374 4 825 32 755 53 1,019 13 311 25 465 46 268 33 261 Net change 760 764 381 1,198 2,468 1,510 477 455 12,022 269 4,278 8,013 1,503 34 535 1,002 45 Source: Salford City Council (Spatial Planning) residential development and land supply monitoring 2.104 The city has seen a relatively high level of residential development since 2003, averaging a net increase of just over 1,000 dwellings per annum. This equates to an annual increase to the total stock of dwellings of just under 1%. However, there was a significant peak in activity over the period 2006-2009, with an average of 1,725 net completions per annum for those three years. The gross number of new dwellings provided was 50% higher at just over 1,500 dwellings per annum, but a significant amount of demolition activity led to the lower net change figure. Conversions and changes of use have contributed a relatively small proportion of the new dwellings. Construction activity can be seen to have reduced significantly from its peak over the last couple of years, reflecting broader economic conditions. Demolitions have also been lower. 2.105 The following three tables show the gross additions, gross reductions and net additions to the dwelling stock in the city by year and ward. Gross completions 2003-2011 (new build and changes of use conversions) Area Barton Boothstown & Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste & Seedley Winton Worsley Central Salford Salford West Salford 20032004 20042005 20052006 20062007 20072008 20082009 20092010 20102011 39 38 3 14 58 57 9 3 Total 20032011 221 5 19 4 1 2 8 1 4 44 11 53 44 17 24 44 1 14 38 478 161 45 45 22 24 29 163 26 75 34 65 3 22 0 533 148 145 20 55 28 6 230 1 99 5 55 11 31 35 335 37 49 64 115 13 169 148 1 255 4 21 39 25 34 1,121 116 3 52 98 30 351 53 3 169 4 101 62 196 0 1,296 146 1 21 15 112 350 34 3 66 0 130 47 113 2 948 55 3 22 65 1 11 4 1 20 0 0 31 178 0 380 34 2 4 2 5 204 10 1 8 0 82 46 181 61 54 32 3 1 9 6 1,131 695 80 709 71 498 240 760 170 5,145 729 251 229 381 219 36 131 1 27 134 87 151 118 685 37 27 52 36 58 10 22 57 45 31 1 20 3 36 16 1 234 218 628 537 809 813 440 722 1,403 834 2,143 657 1,678 334 752 120 686 154 8,539 4,171 1,165 1,622 1,162 2,237 2,800 2,012 872 840 12,710 46 Source: Salford City Council (Spatial Planning) residential development and land supply monitoring Gross reductions 2003-2011 (demolitions and losses through changes of use conversions) Area Barton Boothstown & Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste & Seedley Winton Worsley Central Salford Salford West Salford 20032004 20042005 20052006 20062007 20072008 20082009 20092010 20102011 0 1 1 5 0 2 0 1 Total 20032011 10 0 1 7 1 0 2 1 1 13 18 0 1 16 2 12 27 109 88 103 0 4 2 12 7 127 1 0 15 2 237 4 228 51 46 0 16 3 104 2 265 1 1 3 1 34 122 276 19 0 1 9 0 8 3 205 4 0 13 1 15 4 640 27 60 0 0 0 21 2 40 4 1 2 0 57 1 147 3 0 0 1 2 11 1 242 3 1 1 0 57 1 154 1 1 1 1 3 12 0 80 1 0 9 0 129 2 134 0 2 1 1 4 2 1 99 2 0 1 6 37 2 224 0 0 2 1 1 1 3 1,076 16 4 60 12 578 163 1,912 189 212 5 33 15 171 19 2 0 26 34 57 3 24 2 148 1 1 19 1 0 4 1 6 1 4 0 17 1 3 1 1 24 37 272 133 642 216 724 57 958 81 303 29 459 43 371 24 364 21 4,093 604 405 858 781 1,039 332 502 395 385 4,697 Source: Salford City Council (Spatial Planning) residential development and land supply monitoring Net additions 2003-2011 (new build and changes of use conversions) Area Barton Boothstown & Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy 20032004 20042005 20052006 20062007 20072008 20082009 20092010 20102011 39 37 2 9 58 55 9 2 Total 20032011 211 5 -7 53 43 1 22 32 -26 -95 18 -98 162 26 60 32 -172 -1 -206 -3 -259 229 0 96 4 21 -111 -245 0 -36 144 1 242 3 6 35 -615 2 311 49 2 167 4 44 61 49 6 108 31 2 65 0 73 46 -41 0 -69 3 1 11 0 -129 29 44 3 105 8 1 7 -6 45 44 -43 31 55 679 76 649 59 -80 77 -1,152 47 20032004 20042005 20052006 20062007 20072008 20082009 20092010 20102011 Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste & Seedley Winton Worsley -50 375 161 41 43 10 17 -51 487 148 129 17 -49 26 16 335 36 40 64 107 10 7 1,061 116 3 52 77 28 -3 1,296 146 0 19 4 111 1 947 54 2 19 53 1 0 378 33 1 0 0 4 61 54 30 2 0 8 3 Total 20032011 -19 4,933 724 218 214 210 200 34 36 26 131 33 35 -25 58 6 -7 21 51 77 44 27 84 1 3 127 2 33 116 15 0 537 210 181 Central Salford Salford West 356 404 167 597 -284 665 445 753 1,840 628 1,219 291 381 96 322 133 4,446 3,567 Salford 760 764 381 1,198 2,468 1,510 477 455 8,013 Area Source: Salford City Council (Spatial Planning) residential development and land supply monitoring 2.106 In the early years of this monitoring period it can be seen that Salford West was supplying the majority of new dwellings, but since 2007 it has been Central Salford that has accounted for most of the additional dwellings. The dominance of Central Salford would have been greater were it not for the high level of gross reductions in that part of the city. 2.107 The ward of Ordsall has clearly dominated the supply of new dwellings over recent years, accounting for 62% of net completions over the period 2003-2011. During the period 2006-2008, at the peak of the market, Ordsall provided more than 1,100 net additional dwellings per annum. There have also been relatively significant net completions since 2003 in Pendlebury, Cadishead, Eccles, and Weaste and Seedley, generally reflecting a small number of large developments, although nothing on the scale seen in Ordsall. 2.108 Langworthy has seen a very high level of demolitions, resulting in an overall net reduction of 1,152 dwellings over the period 2003-2011 despite 760 new dwellings being provided. Broughton also saw significant clearance activity, exceeding 1,000, although the scale of new development was sufficient to outweigh this. Type of dwellings 2.109 As part of its monitoring of new residential developments, the city council records the split between houses and apartments. The table below shows gross completions by type between 2003 and 2011. The data for 2003 to 2008 relates only to new build dwellings, whilst the 2008 to 2011 data includes new build and gross additions changes of use / conversion schemes. 48 Year 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Houses Apartments Total dwellings Number % of total Number % of total 398 37.2 673 62.8 1,071 513 32.4 1,072 67.6 1,585 242 21.9 862 78.1 1,104 410 18.9 1,754 81.1 2,164 671 24.3 2,095 75.7 2,766 258 12.8 1754 87.2 2,012 102 11.7 770 88.3 872 400 47.6 440 52.4 840 Total 2,994 24.1 9,420 75.9 12,414 Average per annum 374 24.1 1,178 75.9 1,552 Source: Salford City Council (Spatial Planning) residential development and land supply monitoring 2.110 Just over three-quarters of the new dwellings provided in Salford since 2003 have been apartments. The proportion of apartments was slightly lower in 2003-2005, before peaking at 87-88% in 2008-2010. However, in 2010-2011 there was a much more even balance between houses and apartments. 2.111 As well as the overall split between the completion of houses and apartments, the council also records the number of bedrooms in each completed development, as shown below. Gross completions by type and size 2003-2011 (new build only 2003-2008, new build and changes of use/conversions 2008-11) Houses 3 4+ Bed Bed 25 1 1 Bed 0 2 Bed 15 Boothstown & Ellenbrook 3 0 12 Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South 0 2 0 1 0 0 0 1 0 0 0 0 0 0 0 95 44 0 5 2 23 14 341 3 29 74 1 2 25 1 158 272 0 60 30 37 31 60 106 72 162 123 10 63 16 Barton Apartments 2 3 4+ Bed Bed Bed 133 3 0 41 1 Bed 29 6 21 2 19 0 232 160 4 82 4 3 59 15 1 2 155 3 14 84 27 485 478 4 148 36 63 104 417 110 103 391 127 26 172 44 190 37 1 37 0 141 14 101 2 2,071 54 5 40 17 5 416 170 69 464 31 277 105 223 58 2,826 283 84 150 185 148 16 0 0 4 0 7 17 0 0 120 0 1 1 0 7 Total 49 165 Total 200311 206 0 21 42 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 622 207 70 506 31 425 136 324 60 5,017 337 90 191 202 160 1,107 685 74 654 67 488 240 741 170 5,120 728 217 217 374 204 Total Houses 3 4+ Bed Bed 2 Bed Weaste & Seedley 1 3 33 2 39 186 384 67 Winton Worsley TOTAL Central Salford Salford West 1 0 9 2 7 27 8 712 505 207 70 12 1,352 391 961 1 66 921 317 604 99 86 2,994 1,215 1,779 24 2 2,958 2,704 254 100 90 6,215 4,300 1,915 0 3 246 227 19 Total 1 Bed 2 Bed Apartments 3 4+ Bed Bed 1 Bed Total Total 200311 0 637 676 0 0 1 0 1 124 95 9,420 7,231 2,189 223 181 12,414 8,446 3,968 Source: Salford City Council (Spatial Planning) residential development and land supply monitoring 2.112 Between 2003 and 2011 there was a reasonably even balance between houses and apartments in the supply of new dwellings in Salford West (45%/55%), whereas in Central Salford the supply was much more dominated by apartments (86% of new dwellings). More than half of the new dwellings in Central Salford were two bedroom apartments, and almost one-third were one bedroom apartments. Although a relatively small proportion of houses was provided, 42% of those houses were two bedroom dwellings, leading to a predominance of smaller properties in the supply of new dwellings in Central Salford. In contrast, there were relatively few one bedroom apartments and two bedroom houses provided in Salford West, with the supply tending towards larger properties (two bedroom apartments and three/four bedroom houses). 2.113 As noted above, Ordsall had by far the highest supply of new dwellings in the city, and 98% of those dwellings were apartments. Other wards with a high proportion of apartments (and where there has been a reasonably large number of completions) include Weaste and Seedley (94%), Irwell Riverside (87%) and Eccles (77%). The main locations for new houses were Broughton (485 houses, which also saw a reasonably high level of apartment development), Cadishead (478), Langworthy (417 houses, although 82% of these were two bedroom) and Pendlebury (391). Step 2.2: Stock condition 2.114 As noted in the DCLG SHMA Practice Guidance, as well as the number of new properties, overall supply is influenced by general wear and tear. A residential property only fulfils its purpose if it addresses the requirements of those that live in it by meeting minimum quality standards. The concept of Decent Homes is useful in the consideration of the standard of the existing stock. 2.115 In order for homes to be considered “decent” they must meet the following four criteria: 50 2.116 Part A: Homes must meet the statutory minimum standard for housing, the underlying principles of which are that any residential premises should provide a safe and healthy environment for any potential occupier or visitor. Dwellings which fail to meet this category are those containing one or more hazards assessed as serious under Category 1 of the Housing, Health and Safety Ratings System (HHSRS). The HHSRS has 29 hazards which are grouped as follows: • Psychological requirements • Protection against infection • Protection against accidents 2.117 Part B fails: Dwellings should be in a reasonable state of repair. Dwellings which fail to meet this part of the Decent Homes Criteria are where: one or more of the key building components are old, and because of their condition need replacing or major repair; or two or more of the other building components are old and, because of their condition need replacing or major repair. 2.118 Part C fails: Dwellings should have reasonably modern facilities and services. Dwellings that fail to meet this criterion are those which lack three or more of the following: • A reasonably modern kitchen (20 years old or less) • A kitchen with adequate space and layout • A reasonably modern bathroom (30 years old or less) • An appropriately located bathroom and WC • Adequate insulation against external noise (where external noise is a problem) • Adequate size and layout of common areas for blocks of flats. 2.119 A home lacking two or fewer of the above is still classed as decent, therefore it is not necessary to modernise kitchens and bathrooms if a home meets the remaining criteria. 2.120 Part D fails: Dwellings should provide a reasonable degree of thermal comfort. This criterion requires dwellings to have both effective insulation and efficient heating. Efficient heating is defined as: • Any gas or oil programmable central heating, or • Electric storage heaters; or • Warm air systems; or • Under floor systems; or • Programmable LPG/solid fuel central heating; or • Similarly efficient heating which are to be developed in the future. 2.121 Effective insulation is defined as: • For dwelling with gas/oil programmable heating, cavity, wall insulation (if there are cavity walls that can be insulated effectively) or at least 50mm loft insulation. (If there is loft space) is an effective purchase of insulation, and 51 • For dwellings heated by electric storage heaters/LGP/programmable solid fuel central heating a higher specification of insulation is required at least 200mm of loft insulation (if there is a loft) and cavity wall insulation. Decency in private sector housing 2.122 The 2010 Salford City Council Private Sector House Condition Survey3 was conducted in order to produce a comprehensive review of the current condition of private dwellings across the city. It also included some dwellings owned by Registered Social Landlords (i.e. in the social rented sector), but dwellings owned/managed by City West Housing Trust and Salix Homes were excluded from the sample. The survey was based on 1,300 questionnaire responses, providing a 1% confidence interval for citywide figures (with 5-7% confidence intervals for individual areas). It adopted a tiered approach to sampling, meaning that more surveys were undertaken in those areas where non-decency in private sector dwellings was considered to be a particular issue. 2.123 The key findings of the for Salford’s private housing stock are as follows: • The overall Decent Homes failure level is 20.9%. The national average taken from the English House Survey 2008 (latest figures available) is significantly higher at 35.8%. • 24.9% of all privately rented properties fail the Decent Homes Standard in Salford compared with 45.4% nationally. • In the owner occupier sector 19.6% (11,666) homes were non decent, of these 26.3% (3,068) were occupied by vulnerable households. • 32.7% of private dwellings in Salford are deemed to contain vulnerable households (households in receipt of a means tested benefit) • 25.3% of households in Salford are in fuel poverty, which means they spend more than 10% of their earnings on fuel to heat homes. 2.124 The table below sets out more detailed findings by ward. It can be seen that the highest levels of Decent Homes failure are in Barton (42%), Eccles (35%), Langworthy (32%) and Kersal (32%). 3 “Salford City Council Private Sector House Condition Survey 2010: Final Report” – Michael Dyson associates ltd (July 2011) 52 Ward Summary Findings Source: Salford City Council Private Sector Stock Condition Survey (2010), Table E2.1, Page xi Notes Vulnerable households: vulnerability has been taken as those households that are in receipt of at least one of the principal means-tested or disability-related benefits. These being: • Income Support • Housing Benefit 53 • Council Tax Benefit • Disabled Person Tax Credit • Income Based Job Seekers Allowance • Working Families Tax Credit • Attendance Allowance • Disability Living Allowance • Industrial Injuries Disablement Benefit • War Disablement Benefit • Child Tax Credit • Working Tax Credit • Pension Credit Households in fuel poverty: Households in fuel poverty are those who spend more than 10% of their income on fuel to heat their homes. 2.125 The overall cost to rectify the Decent Homes failures is just over £36m, an average of £2,023 per failing property. Decency in social rented housing 2.126 As of 1 April 2011 Salix Homes was responsible for managing 10,565 local authority dwellings on behalf of the city council. The 2011 Business Plan Statistical Appendix which is a statistical return that the city council / Salix Homes make to DCLG, records the change in the number of non-decent local authority dwellings, and data from this is shown in the table below. Dwellings made decent during 2010/11 Salford Dwellings received work to prevent non-decency in 2010/11 708 334 Dwellings becoming non-decent during 2010/11 505 Number of non-decent dwellings 01/04/11 5,067 2.127 As the above table shows, 708 dwellings were made decent between 1 April 2010 and 31 March 2011. However, a significant number of dwellings either became non-decent during or needed work to prevent non-decency in 2010/11. Having regard to the total level of stock, as of 1 April 2011, 47.96% of the local authority stock in Salford was nondecent. 2.128 The 2011 Business Plan Statistical Appendix also contains details as to the expenditure needed to make all non-decent dwellings decent. This is shown in the table below. Salford Expenditure in £000s Money spent Spent Costs arising making preventing from dwellings dwellings non-decency becoming nondecent in in 2010/11 decent in 2010/11 2010/11 10,940 1,053 6,238 54 Cost to make all dwellings decent at 01/04/2011 61,604 2.129 As the table above shows, over £10m was spent on making nondecent homes decent in 2010/11, equating to around £15,500 per property. The total cost as of 1 April 2011 to make all non-decent homes decent is estimated at £61.6m, which is £12,158 per property. It is forecast that by 2015 there will be no non-decent local authority dwellings with Salix Homes having secured £51.8m from the government to improve social rented homes between 2011 and 2015, with £10.5m for 2011/12. £12m will be available in 2012/13, a further £12m in 2013/14, and £17.3m in 2014/15. This amount is in addition to the £5m secured in July 2010 after Salix Homes was rated as 'good' with 'excellent prospects for improvement' by the Audit Commission. 2.130 14,615 former local authority properties are in the ownership of City West Housing Trust, following a transfer of ownership to them in October 2008. At transfer, 47.5% of the homes were non-decent, but this has since been reduced to around 35% (leaving 5,115 non-decent dwellings). 2.131 The value of investment works that has been delivered by City West on an annual basis since transfer is as follows: • From transfer to March 2009 £5.78m • April 2009 - March 2010 £37.03m • April 2010 - March 2011 £47.99m • Predicted 2011/2012 48.67m 2.132 The total anticipated 5-year cost of achieving full decency by March 2014 is £223m. Going forward there will be ongoing investment costs of maintaining decency, where properties are due to become nondecent. Step 2.3: Shared housing and communal establishments 2.133 The Housing Strategy Statistical Appendix (HSSA) identifies the number of dwellings that are officially classed as houses in multiple occupation (HMOs). The HSSA figures for HMOs include the following: • All HMOs that are required to be licenced under the 2004 Housing Act (ie. all properties with three or more storeys, five or more people and two or more households) • HMOs that do not require to be licenced under the Housing Act but are required to be licenced under Selective Licensing powers. Areas of Salford where these powers exist include parts of Seedley and Langworthy, Broughton, and Kersal/Charlestown • An estimate of the number of other HMOs that do not need to be licenced 2.134 The table below shows the number of houses in multiple occupation between 2006 and 2011, according to the HSSA. 55 As at 1 Total number HMOs as a % April: of HMOs Total dwellings of total stock 2006 1,410 101,789 1.39 2007 1,652 101,591 1.63 2008 1,445 104,325 1.39 2009 1,550 106,330 1.46 2010 1,550 106,717 1.45 2011 1,488 108,804 1.37 Source: Housing Strategy Statistical Appendix returns, 2006-2011 2.135 It can be seen that the stock of HMOs is reasonably steady, at just under 1.5% of all dwellings in the city. The main concentrations of known HMOs are in Broughton (around the Cliff area) and in parts of Langworthy and Weaste and Seedley. 2.136 As well as HMOs there will inevitably be other shared housing that falls outside this category. Stage 3 - The active housing market 2.137 The DCLG Guidance (page 25) requires that this section of the SHMA “should analyse indicators of housing market activity to improve understanding about changes in demand over time and identify pressure points within the area. The key aim is to identify evidence of failing markets, such as volatile or unresponsive markets”. 2.138 As part of understanding the active housing market the DCLG Guidance requires that analysis should include consideration of: the cost of buying or renting a property; affordability; overcrowding and under-occupation; vacancies; available supply; and turnover. This evidence should then be brought together looking at the key trends and drivers in the market and consideration of the issues these will have on future policy / strategy. Step 3.1: the cost of buying or renting a property House prices 2.139 The first table below identifies the average dwelling sales prices in Salford over the period April 2003 to March 2010. The following two tables then provide separate figures for houses and apartments. Care needs to be taken when interpreting this data as the figures for individual wards can be skewed significantly by one or two new housing developments, or by a small number of high or low value properties if there is low turnover in the local market. This is particularly the case for the separate figures for houses and apartments. 2.140 It can be seen that, during this period, overall dwelling sales price growth in the city averaged around 40% with relatively little difference 56 between Central Salford and Salford West. However, there was significant variety between different wards with no real discernible pattern. Some of the higher value areas which would typically be considered “high demand” actually had below average price increases, such as Walkden South (10%), Boothstown and Ellenbrook (18%), Worsley (23%) and Swinton South (37%), whilst Claremont had a more significant increase (52%). Proportionate dwelling sales price growth was actually much greater in some of the more deprived areas, such as Broughton (124%) and Langworthy (66%), which may reflect the scale of investment in regeneration projects, new high quality housing developments and the very low sales prices at the start of the period. However, there were some low price areas that saw little sales price growth, such as Irwell Riverside (4%) and Little Hulton (9%). 2.141 In terms of Irwell Riverside, the separate data for houses and apartments indicates that price growth for houses was actually very high (83%) but the average for the area was reduced significantly by a decline in apartment prices (19%). Across the city as a whole, price growth for houses was significantly greater than apartment price growth (53% compared to 12%), and this appears to be partly down to apartment values reducing more rapidly than house values since the market peak in 2007/8. The contrast is particularly stark in Central Salford, where price growth for houses was 82% compared to 10% for apartments. Ordsall is another ward where the growth in sales prices of houses and apartments was significantly different, with a 62% growth in house prices but only a 7% increase in apartment prices. The latter may reflect the very significant increase in the supply of apartments in the area during this period, as discussed above. 57 Average dwelling sales price (April 2003-March 2010). Source: Land Registry 2003/04 £65,542 2004/05 £87,557 2005/06 £89,774 2006/07 £101,775 2007/08 £111,267 2008/09 £100,046 2009/10 £91,564 Average 20032010 £90,485 £154,232 £48,206 £84,634 £89,463 £124,286 £82,124 £93,690 £98,852 £58,384 £70,288 £109,690 £99,406 £76,114 £84,171 £63,633 £105,150 £169,896 £74,015 £114,345 £116,508 £142,805 £108,491 £78,062 £120,750 £83,345 £79,406 £156,945 £125,457 £98,486 £107,069 £85,244 £126,858 £184,557 £99,162 £114,748 £117,921 £169,159 £115,697 £86,745 £147,271 £74,821 £92,389 £147,064 £121,287 £112,808 £118,525 £104,399 £129,513 £189,589 £130,498 £130,943 £133,523 £170,062 £129,413 £105,538 £152,724 £93,146 £93,737 £142,148 £129,155 £112,395 £121,484 £109,764 £148,959 £197,321 £135,417 £131,049 £140,483 £178,520 £135,608 £130,176 £181,002 £109,664 £102,282 £157,157 £135,100 £114,410 £124,498 £106,608 £157,411 £190,360 £137,873 £114,414 £134,343 £175,380 £135,201 £104,951 £202,791 £113,743 £97,862 £151,446 £116,593 £110,205 £122,689 £95,669 £141,309 £181,501 £107,920 £117,593 £136,382 £176,093 £134,060 £97,670 £176,132 £96,746 £76,786 £124,750 £111,233 £109,740 £115,012 £84,726 £115,571 £178,640 £102,081 £116,219 £120,818 £162,703 £117,203 £99,003 £146,134 £89,261 £86,808 £145,297 £120,929 £103,638 £111,888 £93,831 £132,299 17.7% 123.9% 38.9% 52.4% 41.7% 63.2% 4.2% 78.2% 65.7% 9.2% 13.7% 11.9% 44.2% 36.6% 33.1% 9.9% -8.0% -20.3% -10.3% -2.9% -1.4% -1.1% -25.0% -2.7% -11.8% -24.9% -20.6% -17.7% -4.1% -7.6% -20.5% -26.6% £68,013 £67,859 £194,771 £89,770 £85,097 £246,880 £98,585 £100,882 £240,550 £109,113 £104,429 £241,161 £123,961 £113,938 £259,495 £113,570 £106,925 £234,653 £113,539 £103,872 £239,480 £99,336 £95,615 £236,198 66.9% 53.1% 23.0% -8.4% -8.8% -7.7% Central Salford Salford West £83,188 £96,684 £105,068 £121,478 £116,021 £128,788 £130,440 £137,371 £143,766 £143,216 £137,112 £136,714 £119,366 £135,336 £119,185 £126,773 43.5% 40.0% -17.0% -5.5% City average £91,206 £114,829 £123,336 £134,354 £143,468 £136,916 £127,903 £123,464 40.2% -10.8% Area Barton Boothstown and Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste and Seedley Winton Worsley 58 % change between 2003 and 2010 39.7% % Change at 2009/10 from peak (2007/08) -17.7% Average sales price of houses (April 2003-March 2010). Source: Land Registry 2003/04 £65,947 2004/05 £88,252 2005/06 £90,684 2006/07 £102,456 2007/08 £114,716 2008/09 £99,708 2009/10 £91,874 Average 20032010 £91,095 £154,996 £48,451 £84,816 £88,436 £130,565 £82,188 £48,052 £116,391 £48,212 £71,052 £82,864 £104,528 £77,520 £84,370 £64,652 £105,878 £187,449 £74,063 £115,015 £118,593 £149,099 £108,382 £61,574 £144,197 £64,401 £80,090 £102,160 £127,197 £99,838 £105,751 £84,659 £128,471 £187,939 £99,453 £118,436 £118,646 £184,747 £115,575 £71,151 £185,673 £64,671 £91,595 £111,564 £123,818 £113,286 £119,193 £102,200 £133,372 £191,634 £121,360 £135,971 £135,260 £200,208 £129,068 £89,642 £196,305 £90,542 £91,248 £133,862 £129,843 £112,719 £122,370 £109,543 £154,313 £204,192 £136,875 £136,989 £144,081 £218,072 £135,566 £104,045 £212,504 £106,157 £103,126 £127,471 £139,955 £115,379 £125,189 £106,507 £162,942 £192,227 £149,151 £122,128 £134,343 £209,275 £135,461 £93,349 £238,122 £110,505 £98,314 £145,731 £124,682 £113,145 £122,848 £97,223 £150,000 £181,501 £115,439 £119,785 £136,382 £206,282 £134,639 £87,975 £185,268 £94,096 £78,074 £134,010 £116,521 £113,015 £117,242 £85,356 £121,421 £183,725 £98,628 £118,241 £122,581 £183,776 £117,138 £74,482 £174,518 £82,371 £86,503 £115,713 £124,633 £104,663 £112,011 £92,460 £135,308 17.1% 138.3% 41.2% 54.2% 58.0% 63.8% 83.1% 59.2% 95.2% 9.9% 61.7% 11.5% 45.8% 39.0% 32.0% 14.7% -11.1% -15.7% -12.6% -5.3% -5.4% -0.7% -15.4% -12.8% -11.4% -24.3% 5.1% -16.7% -2.0% -6.3% -19.9% -25.5% £66,940 £67,648 £206,561 £86,147 £86,316 £255,888 £99,375 £96,932 £253,785 £114,479 £105,938 £251,166 £127,242 £115,507 £280,843 £114,084 £107,334 £258,443 £112,136 £104,154 £251,501 £98,936 £95,963 £249,659 67.5% 54.0% 21.8% -11.9% -9.8% -10.4% Central Salford Salford West £67,513 £97,965 £87,482 £123,565 £101,042 £131,645 £121,890 £141,142 £133,553 £147,841 £132,898 £142,111 £122,721 £140,455 £104,977 £129,409 81.8% 43.4% -8.1% -5.0% City average £88,494 £112,528 £121,300 £135,678 £143,306 £138,777 £135,518 £121,780 53.1% -5.4% Area Barton Boothstown and Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste and Seedley Winton Worsley 59 % change between 2003 and 2010 39.3% % Change at 2009/10 from peak (2007/08) -19.9% Average apartment sales price (April 2003-March 2010). Source: Land Registry Area Barton Boothstown and Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste and Seedley Winton Worsley Average 20032010 £80,933 % change between 2003 and 2010 68.4% % Change at 2009/10 from peak (2007/08) n/a 535.1% 28.1% n/a -7.4% 12.3% -18.7% 117.7% 5.0% 21.8% 6.7% 13.5% 18.1% 24.5% 49.5% 13.0% n/a -24.3% -44.2% n/a -30.1% -33.9% -33.1% 18.0% -21.7% -39.8% -22.2% -23.6% -30.0% -15.0% -33.3% -35.1% 2003/04 £51,870 2004/05 £77,333 2005/06 £73,400 2006/07 £76,500 2007/08 £90,044 2008/09 £108,988 2009/10 £87,333 £61,000 £15,500 £45,000 £97,117 £104,680 £80,141 £126,288 £75,369 £95,860 £38,167 £116,025 £82,150 £65,716 £81,839 £47,838 £76,658 £92,106 £61,950 £29,975 £109,020 £128,274 £109,595 £116,903 £87,445 £123,289 £59,325 £165,881 £88,381 £83,261 £164,000 £89,683 £100,371 £113,125 £30,000 £105,944 £106,323 £141,495 £117,690 £121,832 £97,958 £111,439 £97,150 £150,507 £110,394 £109,370 £88,988 £111,286 £103,120 £117,333 £240,659 £113,904 £98,500 £121,743 £134,118 £124,825 £116,770 £113,978 £106,247 £142,609 £123,905 £109,439 £116,371 £110,499 £98,095 £91,145 £129,960 £103,381 £100,711 £138,759 £136,254 £153,358 £139,105 £128,566 £77,250 £159,117 £121,977 £110,798 £119,861 £107,214 £133,443 £116,625 £120,863 £80,383 £98,441 £57,667 £102,862 £123,125 £128,816 £141,678 £138,207 £63,500 £151,809 £100,222 £78,714 £118,333 £73,600 £102,203 £96,950 £90,000 £102,655 £164,081 £100,696 £46,500 £123,781 £93,217 £77,591 £101,897 £71,500 £86,646 £96,158 £124,560 £104,458 £103,709 £125,660 £118,353 £127,542 £110,336 £114,759 £90,804 £147,986 £105,326 £96,250 £110,586 £101,538 £107,859 £69,975 £68,824 £129,127 £94,023 £77,367 £129,778 £96,008 £109,973 £149,865 £94,275 £95,007 £168,709 £118,660 £106,358 £176,529 £113,213 £89,975 £127,600 £114,151 £94,175 £121,267 £99,913 £93,854 £148,808 63.1% 36.8% -6.1% -3.8% -11.5% -31.3% Central Salford Salford West £106,597 £84,268 £130,171 £100,631 £135,938 £114,538 £136,995 £116,970 £151,751 £124,787 £141,005 £101,346 £117,177 £93,435 £133,740 £110,330 9.9% 10.9% -22.8% -25.1% City average £100,915 £122,938 £128,597 £131,720 £143,750 £133,111 £113,113 £127,522 12.1% -21.3% 60 -3.0% 2.142 The following table compares recent dwelling sales price changes across Greater Manchester, and with the regional and national averages. These figures provide an indication of how different parts of the conurbation have faired in very recent economic circumstances, whereas the previous tables for Salford offered a longer term view of price changes. Quarterly change Annual change (2010 Q4 to 2011 (2010 Q1 to 2011 Q1) Q1) Area Actual % Actual % Bolton £7,566 5.8% £9,253 7.2% Bury £5,157 3.6% £11,077 8.1% Manchester -£5,605 -3.8% £8,582 6.5% Oldham -£16,345 -12.6% -£9,821 -8.0% Rochdale -£5,487 -4.5% -£3,796 -3.2% Salford -£6,684 -4.9% -£2,472 -1.9% Stockport -£5,722 -2.9% -£758 -0.4% Tameside -£972 -0.8% £747 0.6% Trafford -£5,871 -2.2% -£3,836 -1.5% Wigan -£4,081 -3.3% -£5,606 -4.5% City Centre MSP -£13,408 £498 -8.3% 0.4% £7,149 £8,131 Change since market peak* Actual -£8,975 -£7,745 -£17,629 -£25,921 -£18,889 -£17,621 -£12,881 -£24,928 -£5,871 -£15,015 % -6.1% -5.0% -11.1% -18.6% -14.1% -12.1% -6.4% -17.1% -2.2% -11.1% 5.1% -£37,338 7.5% -£18,465 -20.2% -13.7% Greater Manchester -£4,378 -2.9% £1,083 0.7% -£10,145 -6.4% North West -£3,200 -2.7% -£5,480 -4.6% -£22,802 -16.6% England and Wales -£1,166 -0.7% -£2,953 -1.8% -£21,044 -11.5% MSP = Manchester Salford Housing Market Renewal Pathfinder area * = Market peak is defined as the highest quarterly average value achieved between 2002 and 2011 Source: Land Registry 2.143 Sales prices in Salford have seen a slightly greater reduction than the sub-regional and national comparators, although not significantly so. The picture for both the Manchester/Salford City Centre and the former housing market renewal pathfinder area is mixed, with a significant reduction since the peak but a relatively high level of sales price growth over the last year. House prices and sales value areas 2.144 The above data from the Land Registry on recorded sales values for residential units does not provide details on the floorspace of the units. It is therefore difficult to make direct comparisons between areas, as part of the difference in sales prices may be due to the size and type of dwellings rather than their location. 61 2.145 As a result, data has been assembled on the average sales value per square metre of residential floorspace in different parts of the city. This has used residential asking prices from Rightmove4 and housing developer websites to approximate sales values, as dwelling floorplans are generally readily available from these sources to help calculate values per square metre. Identifying the floorspaces for dwellings for which actual sales values are known is often not possible. 2.146 The city was initially split into 33 sub-areas to simplify the data collection process, with those areas defined on the basis that they each have reasonably common characteristics although inevitably there are some significant differences within them. Some of these sub-areas have subsequently been split into smaller areas as a result of the analysis. 2.147 The review appraised over 300 residential properties across the city being marketed for sale as at July 2011, and largely focused on new build residential developments or modern housing developments (that have been completed within the past 20 years). This approach was taken because of the greater relevance to the consideration of issues surrounding the provision of new housing to meet varied market needs, the greater availability of information for such properties, and to help maximise the consistency of the type of properties compared, For areas of the city where there were a limited number of new build developments or modern housing developments, the asking price values for older dwellings were utilised. 2.148 This detailed analysis has identified a significant range of asking price values across the city, ranging from £1,000 per sqm to £5,165 per sqm of net internal floorspace. These asking price values per square metre of floorspace have been, using the 33 sub-areas as a basis, and clear patterns can be identified with particular spatial areas having broadly similar values. 2.149 On this basis, five broad residential sales value areas have been identified: • Over £3,000 per sqm (relating to the Regional Centre within the inner relief route, and Salford Quays) • Between £2,600 and £3,000 per sqm (relating to Worsley, South Swinton, and Chat Moss) • Between £2,200 and £2,600 per sqm (relating to Broughton Park, Chapel Street / The Crescent, Exchange Quay, Ellesmere Park and Monton, Boothstown, Ellenbrook, and South Walkden) • Between £1,800 and £2,200 per sqm (relating to Trinity, Ordsall, Claremont, Eccles and Peel Green, Irlam and Cadishead, Swinton, Pendlebury and Agecroft, and North Walkden) 4 http://www.rightmove.co.uk 62 • Between £1,400 and £1,800 per sqm (relating to Higher and Lower Broughton, Charlestown and Lower Kersal, Pendleton, Weaste, Seedley and Langworthy and Little Hulton) 2.150 Inevitably there are still potentially some significant differences within these areas, but they give a good indication of the distribution of residential values across the city. Where there are considerable deviations, they tend to be higher rather than lower than the values stated. 2.151 The plan below identifies the boundaries of these sales value areas: 63 64 2.152 The table below identifies the number of existing properties in each of these value areas, and the proportion of all dwellings in the city that this accounts for. Value area £1,400-£1,800 per m2 £1,800-£2,200 per m2 £2,200-£2,600 per m2 £2,600-£3,000 per m2 Over £3,000 per m2 Number of dwellings 30,478 53,516 15,801 5,759 3,850 % of city total 27.86 48.91 14.44 5.26 3.52 Total 109,411 100.00 Source: December 2011 Council Tax Records and July 2011 Residential Sales Value Plan Note: Total does not add up precisely as 7 dwellings were not assigned to a value area. 2.153 It can be seen that almost half of Salford’s properties are within the £1,800 to £2,200 per square metre price bracket. Looking at the wider context, this price bracket covers dwellings that are around or just below the average price overall for the city, Greater Manchester and the North West region as a whole. It therefore reflects what could be considered relatively typical housing areas within Greater Manchester, particularly perhaps for the northern half of the conurbation. 2.154 A significant proportion (28%) of the city’s housing is in the low cost areas (£1,400 to £1,800 per square metre), which also tend to be the areas with the largest concentrations of social housing. These are clustered together in Central Salford, just outside the Regional Centre, except in the case of Little Hulton in the north-west corner of the city. 2.155 Although the £2,200 to £2,600 per square metre price bracket is the middle of the value area categories identified, in practice it reflects areas that have slightly above average house prices within the subregional and regional context. This accounts for a reasonably significant proportion of the city’s housing supply, at more than 14%. The other two price brackets offer housing at significantly higher than average prices, but in terms of the existing overall supply in the city collectively only account for less than 9% of all dwellings. Nevertheless, these are an important part of the supply of housing in Salford, and help to diversify the type and value of accommodation that is available within the city. Council Tax bands 2.156 Sales prices inevitably only provide data relating to a relatively small proportion of housing in the city, and will be skewed somewhat towards 65 new additions to the dwelling stock. As such the Council Tax banding of all properties provides a more general indication of the values of all housing in the city. All properties in England are put into a valuation band based on their value on 1 April 1991 for the purposes of Council Tax. These bandings are set out in the table below, which also shows what the equivalent house price value is at Q4 2012 for each band using the Nationwide House Price Calculator. Council tax valuation bands A B Range of values on 1 Equivalent values, Q4 April 1991 2012 Up to £40,000 Up to £97,128 Over £40,000 and up to Over £97,128 and up to £52,000 £126,267 C Over £52,000 and up to Over £126,267 and up £68,000 to £165,118 D Over £68,000 and up to Over £165,118 and up £88,000 to £213,682 E Over £88,000 and up to Over £213,682 and up £120,000 to £291,384 F Over £120,000 and up Over £291,384 and up to £160,000 to £388,513 G Over £160,000 and up Over £388,513 and up to £320,000 to £777,025 H Over £320,000 Over £777,025 Source: Equivalent values Q4 2012 – Nationwide House Price Calculator, North West region. 2.157 Having regard to the banding of properties based on values at 1 April 1991, the following table shows the proportion of properties in Salford that fall within each band as at December 2011. Area Barton Boothstown & Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Total dwellings 6,088 @ 0.1 A 68.9 B 21.7 3,982 6,660 4,648 4,410 5,633 4,096 5,537 5,020 7,124 5,788 8,896 5,665 5,331 4,833 5,515 4,633 0.0 0.0 0.3 0.0 0.1 0.2 0.1 0.1 0.1 0.2 0.1 0.1 0.1 0.1 0.2 0.2 7.2 75.8 55.0 20.7 45.3 47.0 76.0 44.0 88.2 81.9 41.9 52.3 51.8 39.8 73.9 31.8 13.4 15.2 22.4 34.4 19.3 30.1 17.5 16.9 8.0 11.7 25.6 23.1 28.9 36.3 16.3 19.9 66 Council Tax Band C D E 7.9 1.1 0.1 33.5 5.6 12.3 33.4 14.5 17.7 3.7 12.6 1.7 3.9 14.7 15.2 16.2 18.1 7.0 26.1 18.7 1.5 7.7 7.6 9.7 4.0 2.4 10.0 1.1 1.8 13.0 5.3 2.7 4.3 2.3 17.0 17.5 1.0 1.9 2.7 5.7 0.9 0.1 9.6 0.7 0.5 3.9 2.8 0.2 0.8 0.2 3.5 F 0.1 G 0.0 H 0.0 6.8 0.6 0.3 0.8 3.4 0.2 0.0 3.2 0.0 0.0 0.6 1.0 0.1 0.4 0.0 1.3 2.9 0.2 0.1 0.2 1.9 0.0 0.0 3.3 0.0 0.0 0.2 0.1 0.0 0.1 0.0 0.2 0.0 0.0 0.0 0.0 0.1 0.0 0.1 0.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total dwellings 5,606 5,484 4,462 @ 0.1 0.2 0.0 A 58.9 64.9 5.1 B 21.6 21.7 15.8 Council Tax Band C D E 12.7 5.3 1.1 10.4 2.2 0.4 26.7 22.3 11.5 F 0.2 0.1 9.6 G 0.0 0.1 8.0 H 0.1 0.0 0.9 43,253 66,158 0.1 0.1 59.4 50.2 19.4 21.5 11.2 15.3 0.7 1.6 0.5 0.9 0.1 0.1 Total 109,411 0.1 53.9 20.7 13.6 6.7 3.0 1.3 @ = Application of Council Tax reduction for disabled people changes the band of the property, and results in some Band A properties effectively having no band Source: Salford City Council, Council Tax records 0.8 0.1 Area Weaste & Seedley Winton Worsley Central Salford Salford West 6.0 7.1 2.6 3.2 2.158 Overall, just under 75% of properties in the city are in Bands A or B, indicating a high supply of lower price dwellings (ie. less than £126,267 on average Q4 sales values). The proportion is lower in Salford West than Central Salford, but not significantly so. Several wards have particularly high concentrations of these lower cost properties, such as Langworthy (96%), Little Hulton (94%), Irwell Riverside (94%), Broughton (91%), Barton (91%) and Walkden North (90%). The city as a whole has a low proportion of higher cost properties, in Band D and above (ie. £165,118 at current prices), at 12%, and again there is little difference between Central Salford and Salford West. Nevertheless, there are some parts of the city that have a relatively high proportion of such properties, including Worsley (52%), Boothstown and Ellenbrook (46%), Kersal (27%), Walkden South (22%) and Eccles (21%). Rental market 2.159 The following two tables show the average private sector rents for houses and apartments in Salford, Manchester and the rest of the conurbation, and how this has changed recently. Rent increases in Salford over the period October 2010 to October 2011 were higher in Salford than in Manchester and the rest of Greater Manchester for all types and size of property, which would suggest a relative increase in demand. Rental growth appears particularly strong in the apartment market, where it has been around 10% for studios, one bedroom and two bedroom accommodation. This is the type of property that has dominated the supply of new dwellings in Salford in recent years. Average rents for these sizes of apartment are above the Greater Manchester average, as indeed they are for smaller houses, whereas rents in Salford for larger houses of three and four bedrooms are below the conurbation average. Size 2 bed Area Salford Manchester Pathfinder area Average asking rents for houses Oct 2010 Oct 2011 Annual change £510 £527 £17 3.3% £540 £546 £6 1.0% £495 £507 £12 2.5% 67 Size 3 bed 4 bed Size Studios 1 bed 2 bed 3 bed Area Greater Manchester average Salford Manchester Pathfinder area Greater Manchester average Salford Manchester Pathfinder area Greater Manchester average Area Salford Manchester Pathfinder area City Centre Greater Manchester average Salford Manchester Pathfinder area City Centre Greater Manchester average Salford Manchester Pathfinder area City Centre Greater Manchester average Salford Manchester Pathfinder area City Centre Greater Manchester average Average asking rents for houses Oct 2010 Oct 2011 Annual change £487 £488 £1 0.1% £627 £697 £681 £656 £637 £701 £652 £622 £11 £4 -£29 £34 1.7% 0.5% -4.3% -5.2% £983 £1,050 £1,013 £1,073 £998 £1,016 £880 £991 £15 -£33 -£133 -£82 1.5% -3.2% -13.1% -7.7% Average asking rents for apartments Oct 2010 Oct 2011 Annual change £449 £493 £44 9.9% £405 £419 £14 3.4% £437 £440 £3 0.7% £571 £589 £18 3.1% £419 £12 3.0% £407 £476 £494 £470 £622 £454 £526 £529 £510 £661 £476 £50 £35 £40 £39 £22 10.5% 7.1% 8.4% 6.3% 4.8% £476 £494 £470 £622 £454 £526 £529 £510 £661 £476 £50 £35 £40 £39 £22 10.5% 7.1% 8.4% 6.3% 4.8% £694 £1,031 £782 £1,420 £949 £844 £1,133 £872 £1,445 £917 £150 £102 £90 £25 -£32 21.6% 9.9% 11.5% 1.8% -3.4% Source: Vizzihome 2.160 The next two tables show the number of private sector houses and apartments that have been advertised for rent, and how this has changed over a recent twelve month period. The number of houses being advertised has been reasonably steady in Salford, except for two bedroom properties where it has increased. In contrast, Manchester 68 and the Pathfinder area have seen very significant reductions in the number of houses of all sizes being advertised. As with Greater Manchester as a whole, the number of apartments in Salford advertised for rent has declined, although again not to the extent seen in Manchester and the Pathfinder area. Size 2 bed 3 bed 4 bed Size Studios 1 bed 2 bed 3 bed Area Salford Manchester Pathfinder area Greater Manchester average Salford Manchester Pathfinder area Greater Manchester average Salford Manchester Pathfinder area Greater Manchester average Area Salford Manchester Pathfinder area City Centre Greater Manchester average Salford Manchester Pathfinder area City Centre Greater Manchester average Salford Manchester Pathfinder area City Centre Greater Manchester average Salford Manchester Pathfinder area City Centre Number of houses advertised Oct 2010 Oct 2011 Annual change 116 147 31 26.7% 311 172 -139 -44.7% 252 167 -85 -33.7% 1,879 2,009 130 6.9% 148 518 310 1,768 145 319 198 1,829 -3 -199 -112 61 -2.0% -38.4% -36.1% 3.5% 40 419 274 810 38 122 69 492 -2 -297 -205 -318 -5.0% -70.9% -74.8% -39.3% Number of apartments advertised Oct 2010 Oct 2011 Annual change 34 31 -3 -8.8% 97 58 -39 -40.2% 68 57 -11 -16.2% 29 19 -10 -34.5% 173 146 -27 -15.6% 228 620 428 215 1,505 206 441 335 186 1,220 -22 -179 -93 -29 -285 -9.6% -28.9% -21.7% -13.5% -18.9% 457 882 580 329 2,430 430 762 550 309 2,364 -27 -120 -30 -20 -66 -5.9% -13.6% -5.2% -6.1% -2.7% 51 137 81 24 41 64 48 20 -10 -73 -33 -4 -19.6% -53.3% -40.7% -16.7% 69 Size Area Greater Manchester average Number of apartments advertised Oct 2010 Oct 2011 Annual change 284 173 -111 -39.1% Source: Vizzihome Mortgages 2.161 The ready availability of mortgage finance is necessary in order to allow potential new homebuyers to access the owner occupied sector of the housing market. Since the credit crunch began, mortgage providers have restricted the availability of mortgages to only those with good credit scores and those with high deposits. As such total gross mortgage lending at the national level has fallen dramatically since the peak of the market in 2007. This is shown in the graph below. Total gross mortgage lending (£m) 400,000 350,000 £million 300,000 250,000 200,000 150,000 100,000 50,000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 est Year Source: Council of Mortgage Lenders Research, Bank of England (December 2011) 2.162 The above graph shows that in 2007 gross mortgage lending was around £362.8 billion. This fell to a low of £135.6 billion in 2010, representing an overall fall in mortgage lending between 2007 and 2010 of 62.6%. There was a slight increase in mortgage lending in 2010 to an estimated £140 billion, but this is still far short of the 2007 peak. The Council for Mortgage Lenders forecast that in 2012 there will be a fall in gross mortgage lending to £133 billion “representing the weaker economic backdrop that now seems likely”5. 5 CML Forecasts 2012 - http://www.cml.org.uk/cml/media/press/3119. Accessed 31 January 2012. 70 Step 3.2: Affordability House price to income ratios 2.163 House price to income ratios present a good picture as to whether accommodation is generally affordable to prospective purchasers. Paragraph 42 of the DCLG Strategic Housing Market Assessment Practice Guidance explains that a household can be considered able to afford to buy a home if it costs less than 3.5 times the gross household income. As such this would imply that any house price to income ratio in excess of 3.5 means that accommodation is unaffordable. The tables below compare the ratios between lower quartile house prices to lower quartile incomes, and also median house prices to median earnings, at the Salford, Greater Manchester, North West and England levels. Ratio of lower quartile house prices to lower quartile earnings 2003 2004 2005 2006 2007 2008 2009 2010 2.81 3.95 4.75 5.54 5.85 5.34 4.93 4.82 Area Salford Greater Manchester 3.11 4.18 North West 3.28 4.43 England 5.23 6.28 Source: DCLG Live Table 576 4.83 5.02 6.28 4.90 5.12 6.69 Ratio of median house prices to median earnings 2003 2004 2005 2006 2007 2008 2009 3.26 4.27 4.94 5.20 5.55 5.26 4.65 2010 4.53 Area Salford Greater 3.78 4.63 Manchester North West 3.94 4.84 England 5.83 6.58 Source: DCLG Live Table 577 4.88 4.99 6.82 5.14 5.38 6.81 5.59 5.62 7.15 5.49 5.68 6.97 5.92 5.93 7.25 5.66 5.81 7.23 5.59 5.71 6.97 5.38 5.54 6.93 4.89 5.17 6.27 5.03 5.23 7.01 2.164 As the tables above show, the ratio of lower quartile house prices to lower quartile earnings is similar in Salford to that for Greater Manchester as a whole, but significantly below the national average. The ratio of median house prices to median earnings is slightly lower in Salford than for Greater Manchester, with this gap having widened marginally over the last few years. It can be seen that affordability worsened significantly in Salford in the period 2003-2007, but has since improved somewhat (although it is still at a level that is likely to impact on many households). 2.165 The affordability of properties in the city varies considerably by ward. The table below compares the median sales price of properties to the median household income in that ward. 71 Ward Barton Boothstown and Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste and Seedley Winton Worsley Median house price £90,250 Median household income £22,724 House price to income ratio 3.97 £169,500 £130,000 £110,500 £131,500 £143,000 £124,000 £87,000 £112,500 £88,000 £76,000 £138,000 £110,000 £90,000 £121,500 £84,750 £110,000 £46,578 £17,772 £26,337 £31,142 £28,298 £26,811 £21,128 £24,539 £19,435 £20,418 £30,479 £25,690 £25,226 £27,058 £23,413 £30,101 3.64 7.31 4.20 4.22 5.05 4.62 4.12 4.58 4.53 3.72 4.53 4.28 3.57 4.49 3.62 3.65 £98,500 £91,875 £222,400 £24,785 £23,696 £40,546 3.97 3.88 5.49 Salford £112,500 £25,360 4.44 Source: Land Registry 2010 Q2 and Q3 sales, and 2011 CACI household income 2.166 Using the measure of the ratio between median house prices and median earnings, there are some significant differences in affordability across the city, but no simple pattern. For example, Worsley has the highest average house price and the second worst affordability ratio at 5.49, whereas Boothstown and Ellenbrook has the second highest average house price but its affordability ratio is significantly below the city average due to the ward having the highest average household income in Salford. The worst affordability ratio by far in the city is in Broughton at 7.31, but this appears to be partly due to the ward having the lowest average household income in the city although its house prices are above the city average. A combination of around average household incomes but significantly below average house prices leads to Swinton North and Walkden North having the lowest affordability ratios. 72 Housing Benefit 2.167 Housing Benefit is paid to households who are renting property and where their income and capital (savings and investments) are below a certain level. Housing Benefit for those in private rented accommodation is calculated according to the Local Housing Allowance rules, whilst for those living in council accommodation or other social housing the most Housing Benefit payable is the same as the ‘eligible rent’ (which includes rent for the accommodation and charges for services such as lifts, communal laundry services etc.). Council Tax records held by the city council include details of all occupied dwellings in receipt of Housing Benefit. The table below shows the situation as of December 2011 at a ward level. Area Barton Boothstown & Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste & Seedley Winton Worsley Central Salford Salford West Occupied dwellings 5,777 3,895 6,022 4,483 4,278 5,369 3,988 5,249 4,737 6,568 5,588 8,300 5,472 5,117 4,681 5,270 4,473 5,362 5,316 4,302 % in receipt of Housing Benefit 31.19 4.72 49.49 20.30 9.02 23.56 21.46 35.11 27.72 42.98 43.74 21.04 25.15 22.01 19.82 30.65 13.79 25.61 31.62 3.70 40,516 63,731 30.76 23.48 Total 104,247 26.31 Source: Salford City Council -Council Tax data December 2011 2.168 The table above shows that Housing Benefit is claimed for just over one quarter of occupied dwellings in Salford, with the rate in Central Salford higher than for Salford West. As with several other indicators, 73 rates are particularly low in Worsley (4%), Boothstown and Ellenbrook (5%), Claremont (9%) and Walkden South (14%), although Swinton South is a little higher (20%). Broughton has the highest rate of Housing Benefit claims, at just under 50%, which perhaps reflects the high affordability ratio in the area discussed above. However, it may be more specifically related to household income levels, as the areas with the next to lowest average household incomes have the next highest rates of Housing Benefit claims (Little Hulton at 44%, and Langworthy at 43%). Step 3.3: Overcrowding and under-occupation 2.169 The DCLG Strategic Housing Market Assessment Guidance states that the degree of overcrowding and under-occupancy provides an insight into possible future household flows and potential levels of concealed households. 2001 Census 2.170 The 2001 Census includes data on under-occupancy and overcrowding by levels of occupancy, and this is shown in the table below. The occupancy rating provides a measure of under-occupancy and overcrowding, relating the actual number of rooms to the number of rooms 'required' by the members of the household (based on an assessment of the relationship between household members, their ages and gender). For example a value of -1 implies that there is one room too few and that there is overcrowding in the household. Area Barton Boothstown and Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Dwelling occupancy rating (% of all households by category) Under-occupied Overcrowded +2 or more +1 0 -1 -2 or less 39.68 32.15 23.06 4.13 0.98 70.30 33.16 48.99 57.38 48.11 48.81 29.16 41.62 27.51 40.07 21.10 41.58 45.65 50.37 40.42 21.08 30.53 26.55 25.35 23.07 28.99 37.22 28.05 35.44 30.81 39.61 30.30 31.61 28.73 30.60 74 7.22 26.73 19.79 12.82 23.11 17.25 25.61 22.53 27.10 23.14 30.87 21.25 18.95 16.40 23.34 1.08 7.44 4.02 3.36 4.07 3.95 6.32 5.84 6.96 4.80 6.05 5.72 3.26 3.50 4.63 0.31 2.12 0.64 1.08 1.64 0.99 1.68 1.96 2.98 1.18 2.36 1.15 0.52 0.99 1.01 Area Walkden South Weaste and Seedley Winton Worsley Dwelling occupancy rating (% of all households by category) Under-occupied Overcrowded +2 or more +1 0 -1 -2 or less 59.29 25.00 12.09 2.96 0.67 Central Salford Salford West Salford Greater Manchester North West England Source: Census 2001 45.90 43.49 74.23 27.80 28.62 16.18 20.28 22.12 7.76 4.91 4.64 1.54 1.11 1.13 0.29 36.25 49.09 32.02 27.58 23.83 18.61 5.95 3.81 1.95 0.91 44.53 29.16 20.46 4.58 1.28 45.85 50.93 49.14 28.24 26.59 25.54 19.50 17.07 18.19 4.72 4.05 5.02 1.69 1.36 2.11 2.171 This data suggests that under-occupancy is a much more significant issue in Salford than overcrowding, with 6% of dwellings overcrowded and 74% under-occupied. The levels of overcrowding are slightly higher in Central Salford at 8%, and under-occupancy is slightly higher in Salford West at 77%. This picture is similar to the sub-regional, regional and national comparators. The highest levels of underoccupancy are in Boothstown and Ellenbrook (91%), Worsley (90%), Walkden South (84%) and Claremont (83%). Overcrowding is highest in Broughton and Langworthy (both 10%), which could possibly reflect the high proportion of small houses in those locations. Salford Housing Needs Assessment 2007 2.172 The Salford Housing Needs Assessment conducted in 2007 provides more recent survey-based information of overcrowding and underoccupation. A summary of this is provided in the table below, which provides a similar picture to the Census data above. Number of bedrooms required 1 bedroom 2 bedrooms 3 bedrooms 4+ bedrooms Total 1 3,468 0 0 0 3,468 Number of bedrooms in home 2 3 4+ 19,699 5,187 888 61 25,835 27,617 14,495 7566 785 50,463 Overcrowded Under-crowded Source: Salford Housing Needs Assessment (2007) 75 6,547 4,747 3859 1981 17,134 Total 57,331 24,429 12313 2827 96,900 Note: The bottom two cells of the 4+ number of bedrooms in home column contain some households that are either overcrowded or under-occupied – for example they may require three bedrooms but live in a five bedroom property or may require a five bedroom property but are currently occupying a four bedroom property. 2.173 The 2007 Housing Needs Assessment also provides details of underoccupation by household type and tenure. This is shown in the table below. Household type Single pensioner 2 or more pensioners Single nonpensioner 2 or more adults, no children Lone parent 2+ adults, 1 child 2+ adults, 2+ children Owner Owner Council occupied occupied (no (with mortgage) mortgage) 4,947 755 2,659 3,859 453 799 RSL Private rented Total 56 36 447 145 8,864 5,292 9,130 1,493 3,677 2,366 220 1,374 3,529 6,847 1,443 340 1,254 13,413 78 117 140 203 857 1,431 292 96 67 44 - Total 14,163 14,223 7,722 Source: Salford Housing Needs Assessment (2007) 696 41 55 123 614 1,169 1,761 3,439 40,243 2.174 The above table indicates that around 91% of the under-occupation is associated with households that consist only of adults. 35% of the households are pensioners. 71% of the under occupied dwellings are in the owner occupied sector, whilst 21% are in the public sector (council and RSL). 2.175 The 2007 Housing Needs Assessment also identified the intentions of overcrowded and under-occupying households, as shown below. Overcrowded/ under-occupied Overcrowded Neither overcrowded nor under-occupied Under-occupied Number need/expect to move 692 18,031 Total households % needing / expecting to move 2,273 30.4% 54,384 32.2% 12,770 40,243 Total 31,493 96,900 Source: Salford Housing Needs Assessment (2007) 76 31.7% 32.5% 2.176 The above table suggests that the occupancy level of a property does not particularly impact on whether households consider that they need or expect to move home, with the proportions for overcrowded households similar to those for under-occupied. However, the reasons for moving could potentially be significantly different. 2.177 Other key findings of the Housing Needs Assessment in relation to the issue of overcrowding and under-occupation were: • The estimated number of overcrowded and under-occupied households is as follows: o Overcrowded - 2,273 households (2.3% of all households) o Under-occupied - 40,243 households (41.5% of households) • By neighbourhood, Worsley and Boothstown have the highest proportion of under-occupied dwellings (59.0%); and Broughton and Irwell Riverside the highest level of overcrowded dwellings (6.0%) (similar to the Census results discussed above) • The age distribution confirms the household type analysis above (i.e. low overcrowding and high under-occupancy amongst pensioner households); though interestingly the data shows that overcrowding levels for households containing both older and non older persons and non older persons only are very similar. Private Sector Housing Stock Condition Survey 2010 2.178 The 2010 Private Sector Housing Stock Condition Survey also provides information on occupancy levels. It defines overcrowding and underoccupancy as follows (paragraph 4.12.1): Category Severely overcrowded Overcrowded Satisfactory Under-occupied Severely under-occupied Definition Lacking two or more bedrooms Lacking one bedroom Number of bedrooms required is same as is present in dwelling One bedroom more than required Two ore more bedrooms more than required 2.179 The survey identifies the following situation of overcrowding and underoccupancy in the dwellings assessed (i.e. excluding Salix Homes and City West Housing Trust accommodation). Category Severely overcrowded Overcrowded Satisfactory Under-occupied Severely under- All households Vulnerable households Number % of Number % in households category 218 0.3% 117 53.9% 3,309 3.9% 1,488 0.0% 22,030 25.9% 9,929 45.1% 33,391 39.2% 9,889 29.6% 26,174 30.7% 6,377 24.4% 77 All households Number % of households Category occupied Vulnerable households Number % in category Total 85,122 100.0% 27,800 32.7% Source: Private Sector Housing Stock Condition Survey 2010 (Tables 4.36 and 4.38) 2.180 This data identifies a similar position to the 2001 Census and the 2007 Housing Needs Assessment, with a very low level of overcrowding. The Private Sector House Survey report suggests that under-occupation is a bigger problem, with 69.9% of dwellings under-occupied or severely under-occupied. It considers that under-occupation “can be a problem for the fuel poor and vulnerable where they may be paying to heat rooms they do not use” (paragraph 4.12.2). However, more than half of the households in severely overcrowded accommodation are identified as vulnerable. 2.181 The table below shows that most of the overcrowding is in the rented sector (73% of severe overcrowded and 58% of overcrowded households), although it should be noted that the survey excluded the stock of the two largest social rented providers in the city. However, such households still only make up a very small proportion of households in the rented sector (3.7% of households renting from an RSL and 9.7% in the private rented sector). In contrast, 91% of households who own their property outright are under-occupying it, and 71% who own their property with a mortgage. Category Severely overcrowded Overcrowded Satisfactory Under-occupied Severely underoccupied Total Owned with mortgage No. % 59 27.2 Owned outright No. % 0 0.0 Rented from RSL No. % 100 46.1 Rented privately No. % 58 26.7 Grand total 218 1,054 7,924 13,759 8,778 31.9 36.0 41.2 33.5 331 2,325 10,346 15,090 10.0 10.6 31.0 57.7 141 3,495 2,032 793 4.3 15.9 6.1 3.0 1,783 8,286 7,255 1,514 53.9 37.6 21.7 5.8 3,309 22,030 33,391 26,174 31,574 37.1 28,092 33.0 6,560 7.7 18,897 22.2 85,122 Source: Private Sector Housing Stock Condition Survey 2010 (Table 4.39) % = refers to the proportion of dwellings in that overcrowding/underoccupancy category 2.182 In terms of the type of dwellings, from the table below it can be seen that overcrowding is concentrated in semi-detached and terraced housing, accounting for 73% of all severely overcrowded households and 85% of overcrowded households. Flatted dwellings accounts for a relatively low proportion of overcrowding despite them typically providing smaller accommodation, with 27% of all severely 78 overcrowded households and 9% of all overcrowded households. Only 2.2% of flats are identified as suffering from overcrowding, compared to 3.6% of semi-detached houses and 6.5% of terraced houses. Bungalow Flat House detached Category Severely overcrowded Overcrowded Satisfactory Underoccupied Severely underoccupied Total House – semidetached No. % 103 47.5 No. 0 % 0.0 No. 58 % 26.7 No. 0 % 0.0 56 1,378 1,569 1.7 6.3 4.7 288 8,128 6,957 8.7 36.9 20.8 141 188 2,148 4.3 0.9 6.4 900 4,752 10,109 1,022 3.9 351 1.3 4,307 16.5 4,026 4.7 15,782 18.5 6,783 8.0 House terraced Grand total No. 56 % 25.8 218 27.2 21.6 30.3 1,924 7,585 12,609 58.1 34.4 37.8 3,309 22,030 33,391 12,051 46.0 8,443 32.3 26,174 27,915 32.8 30,617 36.0 85,122 Source: Private Sector Housing Stock Condition Survey 2010 (Table 4.40) % = refers to the proportion of dwellings in that overcrowding/underoccupancy category Step 3.4: Vacancies, available supply and turnover Vacancy levels 2.183 High vacancy levels are generally associated with low demand, although it needs to be recognised that vacancies can be high in ‘high demand’ areas due to investor and absentee demand. Council Tax records are available showing vacancy rates by ward between 2006 and 2011 as of March each year. This is shown in the table below. Area Barton Boothstown & Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South 2006 4.41% 3.38% 9.81% 4.62% 3.74% 5.37% 2.70% 7.98% 6.12% 16.23% 3.44% 7.92% 2.70% 3.76% 2.85% Proportion of vacant dwellings by year 2007 2008 2009 2010 4.12% 4.68% 5.17% 5.89% 3.22% 8.90% 4.76% 3.85% 5.93% 2.91% 8.64% 6.59% 9.34% 3.13% 9.18% 3.65% 4.04% 3.15% 79 2.89% 10.71% 4.47% 3.27% 5.59% 2.59% 8.66% 6.95% 8.23% 3.81% 8.59% 3.82% 4.35% 3.77% 3.19% 10.35% 4.82% 3.45% 6.28% 3.00% 7.30% 7.06% 7.46% 4.45% 8.69% 3.85% 4.89% 3.98% 2.77% 8.91% 4.63% 3.41% 6.27% 2.95% 8.15% 7.08% 7.47% 4.49% 9.24% 4.17% 5.00% 4.18% 2011 6.03% 2.87% 9.39% 3.96% 3.52% 5.73% 3.22% 5.85% 6.02% 6.79% 3.75% 8.14% 3.68% 4.38% 3.85% Proportion of vacant dwellings by year 2007 2008 2009 2010 4.10% 4.56% 4.52% 4.07% 3.38% 3.60% 3.98% 3.97% Area Walkden North Walkden South Weaste & Seedley Winton Worsley 2006 4.20% 3.75% 5.85% 3.97% 3.94% 6.56% 4.13% 4.28% 5.17% 3.77% 4.54% 6.27% 4.42% 4.41% 5.55% 4.60% 3.79% 5.20% 4.11% 4.28% Central Salford Salford West 8.91% 3.80% 7.80% 3.93% 7.62% 4.08% 7.46% 4.44% 7.38% 4.46% 6.71% 4.24% Salford 5.73% 5.38% 5.42% 5.60% Source: Salford City Council, Council Tax records 5.59% 5.21% 2011 4.33% 3.93% 2.184 The table above shows that citywide vacancy levels have reduced slightly since 2006. The Government’s New Homes Bonus is likely to further incentivise the reoccupation of long-term vacant properties. The most recent grant announcement suggests significant progress in this regard in the city, with the 2012-13 New Homes Bonus provisional allocation for Salford identifying that 1,478 long-term empty homes were brought back into use between October 2010 and October 2011. 2.185 There has been a significant reduction in vacancies in Central Salford, with a slight increase in Salford West. However, vacancy levels still remain higher in Central Salford than in Salford West, with the highest levels in Broughton (9%) and Ordsall (8%). Langworthy has seen a significant reduction in vacancies from over 16% to less than 7%, although the initial high levels may have been partly due to proposed clearance activity in the area. Some areas that may be considered ‘low demand’ areas when measured by other factors such as house prices actually have very good occupancy levels, most notably Little Hulton which has a lower vacancy rate than the ‘high demand’ area of Worsley (although this may be partially explained by the high concentration of social housing in Little Hulton and the low levels of vacancy in this stock due to the high demand for affordable housing). However, most of the higher value areas do have low vacancy rates, such as Boothstown and Ellenbrook, Claremont, Swinton South and Walkden South, all of which are below 4%. Length of time on the market 2.186 Home.co.uk publishes data on the number of properties advertised and the average amount of time they have been on the market. This provides a general indication of demand for different types of property in different parts of the city, and how this has changed in recent years. Detailed data is set out in the tables below. It needs to be treated with some caution as the number of properties is relatively low for some areas/categories. 80 Post Code Sector M5 (Ordsall, Eccles New Road, Langworthy) Median number of days properties are on the market (days) and the number of properties advertised (January 2007 and January 2012) in Post Code Sector M5 January 2007 January 2012 Jan 2007 to Jan 2012 Median Median % change % change time on No. of time on No. of in median in no. of market properties market properties time on properties Property type (days) advertised (days) advertised market advertised Detached 0 0 Semidetached 59 8 235 17 298% 113% Terraced 125 15 166 9 33% -40% Apartment 57 125 207 130 263% 4% Unknown 12 11 All 59 Source: www.home.co.uk 160 209 167 254% 4% Median number of days properties are on the market (days) and the number of properties advertised (January 2007 and January 2012), by property size in Post Code Sector M5 January 2007 January 2012 Jan 2007 to Jan 2012 Median Median % change % change time on No. of time on No. of in median in no. of market properties market properties time on properties Property type (days) (days) market advertised advertised advertised 5+ bedrooms 117 2 795 2 579% 0% 4 bedrooms 154 1 217 2 41% 100% 3 bedrooms 55 30 205 29 273% -3% 2 bedrooms 52 93 209 117 302% 26% 1 bedroom 59 32 186 14 215% -56% Unknown 2 3 All 59 Source: www.home.co.uk 160 209 167 254% 4% Post Code Sector M6 (Claremont / Weaste) Median number of days properties are on the market (days) and the number of properties advertised (January 2007 and January 2012) in Post Code Sector M6 January 2007 January 2012 Jan 2007 to Jan 2012 Median Median % change % change time on time on in median in no. of No. of No. of market properties market properties time on properties Property type (days) advertised (days) advertised market advertised Detached 140 17 243 25 74% 47% Semidetached 115 82 178 104 55% 27% Terraced 59 39 139 67 136% 72% Apartment 118 43 228 38 93% -12% Unknown 47 33 All 89 Source: www.home.co.uk 228 183 81 267 106% 17% Median number of days properties are on the market (days) and the number of properties advertised (January 2007 and January 2012), by property size in Post Code Sector M6 January 2007 January 2012 Jan 2007 to Jan 2012 Median Median % change % change time on No. of time on No. of in median in no. of market properties market properties time on properties Property type (days) advertised (days) advertised market advertised 5+ bedrooms 105 6 168 7 60% 17% 4 bedrooms 131 28 143 24 9% -14% 3 bedrooms 88 110 183 120 108% 9% 2 bedrooms 49 79 209 97 327% 23% 1 bedroom 58 3 195 13 236% 333% Unknown 2 6 All 89 Source: www.home.co.uk 228 183 267 106% 17% Post Code Sector M7 (Lower / Higher Broughton) Median number of days properties are on the market (days) and the number of properties advertised (January 2007 and January 2012) in Post Code Sector M7 January 2007 January 2012 Jan 2007 to Jan 2012 Median Median % change % change time on No. of time on No. of in median in no. of market properties market properties time on properties Property type (days) advertised (days) advertised market advertised Detached 184 13 312 38 70% 192% Semidetached 136 28 227 66 67% 136% Terraced 100 18 109 51 9% 183% Apartment 72 30 196 123 172% 310% Unknown 24 26 All 95 Source: www.home.co.uk 113 176 304 85% 169% Median number of days properties are on the market (days) and the number of properties advertised (January 2007 and January 2012), by property size in Post Code Sector M7 January 2007 January 2012 Jan 2007 to Jan 2012 Median Median % change % change time on time on in median in no. of No. of No. of market properties market properties time on properties Property type (days) advertised (days) advertised market advertised 5+ bedrooms 106 18 182 39 72% 117% 4 bedrooms 150 25 174 41 16% 64% 3 bedrooms 78 36 182 71 133% 97% 2 bedrooms 49 28 159 111 224% 296% 1 bedroom 169 6 223 40 32% 567% Unknown 2 All 95 Source: www.home.co.uk 113 176 82 304 85% 169% Post Code Sector M27 (Swinton / Pendlebury) Median number of days properties are on the market (days) and the number of properties advertised (January 2007 and January 2012) in Post Code Sector M27 January 2007 January 2012 Jan 2007 to Jan 2012 Median Median % change % change time on No. of time on No. of in median in no. of market properties market properties time on properties Property type (days) advertised (days) advertised market advertised Detached 121 42 164 56 36% 33% Semidetached 98 101 153 223 56% 121% Terraced 105 52 172 71 64% 37% Apartment 78 57 109 55 40% -4% Unknown 0 123 0 37 All 89 Source: www.home.co.uk 375 152 442 71% 18% Median number of days properties are on the market (days) and the number of properties advertised (January 2007 and January 2012), by property size in Post Code Sector M27 January 2007 January 2012 Jan 2007 to Jan 2012 Median Median % change % change time on No. of time on No. of in median in no. of market properties market properties time on properties Property type (days) (days) market advertised advertised advertised 5+ bedrooms 84 8 481 11 473% 38% 4 bedrooms 97 46 115 48 19% 4% 3 bedrooms 89 190 173 202 94% 6% 2 bedrooms 85 118 130 171 53% 45% 1 bedroom 51 10 69 7 35% -30% Unknown 3 3 All 89 Source: www.home.co.uk 375 152 442 71% 18% Post Code Sector M28 (Walkden / Worsley) Median number of days properties are on the market (days) and the number of properties advertised (January 2007 and January 2012) in Post Code Sector M28 January 2007 January 2012 Jan 2007 to Jan 2012 Median Median % change % change time on No. of time on No. of in median in no. of market properties market properties time on properties Property type (days) advertised (days) advertised market advertised Detached 119 69 203 156 71% 126% Semidetached 111 73 178 167 60% 129% Terraced 117 41 140 59 20% 44% Apartment 71 59 195 19 175% -68% Unknown 338 44 All 78 580 179 83 445 128% -23% Source: www.home.co.uk Median number of days properties are on the market (days) and the number of properties advertised (January 2007 and January 2012), by property size in Post Code Sector M28 January 2007 January 2012 Jan 2007 to Jan 2012 Median Median % change % change time on No. of time on No. of in median in no. of market properties market properties time on properties Property type (days) (days) market advertised advertised advertised 5+ bedrooms 97 24 222 35 129% 46% 4 bedrooms 86 128 185 112 115% -13% 3 bedrooms 76 277 178 189 134% -32% 2 bedrooms 76 127 140 91 84% -28% 1 bedroom 72 20 275 12 282% -40% Unknown 4 6 All 78 Source: www.home.co.uk 580 178 445 128% -23% Post Code Sector M30 (Eccles) Median number of days properties are on the market (days) and the number of properties advertised (January 2007 and January 2012) in Post Code Sector M30 January 2007 January 2012 Jan 2007 to Jan 2012 Median Median % change % change time on No. of time on No. of in median in no. of market properties market properties time on properties Property type (days) advertised (days) advertised market advertised Detached 119 24 178 55 50% 129% Semidetached 98 94 161 153 64% 63% Terraced 83 92 163 113 96% 23% Apartment 96 63 163 60 70% -5% Unknown 77 38 All 88 Source: www.home.co.uk 350 163 419 85% 20% Median number of days properties are on the market (days) and the number of properties advertised (January 2007 and January 2012), by property size in Post Code Sector M30 January 2007 January 2012 Jan 2007 to Jan 2012 Median Median % change % change time on time on in median in no. of No. of No. of market properties market properties time on properties Property type (days) advertised (days) advertised market advertised 5+ bedrooms 95 20 254 24 167% 20% 4 bedrooms 97 38 174 48 79% 26% 3 bedrooms 87 149 157 188 80% 26% 2 bedrooms 94 111 153 123 63% 11% 1 bedroom 67 25 264 31 294% 24% Unknown 7 5 All 88 Source: www.home.co.uk 350 163 84 419 85% 20% Post Code Sector M44 (Irlam / Cadishead) Median number of days properties are on the market (days) and the number of properties advertised (January 2007 and January 2012) in Post Code Sector M44 January 2007 January 2012 Jan 2007 to Jan 2012 Median Median % change % change time on No. of time on No. of in median in no. of market properties market properties time on properties Property type (days) (days) market advertised advertised advertised Detached 150 28 321 76 114% 171% Semidetached 106 59 285 170 169% 188% Terraced 104 55 264 70 154% 27% Apartment 24 26 305 26 1171% 0% Unknown 134 20 All 24 Source: www.home.co.uk 302 279 362 1063% 20% Median number of days properties are on the market (days) and the number of properties advertised (January 2007 and January 2012), by property size in Post Code Sector M44 January 2007 January 2012 Jan 2007 to Jan 2012 Median Median % change % change time on No. of time on No. of in median in no. of market properties market properties time on properties Property type (days) advertised (days) advertised market advertised 5+ bedrooms 29 1 281 5 869% 400% 4 bedrooms 39 34 307 58 687% 71% 3 bedrooms 24 188 264 208 1000% 11% 2 bedrooms 24 70 279 79 1063% 13% 1 bedroom 44 6 51 12 16% 100% Unknown 3 0 All 24 Source: www.home.co.uk 302 279 362 1063% 20% Post Code Sector M50 (Salford Quays) Median number of days properties are on the market (days) and the number of properties advertised (January 2007 and January 2012) in Post Code Sector M50 January 2007 January 2012 Jan 2007 to Jan 2012 Median Median % change % change time on time on in median in no. of No. of No. of market properties market properties time on properties Property type (days) advertised (days) advertised market advertised Detached 0 0 Semidetached 1 0 -100% Terraced 135 7 0 -100% Apartment 106 113 111 111 5% -2% Unknown 6 7 85 All 106 Source: www.home.co.uk 127 111 118 5% -7% Median number of days properties are on the market (days) and the number of properties advertised (January 2007 and January 2012), by property size in Post Code Sector M50 January 2007 January 2012 Jan 2007 to Jan 2012 Median Median % change % change time on No. of time on No. of in median in no. of market properties market properties time on properties Property type (days) advertised (days) advertised market advertised 5+ bedrooms 0 0 4 bedrooms 0 591 2 3 bedrooms 94 9 67 9 -29% 0% 2 bedrooms 115 90 123 75 7% -17% 1 bedroom 85 28 88 23 4% -18% Unknown 9 All 106 Source: www.home.co.uk 127 111 118 5% -7% Summary 2.187 The tables above show that median times on the market have changed significantly since January 2007. The exception to this is Salford Quays, where average time spent on the market is virtually unchanged, leading to this area moving from having the longest to the shortest average times. 2.188 Salford Quays has by far the lowest average time spent on the market at 111 days, with all properties in the January 2012 figures being apartments. The next shortest time spent on the market is in the much more suburban area of Swinton and Pendlebury at 152 days. The average time on the market is similar in most other parts of Salford West (163 days in Eccles and 178 days in Walkden/Worsley), however properties in Irlam and Cadishead spend the longest on the market of any part of the city at 279 days and this affects all types of property (considerably higher than the next highest area of Ordsall, Eccles New Road and Langworthy at 209 days). Once Salford Quays is excluded, the different parts of Central Salford all have similar average times for properties on the market ranging from 176 to 209 days. 2.189 There are no clear patterns relating to the size of property and the time spent on the market. There is some evidence that detached properties typically stay on the market for longer than other types of property, both in inner city areas such as Broughton and suburban locations such as Walkden/Worsley. Terraced houses generally spend slightly less time on the market, though this is not true for all areas. 2.190 Overall, it can be seen that the housing market has suffered significantly over the last five years, with a significant increase in the time properties spend on the market. Salford Quays is the exception to this, with demand apparently relatively high, and the data could 86 suggest that it has moved from having a slight oversupply to a relative undersupply of property. In contrast, the significantly longer time that properties now spend on the market in Irlam and Cadishead could indicate that there is a relative oversupply of property in that area, at least in the short-term. Property transactions 2.191 The number of property transactions is a useful indicator in relation to the general state of the housing market, with a large number of transactions generally suggesting that the housing market is healthy and that banks are willing to provide mortgages to prospective purchasers. Information from the Land Registry in relation to the number of transaction is shown in the tables below, over the period between 2003 and 2010. The first table shows the total number of property sales; whilst the second table details the number of new build sales. 20032004 348 20042005 377 20052006 247 20062007 267 20072008 279 20082009 110 20092010 88 Total sales 1,716 Av per annum 245 Change between 2007/08 and 2009/10 -68.5% 246 269 219 262 235 192 552 283 267 258 335 332 277 242 264 241 239 251 254 248 225 167 349 213 258 182 435 290 282 221 232 209 177 238 271 221 197 173 312 201 235 161 656 297 254 181 252 196 218 235 316 254 367 176 332 219 144 217 1,119 259 283 237 302 210 181 275 215 217 381 179 368 233 294 184 1,082 374 279 239 231 224 81 153 92 91 135 95 107 101 231 77 436 127 82 85 76 99 115 156 85 77 134 77 159 109 127 49 306 119 119 117 66 107 1,257 1,577 1,452 1,370 1,674 1,059 2,179 1,359 1,556 1,128 4,369 1,798 1,576 1,322 1,423 1,286 180 225 207 196 239 151 311 194 222 161 624 257 225 189 203 184 -36.5% -43.3% -60.5% -64.5% -64.8% -57.0% -56.8% -53.2% -56.8% -73.4% -71.7% -68.2% -57.3% -51.0% -71.4% -52.2% 311 239 243 387 213 252 243 208 212 241 210 239 259 239 215 166 85 110 178 71 130 1,785 1,265 1,401 255 181 200 -31.3% -70.3% -39.5% Central Salford Salford West 2,279 3,336 2,141 3,143 2,106 2,826 2,544 3,301 2,728 3,220 1,285 1,254 1,112 1,277 14,195 18,357 2,028 2,622 -59.2% -60.3% Total 5,615 5,284 4,932 5,845 5,948 2,539 2,389 32,552 4,650 -59.8% Total number of sales (1 April to 31 March) Area Barton Boothstown and Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste and Seedley Winton Worsley Source: Land Registry 87 20032004 5 20042005 79 20052006 6 20062007 2 20072008 12 20082009 2 20092010 3 Total sales 109 Av per annum 16 Change between 2007/08 and 2009/10 -75.0% 1 3 41 23 2 11 197 11 36 38 31 129 52 18 25 2 40 0 94 38 37 24 4 8 70 0 200 90 73 11 26 18 7 0 120 0 42 23 38 3 29 25 406 74 45 0 80 19 0 47 109 1 118 20 66 40 1 19 559 19 17 32 80 14 0 118 20 0 102 19 99 26 69 0 526 93 9 8 28 14 1 81 6 0 37 16 18 10 86 0 333 44 4 2 2 16 0 50 2 1 26 4 93 22 53 0 188 26 13 13 0 13 49 299 392 63 364 117 515 120 344 82 2,243 475 213 84 241 96 7 43 56 9 52 17 74 17 49 12 320 68 30 12 34 14 n/a -57.6% -90.0% n/a -74.5% -78.9% -6.1% -15.4% -23.2% n/a -64.3% -72.0% 44.4% 62.5% -100.0% -7.1% 33 3 7 118 0 41 7 47 12 1 9 18 36 18 14 77 2 9 78 0 6 350 79 107 50 11 15 116.7% -100.0% -57.1% Central Salford Salford West 334 334 438 533 483 500 715 457 874 337 605 141 485 106 3,934 2,408 562 344 -44.5% -68.5% Total 668 971 983 1172 1211 746 591 6,342 906 -51.2% Total number of new build sales (1 April to 31 March) Area Barton Boothstown and Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste and Seedley Winton Worsley Source: Land Registry 2.192 The tables above show that all parts of the city have seen a significant reduction in transactions since 2007/8, reflecting the difficult market conditions affecting most parts of the country. The lowest reduction in transactions since the peak has been in Weaste and Seedley, which is likely to reflect the newly constructed dwellings available in the area (accounting for 155 sales in the last two years). In contrast, Boothstown and Ellenbrook and Worsley have the next lowest reduction in transactions, despite very little new build in those areas, and so this may be due to an underlying strength of those markets. The major reduction in transactions in Ordsall is increased significantly by the number of new dwellings sold in 2006-2008, whereas there were no new build sales in Little Hulton in 2007/8 and so the 73% reduction in transactions in that area (the highest in the city) may reflect housing market weakness. 88 Turnover 2.193 The city council’s Council Tax records can be used for identifying turnover in housing stock (i.e. the number of homes where there is a change in occupier). The table below shows turnover by ward on an annual basis between 2006 and 2011. Number of dwellings that have seen a change of occupier as a proportion of all dwellings 2006 2007 2008 2009 2010 2011 2.22% 2.26% 2.35% 2.62% 2.55% 2.53% Area Barton Boothstown & Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste & Seedley Winton Worsley 1.36% 2.62% 1.67% 1.41% 2.19% 1.30% 3.58% 2.37% 2.44% 2.22% 5.30% 1.83% 1.87% 1.42% 2.01% 1.27% 2.38% 2.07% 1.22% Central Salford Salford West 2.38% 3.09% 3.20% 4.01% 3.98% 3.99% 1.78% 1.87% 1.85% 2.12% 2.03% 2.01% 1.34% 2.97% 1.77% 1.50% 2.34% 1.53% 4.02% 2.38% 2.35% 2.19% 5.59% 1.84% 1.94% 1.58% 2.10% 1.40% 2.49% 2.29% 1.21% 1.23% 3.24% 1.78% 1.32% 2.56% 1.42% 3.52% 2.39% 2.34% 2.14% 6.27% 2.02% 1.79% 1.54% 2.11% 1.23% 2.39% 2.19% 1.09% 1.42% 3.62% 2.08% 1.63% 2.86% 1.65% 4.34% 2.93% 3.01% 2.35% 7.83% 2.14% 2.21% 1.86% 2.37% 1.61% 2.99% 2.39% 1.42% 1.25% 3.67% 2.07% 1.49% 2.68% 1.58% 4.03% 2.74% 3.24% 2.46% 7.76% 2.19% 1.91% 1.68% 2.33% 1.60% 2.72% 2.10% 1.33% 1.30% 3.45% 1.99% 1.63% 2.71% 1.54% 4.04% 2.48% 3.33% 2.24% 7.60% 2.20% 1.85% 1.67% 2.27% 1.64% 2.96% 2.15% 1.42% Salford 2.20% 2.33% 2.36% 2.85% 2.79% 2.79% Source: Salford City Council, Council Tax records 2.194 Turnover levels appear to have increased between 2006 and 2011, with 2008-2009 marking a turning point. The increase in turnover has been greater in Central Salford than Salford West, and Central Salford turnover levels are now almost double those in Salford West. The highest turnover levels by far are in Ordsall (7.6%), which may reflect the role of the Regional Centre apartment market. Rates are also relatively high in the nearby inner city areas of Irwell Riverside (4.0%), Broughton (3.5%) and Langworthy (3.3%). The lowest turnover levels are seen in Boothstown and Ellenbrook (1.3%), Worsley (1.4%), 89 Claremont (1.6%), Walkden South (1.6%) and Swinton South (1.7%), which are the more affluent suburban parts of the city. Stage 4: Brining the evidence together 2.195 This section of the Strategic Housing Market Assessment has considered a very wide range of information regarding the current housing market. The key messages are summarised below. Summary of key evidence Economic issues 2.196 Salford is well-positioned within the Greater Manchester economy, sharing part of the Regional Centre that drives sub-regional economic growth and forming part of the Greater Manchester South area which has levels of GVA per capita higher than England as a whole. However, it does have higher levels of unemployment and benefit claimants than the national average, and the gap has widened during the challenging economic conditions of the last few years. 2.197 In terms of household incomes, the city is slightly poorer than the conurbation as a whole. Deprivation is generally concentrated in the inner areas of Central Salford and the north-west corner of the city, although there are relatively low household incomes in some other areas such as parts of Eccles. The Worsley, Boothstown and Ellenbrook areas have high household incomes, with the areas to the east stretching into south Swinton, north Eccles and Claremont also being above the city average. 2.198 Employee growth has been good in recent years. However, there appears to be some disconnect between the type of employment that is focused in Salford and the type of jobs that the city’s residents are employed in. For example, Salford has a higher than average proportion of jobs in the banking, finance and insurance sector but a slightly lower than average proportion of people employed in that sector, whereas it has a slightly higher proportion of people employed in manufacturing but a significantly lower than average proportion of the city’s jobs in that sector. Commuting patterns 2.199 Commuting patterns into, out of and within Salford are strongly influenced by the location of major employment opportunities within and near to the city, and in turn impact on local housing markets. Salford is perhaps more reliant overall on cross-boundary commuting flows than any other district in Greater Manchester, both in terms of the supply of jobs for the city’s residents and the supply of labour for jobs in the city. 90 2.200 In terms of attracting commuters from Salford, Manchester has a major pull on all parts of the city, as does Trafford to a lesser extent. The roles of those two districts are more evenly balanced for the southern and western parts of Salford than they are for the northern and eastern parts of the city. Trafford has a stronger pull than Manchester on the south-west of the city (Cadishead, Irlam, Winton and Barton), and Bolton has a stronger pull on the north-west corner of the city (Little Hulton and Walkden North). Bolton and Wigan are the main sources of commuter inflows to the northern and western parts of Salford, whereas Manchester, Trafford and Bury are more important for the southern and eastern parts of the city. There is a net flow of commuters from Salford West to Central Salford, and to a slightly lesser extent from the northern to the southern parts of the city. 2.201 Overall therefore, there are generally flows from west to east and from north to south. The city tends to look eastwards and southwards for employment, particularly the former, whereas inflows are more dependent on physical proximity, although these overall patterns mask significant flows in different directions. Just over half of the city’s working residents are employed in Salford. There is net out-commuting to Manchester and Trafford, but net in-commuting from all other districts in Greater Manchester and Warrington. Demographic issues 2.202 After many decades of population decline, Salford has seen a continuous increase in its population since 2002, with acceleration in the growth rate over the last few years. This increase has been driven by international migration and natural change, rather than any significant net in-migration from the rest of the UK. 2.203 Most parts of the city have shared in this recent population growth, although it has been highest in Central Salford. The pattern of change within the city suggests that it has been significantly influenced by development activity. This relates both to the scale of new residential development, which for example has contributed to a 73% increase in the population of Ordsall over the last decade, and also to the amount of demolition activity, which for example coincided with a significant reduction in the population of Langworthy. 2.204 The age profile of Salford West is generally quite similar overall to that seen at the regional and national levels, as is that of some of the outer parts of Central Salford such as Claremont. However, the rest of Central Salford shows some significant deviations and these affect the city averages. 2.205 Salford’s population has an above average proportion of young adults (aged 20-34), and there is a similar picture in terms of the age of household heads. It is this age group that has completely dominated the city’s population and household growth over the last decade. This 91 may in part reflect the type and location of new dwellings that have been provided in Salford over recent years, where a significant proportion of the supply has consisted of apartments in the Regional Centre. The proportion and rate of growth of young adults is highest in Central Salford, perhaps reflecting the attractiveness of locations within and around the Regional Centre to this age group for example in terms of the huge range of employment and leisure opportunities available. The most expensive locations in the city in terms of dwelling sales prices (Worsley, and Boothstown and Ellenbrook) actually saw a reduction in the 20-34 age group over the last decade, which may be due to a combination of affordability issues and lifestyle choices. 2.206 The preponderance of young adults may partly explain the relatively high proportion of single person households in the city, which has seen a considerable increase over the last decade. This may be related to the roles of certain parts of Salford, but could also be influenced by the type of accommodation that is available within the city, particularly the high levels of apartment development in the Regional Centre. 2.207 The city’s population has a slightly below average proportion of young people (aged 0-19), with particularly low levels in Ordsall and Langworthy possibly reflecting the Regional Centre location of the former and the high proportion of terraced properties in the latter. The number of young people in the city has reduced over the last decade, as have the number of households with dependent children. The highest loss of this age group was in Central Salford although there has been a significant gain in that part of the city in the last couple of years. However, some areas are clearly more attractive to households containing younger people, with the 0-19 age group accounting for the majority of population growth in Broughton but virtually none of that in Ordsall. 2.208 The proportion of households in Salford with a household head aged 65 or over is similar to the national average, although this is somewhat skewed towards single person households. Over the last decade, there was some decline in the number of households with a household head aged 65-84, and a small increase in those aged 85+. More generally, in contrast to the country as a whole, Salford actually saw a reduction in the number of people aged 65 or over during the last decade, with this being particularly significant in Central Salford despite that area seeing considerable overall population increase. Areas with high levels of deprivation generally appear to have been most affected by reductions in this age group, both in the inner city areas and parts of Salford West, perhaps reflecting the relative attractiveness of those locations to older people. However, these same areas also have high proportions of single person households. Housing stock issues 92 2.209 Salford has a relatively high proportion of social rented housing, and a relatively low proportion of owner-occupied accommodation particularly in Central Salford. However, some parts of the city have very high levels of owner-occupation, most notably the area around Boothstown, Ellenbrook, Worsley, south Swinton, Ellesmere Park and Claremont, which also generally tends to have higher proportions of large dwellings (typically detached and semi-detached) and lower proportions of apartments than average. The four easternmost wards of the city have the highest proportion of dwellings in the private sector, possibly reflecting the proximity to the Regional Centre and the role of adjoining areas of Manchester. 2.210 Salford as a whole has a relatively low proportion of detached houses, particularly within the more deprived areas of Central Salford and parts of Salford West. However, it still has large expanses of what would be considered suburban housing, particularly in the west of the city. There are some significant concentrations of terraced housing both in Central Salford and Salford West. 2.211 The city as a whole has a relatively high proportion of apartments, with particularly high concentrations in Ordsall and Langworthy in Central Salford (areas which also have a low proportion of larger dwellings). Some parts of Salford West also have significant numbers of apartments and smaller dwellings, most notably in parts of Eccles. 2.212 There has been a high level of residential development activity in Salford over the last decade, with net completions of around 1,000 dwellings per annum. The focus of this development switched from Salford West in the first few years to Central Salford in the later years. The supply of new dwellings was dominated by apartments in terms of dwelling type, further increasing the relatively high proportion of such accommodation in the city, and the ward of Ordsall in terms of location. There was a more even balance between houses and apartments in Salford West, where new housing was typically relatively large in size, whereas in Central Salford there was a preponderance of small dwellings. The proportion of apartments in the supply of new dwellings was highest in the south and south-east of the city, in the area extending from Eccles through Weaste and Seedley to Ordsall and Irwell Riverside. However, there were some significant completions of houses in parts of Central Salford, such as in Broughton and Langworthy (both also areas that saw very high levels of demolition of existing housing), as well as in some areas of Salford West. 2.213 Despite the relatively high proportion of apartments, and the significant increase in their supply in recent years, the city actually has a high proportion of dwellings that are under-occupied and a relatively low level of overcrowding. Perhaps unsurprisingly, it is the area stretching from Boothstown to Claremont, which is typified by larger dwellings, that has the highest rates of under-occupancy. Broughton and Langworthy have the highest levels of overcrowding, which may partly 93 reflect the relative preponderance of terraced and apartment accommodation in those areas. 2.214 Overall, there was a net increase of more than 12% in the number of dwellings in Salford over the eight-year period of 2003-2011, representing a very considerable scale of change, particularly considering that there were more than 4,000 demolitions during that period. However, older dwellings still make up the vast majority of the city’s housing stock. Decency levels are significantly higher in Salford than the national average, although there is still considerable scope for improvement, and major investment is ongoing to secure enhancements to the city’s social housing stock. Housing market issues 2.215 Average dwelling sales prices increased by around 40% over the period 2003-2010, although this masks a decline over the last few years after peaking in 2007/8. There has been a very varied picture in terms of sales price change across the city, with there being no particular correlation between the rate of change and levels of prosperity in the local area for example. However, the rate of increase has been much greater for houses than for apartments, which may partly reflect the low house prices in parts of the city at the start of the period but also the very large increase in the supply of apartments in the city in recent years which may have dampened price growth. 2.216 An analysis of average dwelling prices per square metre of floorspace indicates some significant differences within the city. The Regional Centre has moderate to very high values, but is then surrounded by a significant area with low dwelling prices covering most of Central Salford. The central part of Salford West, stretching from west to east, has high dwelling prices, but then there are large areas of moderate dwelling prices to the north and south, and another low price area in the north-west corner of the city. These values reflect some of the characteristics discussed above in terms of the size and type of dwellings available, as well as average household incomes. 2.217 Therefore, although there are some notable areas with higher values, overall, large parts of Salford have dwelling prices around or below average levels for the conurbation. This is reflected in the in the Council Tax banding for the city, with just over 75% of properties in Bands A and B. 2.218 Although dwelling prices in many parts of the city are relatively low, this does not guarantee that housing is affordable. Government guidance suggests that a household can be considered able to afford to buy a home if it costs less than 3.5 times the gross household income, but every ward in Salford has a ratio of median house price to median household income above this level. There is generally some correlation between household incomes and dwelling prices, but there are notable 94 exceptions such as Broughton which has the lowest average household income in the city but above average dwelling prices that result in a house price to income ratio more than twice that considered to be affordable. 2.219 The citywide affordability position is relatively similar to that for Greater Manchester as a whole, but significantly better than that seen nationally. After a significant worsening of affordability in the city over the period 2003-2007, there has been a modest improvement since. However, constraints on mortgage availability may be offsetting this, to the extent that many households may have seen little improvement and some will have seen a worsening in their ability to access the owneroccupied sector. These difficulties in the owner-occupied market, coupled with a slowdown in the completion of new dwellings, may partly explain the increase in private sector rents that have been seen in the city over recent months. This has included an increase of around 10% in apartment rents in the space of a year. 2.220 There has been a significant reduction in housing transactions since 2007/8, which reflects the challenging economic conditions faced by the whole country. Once new build sales have been excluded, the scale of reduction in transactions may provide some indication of the inherent strength of some housing market areas, for example with the highest reduction in transactions in Little Hulton (a low price area) and relatively low though still quite significant reductions in Boothstown, Ellenbrook and Worsley (high price areas). 2.221 Dwelling vacancy levels in Salford have reduced recently, although they are still relatively high at more than 5%. Central Salford has seen a significant reduction in vacancies, although this may partly relate to demolition activity, whereas Salford West has seen a slight increase though remains significantly below Central Salford levels. However, at the same time, turnover levels have increased significantly in Central Salford so that they are now around double those in Salford West. The highest rates are in the core of Central Salford, including Ordsall, Irwell Riverside, Broughton and Langworthy. When coupled with some of the other data regarding tenure and household type, this could possibly indicate that parts of Central Salford are increasingly being seen as points of entry to the conurbation where people stay temporarily before moving to more permanent accommodation (though not necessarily in a different area). Most of the areas that may be considered high demand areas have relatively low vacancy and turnover rates, although Little Hulton also has a low vacancy rate which may reflect the level of demand for the high proportion of social rented housing in the area. Salford’s housing markets 2.222 The above evidence and analysis suggests that Salford has a very diverse range of housing roles and markets. There are many different 95 ways in which those roles and markets can be viewed, and inevitably markets overlap each other and are not completely discrete. One way of characterising Salford’s housing markets is set out below. City centre housing market 2.223 A strong housing market, based primarily around high density apartments with relatively high prices per square metre of floorspace, has emerged in the Manchester/Salford City Centre, particularly over the last decade. Although there have been some significant residential developments within Salford’s part of the City Centre, particularly at Greengate, this market is probably the most well-developed within Salford outside the City Centre at Salford Quays. It is this housing market that has accounted for the majority of new dwellings in the city since 2003, and therefore significant population growth, and it also makes up more than 40% of the deliverable supply in Salford’s Strategic Housing Land Availability Assessment (SHLAA). 2.224 It is also this market that has perhaps been most affected by recent economic conditions. There are some doubts over whether it will fully return to the buoyancy of the market peak in 2007, and if the funding mechanisms based around high levels of off-plan sales will be as prominent in the future. This has resulted in the SHLAA assuming a significant reduction in the dwelling yields on many sites, though it still envisages very significant completions over the next few decades. Despite these difficulties, the area has seen reducing vacancy levels and increasing private sector rents, indicating that underlying demand in the area remains high. The relatively high turnover rates in property occupancy are likely to reflect the role of the area rather than any particular weaknesses. The very large and increasing concentration of economic activity in this part of the conurbation, with a particularly focus on knowledge-based employment, would suggest that this market will continue to expand and evolve. Although dwellings prices are high per square metre, average household incomes in the area are also generally quite high. When coupled with the relatively small dwellings this means that accommodation is reasonably affordable to those living in the area, though not for many households elsewhere in the city where average incomes are much lower. 2.225 The housing role of this area is undoubtedly less varied than that of many other parts of the city, filling a relatively narrow but very important niche in the wider Greater Manchester housing market. One and two bedroom apartments dominate, not just in Salford but also adjoining areas of Manchester and Trafford, and the accommodation and lifestyle available appears particularly attractive to young adults and small households. In contrast, there are relatively low proportions of children and older people in the population. As with other housing markets, it is difficult to discern whether demand is driving the provision of this type of accommodation, or whether it is the relatively limited supply range that is constraining the type of households that live in the area. 96 Edge of city centre housing market 2.226 Around the edges of the city centre market area are a range of what could be considered ‘transitional’ areas, such as Trinity, Greengate North, parts of Ordsall, and Eccles New Road. These areas generally provide a much broader mix of dwellings, including a variety of tenures, at a lower cost than is found in the city centre housing market, although there is often still a relatively high proportion of apartments and other medium/high density housing. 2.227 New developments in these areas over the last decade have often been in the form of high density apartments, possibly suggesting an increasing influence of the city centre market, and the SHLAA indicates that this is likely to continue in the future. Over time some of these areas may start to become ever more integrated into that city centre market, if demand is sufficient, and the transitional areas may gradually move outwards. As a result of this flux, there is a relatively diverse population in these parts of Salford, with a mix of both newcomers and long-standing residents. The changing roles of these areas also makes them more difficult to characterise, with significant differences across small distances. 2.228 There is some evidence that there is a higher than average proportion of young adults, and residents with higher level qualifications, suggesting that these areas may be attracting people who work in the Regional Centre but are unable to afford to buy or rent within the city centre market. At present, this does not appear to have resulted in affordability being worse than the city average, despite some relatively significant price inflation in parts of this market over the last decade. However, there is a risk that some existing household types could begin to be priced out of some of these areas if demand increases. Inner city housing market 2.229 This area lies to the north and west of the city centre and edge of city centre housing markets, and covers large parts of Central Salford. It is characterised by large areas of low cost housing, including a high proportion of social rented dwellings. 2.230 This inner city area benefits from its very close proximity to the employment opportunities in the Regional Centre and this is seen in the commuting patterns. All parts of the area have significant travel to work movements into Manchester, with the south of the area also having strong links to Trafford. There are significant inflows from Bury into the northern part of this area. 2.231 The area has the highest concentration of deprivation in the city, with low qualification levels, a high proportion of benefit claimants, and low household incomes. However, although dwelling prices are generally 97 low, there are parts of the area where affordability is potentially a significant issue, including Broughton and Ordsall. This may be partly due to the location of these areas next to the Regional Centre, but could also reflect higher sales values of the significant number of new dwellings constructed in recent years. 2.232 There is a relatively high proportion of apartments in the area, as well as some significant concentrations of terraced accommodation, and a low proportion of detached houses. Apartments have tended to dominate the supply of new dwellings in the southern part of the area, particularly around Eccles New Road, with a broader mix of new housing further north in areas such as Langworthy and Broughton. 2.233 Social rented housing dominates in many parts of the area, although there are also significant pocket of owner-occupation. The private rented sector is also relatively significant, especially compared to other parts of the city, and this is seen particularly in the eastern part of the area. It is also this part of Salford where most of the houses in multiple occupation are located, although there are no major concentrations. All three of the city’s landlord licensing areas are in this housing market. Although overcrowding is generally not a significant issue in the city, the highest levels are generally within this area. It also has quite high turnover levels. 2.234 Some parts of the area have seen a significant increase in population over the last decade, mainly as a result of the scale of development activity. However, this growth has been concentrated in the 20-34 age group, particularly in the areas closest to the Regional Centre. There has been a reasonable increase in the number of younger people (aged under 20) over the last few years, after some net losses in parts of the area earlier in the last decade. It is notable that large parts of the area have seen a significant reduction in the number of people aged 65 and over in recent years, and so overall there has been some change in the demographics of this part of the city. The area has quite a high proportion of single person households, but also a reasonable number of households with dependent children. 2.235 Within the area, Broughton, Langworthy and Pendleton particularly stand out in terms of some of the data. For example, they have high proportions of benefit claimants, the lowest household incomes, the worst levels of overcrowding, large numbers of small dwellings and single person households, significant reductions over the last decade in the proportion of people aged over 65, relatively high vacancy rates, and high levels of turnover. Both areas have also seen major housing change in recent years, with large numbers of demolitions but also significant new build including relatively high completions of houses compared to other parts of Salford. However, whereas Langworthy and Pendleton have a relatively low and decreasing proportion of children in the population, Broughton has a relatively high and increasing number. 98 Langworthy and Pendleton also have quite high rates of decent homes failure. 2.236 This area can be seen to have a very important housing market role in terms of providing low cost accommodation in an accessible location close to a wide range of employment opportunities, thereby helping to meet the needs of a significant number of low income households. There are some pressures on the housing market, and there is the potential for increasing demand to adversely affect affordability levels, with Broughton already having poor affordability (the highest median dwelling price to median household income ratio in the city at 7.3). The growth of the private rented sector may also present some challenges, as may the changing demographics of the area. 2.237 There are some major development opportunities in the area, with more than 20% of the deliverable supply identified in the SHLAA being within this area, providing opportunities to diversify the type of housing available. However, overall, it would seem likely that it will continue to function primarily as a low cost housing market area. Broughton Park 2.238 This north-eastern corner of the city has a quite different role to nearby areas of Central Salford, and has strong connections to adjacent neighbourhoods in Manchester and Bury. This is partly as a result of the large Jewish population in the area, and the concentration of associated social facilities (further information on some of the specific housing issues affecting this area is contained in section 5 of this Strategic Housing Market Assessment). 2.239 Overall, the area has quite strong travel to work links with Bury (in both directions) as well as into Manchester. It has a relatively high proportion of large dwellings and detached houses, although it also has a significant proportion of apartments. There is a limited amount of social rented housing in the area, but the private rented is quite significant compared to many other parts of Salford. The Private Sector House Stock Condition Survey indicates that the area has quite high levels of decent homes failure. 2.240 There is an above average number of households with dependent children, and children make up a much higher than average proportion of the total population. This reflects the relatively high proportion of larger households in the area, which has the highest concentration of very large households in the city. 2.241 There is quite a significant supply of relatively expensive houses in the area, with dwelling prices above the city average. Although household incomes and qualification levels are also relatively high, there are some issues of deprivation in the area, and overall affordability is quite poor. 99 2.242 As explained in section 5 of this assessment, the age profile of the area is very young, and the distinctive social characteristics mean that much of this population may wish to remain within the immediate area. This is likely to lead to very significant housing pressures, and could further magnify the distinctive housing market role of this part of the city, although development land availability is constrained. High value suburbs 2.243 A significant band of primarily high price housing runs through the central section of Salford West, including south Waldken, Ellenbrook, Boothstown, Worsley, south Swinton, Ellesmere Park, and stretching into parts of Claremont in Central Salford. This is a very important area of high cost housing not just within Salford but also Greater Manchester more generally, although it is not on the scale of the high value area found in the south of the conurbation. Nevertheless, it is significant particularly in terms of attracting and retaining skilled workers within the sub-region, which is highlighted as a priority in the Greater Manchester Strategy. 2.244 The area has very diverse travel to work connections, with outflows in all directions. Inevitably, Manchester has a greater pull on the east of the area, and Trafford on the south, but this part of Salford appears to have a much broader role than the rest of the city serving a wide part of the conurbation with skilled labour. 2.245 The area is characterised by high household incomes (particularly in Boothstown, Ellenbrook and Worsley), low numbers of benefit claimants, and high qualification levels. The high dwelling sales prices found in the area are largely offset by the high household incomes so that affordability ratios are typically around or below the city average, although Worsley is pushed higher by its particularly high dwelling prices. However, the prevailing household incomes in much of the rest of the city would find the area to be unaffordable. 2.246 There are very high levels of owner-occupation and relatively little social rented accommodation in this part of the city. It is characterised by a high proportion of large dwellings, typically detached and semidetached, with a lower than average proportion of apartments. Although there is a relatively low proportion of single person households, this part of the city has the highest levels of underoccupancy. 2.247 The type of accommodation available and the broader residential environment could be considered to make this an attractive family housing area, and this is reflected to some extent in its demographics. However, many parts of the area actually saw a reduction in the 0-19 age group over the last decade. When coupled with a reduction in the number of young adults and an increase in those aged 65 and over in the most affluent wards of Boothstown and Ellenbrook and Worsley, 100 this could indicate that younger families are finding it difficult to access this housing market. 2.248 The area has low vacancy rates and low turnover levels, suggesting a very stable housing market. It had a relatively low increase in dwelling sales price in the last decade, possibly reflecting higher starting prices and lower levels of investment purchases, although it is notable that price inflation increased as one moved eastwards through the area. 2.249 After the significant expansion of Boothstown and Ellenbrook, which provided a considerable proportion of the city’s new housing in the 1990s, there has been relatively little residential development activity in recent years. The SHLAA suggests that the supply of deliverable housing sites is quite constrained in this part of Salford. 2.250 Overall, this appears to be a successful and stable, high demand, high cost housing market area, which serves a very important function within the conurbation. There is no evidence that would suggest this is likely to change in the foreseeable future, but there is also limited scope to expand that role without considering greenfield or Green Belt development given the limited availability of brownfield housing opportunities in the area. Mixed suburbs 2.251 Most of Salford West to the north and south of the central high value housing areas consists of a series of what might be termed mixed suburbs, comprising relatively large areas of primarily low to mid cost housing. Parts of these areas have some similarities to Central Salford, but they tend to be much more diverse and more typically suburban. 2.252 There is relatively little that is particularly distinctive about the overall demography and housing of the area, reflecting a good balance of characteristics, but this inevitably masks some significant internal differences. Various parts of the area have concentrations of a particular tenure, dwelling type, age group or household type, but these normally balance out within the wider area. 2.253 For example, more than half of the dwellings in Cadishead, Irlam and Pendlebury are semi-detached, and Cadishead is the only ward in the city to have seen double digit growth in the 35-64 age group over the last decade. Winton is notable within the area as a whole for having a relatively high proportion of residents aged under 20. 2.254 The wards of Barton, Winton and Walkden North generally have higher levels of deprivation than other parts of this area, with below average household incomes, and quite high levels of benefit claimants. They also have a high proportion of apartments, low proportion of detached houses, low dwelling sales prices, and have seen a quite significant net loss of older people over the last decade. The Private Sector House 101 Stock Condition Survey indicates that Barton has the highest level of decent homes failure in the city. 2.255 However, overall, the area is characterised by its balance and diversity, providing a range of housing opportunities to meet a wide variety of needs. Although household incomes are generally around average or below average for the city, this does not result in affordability being worse than for Salford as a whole. Most areas have a ratio of median house prices to median household incomes below 4, although it is a little higher in Pendlebury, Irlam and Cadishead. 2.256 In some ways, it is the shopping patterns and commuting relationships that distinguish the different parts of these mixed suburbs, with the town centres of Eccles, Swinton and Walkden providing an important focus for local communities. Irlam and Cadishead is relatively selfcontained in terms of commuting compared to the rest of the city, although it has reasonably strong connections to Trafford as does the neighbouring Eccles area. The Walkden area has quite strong links to Bolton, whereas the commuting patterns of Swinton and Pendlebury are generally more diverse. Consequently, in practice it is likely to be made up of several smaller, overlapping housing market areas. 2.257 Some parts of the wider area have seen quite significant population growth over the last decade as a result of major housing development, most notably Pendlebury and Cadishead which have been an important supply of new houses in the city over the last decade. There will be further large-scale residential development opportunities in the future, particularly as some of the existing employment areas cease to have an economic function. However, this is unlikely to have any significant impact on the overall role of this housing area. Little Hulton 2.258 Although in some ways Little Hulton could be considered to form part of the large mixed suburbs housing market area discussed above, the evidence presented in this section suggests that it has a number of distinctive characteristics that result in it having a somewhat different role within the city. In many ways it is similar to some of the low cost areas of Central Salford, but has a much more peripheral location. Consequently, it has fewer connections to the major employment concentrations in the south-east of the city, Manchester and Trafford, but has some significant commuting links to Bolton. 2.259 The area has a high proportion of apartments despite its location on the edge of the city, and a very low proportion of detached houses. More than half of dwellings are in social rented sector and owner-occupation levels are low. Demographically, the proportion of the population that is under 20 is significantly above the city average, and the proportion of households with dependent children is quite high. Although the proportion of the area’s population that is aged 65 or over is very 102 similar to that for Salford as a whole, the area saw a significant decrease in this age group over the last decade. 2.260 Little Hulton is one of the most deprived parts of Salford, with low average household incomes and high levels of benefit claimants. Dwelling values per square metre are similar to the low cost areas of Central Salford, and Little Hulton actually has the lowest median dwelling sales price of any ward in the city. Consequently, despite the low average household incomes, this is one of the most affordable areas of the city. 2.261 Some of the housing market indicators appear quite positive, for example with the area having a low vacancy rate and a relatively low turnover rate. However, there has been very little overall growth in house prices over the last decade, particularly compared to the Salford average, and the area has seen the largest reductions in transactions since the market peak in the city. It has also seen relatively little new development, with a net reduction of dwellings over the period 20032011 and the main completions being in the last year as a result of the local authority new build programme. Low development values may make it difficult to bring forward some potential residential development sites without public subsidy. Many of the positive indicators such as low vacancies are likely to result from good management of the social rented stock in the area. Overview 2.262 Overall, although there may be some ebb and flow of the housing market areas in Salford, particularly the edge of city centre area, their roles appear relatively well-established. There will always be higher and lower cost areas due to the way in which housing markets function more generally, but Salford as a whole benefits from the fact that such areas are reasonably close together enabling all types of household to live near to their ideal location. 2.263 The emphasis in the future may therefore need to be on ensuring that each area can fulfil its current housing role as effectively as possible, whilst understanding the particular pressures they face, rather than seeking to initiate any substantial change in function. These future pressures and changes are discussed in more detail in the next section of this assessment. 103 3. The future housing market Projected changes in future numbers of households 3.1 Estimating the future change in the number of households in Salford is fundamental to determining how much new housing needs to be provided in the city. There are various different methodologies of forecasting household growth, and several are set out below. Some of these incorporate policy assumptions about the role of Salford and where people should live within Greater Manchester, whereas others are effectively policy-neutral. 3.2 Household growth forecasts are available and can be produced for a variety of time periods. For consistency, the methodologies below focus on the period 2011-2028. This time period has been selected as it is that proposed in Salford’s Publication Core Strategy. Methodology A – Regional Spatial Strategy6 3.3 Table 7.1 of Policy L4 of the Regional Spatial Strategy identifies a housing provision figure for Salford of 28,800 dwellings (net of clearance replacement) over the period 2003-2021. This equates to an average of 1,600 dwellings per annum. 3.4 A net increase of 8,013 dwellings was delivered in Salford over the period 2003-2011. This would leave a requirement for a net increase of 20,787 dwellings over the period 2011-2021 if the Regional Spatial Strategy figure of 28,800 dwellings for the period 2003-2021 was to be achieved. 3.5 The Regional Spatial Strategy only gives limited advice for what should happen beyond 2021, stating that “local planning authorities should assume that the average annual requirement set out in Table 7.1 will continue for a limited period beyond 2021” (Policy L4). If the annual average was continued up to 2028 then this would give a requirement for Salford of 11,200 dwellings over the period 2021-2028. Adding this to the residual requirement of 20,787 dwellings for the period 20112021 would give a total requirement for the period 2011-2028 of 31,987 dwellings net of clearance replacement. 3.6 The Regional Spatial Strategy appears to equate dwellings with households, without any other considerations being factored in7. 6 “North West of England Plan Regional Spatial Strategy to 2021” – Government Office for the North West (September 2008) 7 See paragraph 6.99 of “North West Draft Regional Spatial Strategy – Examination in Public October 2006-February 2007: Report of the Panel” (March 2007) 104 Consequently, the above is an estimate of household growth as well as a dwelling requirement. 3.7 Therefore, utilising the Regional Spatial Strategy to identify the scale of household growth would give a figure of 31,987 additional households over the period 2011-2028. 3.8 The Regional Spatial Strategy housing figures for Greater Manchester were based on a policy approach that identified the Regional Centre as the first priority for development, and the surrounding inner areas as the second priority for development. This approach effectively sought to direct some of the demand generated in some areas of Greater Manchester into the central parts of Manchester and Salford. In the case of Salford, this was based on an assumption that there would be very high levels of apartment development in the Regional Centre, and to a lesser extent the rest of Central Salford, throughout the Regional Spatial Strategy period of 2003-2021. 3.9 However, significant market changes over the last few years have resulted in it being highly questionable whether this scale of development could actually be delivered within the Regional Centre and surrounding inner area within Salford. The assumptions about the likely yields on many sites in these locations have been amended in Salford’s Strategic Housing Land Availability Assessment, reducing the overall identified capacity in the city. This means that the evidence on which the Regional Spatial Strategy figure for Salford was based has changed significantly since it was considered at an examination in public in October 2006-February 2007, as have the likely implications of seeking to meet that figure in the long-term. Methodology B – Housing-led forecast 3.10 A simple way of estimating future housing demand is to assume that it will match past development rates in terms of net housing completions. 3.11 It is possible that past housing completions will have been constrained by land supply, and therefore could represent an underestimate of demand. Equally, there is also some evidence that the scale of development around 2006-2009 was driven in part by speculative investment seeking to take advantage of increasing house prices, and therefore may not have represented a genuine need for new housing. 3.12 For the purposes of the calculations here, it is assumed that any possible issue of potential land constraint in constraining past completions is offset by the impacts of speculative demand and vacancies in new dwellings. Consequently, dwelling completions are assumed to be a proxy for household growth, and can be extrapolated on that basis. 105 3.13 Accurate figures for net completions are available as far back as 1998. Over the period 1998-2011, a net total of 9,374 dwellings were completed, equating to an annual average net increase of 721 dwellings per annum. If future household growth was at the same rate, then there would be an increase of 12,258 households over the period 2011-2028. 3.14 It could be argued that this is a very long period of past completions to be projecting forward. An alternative would be to use the period since 2003, as this is the base date of the Regional Spatial Strategy which marked a significant change in policy, and is also the date from which more detailed information on completions was collected for example in terms of the type of dwellings being constructed. Over the period 20032011, a net total of 8,013 dwellings were completed, equating to an annual average net increase of 1,002 dwellings per annum. If future household growth was at the same rate, then there would be an increase of 17,028 households over the period 2011-2028. Distribution of household growth 3.15 As detailed information is available, a spatial element can also be provided for this method of estimating future household growth. The table below identifies the balance between Central Salford and Salford West using the two approaches above. The balance between the two areas is very similar across the two approaches, with just under 57% of household growth in Central Salford and just over 43% in Salford West. Area Central Salford Salford West Salford total Area Central Salford Salford West Salford total Completions 1998-2011 2011-2028 household growth Total Per annum Total % of city total 5,335 410 6,977 56.9% 4,039 311 5,282 43.1% 9,374 721 12,259 Completions 2003-2011 2011-2028 household growth Total Per annum Total % of city total 4,525 566 9,616 56.5% 3,488 436 7,412 43.5% 8,013 1,002 17,028 Methodology C – Department for Communities and Local Government 2008-based household projections 3.16 The Department for Communities and Local Government (DCLG) household projections are based on a forward projection of past demographic trends, and do not seek to take into account how nondemographic factors such as planning policy, the economy or housing supply may impact on household growth. 106 3.17 The DCLG summarises its methodology as follows: “The household projections are produced by applying projected household representative rates to the population projections published by the Office for National Statistics. Projected household representative rates are based on trends observed in Census and Labour Force Survey data. The assumptions underlying national household and population projections are demographic trend based. They do not attempt to predict the impact that future government policies, changing economic circumstances or other factors might have on demographic behaviour. They provide the household levels and structures that would result if the assumptions based on previous demographic trends in the population and rates of household formation were to be realised in practice.”8 3.18 The DCLG 2008-based sub-national household projections forecast an increase of 18,311 households in Salford over the period 2011-2028 (from 101,401 in 2011 to 119,712 in 2028). Timing of household growth 3.19 The table below shows the forecast timing of household growth over this period. It can be seen that the household growth is slightly above the average for 2011-2028 in the first seven years of the period, before reducing slightly below the average, and then returning to around the average by 2027/28. Overall, the pattern of growth is therefore forecast to be relatively even. Year Net additional households 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 1,178 1,154 1,120 1,142 1,146 1,152 Year Net additional households 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 1,108 1,065 1,056 1,028 1,035 1,005 Year Net additional households 2023/24 2024/25 2025/26 2026/27 2027/28 Average 988 993 1,014 1,053 1,074 1,077 Variables affecting household growth 3.20 The ONS 2010-based national population projections were published in October 2011, but have yet to be disaggregated to the sub-national level or translated into household projections. The table below compares the 2008-based and 2010-based population projections for England. 8 “Household Projections, 2008 to 2033, England” – Department of Communities and Local Government (26 November 2010) 107 National population projection 2008-based 2010-based Natural change 3,778,974 4,023,115 England (2011-2028) Net migration Total population growth 2,695,000 6,473,974 3,030,700 7,053,815 3.21 It can be seen that both the natural change and net migration components are forecast to be higher in the latest population projections. However, it is not possible to identify whether these increases would apply to a lesser or greater extent to Salford. Furthermore, the Government has a target of reducing net migration into the UK to the tens of thousands by 2015, which would suggest that the migration assumptions could be a significant overestimate. The Institute for Public Policy Research estimates that there will be a reduction in UK net in-migration to around 180,000 in 20129, which compares to an assumption in the 2010-based population projections of 232,500 in 2012-13, and in the 2008-based population projections of 190,800 in 2012-13. 3.22 Consequently, although the 2010-based population projections forecast higher levels of net in-migration, the 2008-based household projections could potentially overestimate the impacts of migration on household growth due to changes in Government policy (and possibly also other factors such as economic conditions). 3.23 The table below shows the variant household projections for England10. These variant projections have been produced by applying the 2008based variant population projections published by the Office for National Statistics to the household representative rates in the principal household projections. They show that an increase in fertility rates would not have a significant impact on household growth up to 2033. Although higher fertility rates would lead to higher population growth, this would not work through into higher household growth until the end of this period. Variant Fertility Long term average number of children per adult Scenario Assumption in population (England) Number of Households in 2033 (thousands) Average annual increase 2008-2033 (thousands) High Principal 2.05 1.85 27,596 27,536 235 232 Low 1.65 27,477 230 9 http://www.bbc.co.uk/news/uk-16372717 Based on Table 416 of the Department for Communities and Local Government 2008based household projections 10 108 Variant Scenario Assumption in population (England) Number of Households in 2033 (thousands) Average annual increase 2008-2033 (thousands) Males 85.3 Females 88.3 278,89011 246 Males 83.4 Females 87.1 27,536 232 Low Males 81.5 Females 85.9 27,169 218 No improvement Males 78.1 Females 82.2 25,982 170 217,000 157,000 97,000 0 28,318 27,536 26,755 25,455 264 232 201 149 28,734 280 26,331 184 Life Expectancy Expectation High of life at birth at 2033 (years) Principal Migration Long term annual migration High Principal Low Zero Net Combination variants High population Low population 3.24 High on all assumptions Low on all assumptions Overall, therefore, the latest population projections and estimates of net migration would suggest that there are some upward pressures on population growth, but these are likely to be counterbalanced and possibly outweighed by reduced levels of net in-migration. It would therefore seem, at least at the national level, that the 2008-based household projections should be a reasonable estimate of household growth. Methodology D – Greater Manchester Forecasting Model Background to the Greater Manchester Forecasting Model 3.25 The Greater Manchester Forecasting Model (GMFM) is developed and managed by Oxford Economics on behalf of the Association of Greater 11 This is the figure in the DCLG table, but it is assumed that it should be 27,889 109 Manchester Authorities. It is an integrated forecasting model covering factors such as population, economic output and employment as well as wider issues such as skills demand, employment land, households and migration. 3.26 The GMFM adopts a more complex approach to estimating the number of future households than the DCLG household projections, taking into account a much wider range of variables and not just demographic factors. It also considers whether there are likely to be any changes in trends rather than simply projecting forward past trends. However, in common with the DCLG approach, the GMFM Baseline forecast does not take into account supply side issues (such as the supply of housing) or changes in policy. 3.27 There are three key sets of assumptions that underpin the GMFM Baseline forecast12: • Macroeconomic conditions – such as oil prices, inflation, exchange rates, world demand, government spending, consumer spending • Past trends – inherent supply side factors that underpin performance, with the model assuming that supply side pressures exert the same level of influence in the future that they have done previously • Basic economic relationships – including relationships such as people and jobs, spending and jobs, and economic growth and migration (a more detailed example is the way in which GDP is affected by levels of consumption, investment, government spending and the balance of trade, and the level of consumption is in turn affected by incomes and interest rates) 3.28 The GMFM sits within a hierarchy of models produced by Oxford Economics, with a World model at the top. Each lower geographical level (UK, region, Greater Manchester, district) is consistent with the level above in the Baseline forecasts, so for example the Greater Manchester figures when added to Merseyside, Cheshire, Lancashire and Cumbria equal the North West region figures. 3.29 The more complex relationships are modelled at the larger geographies due to the quality and reliability of data, with their outputs then feeding into the GMFM. The GMFM has a more detailed coverage of a range of variables such as ethnicity, housing stock, quintile population and households. It is the macro changes outside Greater Manchester that have the biggest impact on the outputs rather than trends within the conurbation. 3.30 In terms of population and households, the GMFM specifically considers amongst other things: 12 “Greater Manchester Forecasting Model: Autumn 2009 update – Summary of Results” – Oxford Economics/New Economy (2009) 110 • • • • Five-year population age bands split by male and female (0-4 years old, 5-9, 10-14, and so on up to 80-84 and 85 upwards). Inwards and outward migration flows, separating out domestic and international migration, and working-age migration. Domestic migration is modelled by an equation relating net inflows to a variety of economic and demographic factors. For example, it is informed by inflows and outflows derived from the Census, the level of deprivation (higher levels reducing migration), the housing vacancy rate (higher levels having a detrimental impact on people’s willingness to move into an area), the proportion of young people in the population (with younger people tending to be more mobile, so that areas having a higher proportion of 16-24 year olds tending to see more inflows and those with a high proportion of 2529 year olds lower inflows), the balance of regional migration flows, the regional employment rate relative to the UK average (relative increases pushing up outward migration and reducing inward migration), regional house prices relative to London, and average regional wages relative to London. International migration is influenced by similar regional factors. Natural population increase, including the ageing of the surviving population each year, death rates by sex and age group, and new births based on the number of women of child-bearing age. Changes in headship rates, applying them to the five-year age groups to estimate the number of households in each age group. 3.31 The GMFM outputs may be different to those from other models for a variety of reasons including: • It produces forecasts rather than simply projections (i.e. factors in changes in trends rather than just projecting forward past trends) • Its assessment of relationships and past trends may be different • It may use different data and a much larger number of variables 3.32 Oxford Economics is very careful to point out that the additional complexity of the GMFM does not necessarily guarantee a more accurate forecast of household growth and other variables. It is simply one of many different ways in which an estimate can be calculated. Forecast results 3.33 The 2011 update of the GMFM forecasts an increase of 16,568 households in Salford over the period 2011-2028 (from 102,144 in 2011 to 118,712 in 2028). The scale of household growth forecast by the GMFM is therefore 1,743 households fewer than that estimated by the Department for Communities and Local Government (DCLG) 2008based household projections (although the number of households forecast in 2028 is only 1,000 lower, because GMFM estimates a higher number of households in 2011 than the DCLG projections). Timing of household growth 3.34 The table below shows the forecast timing of household growth over this period according to the GMFM. In contrast to the DCLG 111 projections, where household growth was reasonably even over the whole period though slightly higher in the first seven years, the GMFM forecasts that household growth will be significantly lower in the early years with a gradual increase over the period. Year Net additional households 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 682 809 870 756 827 837 Year Net additional households 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 876 913 968 1,000 1,055 1,097 Year Net additional households 2023/24 2024/25 2025/26 2026/27 2027/28 Average 1,142 1,170 1,189 1,185 1,193 975 Migration assumptions 3.35 One of the differences between the assumptions underpinning the ONS 2008-based population projections (and therefore the DCLG household projections) and the GMFM household forecasts relates to net migration levels. The table below compares the figures from these sources for the period 2011-2028. Year ONS/DCLG GMFM 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 600 500 400 400 300 300 758 606 376 185 197 90 Year ONS/DCLG GMFM 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 300 200 200 100 100 200 64 22 29 -38 -43 -83 Year ONS/DCLG GMFM 2023/24 2024/25 2025/26 2026/27 2027/28 Total 200 200 200 200 200 4,600 -98 -143 -215 -321 -390 996 3.36 It can be seen that the GMFM assumes significantly lower levels of migration overall, with net out migration in the second half of the period. However, this is more than offset by other factors, as it is these later years in which the GMFM forecasts higher household growth than the DCLG 2008-based household projections. This highlights that different models will have a variety of different assumptions, some of which will magnify each other and some of which will offset each other. The overall impact is that the GMFM forecasts slightly lower levels of household growth compared to the DCLG projections over the period 2011-2028 (9.5% lower). 112 Methodology E – Greater Manchester Forecasting Model with additional growth 3.37 The Greater Manchester Forecasting Model (GMFM) provides a baseline forecast, without considering the implications of any policy interventions. A further way of estimating future household growth in Salford is therefore to use the GMFM as a starting point but then apply additional assumptions relating to the impact of certain policies. The methodology used here focuses on two particular aspects of this, related to the scale of office development proposed in Salford’s Core Strategy and the impacts of housing benefit changes on the number of single person households. Office development 3.38 The GMFM splits the economy into 52 different sectors, and forecasts the change in the number of jobs in each sector by district. It also estimates the proportion of jobs in each of these sectors that would utilise office floorspace, and then applies job densities to calculate the change in office floorspace that this would result in. However, new guidance13 is now available on job densities, which suggests that some types of office developments are achieving lower average levels of floorspace per worker (i.e. higher densities). The city council has revised the GMFM office floorspace outputs utilising this updated job density information, but with all other assumptions remaining the same. This results in a forecast net increase of 239,730m2 of office floorspace over the period 2011-2028. 3.39 Salford’s Publication Core Strategy is proposing a net increase of 500,000m2 of office floorspace over the period 2011-2028. All other things being equal, it would be anticipated that this additional 260,270m2 of office floorspace compared to the GMFM-based forecast (referred to hereafter as the “additional office floorspace”) would result in higher household growth given the additional jobs that would be generated. There is no standardised methodology for calculating the scale of this extra household growth, and any approach will inevitably involve a significant number of assumptions. However, if the scale of office development that is delivered in Salford over the period 20112028, and therefore the number of new jobs, is significantly above that which is assumed within the household growth forecasts then it would seem likely that those forecasts will represent an underestimate of demand and it is helpful to seek to provide some indication of the potential scale of this. 3.40 Some of the additional office floorspace is likely to be vacant, particularly that which is constructed at the end of the period 20112028 as it will inevitably take some time for new floorspace to be occupied. The vacancy rate is estimated at 10% for the purposes of this methodology. This would mean that 234,243m2 of the 260,270m2 13 “Employment Densities Guide: 2 nd Edition” – Homes and Communities Agency (2010) 113 of the additional office floorspace would be occupied. The aforementioned guidance on job densities indicates an average job density in general offices of 12m2. This job density relates to net internal floor area and therefore needs to be translated into gross internal floor area in order to be related to the aforementioned 234,243m2 of office floorspace. Paragraph 2.8 of the guidance states that a figure of 15-20% should be used as a general benchmark for converting gross to net areas in office property. However, it also explains that the range may be higher for multi-tenanted buildings. It is anticipated that most of the new office development in Salford will be in the form of large, multi-tenanted buildings in the Regional Centre, and so a figure towards the top end of the range has been used, namely 19%. The guidance explains that the following formula should be used to translate a gross internal area (GIA) to a net internal area (NIA): GIA m2 x (100-x)% = NIA m2 (where x would be 19% in the case of Salford as identified above). Moving from a job density expressed in terms of net internal floor area to one expressed in gross internal floor area therefore involves dividing the floor area by 0.81 (100-19% expressed as a decimal). This gives a job density of 14.8m2 per job (i.e. 12/0.81). Applying this to the occupied additional office floorspace of 234,243m2 gives an estimated 15,811 extra jobs resulting from the additional office floorspace being proposed in Salford’s Publication Core Strategy compared to the GMFM 2011 forecast. 3.41 The proportion of this additional office development in Salford that is actually additional to Greater Manchester as a whole, rather than already effectively appearing in the forecasts of other Greater Manchester districts, could theoretically be anywhere between 0% and 100%. If the office floorspace is not additional to Greater Manchester, then its household growth implications would already be expected to be incorporated within the household growth forecasts for the ten local authority areas within Greater Manchester, including Salford. Past trends would suggest that virtually all of the additional office floorspace in Salford compared to the GMFM will be within Salford’s part of the Manchester/Salford City Centre. The Publication Core Strategy proposes a total of 220,000m2 in the City Centre over the period 20112028, which equates to an average of 12,941m2 per annum compared to the past trend for that part of the city over the period January 2002 to March 2011 of 450m2 per annum. Indeed, the Publication Core Strategy is actually proposing a lower annual office floorspace figure in the rest of the city (i.e. excluding Greengate and Salford Central) compared to past trends, with 16,471m2 per annum proposed compared to a past trend of 18,652m2 per annum. Over the last decade, the City Centre office development has virtually all been within Manchester rather than Salford, and therefore the jobs associated with new City Centre office floorspace are likely to appear in the future forecasts for Manchester rather than Salford. Consequently, it would be expected that a significant proportion of the jobs resulting from the additional office floorspace in Salford do already actually appear in the GMFM forecasts, particularly in those for Manchester. 114 3.42 However, the scale of office growth proposed in Salford’s Core Strategy is intended to support a higher level of economic growth across Greater Manchester rather than simply move the same amount of economic development around. The opportunities within the City Centre are likely to prove very attractive to the market, for example with Manchester identified as the UK’s second city after London in the European Cities Monitor14. A large amount of new office floorspace is also proposed in Manchester’s part of the City Centre. This overall scale of office development would be expected to strengthen the City Centre agglomeration in a way that should assist in increasing the overall scale of job growth above forecast levels. 3.43 Therefore, it would seem likely that some but not all of the additional office development in Salford would also be additional to Greater Manchester compared to the GMFM forecasts. The likely balance between whether the offices are additional to Greater Manchester or effectively redirected from elsewhere within it will be influenced by a wide range of factors, including the state of the local and national economies, and competing developments within and around the conurbation. Given this uncertainty, for the purposes of this analysis the midpoint has been taken between all and none of the floorspace being additional to Greater Manchester, i.e. 50%, as this reduces the potential for it being a significant under- or over-estimate. This would mean that 7,906 jobs would be additional to Salford and Greater Manchester as a result of the additional office floorspace proposed in Salford’s Publication Core Strategy compared to the GMFM forecast. 3.44 According to the 2001 Census, 87.5% of those working in Salford live somewhere in Greater Manchester (including Salford). However, the figures are lower for the wards within which the Regional Centre falls, which is where 90% of the office floorspace proposed in the Publication Core Strategy would be located (79.2% for Ordsall, and 85.7% for Blackfriars, which equates to 81.8% for the two wards together (this data is from the 2001 Census and consequently uses the old wards, but they are a reasonable approximation of the Regional Centre)). The extent to which those occupying any additional office jobs live in Greater Manchester will depend on a range of factors, including family ties and the availability of appropriate housing in attractive locations within the conurbation. If such housing could be provided then it may be possible to increase the proportion of workers in Salford’s part of the Regional Centre who live in Greater Manchester. Nevertheless, it would seem likely that at least some of the additional jobs provided would be occupied by commuters from outside Greater Manchester, given the extent of the influence of the Regional Centre. On the basis that it is appropriate to seek to reduce this to some extent, it has been assumed that 90% of the additional jobs would be occupied by people living in Greater Manchester, which would equate to 7,115. 14 “European Cities Monitor 2011” – Cushman and Wakefield (2011) 115 3.45 In practice, a significant proportion of these people would normally be expected to live outside Salford. According to the 2001 Census, 65.8% of those working in the two Regional Centre Salford wards of Ordsall and Blackfriars live within Greater Manchester but outside Salford. However, none of the other Greater Manchester districts are currently planning for any of the extra household growth that would result from the additional office floorspace in Salford. Therefore, to ensure that the households would be catered for, it would be necessary to assume that all of those working in the 7,115 extra office jobs would live in Salford. This approach is likely to result in a figure that is effectively a maximum level of demand, potentially significantly above what would actually be seen. 3.46 There is a wide range of variables that could potentially influence the number of households that would be generated by the additional 7,115 office jobs. The GMFM forecasts that the average number of jobs per household in Greater Manchester in 2028 will be 1.053809. This would suggest that the 7,115 office jobs could result in 6,752 extra households above the GMFM forecasts. However, these office jobs would be expected to result in other additional employment, for example in terms of the shops and other services required to support them, and so the number of households could potentially be higher. Equally, if the extra office jobs were generating the additional migration then it would be expected that this migration would be likely to have a much higher proportion of working households than Greater Manchester overall. It is also possible, and indeed would be an ambition, that some of these extra office jobs would be occupied by existing residents within Salford and the rest of Greater Manchester, and so would not generate any migration at all. These factors are working in different directions, and therefore could potentially offset each other. Consequently, the figure of 6,752 extra households above the GMFM forecasts is considered to be a reasonable estimate of the potential impact of the additional office floorspace that is proposed in Salford’s Publication Core Strategy compared to the GMFM forecasts. Housing benefit changes 3.47 The forthcoming change to housing benefit rules in April 2012 will increase the age threshold from 25 to 35 for single person households to receive housing benefit for anything other than a room in a shared house. It would seem very likely that this will significantly increase the demand for shared accommodation, as living as a single household will become financially untenable. As of January 2011, 672 people living in Salford would be affected by this change. 3.48 It would seem likely that all of these people will need to move to shared accommodation. This would result in them effectively changing from 672 single person households to a smaller number of multi-person households. The number of multi-person households will depend on the type of accommodation available, with some potentially living in 116 two-bedroom apartments and others in houses with several bedrooms. If it were assumed that on average they will live in three-bedroom properties, then this would mean that the 672 existing single person households would become 224 multi-person households in the future. This would effectively reduce the total household growth over the period 2011-2028 by 448 households. Total household growth 3.49 Compared to the GMFM 2011 Baseline position, this methodology estimates an increase in household growth resulting from additional office development of 6,752 households, and a reduction in household growth resulting from housing benefit changes of 448 households. 3.50 Overall, it therefore estimates total household growth in Salford for the period 2011-2028 at 22,872 households (i.e. the GMFM forecast of 16,568 plus 6,752 minus 448). Alternative assumptions could be used to produce a range of different figures, both above and below this, but the approach set out is likely to provide a reasonable middle point that would provide a basis for planning for Salford’s housing needs. 3.51 Any attempt to modify the DCLG 2008-based household projections in a similar way, in order to take account of the large amount of office floorspace proposed in Salford’s Publication Core Strategy, would be far more difficult involving significantly more assumptions. This is because the DCLG projections are purely demographic, and so there is no real basis on which to estimate how much economic growth they effectively assume in Salford. Indeed, it is possible that the 500,000m2 of additional office floorspace proposed in Salford over the period 2011-2028 is fully consistent with the DCLG projections, such that no extra allowance would need to be made. In contrast, the GMFM is an integrated model that has economic and demographic outputs, which enables this type of methodology for calculating household growth to be used. Methodologies F and G – The Chelmer Model (as submitted by The Peel Group) 3.52 The Peel Group submitted detailed representations to Salford’s PrePublication Core Strategy in August 2011. These were accompanied by a report by Open House titled “Salford City-Wide Housing Need Assessment”, which included outputs from the Chelmer model. About the Chelmer model 3.53 The Cambridge Econometrics website describes the Chelmer Population and Housing Model as follows: “The Chelmer Population and Housing (Chelmer) Model is a demographic regional housing model that can be tailored to produce forecasts for specific local areas. The model was originally developed 117 over many years by the Population and Housing Research Group at Anglia Ruskin University under the leadership of Professor Dave King. Cambridge Econometrics became custodian of the model in 2008 since when the company has invested strongly in the development of this powerful tool. Features of the model Key features of the model include: • provides projections of population, housing numbers, household composition and labour supply • identifies household numbers disaggregated by type (e.g. single, married etc.) • allows for the running of 'what-if' scenarios • operates at different spatial levels; region, county, unitary authority, district • projections can be migration-led, housing-led or population-led • user-friendly software application to facilitate in-house analysis providing a range of summary/detailed results tables Broad structure of the model The model projects the change in the population between two dates by calculating births, deaths, out-migrants and in-migrants. The projection of private households is made from the private household population through assumptions for age/gender-specific headship rates. The implied increase for the number of dwellings is then derived from assumptions for rates of sharing dwellings by multiple households and for vacancy rates. Housing-led projections It is possible to reverse the direction of causation described above to consider the impact that a particular profile for future housebuilding in an area would have on the size and character of the population. In this case the population growth and migration assumptions are derived from the assumed capacity of an area to accommodate dwellings.”15 3.54 It can therefore be seen that Chelmer is a demographic model, and does not seek to provide any integrated economic modelling in the way that the Greater Manchester Forecasting Model does. This does not mean that either model is by definition more “accurate” than the other, but it is important to recognise that they are different types of model. Scenarios 3.55 The Open House report sets out four different Chelmer model scenarios: 1) Assumes “the average level of net in-migration will remain consistent with the more recent period between 2005-2010 at a rate of 1100 per annum” 15 http://www.camecon.com/Home/ConsultancyCapability/Demographic_Analysis/Chelmer_Mod el.aspx - viewed 13 January 2012 118 2) 3) 4) 3.56 Assumes “that the Adopted RSS rate (1600 dwellings net per annum) will continue to apply over the period 2010-2030” Is “based on the Council’s proposal in the Pre-Publication version to limit housing to 1100 dwellings per annum” Assumes “employment growth of 34,700 between 2007-2026, in line with the medium growth scenario adopted by the Salford Employment Land Review of November 2008”16 The second and third of these scenarios start from a particular proposed dwelling provision, and therefore are not relevant here in terms of a methodology for estimating future household growth. The other two scenarios are discussed below. Methodology F – Average level of net in-migration remain at a rate of 1,100 per annum 3.57 The Open House report states that: “This scenario adopts a migration-led approach whereby the Chelmer Model has assumed a level of net in-migration of 1,100 per annum from 2011 onwards, which is consistent with the annual average for Salford City between 2005-2010. It should be noted that the longer-term trend of 2002-2010 has been similar at a level of 1,000 per annum. The shorter five year period is probably representative of likely migration patterns over the longer twenty year period to 2030 because it includes years of economic growth (2005-2007) and less successful years (2008-2010)” (paragraph 2.73). 3.58 The report then sets out figures for dwellings, population and labour force for the period 2010-2030, and five year periods within it. An appendix is included in the report with the full outputs of this scenario, which gives information for five year periods between 2001 and 2036. It appears that the figures in the main report have been calculated on a pro rata basis from those in the appendix (i.e. they assume that the change in any five year period is evenly distributed between each of the five years). Taking a similar approach, the table below shows the outputs as they would apply to the period 2011-2028. Population Household population Natural change (household population) Net migration (household population) Households 16 2011 230,526 224,444 2028 276,265 269,824 101,533 126,040 Change 2011-28 45,739 45,380 26,681 18,700 24,507 “Salford City-Wide Housing Need Assessment” – Open House (July 2011), paragraphs 2.69-2.72 119 3.59 The net migration in the Chelmer model is effectively an input rather an output in this scenario, as its whole basis is an assumption that there will be net in-migration to Salford of 1,100 people per annum. This equates to a total net in-migration of 18,700 over the period 2011-2028. This is very significantly above the figures from the ONS 2008-based population projections (4,600) and the GMFM (996). 3.60 It should be noted that the Chelmer model migration figures only relate to household population (i.e. those people living in households rather than the ‘institutional population’ living in shared accommodation) rather than all migration. The DCLG 2008-based household projections assume an increase in Salford’s institutional population from 5,904 to 6,280 over the period 2011-2028, so the impact of this is likely to limited. 3.61 It should also be noted that the Chelmer model outputs for this scenario also assume a higher level of natural population growth (26,681 people) than the ONS 2008-based population projections (23,800 people) for the period 2011-2028. 3.62 This approach therefore represents a significantly different view of Salford’s future demographics than Government projections and the GMFM, and is effectively driven by a policy approach rather than a detailed objective modelling of future migration. Consequently, it is important to consider it as a scenario rather than a forecast or a projection. The result of this scenario is an estimated household growth in Salford of 24,507 households over the period 2011-2028. Methodology G – Economic-led target of an increase of 34,700 jobs over the period 2011-2031 3.63 The Open House Report states that: “The final scenario assumes employment growth of 34,700 between 2007-2026, in line with the medium growth scenario adopted by the Salford Employment Land Review of November 2008. The high growth or ‘Aspirational’ scenario plans for the creation of 55,800 jobs over the 20-year period, but given the economic challenges facing the Region and the Country as a whole it is considered more prudent to follow a restrained approach. It is considered that the medium-growth scenario remains in line with the RSS’ vision to establish Manchester/Salford as a world class city with high economic growth” (paragraph 2.72). 3.64 However, the title of the scenario elsewhere in the report suggests that the 34,700 additional jobs would be provided over the period 20112031 rather than 2007-2026. For the purposes of this analysis, it is assumed that the 2011-2031 time period is correct. The 34,700 figure is taken from the 2007 GMFM Accelerated Growth Scenario, which is a 120 policy-on figure rather than a baseline forecast. The Accelerated Growth Scenario is no longer produced. 3.65 As with the migration-led scenario described above, the Open House Report then sets out figures for dwellings, population and labour force for the period 2010-2030, and five year periods within it. The table below shows the outputs in the appendix to the report as they would apply to the period 2011-2028 on a pro rata basis. Population Household population Natural change (household population) Net migration (household population) Labour force Households 2011 230,526 224,444 2028 296,902 290,461 111,733 101,533 142,357 134,867 Change 2011-28 66,376 66,017 30,273 35,738 30,624 33,334 3.66 The Chelmer model is a demographic rather than an economic model, and so it cannot directly model the impact of 34,700 additional jobs over the period 2007-2026. Paragraph 2.76 of the Open House report indicates that labour force growth and job growth are being equated for the purposes of its analysis. It would therefore appear that the job growth is being modelled simply by increasing the size of the labour force. This assumes that very major job growth in Salford would not result in any additional net in-commuting, and effectively views the city as a self-contained entity rather than part of an integrated sub-regional economy. 3.67 No increase in net in-commuting would seem to be a highly unlikely outcome given that the focus of job growth will be in the Regional Centre, with a key part of the attractiveness of that location being the ability of businesses to access a very large labour market covering the whole of Greater Manchester and beyond. The GMFM estimates that net in-commuting to Salford was 9,998 workers in 2011, and forecasts that this will increase to 15,484 in 2028 (an increase of 5,486). As a comparison, Manchester’s net in-commuting level in 2011 was estimated to be 92,068 workers by the GMFM. A significant proportion of this net in-commuting is likely to be the result of the sub-regional role of the Regional Centre, and it would be anticipated that the growth of the Regional Centre within Salford would result in that part of the city having a similar sphere of influence. 3.68 The Open House report also states that the Chelmer projections assume that “the aggregate economic activity rate of people of working age increases by less than a percentage point over the 20 year period of the projections to 2031”, so virtually all of the new jobs would be occupied by in-migrants to Salford rather than existing residents. 121 3.69 This scenario forecasts an extremely high level of net in-migration (35,738 people) compared to the ONS 2008-based population projections (4,600 people) and GMFM (996). It also forecasts a much higher level of natural change (30,273 people) compared to the ONS 2008-based population projections (23,800). The result is forecast household growth in Salford of 33,334 households over the period 2011-2028. Comparison of household growth estimates 3.70 A B C D E F G The table below compares the various household growth projections, forecasts and scenarios discussed above. Methodology Regional Spatial Strategy (effectively using 2003 as the start date) Housing-led forecast (based on past residential development rates) DCLG 2008-based household projections Greater Manchester Forecasting Model 2011 Baseline Greater Manchester Forecasting Model plus extra office growth Chelmer model – 1,100 per annum net in-migration Chelmer model – 34,700 job growth over the period 2011-2031 Number of households Change 2011 2028 2011-28 N/A N/A 31,987 N/A N/A 17,028 101,401 119,712 18,311 102,144 118,712 16,568 102,144 125,016 22,872 101,533 126,040 24,507 101,533 134,867 33,334 Calculating the dwelling requirement from household growth estimates 3.71 The above analysis relates to estimates of the growth in the number of households in Salford. This does not necessarily mean that this is the number of additional dwellings that are required, although the Regional Spatial Strategy Panel Report did take the approach of directly equating household growth with dwelling requirements (the housing-led forecast also effectively forecasts dwellings rather than households). 3.72 The number of dwellings that are required to meet the needs of these additional requirements will depend on several different factors, including: • Vacancy levels in existing dwellings • Vacancy levels in new dwellings • The number of second homes Vacancies in existing dwellings 122 3.73 Existing vacant dwellings have the potential to accommodate some of the forecast household growth, thereby helping to reduce the need for new housing. 3.74 Salford’s Council Tax database was being upgraded in April 2011, so the figures from that month are not considered to accurately reflect vacancy levels. Taking an average of the March 2011 and May 2011 figures is considered to be more appropriate, and gives a figure of 5,721 vacant dwellings at the start of the 2011-2028 period. This equates to around 5.3% of all dwellings in the city. 3.75 Information published by the Government indicates that nationally in April 2008, around 3% of private sector dwellings and 2% of social rented dwellings were vacant17. The vacancy rate in Salford would therefore appear quite high. 3.76 Salford’s Private Sector Housing Strategy 2010-2015, approved in November 2010, sets a target for returning 2,377 private sector homes into sustainable occupation by 2014. Council Tax data suggests that there was a reduction in the number of vacant dwellings of 235 over the period 2010-2011, which are likely to be predominantly if not all in the private sector. This would leave a further 2,142 existing private sector dwellings to be reoccupied to meet the identified target. These 2,142 dwellings could help to meet the needs of the household growth that is forecast above, and it could therefore be considered appropriate to take them into account when determining how much new housing should be provided in Salford. Vacancies in new dwellings 3.77 Some new properties as well as existing dwellings will be vacant at any one time. The national figures referred to above suggest that a vacancy rate of 2-3% is typical across the market as a whole. If household growth is significant then it would be expected that the demand for new dwellings would be high, minimising the potential for vacancies. However, Salford has typically had a higher vacancy rate, and there is some evidence that some apartment schemes have initially had relatively high vacancy rates before gradually reducing. 3.78 It is therefore considered likely that the vacancy rate of new dwellings in Salford will be slightly higher than the national vacancy rate for all dwellings, assumed to be 4% for the purposes of this analysis. This figure relates to the vacancy rate in April 2028 for all dwellings built over the period 2011-2028, as new dwellings built earlier in this period that are initially vacant would be able to meet housing needs later in the period. 17 “Housing and Planning Key Facts: England” – Department for Communities and Local Government (November 2010), p.1 123 Second homes 3.79 According to the English Housing Survey18, there were 245,000 second homes in England in 2008 out of a total stock of 22,200,000 dwellings. This gives an average second homes proportion of just over 1.10%. This is significantly higher than the national figure of 0.64% from the 2001 Census, which had even lower figures for the North West (0.44%), Greater Manchester (0.14%) and Salford (0.09%). Within Salford, the 2001 Census indicated that the highest rates were in the wards of Blackfriars (0.29%) and Ordsall (0.21%) (i.e. within the Regional Centre). 3.80 Since the 2001 Census there has been an enormous expansion of the apartment market within the Regional Centre, and there is anecdotal evidence that some of these apartments are being used as ‘crash pads’, second homes, and holiday lets. Given the high proportion of new dwellings in Salford that will be in the form of Regional Centre apartments, it is considered appropriate to make an allowance for second homes within the new housing stock. The 2001 Census figures indicate that Salford is starting from a low base of second homes, but the English Housing Survey information suggests that second home numbers have increased quite significantly nationally since the Census. Salford’s Publication Core Strategy proposes to restrict the use of apartments for short-term hotel-like lets, and if this were carried forward then it could help to reduce the proportion of apartments that are not being used as primary residences. 3.81 Overall, it would seem likely that the proportion of new dwellings in Salford being used as second homes would be above the national average in the future, given the role of the Regional Centre and the type of accommodation being provided, but there is no evidence to indicate that this would constitute a significant proportion of that accommodation. In light of these factors, it is assumed here that 2% of new dwellings will be used as second homes. Impact on dwelling requirement 3.82 The table below identifies the scale of household growth estimated by the various methodologies discussed above, the number of households that could be accommodated by reducing vacancies in existing dwellings, and the number of additional dwellings that would be required if it is assumed that 4% of new dwellings would be vacant and 2% would be second homes. Household growth and the dwelling requirement are the same for methodologies A and B, as those methodologies effectively treat households and dwellings as the same. 18 “English Housing Survey: Household report 2008-09” and “English Housing Survey: Housing stock report 2008” – Department for Communities and Local Government (October 2010) 124 Methodology A B C D E F G Regional Spatial Strategy (effectively using 2003 as the start date) Housing-led forecast (based on past residential development rates) DCLG 2008-based household projections Greater Manchester Forecasting Model 2011 Baseline Greater Manchester Forecasting Model plus extra office growth Chelmer model – 1,100 per annum net inmigration Chelmer model – 34,700 job growth over the period 2011-2031 Household growth 2011-2028 (1) Reduction in existing vacancies (2) Vacancies in new dwellings (3) Second homes (4) Dwelling requirement (1-2+3+4) 31,987 N/A N/A N/A 31,987 17,028 N/A N/A N/A 17,028 18,311 2,142 674 344 17,186 16,568 2,142 601 307 15,334 22,872 2,142 864 441 22,034 24,507 2,142 932 475 23,772 33,334 2,142 1,300 663 33,154 3.83 Salford’s Strategic Housing Land Availability Assessment separates sites into three categories: • Category 1 – deliverable/developable sites that are consistent with existing development plan policies • Category 2 – deliverable/developable sites where additional information is required to ensure that they are consistent with existing development plan policies • Category 3 – sites that are not considered to be deliverable/developable, either because they would require a significant change in development plan policy for them to receive planning permission or due to them being physically unsuitable for housing (the degree of deviation from existing development plan policies varies between the sites) 3.84 The SHLAA identifies that the Category 1 and Category 2 sites, together with an allowance for windfalls19, indicates that there was a total capacity as of 1 April 2011 of 24,003 dwellings for the period 2011-2028. 19 The windfall allowance is based on past trends over the period 2000-2011 and only applies from 2023. The exception is Broughton Park and Higher Broughton, where the Core Strategy is proposing to allow slightly greater levels of infill development due to the high household growth in the area, and the windfalls are slightly higher than past trends (with a greater emphasis on houses rather than apartments than in the past) and apply from 2016. 125 3.85 This suggests that there would be sufficient capacity to accommodate the dwelling requirement indicated by methodologies B-F above, although in the case of the Chelmer model (1,100 per annum net inmigration) there would be relatively little spare capacity in the supply. 3.86 However, a significant change in policy would be required to accommodate the scale of residential development required if methodologies A or G were used. This would require the release of large areas of greenfield and Green Belt land, and/or the redevelopment of existing employment areas at a rate that, based on economic forecasts, would be likely to force out many active businesses and would significantly reduce local employment opportunities. Comparison with the scale of housing proposed elsewhere in Greater Manchester 3.87 The second table below compares the scale of housing proposed by each local authority in Greater Manchester in their latest Core Strategy document with their household growth forecasts from the 2008-based DCLG household projections and the GMFM 2011 Baseline. The time periods of the different Core Strategies vary, and so the period 20112028 has been used for consistency and comparability with the data presented above. The first table below identifies how the figures for each local authority have been calculated, and the second table sets out the detailed figures for each local authority area. Area Core Strategy stage Bolton Bury Adopted - March 2011 2008-2026 Draft Publication 2011-2028 November 2011 Publication - February 2009-2027 60,000 2011 Adopted - November 2010-2026 5,075 20 2011 Publication - November 2010-2026 6,400 2010 Publication - February 2011-2028 22,100 2012 Adopted - March 2011 2011-2026 7,200 No Core Strategy document published, so the Regional Spatial Strategy figure has been used Publication - September 2008-2026 11,800 2010 Publication - February 2011-2026 15,000 2011 Manchester Oldham Rochdale Salford Stockport Tameside Trafford Wigan Core Strategy period 20 Total housing over Core Strategy period 12,492 6,800 Average per annum over Core Strategy period 694 400 Figure for 2011-2028 assuming average applies 11,798 6,800 3,333 56,667 317 5,392 400 6,800 1,300 22,100 480 750 8,160 12,750 656 11,144 1,000 17,000 The policy refers to at least 289 dwellings per annum, but the reasoned justification indicates that there is a backlog to make up as well, so this higher figure is included here 126 Area Core Strategy stage Core Strategy period Greater Manchester Not applicable N/A Area 20112028 housing proposed in Core Strategy Total housing over Core Strategy period N/A Average per annum over Core Strategy period N/A Figure for 2011-2028 assuming average applies 158,611 DCLG 2008-based household projections Change Proposed Proposed 2011housing housing 2028 minus as % of household household growth growth 11,915 -117 99.02 9,149 -2,349 74.33 50,241 6,426 112.79 9,882 -4,490 54.57 7,028 -228 96.76 16,587 -8,427 49.20 13,504 -754 94.42 18,359 -7,215 60.70 15,869 1,131 107.13 GMFM 2011 Baseline household forecasts Change Proposed Proposed 2011housing housing 2028 minus as % of household household growth growth 13,367 -1,569 88.26 12,378 -5,578 54.94 39,461 17,206 143.60 9,956 -4,564 54.16 8,555 -1,755 79.49 16,485 -8,325 49.50 15,215 -2,465 83.80 13,820 -2,675 80.64 20,058 -3,058 84.75 Bolton Bury Manchester Oldham Rochdale Stockport Tameside Trafford Wigan 11,798 6,800 56,667 5,392 6,800 8,160 12,750 11,144 17,000 Greater Manchester excluding Salford 136,511 152,534 -16,023 89.50 149,295 -12,784 91.44 31,987 17,028 17,186 15,334 22,034 23,772 33,154 18,311 18,311 18,311 18,311 18,311 18,311 18,311 13,676 -1,283 -1,125 -2,977 3,723 5,461 14,843 174.69 92.99 93.86 83.74 120.33 129.82 181.06 16,568 16,568 16,568 16,568 16,568 16,568 16,568 15,419 460 618 -1,234 5,466 7,204 16,586 193.06 102.77 103.73 92.55 132.99 143.48 200.10 168,498 170,845 -2,347 98.63 165,864 2,635 101.59 153,539 170,845 -17,306 89.87 165,864 -12,324 92.57 153,697 170,845 -17,148 89.96 165,864 -12,166 92.66 151,845 170,845 -19,000 88.88 165,864 -14,018 91.55 158,545 170,845 -12,300 92.80 165,864 -7,318 95.59 160,283 170,845 -10,562 93.82 165,864 -5,580 96.64 169,665 170,845 -1,180 99.31 165,864 3,802 102.29 Salford A Salford B Salford C Salford D Salford E Salford F Salford G Greater Manchester (Salford A) Greater Manchester (Salford B) Greater Manchester (Salford C) Greater Manchester (Salford D) Greater Manchester (Salford E) Greater Manchester (Salford F) Greater Manchester (Salford F) 127 3.88 The table above indicates that the rest of Greater Manchester is not currently planning to fully meet its forecast levels of household growth, with around 89.5% of the identified demand in the DCLG 2008-based household projections being met and 91.4% of the GMFM 2010 Baseline household forecasts. Only Manchester is providing for more than its forecast level of household growth in both scenarios, with Wigan higher than its DCLG household projection but lower than its GMFM projection. Stockport has the lowest proportionate level of provision identified in its Core Strategy, at 49% of household growth in both scenarios. Oldham is the next lowest, at 54-55% of forecast household growth. Bury’s proportionate provision is also very low compared to the GMFM forecast (55%), but less so for the DCLG projection (74%). The relationship is the reverse for Trafford, where its proportionate provision is very low compared to the DCLG projection (61%), but less so for the GMFM projection (81%). 3.89 Within Salford, Methodology D discussed above would result in a level of housing provision lower than both scenarios, with methodologies B and C also below the DCLG projection but above the GMFM forecast. Methodologies E and F would provide for 120-143% of the household growth identified in the two forecasts, and methodologies A and G would provide for 173-200%. In terms of the DCLG projections, methodologies A, E, F and G would all result in Salford providing a higher level of housing proportionate to its forecast household growth than any of the other Greater Manchester local authorities. The same is the case in relation to the GMFM forecasts, except for Manchester being higher proportionately than methodologies E and F. This suggests that methodologies A, E, F and G would all be consistent with the Regional Spatial Strategy approach of seeking to concentrate a higher proportion of housing in Manchester and Salford than would be indicated by household growth forecasts. 3.90 It can be seen from the table that none of the methodologies for identifying Salford’s housing figure would result in Greater Manchester as a whole meeting all of the household growth identified in the DCLG household projections. Methodologies A and G would be very close to doing so, and would exceed the scale of household growth identified by the GMFM. None of the methodologies would provide for less than 88.88% of the projected household growth (methodology D compared to the DCLG 2008-based household projections). 3.91 However, this potential gap in provision is an issue for the whole of Greater Manchester rather than for Salford in isolation. This is particularly the case if methodologies A, E, F or G are used, as they all lead to Salford significantly exceeding its forecast level of household growth in a way that only Manchester comes close to doing, with several of the other local authority areas significantly under-providing for their forecast levels of household growth. This raises the issue of 128 whether it would be appropriate to use methodologies A or G, given that they would require the release of significant areas of greenfield and Green Belt land in Salford for housing, in order to meet a need that is generated in other parts of Greater Manchester and could potentially be satisfied within them. Viewing Salford in isolation in this context could therefore lead to a sub-optimal outcome, both in terms of housing and the spatial pattern of development more generally. 3.92 A Greater Manchester assessment is therefore required to determine whether methodologies A or G would be appropriate, or whether more sustainable sites are available in locations closer to where the DCLG and GMFM forecasts suggest the housing need will be generated. 3.93 An initial analysis of the latest Strategic Housing Land Availability Assessments of the ten Greater Manchester districts, as shown in the table below, suggests that there may be sufficient land already identified as being potentially suitable for residential development. However, this data needs to be treated with caution as, whilst the various Greater Manchester SHLAAs have all followed the DCLG methodology and are broadly comparable, there are some slight differences in certain assumptions to reflect local circumstances (e.g. some of the district figures have been adjusted to take account of large scale clearance programmes, whilst others have windfall allowances built in). Consequently, further analysis is required to determine whether there is sufficient housing land available in Greater Manchester, and, if not, how this can most appropriately be addressed across the sub-region. Area Bolton Bury Manchester Oldham Rochdale Salford Stockport Tameside Trafford Wigan Estimated capacity from the relevant Strategic Housing Land Availability Assessment 12,380 7,851 59,524 10,546 10,017 24,003 9,195 12,606 10,665 25,564 Greater Manchester total 182,351 Accuracy of population and household projections Variance in the Greater Manchester Forecasting Model forecasts 3.94 The GMFM is updated annually, using the latest data and reviewed assumptions. The table below shows how the household growth 129 forecast for the period 2011-2026 has changed between each iteration of the model, reflecting the impact that the evolving relationship between different variables can have on the number of households (2011-2026 is the longest period from 2011 for which comparable figures are available). 3.95 The forecast level of household growth has increased with each update of the model (with the 2011 Baseline forecasting growth 48% higher than in the 2007 Baseline), but this in no way increases or decreases the likelihood of any future update forecasting an even higher level of household growth. It simply indicates the difficulties in forecasting household growth and the potential for significant inaccuracies compared to what actually happens, and this will be the case for any forecasts or projections, including the DCLG 2008-based household projections. GMFM 2007 Baseline 2008 Baseline 2009 Baseline 2010 Baseline 2011 Baseline 2011 99,420 98,385 98,400 101,164 102,144 Number of households 2026 Change 2011-2026 109,036 9,615 110,813 12,428 110,336 11,936 114,762 13,598 116,335 14,191 National projections 3.96 The various household projections and forecasts do not have probabilities or potential deviation estimates attached to them. This includes the variant household projections produced by DCLG, even though they look at a series of different scenarios. Indeed, the Office for National Statistics is clear that the variant population projections on which the variant household projections are based are all plausible, and “they do not represent upper or lower limits of future demographic behaviour”21. 3.97 In 2007, the Office for National Statistics produced an analysis of the accuracy of population projections over the last 50 years22. This national analysis gives a good indication of how unforeseen changes in trends can have a major impact on the accuracy of projections. Some of the significant errors identified included the following: • The 1955-based population projections estimated that the population in 1995 would be 53 million, which was more than 5 million below the actual figure because it did not foresee the 1960s baby boom 21 “Statistical Bulletin: 2008-based National population projections” – Office for National Statistics (21 October 2009), p.7 (original emphasis) 22 “Fifty years of United Kingdom national population projections: how accurate have they been?” – Population Trends 128 (Office for National Statistics, Summer 2007), p.8-23 130 • • In contrast, the 1965-based projection for the year 2000 was 75 million, but the actual UK population that year was only 59 million, with the overestimate being due to the extrapolation of the high birth rate of the 1960s The 1977-based projection for the year 2005 was 57.5 million compared to an actual UK population that year of 60.2 million, with the underestimate largely being the result of assumed long-term net outward migration 3.98 From 1971 onwards, the projected UK population for 2005 ranged from 57.5 million in the 1977-based projections to 64.3 million in the 1971based projections, compared to an actual figure in 2005 of 60.2 million (i.e. ranging from 4.4% too low to 6.8% too high). Individual elements feeding into the 1970s and 1980s projections were actually more inaccurate than the projections themselves, but overestimates of births were offset to a significant degree by underestimates of migration and overestimates of deaths. If all of these factors had been inaccurate in the same direction (i.e. all leading to an overestimate or underestimate of population) then the population projections would have been much more inaccurate overall than they actually were. 3.99 The assumptions underpinning the population and household projections are therefore constantly evolving, and not always in the same direction. For example, in terms of birth rates, the average number of children per woman peaked in 1964 at 2.97, before dramatically reducing to 1.69 by 1977. This had increased slightly to 1.74 in the 2004-based population projections, but has further increased to 1.84 in the 2006-based and 2008-based projections23. 3.100 The assumed level of annual net migration to England is 14,500 lower in the 2008-based population projections than in the 2006-based projections, although it is higher for Scotland and Wales showing how different parts of the UK can be affected differently. One of the key migration assumptions is that the net inflow from the most recent EU accession countries (those joining in May 2004 (Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia) and January 2007 (Bulgaria and Romania)) will reduce from +21,000 in 2009/10 to zero from 2014/15 onwards24. 3.101 The Office for National Statistics acknowledges that: “Migration numbers are particularly unpredictable, with recent actual figures varying widely”25. As a result, a constant net annual migration rate is usually assumed for most of the projection period, although this is clearly a major assumption given the potential impact that economic 23 “National population projections, 2008-based” – Office for National Statistics (21 October 2009), p.9 24 “2008-based Subnational Population Projections: frequently asked questions” – Office for National Statistics (June 2010), Q18 25 “Summary Quality Report for National Population Projections” – Office for National Statistics (October 2009), p.2 131 conditions and public policy both within and outside the UK can have on migration levels (greater variance is seen in the GMFM as its assumptions around migration rates are strongly influenced by economic variables and how these may change in the future). International migration assumptions are based on the International Passenger Survey and internal migration on changes in GP registration. Other factors are considered to be less volatile. For example, changes in mortality are generally more gradual and stable. 3.102 Within London, the Greater London Authority produces its own population projections because the national projections are considered to underestimate the population of London boroughs as a result of a higher rate of in-migration and population churn in London compared to national trends26. It is possible that similar problems may apply to other major cities. Housing supply is also factored into the alternative Greater London Authority projections, whereas it is not with the ONS projections (this reduces rather than increases the projections for some boroughs, such as the City of London27). 3.103 The overall conclusion from the ONS study28 is that the accuracy of population projections, and therefore household projections, is always likely to be diminished where any of the key factors such as birth rates, death rates and migration are subject to a period of significant change. Their methodology is based on extrapolating past trends, often from the previous five years, although there is also an ‘assumption drag’ where there is caution about making significant changes to assumptions on the basis of data from just a few years. Consequently, such projections are never likely to predict events such as the baby boom of the 1960s or the sharp upward trend in migration since the early 1990s. 3.104 It is also notable that the projections are less accurate for longer timescales and smaller geographies, although the Office for National Statistics considers that “even at local authority level the projections can be considered as sufficiently accurate for a wide range of uses”.29 Nevertheless, the potential scale of any inaccuracies in Salford’s projections is much greater than for the national projections. 3.105 The above commentary mainly relates to population projections. Household projections introduce a further series of variables, and therefore the potential for additional inaccuracies that may either compound or offset those associated with the population projections. 26 See for example http://www.islington.gov.uk/DownloadableDocuments/CommunityandLiving/Pdf/GLA_ONS_es timates_March2010.pdf 27 http://www.cityoflondon.gov.uk/NR/rdonlyres/6760D4BB-393F-403E-B409205D6656939E/0/DP_PL_2010PopulationEstimatesProjectionsCoL.pdf 28 “Fifty years of United Kingdom national population projections: how accurate have they been?” – Population Trends 128 (Office for National Statistics, Summer 2007), p.8-23 29 “Subnational Population Projections Accuracy Report” – Office for National Statistics Centre for Demography (August 2008) 132 3.106 Although there are no probabilities associated with them, and they should not be seen as the end points of a range, it is useful to consider the degree of deviation resulting from DCLG’s variant household projections for England. These can be summarised as follows: • Fertility rates – have very little impact (alter the scale of household growth by around 1% in either direction depending on the scenario, equating to 0.2% in terms of the total number of households) because there is insufficient time for increased fertility to feed into household formation significantly by 2033 • Life expectancy – have a more significant impact than the fertility rate variants (change the scale of household growth by around 6% up or down depending on the scenario, equating to 1.3% in terms of the total number of households; no improvement in life expectancy would result in 22% lower household growth compared to the principal projection, equating to 5.6% fewer households overall than in that projection) • Net international migration – have the greatest impact (household growth would be 13% higher or lower than the principal projection depending on the scenario, equating to 2.8% difference in the total number of households; zero net migration would result in 36% lower household growth compared to the principal projection, equating to 7.6% fewer households overall than in that projection). At the subnational level, changes in net migration levels between districts/regions would clearly therefore have a significant impact on household growth, as well as net international migration rates. 3.107 The combined effects of the main variant projections (i.e. excluding the ‘no improvement in life expectancy’ and the ‘zero net migration’ scenarios) would be to increase or decrease the scale of household growth compared to the principal projection by 20.7% (equating to 4.4% difference in the total number of households). As noted above, the ONS is clear that these do not give upper and lower limits, but they do provide a reasonable indication of the broad range within which household growth is likely to be even if there is still the potential for significant demographic changes to result in higher or lower figures. The variance could potentially be much higher for smaller geographical areas. 3.108 The table below compares past Government household projections for Salford with the actual figures. It should be noted that those actual figures can themselves be subject to inaccuracies, for example with concerns over non-completion of Census forms and the fact that figures in non-Census years are themselves estimates based on a series of assumptions. The DCLG 2008-based figure for 2011 is a projection rather than an estimate made for that year, but is used for comparative purposes. 133 Scenario 1985-based projection GMFM 2011 Baseline DCLG 2008-based % deviation from GMFM % deviation from DCLG 1991 93,000 95,000 95,343 -2.11 -2.46 1996 92,000 95,000 94,892 -3.16 -3.05 2001 91,000 94,000 93,909 -3.19 -3.10 1989-based projection GMFM 2011 Baseline DCLG 2008-based % deviation from GMFM % deviation from DCLG 96,000 95,000 95,343 1.05 0.69 94,000 95,000 94,892 -1.05 -0.94 1992-based projection GMFM 2011 Baseline DCLG 2008-based % deviation from GMFM % deviation from DCLG 94,000 95,000 95,343 -1.05 -1.41 1996-based projection GMFM 2011 Baseline DCLG 2008-based % deviation from GMFM % deviation from DCLG N/A N/A N/A N/A N/A 2006 2011 N/A 96,763 96,619 N/A N/A N/A 102,144 101,401 N/A N/A 94,000 94,000 93,909 0.00 0.10 94,000 96,763 96,619 -2.86 -2.71 94,000 102,144 101,401 -7.97 -7.30 95,000 95,000 94,892 0.00 0.11 95,000 94,000 93,909 1.06 1.16 96,000 96,763 96,619 -0.79 -0.64 98,000 102,144 101,401 -4.06 -3.35 96,017 95,000 94,892 1.07 1.19 96,189 94,000 93,909 2.33 2.43 97,108 96,763 96,619 0.36 0.51 98,896 102,144 101,401 -3.18 -2.47 3.109 It can be seen that the inaccuracies generally increase over a longer time period. However, the errors do not form a smooth line, and there is a swing from an overestimate to an underestimate for the 1989-based, 1992-based and 1996-based projections. 3.110 The 1989-based projections are perhaps the most useful as they allow a comparison over a 22 year period (the same as the Core Strategy end date of 2030 compared to the base date of the latest DCLG projections). They show an initial decline in the number of households followed by a long period of stabilisation, whereas what actually happened was a similar but slightly less rapid decline followed by a period of increase to a higher level than the base number. As a result, the 1989-based projections are likely to have underestimated the number of households in 2011 by around 7-8%. 3.111 If it were to be assumed that the latest DCLG household growth projections are likely to have a similar level of accuracy to previous Government projections then this would suggest that the number of households in Salford in 2028 is likely to be within around 7.3% of the DCLG 2008-based household projection of 119,712 for that year. This would give a range of 110,973 to 128,451 households, equating to a household growth range of 9,572 to 27,050 over the period 2011-2028 (based on the DCLG 2008-based projection for 2011 of 101,401 households). Methodologies A and G above indicate household growth significantly above the top end of this range. 134 Projected changes in the age of households 3.112 Both the DCLG 2008-based household projections and the Greater Manchester Forecasting Model (GMFM) 2011 Baseline provide a detailed breakdown of household type on the basis of the age of the household head, and how this is forecast to change. The GMFM is slightly more detailed using five-year age groups throughout, whereas the DCLG figures are provided for a mix of five-year and ten-year age groups. The details are summarised below, with some of the GMFM age groups having been combined to enhance comparability with the DCLG data (figures may not add up due to rounding). Age of household head 24 or less 25-34 35-44 45-54 55-59 60-64 65-74 75-84 85+ City total Change 2011-2028 DCLG 2008-based GMFM 2011 Baseline household projections forecast Number % of city Number % of city total total change change -81 -0.44 -419 -2.53 2,779 15.18 -718 -4.33 8,439 46.09 6,433 38.83 96 0.52 4,291 25.90 1,398 7.63 2,342 14.14 429 2.34 629 3.80 2,192 11.97 3,253 19.63 1,273 6.95 1,189 7.18 1,787 9.76 -431 -2.60 18,311 100.00 16,568 100.00 3.113 It can be seen that there are both similarities and differences between the two sets of figures. Both the DCLG projections and the GMFM forecast indicate a slight reduction in the number of households with a household head aged 24 or less. They also both suggest that 27-29% of household growth will be due to households with heads aged 65 or over, although the GMFM forecasts that most of this growth will be in the 65-74 age group, whereas the DCLG envisages a more even distribution of growth. In particularly, the DCLG projections point towards a reasonably significant increase in the number of households with a head aged 85 or over, whereas the GMFM forecasts a small reduction. 3.114 The DCLG projections suggest that almost half of the growth will be in households where the head is aged 35-44, with reasonably significant growth in the 25-34 age group as well. The GMFM also anticipates very significant though slightly lower growth in the 35-44 age group, with quite high growth in the 45-54 age group as well, and so the bulk of the growth is slightly older in the GMFM forecast. 135 3.115 If the household growth is as concentrated in the younger working age households and retired households as suggested by the DCLG projections then this may have some implications for affordability in the future. Projected changes in the age and type of households 3.116 The DCLG 2008-based household projections provide a detailed breakdown of the type of households that are forecast in Salford over the period 2011-2028. Separate figures are provided for each of the following categories, which allows the precise household size to be identified for some but only an estimate to be made for others. This is set out in the table below. Household category One person households: Male One person households: Female One family and no others: Couple: No dependent children One family and no others: Couple: 1 dependent child One family and no others: Couple: 2 dependent children One family and no others: Couple: 3+ dependent children One family and no others: Lone parent: 1 dependent child One family and no others: Lone parent: 2 dependent children One family and no others: Lone parent: 3+ dependent children A couple and one or more other adults: No dependent children A couple and one or more other adults: 1 dependent child A couple and one or more other adults: 2 dependent children A couple and one or more other adults: 3+ dependent children A lone parent and one or more other adults: 1 dependent child A lone parent and one or more other adults: 2 dependent children A lone parent and one or more other adults: 3+ dependent children Other households (defined as a multi person household that is neither a couple household nor a lone parent household. Examples include, lone parents with only non dependent children, brothers and sisters and unrelated (and non-cohabiting) adults sharing a house or flat. This category does not include households with dependent children) Household size 1 1 2 3 4 5+ 2 3 4+ 3+ 4+ 5+ 6+ 3+ 4+ 5+ 2+ 3.117 The table below sets out the relevant data from the DCLG projections grouped into the household sizes, and also the type of household in terms of whether they have dependent children or not. 136 Number of households 2011 2028 Household type Household size Single 2 person 3+ person 4+ person 5+ person 6+ person Other City total Households with children Adult-only households Households with dependent children City total Change 2011-2028 Number % of city total change 43,542 26,210 13,626 8,027 3,793 227 5,974 101,401 57,352 30,216 13,922 8,505 4,200 138 5,379 119,712 13,810 4,006 296 478 407 -89 -595 18,311 75.41 21.88 1.62 2.61 2.22 -0.49 -3.25 100.00 76,467 90,339 13,872 75.75 24,932 101,401 29,373 119,712 4,441 18,311 24.25 100.00 3.118 Around three-quarters of the household growth is forecast to consist of adult only households. However, this still results in a relatively significant increase in the number of households with dependent children, with an additional 4,441 such households representing an increase of 18% on 2011 levels. This is roughly the same proportionate increase on 2011 levels as for adult only households. 3.119 In terms of household size, the ‘other’ household category is a complicating factor. For the purposes of this analysis, it has been assumed that the size distribution of households in the “other households” category matches that of the rest of the multi-person households (by definition this category cannot include single person households). This results in lower household growth in all non-single person households as the “other” category shows a decline rather than increase. 3.120 On this basis, the table below shows the size distribution of households in Salford forecast by the DCLG 2008-based household projections (figures may not add up due to rounding). Number of households 2011 2028 Household size 1 person 2 person 3+ person 4+ person 5+ person 6+ person 43,542 29,228 15,195 8,951 4,230 253 57,352 33,068 15,236 9,308 4,596 151 137 Change 2011-2028 Number % of city total change 13,810 75.41 3,841 20.97 41 0.23 357 1.95 367 2.00 -102 -0.56 Number of households 2011 2028 Change 2011-2028 Number % of city total change Household size Total 101,401 119,712 18,311 100.00 3.121 This suggests that household growth will be completely dominated by smaller households, with three-quarters of the growth being single person households and more than one-fifth being two person households (i.e. more than 96% of the growth is one and two person households). This is likely to have significant implications for the type of new housing that is required in Salford. The forecast growth in larger households is very limited. Future economic performance National economic prospects 3.122 In November 2011, the Office for Budget Responsibility (OBR) downgraded its growth forecasts for the country30, so that the potential output of the economy in 2016 would be 3.5% less than its March 2011 forecast. It now assumes “that potential output will take until the start of 2014 to return to its long-term average growth rate of around 2.3 per cent a year, as the financial sector and credit conditions take time to normalise” (paragraph 1.2). 3.123 Its central forecast is for growth in Gross Domestic Product (GDP) of 2.1% in 2013, 2.7% in 2014 and 3% in 2015 and 2016 (paragraph 1.3). The OBR identifies that a disorderly outcome to the current crisis in the euro area “poses a significant downside risk to the central forecast” and “the probability of a much worse outcome than the central forecast is greater than the probability of a much better one” (paragraph 1.21). Employment growth 3.124 The Greater Manchester Forecasting Model provides detailed forecasts by sector in terms of future job numbers. Details from the 2011 Baseline model for Salford and Greater Manchester are provided below, grouped together for the main economic sectors. Economic sector Agriculture Extraction* Manufacturing Electricity, gas and water* 30 Salford Number of jobs 2011 2028 384 284 1 1 8,061 5,729 230 165 % change -25.9% 0.0% -28.9% -28.4% Greater Manchester Number of jobs % change 2011 2028 4,980 3,720 -25.3% 98 49 -50.0% 116,813 80,145 -31.4% 8,171 6,109 “Economic and fiscal outlook” – Office for Budget Responsibility (November 2011) 138 -25.2% Economic sector Construction Distribution and hotels Transport and communications Financial and business services Public administration and defence* Health and education Other personal services Salford Number of jobs 2011 2028 7,921 10,305 % change 30.1% Greater Manchester Number of jobs % change 2011 2028 73,853 86,933 17.7% 24,886 27,656 11.1% 278,668 304,036 9.1% 5,750 6,835 18.9% 82,464 93,126 12.9% 37,498 52,322 39.5% 295,280 389,711 32.0% 6,369 6,100 -4.2% 62,880 55,100 -12.4% 26,623 28,756 8.0% 268,905 274,157 2.0% 5,622 7,313 30.1% 79,421 92,533 16.5% Total 123,346 145,467 17.9% 1,271,535 * Does not include self-employment Source: Greater Manchester Forecasting Model 2011 Base Forecast 1,385,621 9.0% 3.125 Salford is forecast to see particularly strong growth in the service sector, including a 40% increase in the largest sector of financial and business services. A major reduction of around 29% is forecast for the manufacturing sector, which as noted in the previous section is an important source of employment for Salford residents. 3.126 Overall, the forecast sectoral distribution of job growth is quite similar for Salford and Greater Manchester, but the overall rate of job growth in Salford is twice as high (17.9% compared to 9.0% for Greater Manchester as a whole). However, there are some differences, with the rate of growth in construction and other personal services significantly higher in Salford, and the rate of decline in public administration and defence noticeably lower. Occupation forecasts 3.127 The Greater Manchester Forecasting Model provides forecasts for employment change in different occupations, but only at the subregional level. These are summarised for Greater Manchester for the period 2011-2028 in the table below. The skill level as set by the 2000 Standard Occupational Classification is also identified. Skill level Occupation 4 Corporate Managers 3 Managers/Proprietors in Agriculture & Services 4 Science & Tech Professionals 4 Health Professionals 4 Teaching & Research Professionals Number of workers Change 2011-28 2011 2028 Number % 156,929 192,487 35,558 22.66 34,504 39,028 4,524 13.11 48,169 14,136 59,816 16,210 11,647 2,073 24.18 14.66 52,366 37,930 -14,436 -27.57 139 Skill level Occupation 4 Business & Public Service Professionals 3 Science & Tech Associate Professionals 3 Health & Social Welfare Associate Professionals 3 Protective Service Occupations 3 Culture, Media & Sports Occupations 3 Business & Public Service Associate Professionals 2 Administrative Occupations 2 Secretarial & Related Occupations 3 Skilled Agricultural Trades 3 Skilled Metal & Electrical Trades 3 Skilled Construction & Building Trades 3 Textiles, Printing & Other Skilled Trades 2 Caring Personal Service Occupations 2 Leisure & Other Personal Service Occupations 2 Sales Occupations 2 Customer Service Occupations 2 Process, Plant & Machine Operatives 2 Transport & Mobile Machine Drivers & Operatives 1 Elementary Occupations: Trades, Plant & Storage Related 1 Elementary Occupations: Clerical & Services Related Total Occupations Number of workers 2011 2028 Change 2011-28 Number % 45,735 62,125 16,390 35.84 24,317 27,289 2,973 12.23 56,103 63,189 7,085 12.63 10,065 9,173 -893 -8.87 28,099 33,938 5,839 20.78 68,900 126,187 82,176 120,899 13,276 -5,289 19.27 -4.19 33,722 5,695 34,397 5,513 675 -181 2.00 -3.19 45,319 30,676 -14,643 -32.31 41,468 51,327 9,859 23.78 21,035 19,569 -1,466 -6.97 81,033 95,056 14,023 17.31 23,230 87,900 25,539 99,498 2,308 11,597 9.94 13.19 25,762 33,717 7,955 30.88 38,784 29,055 -9,729 -25.09 53,326 58,705 5,380 10.09 40,387 34,987 -5,400 -13.37 110,151 124,727 14,576 13.23 1,273,321 1,387,023 113,702 8.93 3.128 The next table groups together these figures on the basis of the skill levels in the Standard Occupational Classification. 140 Skill level Level 1 Level 2 Level 3 Level 4 Total Number of workers (Greater Manchester) Change 2011 2028 2011-2028 150,537 159,714 9,176 469,944 496,864 26,920 335,504 361,877 26,373 317,336 368,568 51,232 1,273,321 1,387,023 % increase 2011-2028 6.10 5.73 7.86 16.14 113,702 8.93 3.129 This suggests that the highest growth, both numerically and proportionately, will be in the highest skilled jobs. Around 45% of the increase in workers in Greater Manchester will be in level 4 jobs, with only around 8% in the lowest skilled jobs of level 1. Local economic proposals 3.130 The Greater Manchester Strategy identifies the vision for the City Region that: “By 2020, the Manchester city region will have pioneered a new model for sustainable economic growth based around a more connected, talented and greener city region where the prosperity secured is enjoyed by the many and not the few.”31 3.131 This vision is predicated on the continued growth of the ‘new economy’ of knowledge-led enterprises. It describes however that this new economy must be extended to acknowledge the economic importance of areas like tourism, culture and global sports brands. 3.132 In order to support the growth envisaged the Strategy identifies that, “first and foremost, we must ensure our regional centre continues to be the largest and most important growth node in the city region, given its economic clout and diversity of sectors located there such as ICT/Digital, creative and new media, finance, retail and higher education”. Central to this growth will be the delivery of huge levels of high-quality office developments through the Regional Centre in Manchester, Salford and Trafford. 3.133 The Strategy goes on to describe that we also “need to promote our town centres across the city region’s districts as important growth nodes in their own right”. This is particularly important, “not only because they can accommodate additional people and jobs, but because they have the potential to become important meeting places, locations for cultural facilities, public institutions, major services, and transit hubs”. 31 AGMA (2009) Prosperity for all: The Greater Manchester Strategy, page 5. 141 3.134 Finally, it is recommended that “we need to ensure that we continue to support Trafford Park and other key locations which have the potential to contribute to the future growth of the city region”32. There are a number of such initiatives coming forward across Greater Manchester each of which will contribute to the wider growth of the conurbation. These include the Inter-Modal Freight Facility at Barton (Port Salford), around 90 hectares of quality industrial and warehousing development at Cutacre (Bolton and Salford) and Airport City providing over “4 million ft2 of quality business space, including: Manufacturing, logistics accommodation and grade A offices”33. 3.135 The overall economic strategy for the sub-region is therefore very ambitious, seeking to deliver high levels of economic growth, albeit in challenging conditions in the short to medium-term. Many of the key elements of this strategy are within or immediately adjacent to Salford, such as the City Centre office areas, MediaCityUK, Port Salford, Cutacre and Trafford Park. Salford is therefore likely both to be a key business investment location and to feel the associated impacts of economic growth such as in terms of the housing market. The close proximity to these various economic opportunities could potentially significantly increase demand for housing in some parts of the city, although much will depend on the relative quality of the housing and neighbourhoods available compared to other locations within the subregion. Commuting patterns 3.136 The continuing evolution of the Greater Manchester economy together with the proposals summarised above could potentially have a significant impact on the commuting patterns within Salford and to/from neighbouring local authority areas. This in turn could lead to considerable changes in the pattern of housing demand within the city. Overall patterns 3.137 As noted in section 2 of this assessment, Salford is perhaps more reliant overall on cross-boundary commuting flows than any other district in Greater Manchester, both in terms of the supply of jobs for the city’s residents and the supply of labour for jobs in the city. The city cannot therefore be viewed in isolation. 3.138 Salford will not just be affected by what happens within the city. The established commuting patterns mean that the provision of additional jobs and housing in surrounding districts will affect Salford. People will also commute through the city without stopping, particularly to get to Manchester and Trafford from Bolton, Bury and Wigan, placing pressures on the transport networks. 32 33 Ibid, page 7 http://www.manchesterairportez.co.uk/airport-city 142 3.139 Manchester has a very wide and significant sphere of influence compared to the rest of Greater Manchester. Salford’s share of the city centre has the potential to have a similar function, drawing in commuters from a much wider area and at higher levels than it currently does. 3.140 In terms of attracting commuters from Salford, Manchester has a major pull on all parts of the city, as does Trafford to a lesser extent (although it has a stronger pull than Manchester on the south-west of the city (Cadishead, Irlam, Winton and Barton)). The influence of these two districts could increase further as the City Centre office role of Manchester continues to expand and economic activity in Trafford concentrates along its northern edge (for example with the regeneration of Trafford Park, and new developments at Trafford Quays, Trafford Wharfside and Pomona Docks). 3.141 Bolton has a stronger pull on the north-west corner of the city (Little Hulton and Walkden North). This could also potentially increase with the major expansion of Bolton Town Centre proposed, and Bolton’s main employment site located on Salford’s boundary at Cutacre. 3.142 Bolton and Wigan are the main sources of inflows of commuters to both North Salford and Salford West, whereas Manchester, Trafford and Bury are more important for South Salford and Central Salford. As subregional economic investment becomes increasingly concentrated within the cluster of activity in and around the south and south-east of the city (stretching through Salford, Manchester and Trafford, and including the Manchester/Salford City Centre, Salford Quays, Trafford Park and the Trafford Centre), the sphere of influence of this area is likely to continue to expand, potentially increasing the area from which it draws large numbers of commuters. This could increase the potential to divert housing demand to Salford, particularly its eastern and southern areas, if high quality accommodation and neighbourhoods can be provided. Equally, the provision of a large number of new jobs in Salford’s part of the Regional Centre could attract more commuters from surrounding districts. 3.143 There is a net flow of commuters from Salford West to Central Salford, and to a slightly lesser extent from North Salford to South Salford. The location of the city’s main economic investment proposals are likely to increase these flows, with large amounts of office floorspace focused in the south-east of the city and other major investments such as Port Salford on the southern edge of Salford. Individual parts of the city 3.144 This section refers to the wards that existed at the time of the 2001 Census, as it utilises the evidence on commuting patterns set out in section 2 of this assessment. 143 3.145 The core area of Ordsall, Blackfriars and Weaste already provides almost 40% of the jobs in Salford. The area is very dependent on labour from outside the city, and there is net commuting from all districts in Greater Manchester. It would seem likely that this role will be further enhanced in the coming years as the city centre, Salford Quays and MediaCityUK develop. This could suggest that the whole of Greater Manchester should help to meet the housing needs of the people who work in this part of Salford, rather than Salford on its own, given this broader role. 3.146 The rest of Central Salford has an important function providing labour for this core area of Ordsall, Blackfriars and Weaste, as well as to Manchester and to a lesser extent Trafford. There are some subtleties with Kersal having links to Bury, Pendleton being a net importer of labour, and Claremont sending more commuters to Weaste than to Blackfriars and Ordsall as well as having some links to Swinton and Pendlebury. As with the city as a whole, these parts of Central Salford are likely to become increasingly reliant on Manchester, Trafford, Ordsall, Blackfriars and Weaste as a source of employment. Jobs within the northern and western parts of Central Salford are likely to continue to be occupied primarily by those within close proximity, with Pendleton continuing to draw from a slightly wider but still reasonably contained area. 3.147 Swinton and Pendlebury is very well-balanced in terms of jobs and working residents, particularly compared with all other parts of Salford West which are net out-commuters. The key flows are west to east, with the main inflows from Bolton, Wigan, Walkden and Little Hulton, and Worsley, and the main outflows to Manchester, Trafford and the core Salford employment area of Ordsall, Blackfriars and Weaste. It would seem unlikely that this situation will change significantly in the next few decades, although an increasing dominance of the conurbation core could see even higher commuting levels eastwards. 3.148 Eccles also has major outflows to Trafford and Manchester, although the former is more significant both in terms of gross and net flows. In contrast to Swinton and Pendlebury, it tends to attract commuters from all directions although it has net outflows overall. It is possible that the eastern part of the area could increasingly become part of the core Salford employment area of Ordsall, Blackfriars and Weaste, forming part of a much larger focus extending into Manchester and Trafford. This could impact on the various commuting flows to and from the area, potentially leading to more inflows from the west and north. Major business investment in the northern part of Trafford could increase the attractiveness of Eccles as a residential location. 3.149 Worsley has a different role to other parts of the city, and is as much a suburb for Greater Manchester as it is for Salford, with high levels of commuting out of the city particularly to Manchester and Trafford. It would seem likely that this strong commuter role if anything will further 144 strengthen as the increasing number of employees in the core seek high quality housing areas close to their place of work. 3.150 Walkden and Little Hulton, and Irlam and Cadishead, are relatively peripheral to the rest of the city, with only limited inflows of commuters from elsewhere in Salford. Walkden and Little Hulton has strong but balanced connections with Bolton, but overall there is the typical west to east movement with modest net inflows from Wigan and major net outflows to Manchester and Trafford as well as to Swinton and Pendlebury. Similarly, Irlam and Cadishead has balanced connections with Warrington, although they are not as significant overall as those of Bolton with Walkden and Little Hulton. There is a very modest net inflow from Wigan into Irlam and Cadishead, but major outflows to Trafford and Manchester, and within Salford to Eccles, Ordsall and Weaste. Walkden South already has many similarities to Worsley, and it is possible that the Walkden and Little Hulton area as a whole may have an increasing role serving the core employment areas to the south-east. However, the proposed Cutacre development could also increase outflows to the west. It would seem less likely that the role of Irlam and Cadishead will change significantly, although it is possible that the eastward and southward out-commuting could increase further, particularly given the large and increasing concentration of economic activity in and around the south-east and south of the city. Overview 3.151 Overall therefore, there are generally flows from west to east and from north to south. The city tends to look eastwards and southwards for employment, particularly the former, whereas inflows are more dependent on physical proximity, although these overall patterns mask significant flows in different directions. It would seem unlikely that these patterns are going to change significantly in the future, and indeed are likely to become magnified as Manchester, Trafford and the southern part of Central Salford will probably become even more important as destinations for work. Consumer preferences 3.152 The evidence and analysis in this section thus far have focused on the demographic and economic factors that are likely to influence housing demand within Salford in the future. However, it is also important to consider how consumer preferences may affect the scale and type of demand for housing in the city. 3.153 It is important to understand the decisions that underpin people’s housing choices, and how they manifest within the local market. The Manchester Independent Economic Review and the Greater Manchester Strategic Housing Market Assessment make some broad statements about the type of housing that is required to attract skilled workers in particular. However, there has been little research 145 examining the needs and preferences of purchasers, or the process by which consumers trade off factors to arrive at a final housing choice34. 3.154 There are inherent tensions in consumer preferences for housing, both at the individual level and when they are added together across all consumers. For example, it would be impossible to meet the frequently cited preference of many people to live in a semi-rural location whilst also satisfying the desire to be within close proximity of a wide range of local services and facilities. As CABE has said: “Of course, not all individual aspirations can be met. Not everyone can have a detached house with a garden in quiet surroundings, a view of a pastoral landscape, be within easy reach of a good school, a variety of specialised shops, a railway station and a motorway”35. 3.155 Housing is a complex good composed of many attributes, each of which commands a value. Consumer demand for housing reflects the complex basket of attributes associated with a particular dwelling, including space (both internal and external), nearby amenities such as green space or good schools, and other specific features and characteristics of the dwelling. The ability of households to benefit from various attributes is limited by what they can afford to pay and by what is available in the market. Consumers therefore typically have competing preferences which necessarily involve trade-offs, both due to inherent contradictions and the practicalities of affordability and availability. 3.156 In addition to being a complex good, it is important to recognise that housing represents a substantial component of individual wealth and is typically the largest investment that a householder ever makes. This is an important driver of housing purchase, and the desire for a sound investment typically plays an important role in shaping consumer preferences. An example of this is the trade-off between number of bedrooms and bedroom size. Householder surveys have identified that whilst at an individual level householders will express a preference for larger bedroom sizes even where this delivers fewer bedrooms overall, at a collective level through the operation of the housing market purchasers typically prefer a greater number of bedrooms, even where these are smaller individually36. This derives from the functioning of the UK housing market where the number of bedrooms (as opposed to floorspace) is regarded as one of the prime components of house price, and a property with more bedrooms is therefore considered to be more marketable (although there could also be an element of there being a 34 “Preferences, quality and choice in new build housing” – Leishman et al, for Joseph Rowntree Foundation (January 2004) 35 “What home buyers want: attitudes and decision making among consumers” – CABE (March 2005), p5 36 “Preferences, quality and choice in new build housing” – Leishman et al, for Joseph Rowntree Foundation (January 2004), p17 146 difference between the theoretical (attraction of larger bedrooms) and the practicalities (having children who demand separate rooms)). 3.157 Home buyers will therefore trade-off their personal preferences for a home against the investment value of the home as a property asset. It is therefore important to recognise that consumer preferences at the market level can be driven by the perceived value of housing as an investment. 3.158 There is evidence that the market for new homes is to some extent distinct from that for second-hand dwellings. Research suggests that the majority of home buyers are unwilling to consider newly built housing. For example, New Homes Marketing Board found that only 36% of potential house buyers would consider buying a new house37. This is largely due to perceptions about floorspace and room sizes in new dwellings being small, concerns regarding the quality of construction standards, and concerns resulting from higher density standards which result in small private gardens and greater levels of overlooking from neighbouring properties38. Whilst some of these issues can be addressed by higher construction standards and better quality design in the housebuilding industry, there are implications in terms of consumer preferences. This is particularly the case where the concerns relate to issues of small plot and dwelling size which result from higher residential densities, as the density of new build housing has steadily increased over the past twenty years. 3.159 This has significant implications for residential activity in Salford, and would indicate that increases in densities are likely to result in reductions in the potential size of the market for a development. It also points to the need for clear policies on issues such as the size of dwellings and private amenity space. 3.160 Research suggests that the demographic profile of residents living in newly built housing developments is not representative of the population as a whole. New housing developments typically have a greater proportion of households with children, reflecting that the majority of purchasers of new build homes buy at a particular stage in their life-cycle39. However, this could be as much a function of the type and location of new homes as it is the fact that they are new rather than second-hand. 37 Cited in “Sustainable communities: building for the future” – Office of the Deputy Prime Minister (2003), p13 38 “Improving the image of new houses” – R. Young, in “Consumer choice in housing – the beginnings of a house buyer revolt” – K. Bartlett et al for Joseph Rowntree Foundation (February 2002), p82 39 “A sense of place: what residents think of their new homes” – CABE (December 2007), p28 147 Quantifying consumer preferences 3.161 A number of research studies have sought to identify the relative prioritisation of consumer preferences relating to new housing. Savills’ Occupier Demand Study was undertaken in 2007 and was based on a survey of 500 households across the country40. It asked people what features of their existing residence they considered important. Respondents were asked to rank the importance of defined features of their existing residence. Locational characteristics were clearly identified as the most important features (in terms of neighbourhood, proximity to good schools and amenities). By contrast, characteristics associated with the dwelling itself in terms of size and layout were ranked as lower priorities (such as the size of rooms, number of rooms, overall size and storage). 3.162 A similar survey was undertaken by Ipsos MORI on behalf of CABE in 2006 which surveyed 643 households living on a range of new housing developments across the country41. However, this specifically looked at what people would most want from a housing development, rather than what they most liked about their existing home. There are clear similarities in relation to the identified priorities, with location being cited as the most important priority. Other locational attributes also scored highly, including safety and security and provision of local services and facilities. Factors associated with the dwelling itself however were also highly ranked, with type and size of home being the second most cited attribute, and private garden space and car parking being seen as reasonably important. 3.163 It is important to recognise that consumer preferences will vary according to household type. For example, the CABE survey found that location was less important to social housing tenants, who will necessarily have less control over where they chose to live. Dwelling type and size were more important considerations to families, but less important to single person households. A private garden or outside space was more important to families, and less important to private tenants. Conversely, public transport was more important to private tenants and less so to families, who perhaps may rely more on cars42. This highlights how priorities change depending on individual circumstances and spending power. Quantifying trade-offs in preferences 3.164 A 2004 research paper for the Joseph Rowntree Foundation specifically sought to identify how new build house buyers balance and trade off these preferences, in the context of what they can afford to 40 “Occupier Demand Survey” – Savills Research (Summer 2007) “A sense of place: what residents think of their new homes” – CABE (December 2007) 42 “A sense of place: what residents think of their new homes” – CABE (December 2007), p18 41 148 purchase43. The survey was based on 400 households within recently completed housing developments, and sought to quantify respondents’ prioritisation of eight key attributes in choosing their new home. The eight attributes utilised were price, location, neighbourhood, property type, public room layout, bedroom layout, front garden and back garden. The relative importance of the eight housing attributes was calculated statistically and reported according to four consumer group typologies. 3.165 For the group of predominantly younger single households and couples, property type was found to be the single most important factor, whilst location was the least important. This group was likely to be drawn to new-build housing sites as these feature the property types and public room options that appeal to them. However, the group with a slightly higher prevalence of couples and non-professional occupations was very different, with these buyers rating location as the most important attribute by a considerable margin. The group of slightly older buyers, over half of whom had children, was attracted to housing options that are in their preferred price bracket, and had a strong preference for low-density suburban housing. Although in theory location was not particularly important to them, their preferred property type would only be found in certain areas. A similar group, but with a higher prevalence of single person households and a greater predominance of professional occupations, was attracted to location, garden characteristics and property type. Buyers in this group had a strong preference for out-of town locations and for detached housing44. 3.166 This research suggests that the trade-off of different factors is extremely complicated, and can change quite significantly with only relatively subtle changes in the characteristics of households. However, lower density suburban property types were preferred by three of the four groups, highlighting the challenge in attracting people to inner city locations. Schools 3.167 Despite the large proportion of the population who do not have schoolage children, a CABE survey found that schools are considered to be the single most important local amenity when choosing a new home45. It may be that the school is regarded as an asset which will make the home more marketable in the future, or that the presence of a well performing school is an indicator in itself of a desirable neighbourhood. A study in 2003 sought to quantify the impact of school catchment 43 “Preferences, quality and choice in new build housing” – Leishman et al, for Joseph Rowntree Foundation (January 2004) 44 “Preferences, quality and choice in new build housing” – Leishman et al, for Joseph Rowntree Foundation (January 2004), p7 45 CABE, What home buyers want: attitudes and decision making among consumers (March 2005), p6. 149 areas on house prices, through utilising the Reading area in Berkshire as a case study46. The research estimates showed: • The value of a house in the best possible secondary school catchment area would be £23,750 (18 per cent) higher than that for an otherwise identical house in the worst possible secondary school catchment area • The value of a house in the best possible primary school catchment area would be £42,550 (33 per cent) higher than that for an otherwise identical house in the worst possible primary school catchment area 3.168 This corroborates an extensive body of information that identifies the importance of school performance in consumer preferences in housing, and as reflected in house prices47. Shopping facilities 3.169 The presence of shops, schools and local services are all recognised to enhance the attractiveness of a location for home buyers, particularly where they are in easy walking distance48. The CABE ‘What home buyers want’ survey identified that proximity to a wide range of shops was ranked third by respondents in a list of locational priorities. The ability to walk to a range of local facilities was seen as an opportunity for social contact and an important factor in generating a sense of community, consequently making the place feel more secure. The CABE survey found that the character of the local shopping facilities was however important. A neighbourhood centre with a variety of small shops was considered as desirable, while respondents regarded unfavourably being near to a larger centre with supermarkets, hot food take-aways and businesses, due to perceptions of traffic, litter and the potential for anti-social behaviour. 3.170 The CABE ‘What home buyers want’ survey found that respondents’ views on access to public transport were more complex, and suggested that whilst good access to a main rail station was valued in terms of enabling commuting by public transport, the availability of local bus services were viewed as less of an asset49. Notwithstanding this, respondents across all age groups stated that good public transport was either important or essential. However, CABE’s ‘A sense of place’ survey found that local public transport was cited the least as an important aspect that people want from a housing development. This survey also indicates that the provision of public transport does not necessarily translate into its use, finding that although 91% of residents 46 “Capitalised in the Housing Market or How we Pay for Free Schools: The Impact of Supply Constraints and Uncertainty” – P. Cheshire and S. Sheppard (August 2003) 47 “The good schools effect – identifying the UK’s educational super towns and leading suburban areas” – Savills Research (November 2009) 48 “What home buyers want: attitudes and decision making among consumers” – CABE (March 2005), p6 49 “What home buyers want: attitudes and decision making among consumers” – CABE (March 2005), p7 150 confirmed that buses were available locally only 35% made use of them. Car-based travel dominated, with 53% of residents surveyed reporting that they make short journeys from their home by car, rather than by public transport or walking50. Public open space 3.171 Proximity to public open space is frequently identified as a positive factor informing home purchase decisions. In CABE’s 2007 survey of residents of new housing development, 40% considered that there was not enough public open space provided within the development and 48% considered that there were not enough play areas within the development51. 3.172 A 2007 RICS research paper sought to calculate the impact of proximity to public green space on house prices, using Aberdeen as a case study52. The study found that the house price premium ranged from between 0.44% and 19.97% (depending on house type) for dwellings located adjacent to a green space, compared to houses that are over 450m from the green space. The average premium was highest for proximity to a district park (10.1%), followed by a neighbourhood park (9.0%), and was lowest for other amenity green space (2.6%). In terms of the impact of dwelling type, detached properties commanded the greatest percentage price premium for proximity to green space. A CABE Space report found broadly similar levels of premium, with the range of values for dwellings being in the vicinity of a park ranging from between 0% to 34%, and the premium for dwellings overlooking a 53 park ranging from 3% to 34% . The premiums were found to vary according to the type of park, the nature of the location and the local population, and the type of property. Dwelling type 3.173 The research conducted by MORI for CABE’s 2005 ‘What home buyers want’ study found that over half the population want to live in a detached house, compared to 22% whose preferred housing type was a bungalow, 14% a semi-detached house and 7% a terraced house. The detached house was the most popular choice across all householders, regardless of social status or ethnicity54. These findings are corroborated by a wide range of home buyer surveys which identify an overwhelming preference for detached properties, and a high level 50 “A sense of place: what residents think of their new homes” – CABE (December 2007), p7 51 “A sense of place: what residents think of their new homes” – CABE (December 2007), p7 52 “Urban parks, open space and residential property value” – N. Dunse, M. White and C. Dehring, RICS Research Paper Series, Volume 7, Number 8 (September 2007) 53 “Does money grow on trees?” – CABE Space (2005) 54 “A nation of desperate housewives? Staple of suburbia tops poll for England's favourite house type” – CABE (http://www.cabe.org.uk/press-releases/suburbia) 151 of demand for bungalows55. There is a clear mismatch here between the identified preferences and the nature of the existing housing stock, with only 22.5% of properties in England being detached (2001 Census), and only 1.3% of dwellings in Salford being bungalows and 7.1% detached (excluding bungalows) (Council Tax, December 2010). 3.174 A simplistic reading of consumer preferences would imply that all new homes being delivered should be in the form of detached dwellings, in order to address the mismatch between preferences and supply. However, the policy implications of this would lead to extensive lowdensity development across the country with an associated high land take. As set out above, this may not deliver the attractive residential neighbourhoods that home buyers prefer where local services, facilities and public transport networks are within easy reach. 3.175 In practice, many households are already demonstrating that they are prepared to compromise on this issue, and it is important to understand why people may see a detached house as the ideal. Possible reasons could include perceived investment value, status, the typically larger size and number of bedrooms, and the reduced impact from neighbours in terms of noise, privacy, poor maintenance, impact of extensions, etc. Some of these issues such as size and amenity can be addressed through the design of other types of dwelling, allowing at least some of these aspirations to be met. 3.176 Similarly, in terms of the identified consumer preference for bungalows, it is important to consider the motivations behind this expressed preference in order to identify if these can be met through alternative means. Despite high levels of demand, housing developers build very few bungalows due to the greater land take associated with them, which make them an inefficient and typically unprofitable use of land56. This preference is likely to be based around the desire for a home where all rooms can be accessed on a single level for older persons and those with mobility issues, the desire for a more low-maintenance property, and for a suburban setting with garden space. Many of these issues could be provided by high quality apartment development in a suburban setting that provides spacious accommodation with lift access to all floors, good sound insulation between floors, and the development being set within garden space. There may therefore be considerable scope for well designed apartments to function as an effective substitute for the identified consumer preference for bungalows. 55 “Preferences, quality and choice in new build housing “ – Leishman et al, for Joseph Rowntree Foundation (January 2004), p3 56 “An ageing population – meeting the housing challenge” – Home Builders Federation (April 2010) http://webcache.googleusercontent.com/search?hl=en&safe=active&tbo=1&prmdo=1 &q=cache:JlqoJA9qfQJ:http://www.hbf.co.uk/fileadmin/documents/RHG/Retirement_Housing_Summarie s/RHGPositionPaper.pdf+%22bungalows%22+hbf&ct=clnk 152 3.177 In relation to apartments, the consumer preference surveys are contradictory in relation to their popularity. The CABE ‘What home buyers want’ research found that over a third of single person households were unwilling to consider living in an apartment57. In particular, one-bedroom flats were unpopular and were typically purchased because they were the only form of housing that could be afforded, especially within central areas. The research found that a key factor undermining perceptions of apartments relates to concerns about visual and acoustic privacy. This is clearly an issue that could be overcome through improved design and construction standards. Internal space 3.178 Consumer surveys identify that a key perceived drawback of new homes relates to an overall shortage of space within the dwelling. The CABE ‘What home buyers want’ survey found that around a third of new home buyers were dissatisfied with this aspect of their new home, and 40% of home buyers purchasing second-hand homes explicitly stated that they were put off buying a new home by the lack of internal space58. 30% of residents on newly built developments considered that the size of their home offered them no flexibility to stay there if their needs changed, and 43% considered that the internal spaces and layout of their home would not allow them to make adaptations, conversions or extensions59. 3.179 Evidence also points towards a growing demand for space, regardless of household size60. The projected growth in the number of single person households does not necessarily translate into a demand for less space, with statistics indicating that the major growth in oneperson households is expected to be in the middle aged demographic, many being divorced or former co-habitees who may have children living with a former partner and may need more space to ‘share’ children between homes. Consumer preference research shows that space is high on the list of priorities of the increasing number of oneperson households61. The CABE ‘What home buyers want study’ found that criticism about lack of space was expressed by all groups of home buyers, with single person households as vociferous as families in their criticism of the lack of space in new homes62. 57 “What home buyers want: attitudes and decision making among consumers” – CABE (March 2005), p15 58 “What home buyers want: attitudes and decision making among consumers “ – CABE (March 2005), p20 59 “A sense of place: what residents think of their new homes” – CABE (December 2007), p7 60 “Room to move? Reconciling Housing Consumption Aspirations and Land-use Planning” – J. Stewart, for Home Builders Federation (2005) 61 “Consumer choice in housing: the beginnings of a house buyer revolt” – K. Bartlett et al (Joseph Rowntree Foundation, 2002) 62 CABE, What home buyers want: attitudes and decision making among consumers (March 2005), p20. 153 Outdoor space 3.180 The provision of outdoor garden space is a key factor for many home buyers, particularly in terms of its usability and size. The CABE ‘What home buyers want’ survey found that over three quarters of respondents preferred to have a private garden rather than sharing a communal space with their neighbours, and one in five residents of new housing developments were dissatisfied with the small size of their gardens63. The concept of communal gardens was not popular, and families with children were particularly hostile to this, with concerns about danger from strangers and the quality of maintenance. 3.181 Similarly, the Alliance & Leicester ‘Moving Improving’ home buyer survey found that two-thirds of people looking to buy a house considered a garden to be among the main features sought, ranking this higher than other attributes including provision of a garage or offstreet parking64. The survey found that those who valued a garden most highly were in their twenties or thirties, reflecting the usefulness of private garden space for households with younger children. 3.182 The CABE ‘What home buyers want’ survey did find that where there are alternative open space and recreational facilities in proximity to the dwelling, householders may be more prepared to accept a smaller private garden space65. It also found that there are conditions where communal space can work provided that certain requirements are fulfilled, typically relating to the management of the space and the profile of the households that share access to it. For instance, it identified that older people were prepared to use a communal garden provided that it was exclusive to people like themselves, and single apartment dwellers valued access to a communal garden. Studies of the functioning of communal amenity space have found that the greatest dissatisfaction levels result where the profile of users is mixed, particularly where there are families with young children66. This suggests that communal garden space can be effective where there is broad similarity in the type of dwellings that share access to it, but that there may be very significant challenges in accommodating children in developments with only communal outdoor space. Car parking 3.183 Consumer research demonstrates a high degree of frustration amongst the residents of new housing development in relation to under-provision 63 “What home buyers want: attitudes and decision making among consumers” – CABE (March 2005), p16 64 “Moving/Improving Index 2001” – Alliance & Leicester, cited in “Preferences, quality and choice in new build housing” – Joseph Rowntree Foundation, (January 2004) 65 “What home buyers want: attitudes and decision making among consumers” – CABE (March 2005), p16 66 “Perceptions of Privacy and Density in Housing” – Mulholland Research and Consulting (August 2003) 154 of car parking67. In CABE’s ‘A sense of place’ survey of residents within new housing developments, 47% considered that there was not enough car parking associated with individual homes (i.e. driveway and garage space) and 62% thought that there was not enough alternative car parking (e.g. capacity for on-street parking, and provision of shared car parking areas and spaces for visitors)68. Rear courtyard parking was generally disliked because it was too far away from the home and perceived to be subject to vandalism, and access routes to rear parking were considered to be unsafe. Intention to move 3.184 The Salford HNA was based on extensive survey work undertaken in late 2006/early 2007, which included questions on people’s intentions to move69. The data for these questions is available in an unweighted format, but the sample was very similar to the city average in terms of the type of dwellings occupied and so is considered to provide a reasonably robust indication of consumer intentions in Salford. 3.185 18.5% of the 2,736 households surveyed stated that they needed to move to a different home within the next five years, and 28.2% identified that they intended to move to a different home within the next five years. The table below sets out the identified dwelling type preference of those stating that they intended to move. Detached Would like to move to70 Would expect to move to71 Actual proportion of Salford housing stock72 SemiTerraced Apartments detached 45.0% 30.1% 10.9% 13.9% 20.1% 34.7% 23.8% 21.4% 8.6% 37.0% 32.5% 21.7% 3.186 In addition, of those who stated that they intended to move within the next five years, 16.9% identified that they would like to move to a bungalow, however only 9.6% stated that they expected to move to a bungalow (included in the above table, cutting across the detached, semi-detached and terraced categories), compared to a supply of 1.3% in Salford73. 3.187 The consumer preferences of households in Salford therefore appear to be similar to those found in national surveys, and indicate a mismatch between aspirations and the housing that is actually available in Salford. In particular, the preference for detached houses 67 “What home buyers want: attitudes and decision making among consumers” – CABE (March 2005), p10 68 “A sense of place: what residents think of their new homes” – CABE (December 2007), p7 69 “Salford Housing Needs Assessment” – Fordham Research (October 2007) Out of 531 responses to this question 71 Out of 487 responses to this question 72 2001 Census 73 Council Tax data, December 2010 70 155 and bungalows exceed actual provision enormously, whereas the supply of terraced housing is well above what people would like or expect. Although the Salford HNA suggests that people are prepared to compromise to some extent on their aspirations, the type of housing that they expect to be able to access is not readily available within the city. 3.188 The difference between what people would like and what they expect appears to be more limited for the size of dwelling compared to the type, as shown in the table below (for those intending to move within the next five years). This suggests that people are less prepared to compromise on this issue, and it therefore needs to be given more weight in policy-making than dwelling type. Would like to move to74 Would expect to move to75 One 8.0% 13.3% Number of bedrooms Two Three 40.1% 32.8% 46.1% 28.8% Four or more 18.9% 11.6% 3.189 Those intending to move in the next five years were asked to identify one or more reasons for moving from a set list. The results of this are shown in the table below (424 respondents gave a total of 990 reasons). Identified reasons for moving Locational Move to a safer area Move closer to transport links Move close to employment / facilities Move closer to shops and services Move to a better environment Move into a school catchment area Move close to place of worship Dwelling characteristics Current home is too small Current home is too big Personal Circumstances / Family Addition to the family Access problems Relationship breakdown Move in with partner Be near family To live independently To be less isolated To receive support or care 74 75 Out of 548 responses to this question Out of 516 responses to this question 156 Number of citations Percentage of respondents citing this as a reason 125 29 40 41 172 27 7 29.5% 6.8% 9.4% 9.7% 40.6% 6.4% 1.7% 131 56 30.8% 13.2% 39 36 7 27 74 16 30 23 9.2% 8.5% 1.6% 6.4% 17.5% 3.8% 7.1% 5.4% Identified reasons for moving Number of citations To provide support or care Unable to manage in current home Financial To move to cheaper accommodation 11 36 Percentage of respondents citing this as a reason 2.5% 8.5% 63 14.9% 3.190 It can be seen that a wide variety of reasons were given for people intending to move. However, moving to a better environment, moving to a safer area, and needing a larger home were the most often quoted reasons. As suggested by some of the surveys discussed above, the perceived quality of an area and the size of dwellings would therefore appear to be particularly important. It is also worth noting that the need for lower-cost accommodation was the fifth most quoted reason, which could indicate that many households are unable to access the locations and size of dwellings they need/want. People wishing to downsize was the sixth most popular reason, indicating that high quality smaller dwellings are required to enable people to move out of homes that are too large for them, as well as there being a need for some new dwellings to be larger in order to meet the aspirations of others. Conclusion 3.191 It is clearly important to have regard to consumer preferences when considering the type of new housing that should be provided in Salford, but it also needs to be recognised that some of those preferences are inherently contradictory and are often unrealistic given the budget available, and people are prepared to compromise on some issues in order to secure those housing characteristics that are most important to them. As CABE has observed: “Consumer preferences must be expressed within the context of the possible: few can afford to live in a detached period house in a village, even though it might be what they would prefer. Similarly, the desire for a range of local services and facilities can only be made possible with the critical mass that higher densities bring. So the preferences of home buyers necessarily represent a set of trade-offs.”76 3.192 The relative value placed on the various housing attributes will be different for every household. However, there appear to be some reasonably consistent messages from the various surveys: • Location is very important for most households, and this is linked to environmental quality, safety, proximity to good schools, and perceived desirability. Purchasing a dwelling is an enormous financial commitment, and many households will want the reassurance that their investment is safe and unlikely to decline in value. 76 “What home buyers want: attitudes and decision making among consumers” – CABE (March 2005), p22 157 • • A smaller number of households will be prepared to compromise more on location, particularly if this allows them to secure the type of housing that they aspire to. They may also be prepared to take greater risks in terms of investing in areas where there is the potential for greater capital growth but also less certainty of it (e.g. regeneration areas). The type of housing (detached, semi-detached, etc) generally appears to be less important than the size and layout, both in terms of internal and external space. However, there is a relatively significant proportion of the population that would not consider living in an apartment, particularly those with children. 3.193 This raises significant challenges for the provision of new dwellings. Houses rather than apartments would appear to offer the ability to meet a wider range of housing needs, but apartments still have an important role for many people. If the houses are carefully designed and constructed (for example in terms of good site layout and high standards of noise insulation), then it would appear that both the needs and aspirations of many households can be met through terraced and semi-detached dwellings despite the often expressed preference for detached houses. This would enable houses to be provided at a higher density, however some of the characteristics that people seek would appear to set a limit on the densities that can realistically be achieved, for example in terms of the size of dwellings, the ability to adapt and extend them, the provision of adequate private garden space, and the availability of sufficient off-street car parking. 3.194 There seems to be a clear message that new housing developments are often not meeting the needs and desires of consumers, and it will be important to secure a significant improvement in the quality of new dwellings. The research also indicates that some of Salford’s existing housing may struggle to meet the needs and aspirations of many households, particularly the large supply of terraced housing which cannot offer the necessary indoor or outdoor space required. Nevertheless, such housing still has an important role for a significant number of households who are unable to afford and do not currently require larger dwellings. Future housing market performance Household incomes 3.195 The Office for Budget Responsibility (OBR) estimates that real household disposable income fell 2.3% in 2011, which would be a postwar record, and states that: “Earnings growth is not expected to overtake inflation again until 2013 and not by a significant margin until 2014. As a result, we expect consumer spending to remain broadly flat in real terms next year before picking up as real household disposable 158 income starts growing again” (paragraph 1.23)77. Further weakening of the labour market is expected, with unemployment rising “from its current 8.3 per cent of the workforce to 8.7 per cent in the final quarter of 2012, before falling back again to 6.2 per cent by 2016” (paragraph 1.24). 3.196 Knight Frank is forecasting neutral growth in household incomes in 2012 and 2013, before returning to growth from 2014 onwards. However, it warns that a combination of these could contribute to real declines in household income if inflation falls back more slowly than anticipated78. 3.197 Consequently, in the short term, pressures on household incomes and increases in unemployment are likely to adversely affect affordability and the performance of the housing market. Mortgage availability 3.198 Household incomes will not be the only factor that influences house prices and affordability, with the availability of mortgages also being important. 3.199 The Bank of England’s latest credit conditions survey suggests that lenders are expecting to tighten credit scoring criteria for mortgage applications due to worries about the poor economic outlook, falling house prices, and the cost and availability of funds79. The short-term picture is mixed, with a small increase in overall mortgage availability anticipated, focused on those able to put down a large deposit, but a fall in the total loan applications being approved. 3.200 Savills suggests that there is little evidence of an increase in the availability of higher loan to value mortgage finance80, and Jones Lang LaSalle considers that high loan to values of around 75-80% will persist in the future due to tighter rules on bank capital reserves81. 3.201 Consequently, although base interest rates are anticipated to remain very low for the next few years, mortgage terms and availability will continue to present difficulties for many households. This will inevitably affect both the number of transactions and house prices. 3.202 Nevertheless, the OBR forecasts “that households will take on around £480 billion of additional debt over the forecast period leaving household debt at 161 per cent of disposable income in 2016. A large part of this increase reflects borrowing by households to purchase 77 Ibid “UK Housing Market Forecast” – Knight Frank (Q4, 2011 Edition) 79 “Credit Conditions Survey: Survey Results 2011 Q4” – Bank of England (January 2012) 80 “Residential property focus: Housing genetics – the fundamental change in the DNA of the housing market” – Savills (Q3, 2011) 81 “UK Residential Market Forecasts” – Jones Lang LaSalle (November 2011) 78 159 assets, as activity in the housing market picks up. Our latest forecast is for households to purchase financial assets of around £500 billion over the forecast period” (Box 3.4, p.76). House prices and transactions 3.203 The OBR forecasts that house prices will fall slightly in 2012, and property transactions will not return to normal levels until 2013 (paragraph 3.73). From mid-2014, house prices are anticipated to rise in line with the long-term average rate of earnings growth (paragraph 3.110). Table 3.6 of the OBR report (p.100) identifies house price growth of 4.3% in 2014, and 4.5% in both 2015 and 2016. Transactions are expected to pick up in the second half of its forecast period (i.e. 2013-2016) as credit restrictions are expected to ease (paragraph 4.21). 3.204 House price forecasts vary quite considerably, reflecting the difficulties in predicting market movements. Predictions for 2012 generally range from a 3% fall to a 2% increase82. Savills suggests that low growth in house prices should be expected over the next five years, with northern regions lagging behind London and the south, and the North West region not returning to house price growth until 201683. Knight Frank has a more pessimistic view of the short-term in the region, with a 4.8% reduction in house prices forecast in 2012, but envisages a more rapid return to house price growth beginning in 2014 and then averaging 4.6% from 2016 to 202184. 3.205 Overall, the general picture appears to be one of relatively stagnant house prices over the next few years, before recovering to a longer term average increase of around 4.5% per annum. The OBR predicts a more rapid recovery than some other commentators, beginning in 2014, but it could be 2016 before house price increases return to that level. In the interim, the lack of significant house price growth could adversely affect the financial viability of new residential developments, and the ability for them to contribute to the provision of affordable housing and infrastructure through section 106 agreements. However, it could support greater affordability in the wider housing market. Affordability 3.206 Knight Frank suggests that affordability ratios will fall back from current levels, but will remain elevated above historic levels due to a widening disconnect between supply and demand in the housing market85. Evidence in section 4 of this Strategic Housing Market Assessment 82 See for example http://www.thisismoney.co.uk/money/mortgageshome/article1671748/House-prices-What-expect--news-predictions.html 83 “Residential property focus. Reprogrammed: 2012-16: decoding the next five years of the housing market” – Savills (Quarter 4, 2011) 84 “UK Housing Market Forecast” – Knight Frank (Q4, 2011 Edition) 85 “UK Housing Market Forecast” – Knight Frank (Q4, 2011 Edition) 160 indicates that there has already been a reasonably significant improvement in Salford’s affordability ratio since it peaked in 2007, but it remains considerably above the level in 2003. 3.207 Affordability is likely to be a particular problem for younger households, which Salford has a high proportion of, due to the impacts of higher deposits, higher youth unemployment and debts associated with tuition fees. It may also impact on older households due to the costs associated with care in later life, which in turn could limit their ability to subsidise younger related households. The average age of the unassisted first time buyer is now 3786. 3.208 However, other household types may also suffer affordability problems, and Savills expects that those who will be priced out of owneroccupation are likely to include older age groups, and are more likely to have children and need family housing rather than small apartments87. Development activity 3.209 Jones Lang LaSalle anticipates that the low transaction levels will mean that housebuilding will not return to any significant level until 2016, with total completions for England reaching 140,000 that year88. They also consider that development finance will be subject to the same constraints as the mortgage market, further reducing the ability to bring forward new sites. Savills reports that developers are becoming increasingly cautious ahead of an anticipated dip in house prices89. 3.210 The overall picture appears to be one of developers concentrating on lower risk sites, particularly in locations where the local market remains relatively buoyant and there are equity-rich owner-occupiers, with this approach likely to continue for another 3-4 years. 3.211 The OBR again appears to be a little more optimistic, anticipating that residential investment will not gain much momentum until 2013, after which four consecutive years of relatively strong growth are expected. However, “the level of residential investment at the start of 2017 is still forecast to be more than 10 per cent below its pre-recession peak” (paragraph 3.78). The introduction of the Government’s new build indemnity scheme is expected to boost transactions. Private rented sector 3.212 The difficulties in the new build and owner-occupied sectors are already resulting in an increase in the demand for private rented accommodation, and are expected to continue to do so in the future. For example, Jones Lang LaSalle notes that renting is becoming the 86 “Development, Investment and New Homes” – Savills (September 2011) Ibid 88 “UK Residential Market Forecasts” – Jones Lang LaSalle (November 2011) 89 “Market in Minutes: UK Residential Development Land” – Savills (January 2012) 87 161 default tenure for some types of household, with 70% of new households moving into private rented accommodation in 2009/10 compared to 40-50% before the crisis90. 3.213 Savills anticipates that the demand for private rented accommodation will begin to spread across a much greater mix of neighbourhoods over the next decade91. This will partly be due to people being priced out of the owner-occupied market, but will also reflect a separate cohort of households who require labour mobility, flexibility or expect their household status to change. 3.214 This increase in demand for private rented accommodation is leading to rising rents, and there is also some evidence of increased investment interest in this market. Savills suggests that this is focusing particularly on core markets with proven tenant demand, but much higher rental yields are achievable in those parts of the market where the purchasing powers of homeowners is weakest92. Perceived levels of risk will inevitably affect this investment market as much as any other part of the housing market. However, the rising demand may provide opportunities to support new build developments to partly compensate for the reduced demand from owner-occupiers. 3.215 The English Housing Survey indicates that for the first time in at least a decade there has been a net movement out of owner occupation and into private renting93. However, Knight Frank suggests that those who predict the development of a ‘generation of renters’ are slightly overstating the position94. Nevertheless, the private rental market is likely to continue to grow in importance, filling the gap between affordable housing and owner-occupation. Capacity of the market to deliver new housing 3.216 The household forecasts and projections provide a theoretical indication of the potential scale of household growth. However, this does not necessarily mean that the development industry is capable of delivering the necessary scale of construction activity on a consistent basis (both physically and in terms of the availability of loans), or whether the newly forming households will have the financial ability to access housing. Consideration therefore needs to be given to whether seeking any theoretical housing requirement that may be impossible to deliver in practice, and if seeking to do so could result in an oversupply of land for development. 90 “UK Residential Market Forecasts” – Jones Lang LaSalle (November 2011) “Development, Investment and New Homes” – Savills (September 2011) 92 “Residential Investment research bulletin” – Savills (Autumn 2011); and “Development, Investment and New Homes” – Savills (September 2011) 93 Quoted in “Residential property focus: Housing genetics – the fundamental change in the DNA of the housing market” – Savills (Q3, 2011) 94 “UK Housing Market Forecast” – Knight Frank (Q4, 2011 Edition) 91 162 3.217 A rapid increase in housing supply will inevitably have some dampening effect on prices in both the new and second-hand markets, as increased competition amongst sellers will put buyers in a stronger negotiating position. However, it is very difficult to quantify this. 3.218 The Manchester Independent Economic Review (MIER) suggests that the release of land can increase supply, but developers may also limit their activity to maintain values and therefore profitability: “Where land and planning have permitted, new build developments have occurred, for instance in peripheral areas of the Greater Manchester city region such as Wigan, Congleton and Cheshire. Property developers have sought to safeguard their markets by restricting the quantity of new build housing to ensure demand and market values are maintained”95. 3.219 Consequently, an increase in land supply will not automatically result in an increase in the supply of dwellings, even if the demand is theoretically there. 3.220 The recession has had an enormous impact on the supply of new housing over the last few years. However, the Greater Manchester Strategic Housing Market Assessment specifically warns against increasing the land supply simply to address short-term supply problems: “A relaxation of policy, leading to potentially enhancing developer margins, in the current market climate is unlikely to affect macro-level conditions. Therefore the actual uplift in the volume of housing delivered may be limited” (p.278). 3.221 Nevertheless, there is a risk that a prolonged period of low levels of residential development activity could reduce confidence in Salford, particularly if nearby districts are more successful at maintaining development rates. Impact of new housing on local housing markets 3.222 A report published in 2007 by the Joseph Rowntree Foundation considered the potential impacts of new housing investment on the local housing market.96 It suggests that the impact that new housing investment has is likely to vary at different geographical levels, over different time periods and in different market conditions. The potential effects of new development on the housing market are summarised below. 95 “Sustainable Communities: Appendix 6 – Housing in Greater Manchester” – Manchester Independent Economic Review (March 2009), paragraph 6.6 96 The Joseph Rowntree Foundation, 2007. Housing Investment and Neighbourhood Market Changes 163 • • • • Supply and demand effects: If there is more supply in a market area in a give time period it is expected this would have a negative impact on prices. The effect is likely to be greater if the area is a relatively self contained housing market and this tends to happen more in lower demand areas, suggesting that they are more vulnerable to oversupply. Environmental quality effects: New investment may change the perceived quality of a local environment. The report explains that in general new housing is perceived to be of a higher quality than older housing and so more new building should upgrade the average quality of an area (although this is not fully consistent with the consumer research by the New Homes Marketing Board discussed above). This is more likely to be the case where existing housing is of relatively poor quality and less likely in an area of existing high quality. The effects may relate to the mix of new housing versus existing housing, so for example in a mature suburb where the new housing being developed is higher density apartments, the impact may be perceived negatively as ‘town cramming’. Social effects: This concerns the perceived impact of new development on the social profile of an area and the indirect impacts of this on factors such as crime or school quality. The tenure mix is likely to be important here, with new owner-occupier housing being likely to be perceived positively, particularly in areas dominated by social housing. The type of housing may also determine the social effects, with more apartments being generally associated with smaller and potentially more transient households. Confidence effects: New development may be taken as a signal that an area has a positive future, because people are investing and moving into it, and that signal may encourage others both local and non-local to do the same. These effects are likely to be more marked in lower demand areas. Whilst this tends to be primarily a neighbourhood effect, it may operate to some extent at a wider scale. 3.223 Whilst the issue of ‘town cramming’ is identified as a potential issue in higher quality suburbs, it is also an important consideration in relation to lower demand areas, where over-development equally has the potential to compromise environmental quality and may also result in supply outstripping demand within individual housing markets. Overview 3.224 Overall, a return to relatively good levels of economic growth is forecast, but this is likely to take longer than initially envisaged with some short-term problems relating to unemployment, household incomes and the housing market. Some increase in the number of transactions is expected from 2013 and in house prices from 2014, at the earliest with potential for this to be delayed by a couple of years, 164 with forecasts for house prices indicating relatively high annual growth compared to the likely increases in earnings. 3.225 However, the fact that the level of residential investment in 2017 is still likely to be more than 10% below the pre-recession peak suggests that there will continue to be challenges in the housing market in the medium term. Longer-term structural changes may also be seen, with the private rented sector taking an increasing important role compared to the recent past, and the pattern of affordability in terms of household type continuing to evolve. 3.226 Theoretical demand in terms of household projections will not necessarily translate into actual demand, which will be affected by a wide range of factors. Providing an excessive amount of new housing in particular locations, or significantly increasing the supply of land for residential development, could be damaging particularly if it is in the wrong locations. Future housing supply 3.227 The table below shows the supply of dwellings as of 31 March 2012 in terms of existing planning permissions and sites allocated for residential development in the Unitary Development Plan (including conversions and changes of use, as well as new build). It can be seen that 21.8% of this supply of new dwellings is in the form of houses, and 78.2% in the form of apartments. It is also notable that just under one quarter of this supply (24.9%) consists of one-bedroom apartments, which would tend to have the potential to meet a narrower range of household needs than other types of dwelling. 22.5% of the supply consists of dwellings with three bedrooms or more, so this supply is relatively skewed towards smaller dwellings. 3.228 It is also notable that 45.0% of the supply is in the ward of Ordsall, and 28.3% in Irwell Riverside. Indeed, 87.3% of the dwellings would be in Central Salford, and only 12.7% in Salford West. Within Salford West, a much higher proportion of the dwellings would have three bedrooms (68.2%) and would be in the form of houses (76.7%) than for the city as a whole. In contrast, only 15.8% of dwellings in Central Salford would have three bedrooms or more, and 13.9% would be houses. Dwellings with extant planning permission and undeveloped UDP housing allocations, as at 31 March 2012 (gross dwellings) Ward Barton Boothstown Ellenbrook Broughton Cadishead Total Total dwellings Houses Apartments 87 22 65 29 29 0 886 297 198 234 688 63 1 bed 0 0 0 0 165 Houses 2 3 bed bed 0 14 3 15 23 19 103 112 4+ bed 8 11 72 103 1 bed Apartments 2 3+ bed bed 5 54 6 0 0 0 319 2 337 61 32 0 Ward Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste & Seedley Winton Worsley Salford total % of Salford total Central Salford % of Central Salford Salford West % of Salford West Total dwellings Houses Apartments 294 227 67 60 34 26 9 5 4 3,345 660 2,685 Total 1 bed 0 0 0 0 Houses 2 3 bed bed 45 69 0 10 0 5 169 247 4+ bed 113 24 0 244 Apartments 2 3+ bed bed 0 39 28 2 20 4 2 2 0 1,022 1,413 250 1 bed 161 179 122 112 98 104 49 81 18 0 0 0 4 57 4 29 37 13 79 4 87 9 0 6 26 81 12 14 0 0 5,319 101 37 94 83 21 5,225 18 16 0 1 0 7 2 6 79 48 15 8 32 0 1,531 0 0 3,513 8 16 181 10 0 31 22 9 0 2 15 5 0 9 0 631 524 107 1 114 269 140 35 69 3 9 1 8 0 1 0 0 0 5 3 141 45 96 0 9 27 9 10 76 10 12 71 6 63 6 8 0 0 0 0 6 35 0 28 0 1 6 7 0 0 11,821 2,582 9,239 2 465 1,148 967 2,944 5,754 541 100.0 21.8 78.2 0.0 3.9 9.7 8.2 24.9 48.7 4.6 10,325 1,434 8,891 0 314 591 529 2,891 5,485 515 100.0 13.9 86.1 0.0 3.0 5.7 5.1 28.0 53.1 5.0 1,496 1,148 348 2 151 557 438 53 269 26 100.0 76.7 23.3 0.1 10.1 37.2 29.3 3.5 18.0 1.7 Source: Salford City Council residential development and land supply in Salford 3.229 The above table relates to permissions, but it is anticipated that a significant number of those permissions will not be implemented in their current form due to changes in the housing market. For example, some of the very large apartment schemes are ultimately likely to come forward for lower densities, and on some sites houses may be provided rather than apartments. There are also other sites that do not currently have planning permission that are likely to be developed for housing over the next few decades. Consequently, the Strategic Housing Land Availability Assessment (SHLAA) potentially provides a more accurate picture of the potential future supply of dwellings in Salford. 166 3.230 The SHLAA can only ever provide a broad indication of the sites that are likely to come forward for residential development, and the number and type of dwellings that are likely to be provided on them. It cannot be precise, and nor is it intended to be prescriptive. It does not mean that all of the sites identified will necessarily come forward for housing, or in the form suggested. Equally it does not preclude other sites that have not been specifically identified from being developed for housing. It is therefore a general estimate rather than a precise forecast of the availability of deliverable land for residential development and the potential number of dwellings that could be provided. 3.231 The assumptions in the SHLAA have been informed by the existing and emerging policy context, for example in terms of the mix of dwellings (see below), the density of development, and the provision of green infrastructure. The estimates of the likely number of dwellings to be provided on individual sites have also been informed by constraints such as flood risk, protected habitats, the Thirlmere Aqueduct and overhead power lines. In addition, an allowance has been made for other uses where mixed use development is likely, particularly within the Regional Centre. 3.232 The table below summarises the results of the SHLAA for what it terms Category 1 and Category 2 sites (those that are considered to be deliverable, or are likely to be deliverable) together with windfalls (see the SHLAA for further explanation). It uses the Core Strategy housing areas rather than wards, however figures are also given for Central Salford, Salford West and the city as a whole, which can be directly compared to the previous table. Core Strategy sub-area Broughton Park and Higher Broughton Charlestown and Lower Kersal Chat Moss Claremont and Weaste Crescent Eccles Eccles New Road Greengate Greengate North and Trinity Irlam and Cadishead Liverpool Street Lower Broughton Ordsall Ordsall Waterfront Pendleton Salford Central Salford Quays Swinton and Pendlebury Walkden and Little Hulton 20112016 Net additional dwellings Phasing Dwelling type 20162021Total 2011ApartHouses 2021 2028 2028 ments 124 244 2 374 0 332 160 282 0 342 0 86 269 240 -423 192 598 85 464 136 489 0 175 251 555 60 880 514 161 200 918 195 313 848 1580 2032 273 823 167 260 1242 2 14 546 885 7 716 187 59 0 624 56 714 437 895 2,515 432 338 520 1975 4 563 797 1,772 227 1,878 701 562 200 1,628 520 1,267 862 2,667 5,145 790 1625 141 1,617 4 502 142 1,220 78 120 3 472 0 378 262 40 717 321 0 566 1151 379 358 0 61 655 552 149 1,758 697 91 200 1,250 258 1,227 145 2,345 5,145 224 474 Worsley and Boothstown 182 30 88 300 208 92 Regional Centre Central Salford (excluding the Regional Centre) Salford West 1,312 5,256 5,386 11,954 623 11,330 834 1,407 3,335 1,842 2,827 1,804 6,996 5,053 3,698 3,621 3,297 1,433 Total 3,553 10,433 10,017 24,003 7,942 16,060 Source: Salford City Council, 2011-2028 SHLAA 3.233 This suggests a more even balance between houses and apartments in the potential supply from the SHLAA compared to that described above from the permissions and allocations, with 33.1% houses and 66.9% apartments. It is also from a much higher total supply of 24,003 dwellings. Within Salford West, the potential supply is dominated by houses (71.6%), whereas the situation is reversed in Central Salford where apartments predominate (77.2%). However, as 78.9% of the total supply identified is in Central Salford this means that apartments are in the majority across the city as a whole. Bringing the evidence together Future scale of housing provision 3.234 This section has identified several different ways of estimating household growth in Salford over the period 2011-2028, and therefore that can be used to identify a future dwelling requirement for the city. It has also highlighted some of the difficulties associated with forecasting household growth, the inaccuracies of past forecasts, and the potential for variance from current forecasts and projections. 3.235 Consequently, it is impossible to identify a “correct” estimate of household growth. The future is inherently unknowable, and any projection or forecast could prove to be highly inaccurate. This is borne out by the fact that the various methodologies identified in this section lead to household growth estimates for the period 2011-2028 ranging from 16,568 to 33,334 households. The seven methodologies effectively result in three rough bandings of household growth estimates, with three around 17-18,000, two around 23-24,000, and two around 32-33,000. 3.236 Given the potential inaccuracies, there would appear to be some merit in using one of the figures in the middle band of around 23-24,000 households. This would still significantly exceed the city’s baseline household growth forecast, by a similar proportion to that which is proposed in Manchester. 3.237 The discussion of past household forecasts suggests that the Government projections can lead to a deviation of up to around 7-8% in the total number of households over a 20 year period. If the DCLG 168 2008-based household projections prove to be equally as accurate, then this would suggest that household growth would be somewhere between 9,572 to 27,050 households over the period 2011-2028. The realism of the two methodologies that result in a household growth forecast of 32-33,000 could therefore be questioned, even if policies were put in place to help achieve them, as they would result in a much more significant deviation of 11-12% from the DCLG household projections. Seeking to accommodate such a high level of household growth would also lead to Salford’s housing figure being vastly higher proportionate to its baseline household growth projection than for any other district in Greater Manchester. 3.238 The supply of potential residential development sites that currently comply with planning policy, or are likely to do so once further evidence has been submitted, is sufficient to accommodate around 24,000 dwellings over the period 2011-2028. Seeking to meet household growth of around 32-33,000 households would therefore require a major change in planning policy, including the release of hundreds of hectares of greenfield and Green Belt land. This scale of greenfield and Green Belt development could have potentially significant impacts on local housing markets, not just in Salford but also surrounding districts. It would therefore seem difficult to select such an approach without it and potential alternatives being fully assessed at the Greater Manchester level (and possibly even more broadly involving other nearby local authorities such as Warrington). 3.239 At the same time, the lower household growth figures of around 1718,000 households over the period 2011-2028 could potentially risk underestimating demand, particularly given the high level of economic growth proposed in Salford and the wider economic ambitions of Greater Manchester discussed above. A restricted supply of new housing could potentially constrain economic growth, exacerbate affordability issues and increase the amount of long-distance commuting through the city. 3.240 The ability of the market to deliver new housing over the next few years is likely to be severely constrained, with negligible house price growth and problems around the availability of development finance and mortgages limiting dwelling completions. Difficulties could persist into the medium term, with suggestions that the level of residential investment in 2017 will still be more than 10% below the pre-recession peak, and locations outside London and the south are likely to find market conditions even more challenging. 3.241 It may therefore take several years before Salford is able to return to the high residential development levels achieved in the period 20062008 when net completions averaged around 1,725 dwellings per annum. Even if the city could provide this scale of housing completions consistently throughout the period 2011-2028, it would still deliver less than 30,000 dwellings, reiterating the potential lack of realism regarding 169 some of the household growth forecasts of around 32-33,000 households. A much more likely scenario, even with major policy interventions, is significantly constrained activity over the next three years with a gradual return to much higher levels of completions in the longer-term but even then it would be unlikely to exceed the average achieved during the 2006-2008 peak. In this context, the lower household growth forecasts of around 17-18,000 should be achievable, and the middle band of around 23-24,000 households also appears realistic though would be likely to involve some challenges. 3.242 As a result, the use of one of the two household forecasts in the middle band of around 23-24,000 additional households over the period 20112028 would seem most appropriate. This would balance the wide range of factors discussed above, relating to the risks and realism associated with the higher and lower forecasts. The Chelmer Model methodology based on assuming annual net in-migration to Salford of 1,100 households per annum produces the higher household growth of these two methodologies. However, it is driven by a very narrow assumption regarding a single variable, which is significantly different to the estimates in the baseline DCLG projections and GMFM forecasts, and its suitability is therefore questionable. 3.243 The other methodology in this range utilises the GMFM forecasts as a basis, and then seeks to factor in the additional household growth impacts of the scale of economic development proposed in Salford. It therefore integrates much of the evidence contained in this Strategic Housing Market Assessment, and so is considered a reasonable basis on which to forecast household growth in Salford. This approach estimates household growth of 22,872 over the period 2011-2028, and leads to a net dwelling requirement in Salford of 22,034 over that period once vacancies and second homes have been taken into account. 3.244 Although this estimate of household growth is considered to be the most appropriate on which to base housing decisions, it must be recognised that actual demand could still be significantly higher or lower. It will therefore be important to carefully monitor a wide range of housing demand indicators to determine whether it continues to be appropriate or needs to be reviewed. Future housing affordability 3.245 The provision of an appropriate scale of new housing should help to ensure that affordability is not worsened as a result of a shortage of supply. Housing affordability will be an important demand indicator that will help to inform whether the scale of new housing provision suggested above is sufficient. 170 3.246 The strong economic prospects for the city and wider conurbation are positive, and should support increased prosperity. Ensuring that everyone shares in that prosperity is a central aim of the Greater Manchester Strategy. The occupational forecasts from the GMFM suggest that employment growth will be focused in the higher skilled jobs, with relatively little increase in the number of low skilled workers. Higher skilled jobs would normally be expected to have higher salaries associated with them, helping to boost household incomes. Consequently, the economic factors affecting affordability look reasonably favourable. 3.247 In the short-term, there is unlikely to be any significant growth in either earnings or house prices, and so affordability ratios are likely to remain reasonably stable. However, the ability to access owner-occupation will be influenced heavily by the terms and availability of mortgages, which seem unlikely to see any immediate improvement. 3.248 In the medium term, house price increases are expected to reach an annual average growth rate of around 4.5%, which may well prove to be above the rate of earnings growth. There could therefore be some upward pressures on affordability, counteracting the more recent downward pressures that have been seen. However, it would seem unlikely that the considerable recent increases in private sector rents will continue in the long-term, particularly as the owner-occupied market begins to recover. 3.249 There is some evidence that certain types of household may be more affected by affordability issues than others, most notably households with young household heads of which Salford is anticipated to see a significant growth. 3.250 Overall, therefore, there are both upward and downward pressures on future affordability levels in the city, associated with anticipated changes in house prices, earnings and mortgage availability. These are most likely to combine to result in a slight worsening of affordability, but probably not to the levels seen at the peak of the market in 2007. However, the type of households where household growth in Salford is most likely to be focused are amongst those who may be most affected by affordability issues, and so it will be important maximise the supply of new affordable housing in the city. 171 4. Housing need 4.1 PPS3 defines housing need as “the quantity of housing required for households who are unable to access suitable housing without financial assistance”. The DCLG SHMA practice Guidance (Page 41, paragraph 2) further states that for the purposes of assessment: “….this means partnerships need to estimate the number of households who lack their own housing or live in unsuitable housing and who cannot afford to meet their needs in the market” 4.2 The types of housing that should be considered unsuitable as stated in DCLG guidance are summarised below: • homeless households or insecure tenure • mismatch of housing need and dwellings • dwelling amenities and condition • social needs 4.3 The primary focus of this section of the SHMA is in relation to the need for affordable housing. The SHMA Practice Guidance contains a clear process for calculating the level of affordable housing need, and this methodology has been followed in order to calculate the need for affordable housing in Salford. 4.4 This Chapter also considers the housing requirements of households in need with analysis and discussion focusing around the choices households have within the existing housing stock, the requirements for different sized properties and how the private rented sector is potentially used to accommodate those in housing need. It concludes with highlighting key policy and strategy issues arising from the analysis of the data, and then compares the need for affordable housing to the overall potential housing requirement for 2011-2028. 4.5 The core outputs from this section of the SHMA are estimates of: • current number of households in housing need • future households that will require affordable housing • households requiring market housing • the size of affordable housing required Unsuitable housing 4.6 The DCLG Practice Guidance sets out different types of unsuitable housing. Many forms of unsuitable housing have already been discussed in various other parts of this SHMA, whilst the issues of homelessness and vulnerable households are set out below. 172 Homelessness 4.7 DCLG Live table 784 sets out local authorities’ action under the homelessness provisions of the Housing Acts. It includes information in relation to the number of households accepted as being homeless and in priority need on a financial year basis, and this is shown in the table below for all districts in Greater Manchester, and the North West and England averages. Area Bolton Bury Manchester Oldham Rochdale Salford Stockport Tameside Trafford Wigan Numbers accepted as being homeless and in priority need (April to March) - number per 1,000 households 2004/ 2005/ 2006/ 2007/ 2008/ 2009/ 2010/ 2005 2006 2007 2008 2009 2010 2011 6.7 5.1 3.9 3.3 2.6 2.3 2.4 5.8 .. 4.5 4.5 1.6 1.3 1.5 7.3 7.2 .. .. 2.7 2.4 3.2 10.0 .. .. 5.3 1.2 0.8 0.7 8.7 6.8 6.7 3.3 1.1 0.9 0.8 12.9 14.8 11.1 6.4 4.8 2.5 2.5 4.6 3.1 1.9 1.3 1.1 1.0 0.9 6.5 1.8 1.5 1.3 0.4 0.5 0.8 3.9 2.9 2.6 2.1 1.2 1.5 1.5 11.4 8.8 8.0 5.6 3.7 2.5 1.7 Greater Manchester 7.8 n/a North West 6.1 4.6 England 5.7 4.5 Source: DCLG live Table 784 4.8 n/a 3.9 3.5 n/a 3.0 3.0 2.2 1.9 2.5 1.7 1.4 1.9 1.8 1.3 2.0 Number accepted (April to March) 2010/11 266 115 643 61 66 245 113 70 135 223 1,937 3,880 44,160 The table above shows that homelessness rates have decreased significantly in most areas between 2004 and 2011, and particularly in Salford. The city now has a homelessness rate just above the national average compared to a rate that was more than triple the national figure in 2005/6. Vulnerable households 4.9 Salford’s 2010 Private Sector Housing Stock Condition Survey sought to assess the number of vulnerable households living in non-decent accommodation (see Chapter 2 of this assessment for the definition of ‘vulnerable’ used in the Private Sector Housing Stock Condition Survey). 4.10 27,800 vulnerable households were identified in the Survey, which is equivalent to 32.7% of all households97. The study concludes that the “cost for remedying failures against the Decent Homes Standard in vulnerable households amounts to £17.6m an average of £2,500 per 97 The Private Sector Stock Condition Survey included all private sector and RSL households, but excluded Salix Homes and City West Housing Trust Stock 173 failing property which is higher than the average figure for all dwellings of £2,023. Assisting vulnerable households with boiler replacement, modernising kitchen amenities and reducing excess cold would have the greatest impact, as these are the components with the highest cost attached to them. Modernising kitchens and replacing boilers are also to the more expensive improvements to be made and are unlikely to be in the reach of households deemed vulnerable. This should be the main focus for the council to target vulnerable households and develop policies to assist them through its ‘Home Improvement Assistance’ scheme” (paragraphs 3.15.6 and 3.15.7). 4.11 As a result, there is no real quantification of the number of households who could be considered to live in unsuitable housing and who cannot afford to meet their housing needs in the market. Instead, the emphasis is on ensuring that the number of households, particularly vulnerable households, living in non-decent private sector accommodation is reduced significantly, through investment in the housing stock. 4.12 Some of the vulnerable households in non-decent private sector housing will appear on the Housing Register as households with priority need. Consequently, to avoid double-counting, no separate figure for vulnerable households in non-decent private sector housing is included in the housing needs assessment model. Previous assessments of affordable housing need 4.13 Various assessments of affordable housing need have already been undertaken covering Salford. Details of these are set out below. 4.14 A Housing Needs Assessment for Salford was completed by Fordham Research98 in October 2007, and was undertaken in accordance with ‘Version 1’ of the DCLG SHMA Practice guidance99. It identified an annual need for 674 affordable dwellings on the basis of the shortfall being met over a 5 year period. This need was made up of 607 social rented and 67 intermediate tenure dwellings. 4.15 The North West SHMA (July 2008) used its own housing needs model to identify affordable housing requirements utilising secondary data. This approach has some similarities to the DCLG model used by the Salford HNA. Given that it only looked at housing market areas rather than individual local authority areas, it is not possible to derive any figures specifically for Salford from the NWSHMA. However, the total net affordable housing need for Greater Manchester derived from this methodology was 14,750 dwellings per annum (Table 6.3, p.159). 98 99 “Salford City Council Housing Needs Assessment” – Fordham Research (October 2007) “Strategic Housing Market Assessments – Practice Guidance” – DCLG (March 2007) 174 4.16 The December 2008 Greater Manchester SHMA took a very similar approach to calculating housing need as Salford’s housing needs assessment, but used the more recent ‘Version 2’ of the DCLG practice guidance. It relied solely on secondary data, whereas the Salford HNA also utilised primary survey data. It identified an affordable need of 1,327 dwellings per annum in Salford if the backlog is reduced over 5 years. 4.17 An update to the affordable housing needs assessment was undertaken in December 2009, although it has not previously been formally published. This followed the methodology adopted in the December 2008 Greater Manchester SHMA, using updated secondary data, and identified a need in Salford equating to 1,118 dwellings per annum if the backlog were to be met over a five-year period. A summary of the various stages of the model is shown below. The definition of each category in the table is set out in the next section, together with an updated assessment of need. Step 1.1 1.2 1.3 1.4 2.1 2.2 2.3 2.4 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 Homeless households and those in temporary accommodation Overcrowding and concealed households Other groups Total current housing need (gross) New household formation (gross per year) Proportion of new households unable to buy or rent in the market Existing households falling into need Total newly arising housing need (gross per year)) (2.1 x 2.2) + 2.3 Affordable dwellings occupied by households in need Surplus stock Committed supply of new affordable housing Units to be taken out of management Total affordable stock available (3.1+3.2+3.3-3.4) Annual supply of social re-lets (net) Annual supply of intermediate affordable housing available for re-let or resale at sub market levels Annual supply of affordable housing (3.6+3.7) Total need: Step 1.4 – Step 3.5 Annual flow: 20% of total need Net annual housing need: (Step 2.4 + annual flow) - Step 3.8 Dwellings 0 0 8,175 8,175 765 56% 1,364 1,792 0 417 339 1456 -700 2,449 0 2,449 8,875 1,775 1,118 Updated assessment of need 4.18 This section provides a further update of the assessment of need, utilising the same model but with the latest available data and some revised assumptions. 175 4.19 The SHMA DCLG Practice Guidance is clear that that there is an assumption that secondary data should be used where appropriate and feasible, meaning that it may not be necessary to undertake large scale primary data collection exercises such as household surveys, provided there is sufficient information from other sources to estimate housing need. Having regard to this, it is considered that there is sufficient secondary data on which to calculate the need for affordable housing. 4.20 The following section sets out the different elements to the affordable housing needs calculation. The model follows the DCLG Guidance, and also takes account of some subtle differences in approach that were agreed at the Greater Manchester level in the production of the 2008 Greater Manchester SHMA by GVA Grimley. It uses the most up to date secondary data available. DCLG Needs Assessment Model Structure 4.21 The DCLG model for the assessment of the housing need covers the following 5 stages: Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Current housing need (gross backlog) Future housing need (gross annual estimate) Affordable housing supply Housing requirements of households in need Bringing the evidence together Stage 1: Current housing need (gross backlog) 4.22 In order to assess housing need, there has to be a good understanding of the scale of current housing need, including any backlog, at the local authority level. This section assesses the number of households who lack their own housing or live in unsuitable housing and who cannot afford to meet their housing needs in the market. It also provides an understanding of the scale of housing need, including any backlog, and is based on the city council’s Choice Based Letting register. 4.23 The current level of housing need is largely indicated by the number of people on the waiting list for social rented properties that includes current occupiers of affordable housing in need (i.e. existing tenants in need who are on the transfer list, households from other tenures in need, and households who are classified as homeless or without self contained accommodation). Step 1.1: Homeless households and those in temporary accommodation 4.24 The number of households presenting themselves as homeless to the authority reached a peak in 2004, with some of the highest presentation and acceptance levels in the country. However, 176 restructuring of the homelessness service, with a focus on homelessness prevention, meant that year on year the number of presentations and the number of households assessed as being statutorily homeless (where the local authority has a legal duty to secure accommodation) decreased by 508%. 4.25 However, in line with the approach agreed through the Greater Manchester SHMA it is assumed that homeless households and those in temporary accommodation are already registered on the waiting list, and therefore are not included in the calculation in this stage to avoid double counting. These households are effectively incorporated in Step 1.3 of the assessment as set out below. Step 1.2: Overcrowding and concealed households 4.26 Concealed households include couples, people with children and single adults over 25 sharing a kitchen, bathroom or WC with another household. According to the DCLG guidance the housing need assessment should record an estimate of the number of households in over-crowded housing and the number of concealed households. The guidance recommends that where possible, it is useful to create separate estimates for the social-rented sector and the private sector. 4.27 In this assessment, the figure for overcrowding and concealed households is considered as zero, to be consistent with the Greater Manchester SHMA approach, and to avoid double counting with Step 1.3 below. Step 1.3: Other groups 4.28 The ‘other groups’ category includes existing tenants in “priority need” i.e. in unsuitable housing and households from other tenures in “priority need”. 4.29 The Housing Act 1996 requires local authorities to give “reasonable preference” when allocating social housing to those who are genuinely classed as in “need”, and whose needs are not met by their current property or circumstances. Salford City Council currently operates a choice based letting system, and uses the following reasonable preference groupings to ensure that those in most housing need are given priority. Band Applicants A Applicants who need to move home as a result of regeneration (homes to be demolished / refurbished) Homeless people, people who are threatened with homelessness with a priority need Households with one or more housing needs, who are given reasonable preference, for example children B C 177 Number of households 110 33 6,552 Band M Applicants Number of households leaving care or households who require accommodation to give or receive care. Households which include someone with a medical condition i.e. health problems, mobility problems or mental illness/ depression which are made difficult / worse by their current house circumstances 1,010 TOTAL Source: Choice Based Lettings Register, as of 25 January 2012 7,705 Step 1.4: Total current housing need 4.30 Having regard to the three steps of the model set out above, the total current gross housing need is 7,705. This is shown in more detail below. Step 1.1 1.2 1.3 1.4 – Total current housing need (gross) Households Homeless households and those in temporary accommodation Overcrowding and concealed households Other groups 1.1+1.2+(1.3) Households 0 0 7,705 7,705 Stage 2: Future housing need (gross) 4.31 This stage of the needs assessment model estimates the scale of newly arising need. The estimate is based on the annual level of new household formation, the proportion of these new households who are unable to buy or rent, the number of existing households who fall into need, and newly arising housing need. Step 2.1: New household formation 4.32 This section estimates the number of new household likely to form per annum. The DCLG Guidance recommends that for this stage an estimate of gross household formation on an annual basis over a period of at least 20 years should be made. This is the number of households at the end of the year which did not exist as separate households at the beginning. The SHMA Guidance further states that there are two methods for calculating this figure from secondary data: further analysis of the Communities and Local Government household projections or analysis of information about the current population and propensity to form new households. 178 4.33 In order to be consistent with the conclusion to section 3 of this Strategic Housing Market Assessment, it is considered that between 2011 and 2028 there will be 22,872 new households (equating to 1,345 households per annum). As section 3 explains, this has been derived from the Greater Manchester Forecasting Model (GMFM) household forecasts between 2011and 2028, an additional allowance for further households as a result of the Publication Core Strategy planning for a higher level of office development than forecast in the GMFM, and the likely impact of a change In housing benefit rules. 4.34 A detailed explanation of how the total increase in households between 2011 and 2028 has been derived is set out in section 3 of this SHMA. Step 2.2: Proportion of households unable to buy or rent in the market 4.35 As part of this stage of the needs assessment, the DCLG Guidance considers it necessary to identify the minimum household income required to access entry level (lower quartile) market housing. Having regard to this, it is considered appropriate to focus on the number and proportion of households on lower quartile income who cannot afford the lower quartile house price 4.36 According to 2011 CACI PayCheck data, the average lower quartile household income in the city was £22,399 whilst the average lower quartile sales price of property in Quarter 1 of 2011 was £72,000 (ie. a house price to income ratio of 3.2). As a result, 21,494 out of a total city-wide 101,547 households cannot afford the entry level sales price (i.e. 21% of households). 4.37 The table below shows the mean, median, and lower quartile house prices, and income on the basis of CACI PayCheck and Land Registry data. It highlights that the proportion of households who cannot afford to buy is significantly higher when looking at the relationship between mean income and house prices. Average overall house prices Average income Affordability Number of ratio (i.e. households prices earning less divided by than respective income) income % of households that fall below the affordability ratio 56% 35% 33% Mean £128,482 £32,090 4.0 56,971 Median £104,950 £25,360 4.1 35,503 Mode £60,000 £12,500 4.8 33,789 Lower £22,399 3.2 21,494 quartile £72,000 Source: CACI Paycheck data 2011, Land Registry data 2011 Q1. Total number of households is 101,547. 4.38 The DCLG Guidance also refers to identifying the proportion of newly 179 21% forming households unable to rent in the market. From available data sources this is not possible, although it is considered that any newly forming households who require private rented accommodation should be able secure a property with housing benefit at the local housing allowance level. The local housing allowance has been set at the 30th percentile level, meaning that 3 out of 10 rents in a Broad Rental Market Area (BRMA) will by definition be affordable to people on housing benefit. 4.39 The table below shows the local housing allowance by bedroom size, in the two BRMAs that Salford falls within. The vast majority of the city falls within the Central Greater Manchester Area, whilst Clifton is in the Bolton and Bury BRMA. Bolton and Central Greater Bury BRMA Manchester BRMA £45.00 £60.00 Shared Accommodation rate One bedroom rate £80.77 Two bedrooms rate £98.08 Three bedrooms rate £114.23 Four bedrooms rate £150.00 Source: Local Housing Allowance, February 2012 £95.00 £114.23 £126.92 £174.62 Step 2.3: Existing households falling into need 4.40 The DCLG Guidance recommends that the calculation of the existing households falling into need should be based on households “who have entered the housing register and been housed within the year” (page 46, paragraph 5). 4.41 As stated in the Greater Manchester SHMA (page 254) this step can be calculated as follows: “Updated best practice-guidance has been received from the CLG sets out that this should be based on households ‘who have entered the housing register and been housed within the year’. Here CORE lettings data can be used to estimate existing households falling need by discounting newly forming households (i.e. those where there previous accommodation type was living with a family, staying with friends, or a children’s home / foster care). We have utilised only data from the past available year (2006/07) as local authorities indicated that this was likely to produce the most realistic image of the situation at present. We have also excluded existing social tenants (transfer requests) from the assessment at this stage to avoid double counting…” 4.42 Having regard to the above, CORE lettings data for 2010/11 can be used to calculate existing households falling into need. This data shows that between 1 April 2010 and 31 March 2011 there were a total 180 of 3,478 RSL and local authority lettings. Out of these, 1,135 were let to existing tenants of social housing (ie. transfers). Theses transfers have been calculated through the addition of ‘local authority general needs tenancy’ ‘and ‘housing association general needs tenancy’ figures recorded in Tables 17 and 40 (‘type of accommodation in which household lived immediately prior to housing’) of the 2010/11Salford CORE Lettings Annual Report. In line with the approach taken in the Greater Manchester SHMA these lets have been excluded (given that they are already existing households in need and did not therefore fall into need), meaning that there was a total of 2,343 new lettings in 2010/11. 4.43 In line with the approach taken in the Greater Manchester SHMA and the advice received from DCLG, newly-forming households should be discounted from the total 2,343 new lettings. As stated above, newlyforming households are considered to be households whose previous accommodation type was living with a family, staying with friends, or a children’s home/foster care. 4.44 Having regard to Tables 17 and 40 of the CORE Lettings Data 2010/11Annual Report, the number of lets in 2010/11 to newly forming households totalled 948, as follows: • Previously living with family = 659 • Previously living with friends = 277 • Previously in Children’s Home/Foster care = 12 4.45 Taking account of these newly forming households, the number of existing households falling into need in 2010/11 was 1,395 (ie. 2,343 new lettings minus 948 lettings to newly forming households). This figure has been included in the model, and is an annual figure. Step 2.4: Total newly arising housing need (gross per year) 4.46 The DCLG Guidance states that calculating the total newly arising housing need (on a gross per year basis) involves multiplying stage 2.1 (newly forming households) by step 2.2 (the proportion unable to afford market housing. The output should then be added to step 2.3 (existing households falling into need) to give an annual gross figure for future households in need. 4.47 The table below shows the calculation of the gross annual arising housing need. Step 2.1 2.2 2.3 2.4 Households New household formation (gross per year) Proportion of new households unable to buy or rent in the market Existing households falling into need Total newly arising housing need (gross per year) (2.1 x 2.2) + 2.3 181 Total 1,345 21% 1,395 1,677 Stage 3: Affordable housing supply Step 3.1: Affordable dwellings occupied by households in need 4.48 The DCLG Guidance indicates that the number of dwellings vacated by current occupiers that are fit for use by other households in need should be assessed. This is considered an important consideration in establishing the net levels of housing need as the movement of these households within affordable housing will have a nil effect in terms of housing need. 4.49 The approach taken in the Greater Manchester SHMA was that transfer applications have been excluded from other calculations (e.g. the waiting list figures at step 1.3). Having regard to this, the level of affordable dwellings occupied by households in need is 0. Step 3.2: Surplus stock 4.50 This step of the model assesses the ‘surplus’ vacant social rented stock that could be brought back into use. The DCLG Guidance indicates that a certain level of voids is normal, however if the rate is in excess of 3 per cent and properties are vacant for considerable periods of time, these should be counted as surplus stock. 4.51 The vacancy in social rented dwellings (local authority and RSL stock) as of December 2011, according to Council Tax records is 884 local authority dwellings and 677 RSL properties. 546 of the local authority vacancies are awaiting demolition whilst 10 of the RSL dwellings are to be demolished. 4.52 For the purposes of the needs assessment model, and given that step 3.4 makes an allowance for units to be taken out of management (i.e. demolished), it is considered appropriate to include all properties scheduled to be demolished at this step, and those vacant dwellings not awaiting demolition but which have been empty for “considerable periods of time”. For the purposes of the needs assessment calculation “considerable” is taken to be 1 year or more. 4.53 In order to determine if there is any surplus stock (ie. above a 3% vacancy rate) it is necessary to compare the number of vacant dwellings against the total available stock. This calculation is shown in the table below. 182 Total dwelling stock Vacant dwellings awaiting demolition Other % dwellings vacant vacant for over a year Local Authority 10,702 546 dwellings RSL dwellings 21,096 10 Source: Council Tax records, December 2011 4.54 79 205 % Surplus surplus stock (% vacant minus 3%) 5.84% 2.84% 304 1.02% -2.02% Having regard to the above table there is a surplus of 304 local authority, but no surplus RSL social rented dwellings. The particularly high level of vacancy in the local authority stock is due to properties which are being held for demolitions (and which are discounted at step 3.4 below). Step 3.3: Committed supply of new affordable units 4.55 This step assesses the number of new social rented and intermediate affordable dwellings that are committed at the time of the assessment. The committed supply of affordable housing includes housing on sites with full or outline planning permission, or where government funding has been allocated to a specific scheme. This estimate includes RSL developments and sites where affordable housing will be provided through Section 106 agreements (i.e. planning gain). 4.56 Government funding for 449 affordable dwellings has been agreed and committed through the National Affordable Housing Programme (AHP) for the period 2011 to 2015. Experience indicates that it is likely that changes will occur and that there may be opportunities for additional affordable homes, but at this current time the potential scale of this is unknown. 4.57 The city council also seeks to secure affordable housing through section 106 agreements as part of open market housing schemes. Although affordable dwellings have been ‘secured’ be way of section 106 agreements, the affordable dwellings will only be delivered when a start on site is made. In the current market conditions, assessing when this is likely to happen is difficult to estimate. As such it is considered appropriate to only count those affordable dwellings that have been secured on sites that are currently under construction. Having regard to this, it is considered that there are 46 committed affordable dwellings that will be delivered through section 106 agreements. 4.58 The committed supply of affordable dwellings as of January 2012 is 495 dwellings, made up of 449 dwellings which have public subsidy allocated to them and 46 dwellings on section 106 sites. 183 n/a Step 3.4: Units to be taken out of management 4.59 This step of the model provides an estimate of the number of socialrented or intermediate affordable housing units that will be taken out of management that would lead to net loss of stock, and subsequently result in households needing to be re-housed. The DCLG Guidance is clear that empty properties that are due for demolition should have been counted as surplus housing in step 3.2, but they must then be taken out of the overall calculation of stock at this step of the model as they will not be available to meet need. Having regard to this, as of December 2011 there were a total of 556 social rented dwellings scheduled for demolition (546 local authority dwellings and 10 RSL). Step 3.5: Total affordable housing stock available 4.60 The total affordable dwelling stock is calculated by calculating the sum of steps 3.1 (dwellings currently occupied by households in need), 3.2 (surplus stock) and 3.3 (committed additional housing stock), minus 3.4 (units to be taken out of management). The following table shows this calculation, with it identifying that there are potentially 243 affordable dwellings that could help meet housing needs. Step Dwellings 3.1 Affordable dwellings occupied by households in need 0 3.2 Surplus stock 304 3.3 Committed supply of new affordable housing 495 3.4 Units to be taken out of management 556 3.5 Total affordable housing stock available 3.1 + 3.2 + 3.3 – 3.4 243 Step 3.6: Annual supply of social re-lets 4.61 This section estimates the number of units that become available for re-let to a new household, with the DCLG Guidance clear that the average number of re-lets over the previous three years should generally be taken as the predicted annual level. This should not include transfers of tenancies to other household members, with only properties that come up for re-let being counted. Having regard to this, the average number of social relets is shown in the table below. Average (2008-11) 983 Relets to new households 2008/09 2009/10 2010/11 A Local authority lettings 766 509 1,540 B RSL Lettings 1,027 1,440 1,834 1,434 Total = (A+B) 2,567 2,206 2,343 2,372 Source: Housing Strategy Statistical Appendix Returns, 2008 to 2010 and CORE data annual reports 2008 to 2011 184 4.62 The total 2,343 new lettings for local authority and RSL stock in 2010/11 has been derived from CORE data, as explained in Step 2.3 above. For 2008/09 and 2009/10 the new RSL lettings have been taken from the relevant CORE lettings annual reports100. No local authority lettings information is available from the CORE data for 2008/09 and 2009/10 and so therefore the new local authority lettings for these periods has been derived from Housing Strategy Statistical Appendix returns (Section D). 4.63 As the above table shows, the average number of new lets is calculated by adding the Local Authority and RSL lettings. The three year average is for 2,372 annual relets. Step 3.7: Future annual supply of intermediate affordable housing 4.64 DCLG guidance recommends that the number of intermediate units that come up for re-let or re-sale should be taken into account in this stage. Those are properties that fall within the definition of intermediate housing as set out in PPS3. Properties that are no longer affordable e.g. social rented homes bought under the Right to Buy, and shared equity homes where the purchaser has entirely bought out the landlord’s share should not be included at this stage. 4.65 The level of intermediate affordable housing in the city is minimal, and so therefore the numbers that are re-let or re-sold is likely to negligible. For consistency with the approach taken in the Greater Manchester SHMA, and due to the complications in achieving a meaningful figure, the estimate for this step is counted as zero. Step 3.8: Future annual supply of affordable housing units 4.66 Step 3.1 3.2 3.3 3.4 3.5 3.6 3.7 The DCLG Guidance states that this is the sum of steps 3.6 (social rented units) and 3.7 (intermediate affordable units). The table below shows this calculation and also summarises the various steps in Stage 3 of the needs assessment model. Affordable dwellings occupied by households in need Surplus stock Committed supply of new affordable housing Units to be taken out of management Total affordable stock available (3.1+3.2+3.3-3.4) Annual supply of social re-lets (net) Annual supply of intermediate affordable housing available for re-let or resale at sub market levels 100 Dwellings 0 304 495 556 243 2,372 0 For 2008/09 the RSL lettings figure has been calculated by subtracting the ‘local authority general needs tenancy’ and ‘housing association general need tenancy’ figures from the total HA lettings identified in Tables 16 and 42, whilst for 2009/10 the same calculation has been made having regard to the data in Tables 17 and 40. 185 Step 3.8 Dwellings 2,372 Annual supply of affordable housing (3.6+3.7) Estimate of net additional affordable housing requirement 4.67 This stage converts the information about housing need and housing supply into annual flows (i.e. the number of households per year) over a prescribed period, it can be used to establish an aggregate estimate of net housing need. These calculations are undertaken on the assumption that there is a one-to-one relationship between households and dwellings. Total net need Annual flow Net annual housing need Step 1.4 – Step 3.5 20% of total net need (assumes 5 years to meet backlog) (Step 2.4 + Annual flow) – Step 3.8 Dwellings 7,705 – 243 = 7,462 1,492 (1,677 + 1,492) – 2,150 = 1,019 4.68 As the table above shows it is estimated that there is a net additional need for 1,019 affordable dwellings per annum based on addressing the current backlog of need over a five year period. 4.69 The full needs assessment calculation drawing together all stages of is summarised in the table below. Step 1.1 1.2 1.3 1.4 2.1 2.2 2.3 2.4 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 Homeless households and those in temporary accommodation Overcrowding and concealed households Other groups Total current housing need (gross) New household formation (gross per year) Proportion of new households unable to buy or rent in the market Existing households falling into need Total newly arising housing need (gross) (2.1 x 2.2) + 2.3 Affordable dwellings occupied by households in need Surplus stock Committed supply of new affordable housing Units to be taken out of management Total affordable stock available (3.1+3.2+3.3-3.4) Annual supply of social re-lets (net) Annual supply of intermediate affordable housing available for re-let or resale at sub market levels Annual supply of affordable housing (3.6+3.7) 186 Dwellings 0 0 7,705 7,705 1,345 21% 1395 1,677 0 304 495 556 243 2,372 0 2,150 Total need: Step 1.4 – Step 3.5 Annual flow: 20% of total need Net annual housing need: (Step 2.4 + annual flow) - Step 3.8 7,462 1,492 1,019 Stage 4: The housing requirements of households in need 4.70 The DCLG SHMA Practice Guidance states that information about the housing requirements of those in need is an important component of the evidence base, particularly in developing policy responses. The research questions for the stage of the SHMA are as follows: • • • What choices do households have within the existing affordable housing stock? What are the requirements for different sized properties? How is the private rented sector used to accommodate housing need? Step 4.1: choices within the existing housing stock 4.71 The DCLG SHMA Guidance (page 50) refers to choice based lettings systems, turnover data, and the housing register being important in revealing the criteria which affect household choices, and the relative pressure on different property sizes and types. The information below focuses on the existing supply of affordable dwellings and examines the different data referred to above. Existing stock 4.72 Salford has a significant supply of affordable housing. As of 31 March 2011, 29.5% of the housing stock was owned by the local authority or housing associations, equating to 31,692 dwellings. Housing Stock by tenure as at 31 March 2011 Number of dwellings % Private Sector 75,735 70.5% Housing Associations 21,170 19.7% Local Authority 10,522 9.8% Total 107,427 100.0% Source: Housing Flow Returns 2010/11 Turnover of local authority stock 4.73 The following table provides details of turnover in the housing owned by the city council (ie. the number of relets). 187 Local authority lettings 2005/06 to 2010/2011 and turnover of stock Lettings between 1 April and 31 March: 2005/ 2006/ 2007/ 2008/ 2009/ 2010/ Year 2006 2007 2008 2009 2010 2011 Tenants transferring from other social housing 498 501 505 309 195 238 Dwellings let to new tenants of social housing 2,186 2,214 1,904 1,540 766 646 Mutual exchanges 137 116 139 13 3 1 Mobility arrangements 0 0 113 0 0 0 Total LA lettings 2,821 2,831 2,661 1,862 964 885 Total LA stock Turnover (lettings as a proportion of available stock) Source: HSSA 25,992 25,542 25,375 10,540 10,519 10.9% 11.1% 10.5% 17.7% 10,571 9.2% 8.4% 4.74 In October 2008, most of the local authority housing stock in Salford West was transferred into the ownership of City West Housing Trust. The dwellings that remained in the city council’s ownership were then managed by Salix Homes. The transfer of stock to City West explains the significant reduction in the number of dwellings and lettings after the 2007/08 period101. 4.75 It appears that, notwithstanding the transfer of stock to City West, there has been a modest reduction in the proportionate turnover of local authority dwellings over the last few years. The reduction in the number of mutual exchanges is particularly noticeable. Salix Homes stock turnover 4.76 The next table provides details of the turnover rate in local authority housing in the first part of 2011/12. The current turnover data uses the number of terminations up to that reporting week, while the forecast just divides the number of terminations by the reporting week and then multiplies it by 52 to produce a projected annual figure for the current financial year. Terminations can see quite significant seasonal variations, so this only gives a broad indication of the likely annual turnover rate. 4.77 This data suggests that the turnover is greatest in smaller dwellings, with the highest rates seen in bedsits and one bedroom flats. The 101 The particularly high turnover in 2008/09 is an anomaly as the total LA stock is as at 31 March 2009 whilst the number of lettings for the period 2008/09 includes some dwellings that were let as LA dwellings prior to the transfer of stock to City West in October 2008) 188 turnover rates in houses are very low compared to the other dwelling types. Salix Homes stock turnover (1 April 2011 to 14 October 2011) Actual Property Number of Number of Number of current type bedrooms terminations properties turnover Bedsit 1 3 21 14.3% Bungalow 1 5 91 5.5% 2 2 30 6.7% 3 0 11 0.0% 4 0 0 5 0 1 0.0% Flat 1 197 2,285 8.6% 2 136 2,549 5.3% 3 6 135 4.4% 4 0 3 0.0% House 1 0 3 0.0% 2 71 1,973 3.6% 3 62 2,500 2.5% 578 1.7% 4+ 10 Maisonette 1 0 0 2 3 53 5.7% 3 1 50 2.0% 4 0 3 0.0% Total: 496 10,286 4.8% Source: Salix Homes Forecast annual turnover 26.5% 10.2% 12.4% 0.0% 0.0% 16.0% 9.9% 8.3% 0.0% 0.0% 6.7% 4.6% 3.2% 10.5% 3.7% 0.0% 9.0% Social housing sales 4.78 One of the factors affecting the availability of affordable housing is the number of ‘right to buy’ sales. The table below provides details over recent years for each Greater Manchester district. Salford has seen a relatively high number of social housing sales over this period, although this partly reflects the significant number of social rented dwellings in the city. As with other data, it is affected considerably by the transfer of some of the city council housing stock to City West Housing Trust in October 2008. Nevertheless, there was already a significant reduction in sales before that date, and the last few years have seen very low levels indeed. This is a very similar pattern to other Greater Manchester districts. 4.79 It is worth noting that this loss of social housing stock is not factored into the affordable housing need calculations above. This is because the households purchasing the properties effectively move out of any need category. However, the loss of stock could impact on the number of social relets that become available each year. 189 Social housing sales: Local Authority Stock 2003/ 2004/ 2005/ 2006/ 2007/ 2008/ 2009/ District 2004 2005 2006 2007 2008 2009 2010 Bolton 654 616 413 300 186 65 31 Bury 243 188 78 65 44 9 6 Manchester 1,261 1,398 1,282 783 347 140 21 Oldham 467 378 151 184 146 46 22 Rochdale 568 384 285 307 222 55 34 Salford 880 746 572 501 204 34 4 Stockport 438 262 135 105 59 8 9 Tameside n/a n/a n/a n/a n/a n/a n/a Trafford 302 254 n/a n/a n/a n/a n/a Wigan 780 688 436 264 207 54 24 Greater Manchester 5,593 4,914 3,352 2,509 1,415 Source: DCLG Live Table 648 411 151 Total 2,265 633 5,232 1,394 1,855 2,941 1,016 0 556 2,453 18,345 Step 4.2: requirement for affordable dwellings of different sizes 2007 housing needs assessment 4.80 The 2007 Salford Housing Needs Assessment examines what type of shortfalls exist within the current stock of affordable housing and does this through analysing survey data, with the size and type of accommodation required by households in need being balanced against the size and type of accommodation secured by those who have recently moved into affordable accommodation. It was informed by primary survey data, with the assessment identifying the following: Net need for affordable housing by size Dwelling size Need Supply Total 1 bedroom 1,857 1,277 2 bedroom 995 1,261 3 bedrooms 535 395 4+ bedrooms 219 0 Total 3,607 2,933 Source: Salford Housing Needs Assessment 2007 4.81 580 -286 140 219 674 Supply as a % of need 68.8% 126.7% 73.8% 0.0% 81.3% The above table indicates that there are shortfalls of one, three and four bedroom properties and surpluses of two bedroom homes. The largest shortfall is for one bedroom dwellings followed by four bedroom 190 homes. The table also suggests that the shortage relative to supply is also greatest for four or more bedroom accommodation. Choice based lettings 4.82 The data below identifies the number of bids per property on Salford Home Search’s Choice Based Lettings System. This includes properties owned/managed by Salix Homes, City West Housing Trust and some registered social landlords. The data relates to the period 1 January 2011 to 13 October 2011. 191 Area All Wards Barton Boothstown / Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste / Seedley Winton Worsley Total bids 52,704 4,181 213 Total properties 1,880 138 4 3,120 1,836 278 1,996 1,356 4,125 978 3,536 6,304 3,154 3,933 2,865 2,304 4,298 514 2,854 4,817 42 134 52 11 95 48 144 49 192 252 129 105 79 58 140 20 87 140 3 6 n/a n/a Number of bids per property by type and number of bedrooms Houses Flats 1 2 3 4 5 0 1 2 3 4 13 48 42 36 30 2 22 19 12 0 17 68 76 n/a n/a n/a 25 24 14 n/a 38 44 93 n/a n/a n/a n/a n/a n/a n/a 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 6 87 13 n/a 16 12 12 6 n/a 5 n/a n/a n/a 18 14 14 22 10 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 45 55 n/a 118 39 42 63 61 35 38 67 58 65 47 n/a 67 46 18 32 53 n/a 93 35 36 29 38 28 48 46 53 46 42 79 55 44 n/a 31 n/a n/a n/a 67 36 20 34 20 20 n/a 51 43 n/a n/a 52 32 n/a 192 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 30 n/a 5 n/a n/a n/a n/a n/a 2 1 n/a n/a n/a n/a n/a 1 1 n/a n/a n/a 17 21 26 13 14 23 5 22 27 19 21 n/a 27 30 41 19 29 n/a 15 11 n/a 18 18 19 22 13 17 16 26 17 10 25 6 21 26 n/a n/a n/a 22 n/a 17 6 n/a 13 9 9 4 13 n/a n/a n/a 4 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 0 n/a n/a n/a 5 Average number of bids All Houses Apartments 28 41 20 30 64 24 53 53 n/a 23 35 25 21 28 29 20 18 25 25 38 36 40 31 26 33 34 14 43 46 n/a 79 33 39 28 45 27 41 62 55 55 37 42 55 42 14 16 19 25 15 17 21 12 17 21 17 23 14 22 26 17 2 28 n/a 4.83 The average number of bids per property is significantly higher for houses than apartments in all wards of the city, and around double for the city as a whole. In terms of houses, the highest demand appears to be for two and three bedroom properties, although there is also a relatively significant demand for four and five bedroom properties which is higher than for any size of apartment. The demand for apartments seems to primarily relate to one and two bedroom properties. 4.84 The lowest average numbers of bids per property were in Worsley, Langworthy and Eccles. However, Eccles actually saw a very high level of demand for two and three bedroom houses. The highest overall numbers of bids per property were in Boothstown/Ellenbrook and Swinton South. Eccles, Barton and Pendlebury had the highest number of bids per house. Households on the housing register, by number of bedrooms 4.85 The two tables below identify the number of households on the waiting list in recent years, together with the number and proportion seeking different sizes of dwellings. 4.86 The number of households on the waiting list can be seen to have more than doubled since 2003, with a significant increase since 2007. The proportions looking for different sizes of property are reasonably consistent, with around 60% requiring one bedroom accommodation, just over one-quarter needing two bedroom, and only 13-14% requiring three bedrooms or more. Number of households on housing waiting list (excluding households looking for transfers) in st Salford as at 1 April, by bedroom requirements Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total households 8,026 8,644 11,216 12,074 9,269 12,621 12,661 14,492 16,476 on waiting list Require 1 6,635 7,204 5,783 7,800 7,920 8,817 9,778 bedroom 6,819 7,563 Require 2 2,946 3,127 2,322 3,214 3,176 3,831 4,435 bedrooms Require 3 967 906 1,340 1,429 993 1,355 1,343 1,557 1,945 bedrooms Require 4+ 240 168 295 314 171 252 222 287 318 bedrooms Unspecified number of 0 7 0 0 0 0 0 0 0 bedrooms Source: HSSA 193 Number / proportion of households on housing waiting list (excluding households looking for transfers) in Salford as at 1st April, by bedroom requirements Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total households 8,026 8,644 11,216 12,074 9,269 12,621 12,661 14,492 16,476 on waiting list Require 1 59.2% 59.7% 62.4% 61.8% 62.6% 60.8% 59.3% bedroom 85.0% 87.5% Require 2 26.3% 25.9% 25.1% 25.5% 25.1% 26.4% 26.9% bedrooms Require 3 12.0% 10.5% 11.9% 11.8% 10.7% 10.7% 10.6% 10.7% 11.8% bedrooms Require 4+ 3.0% 1.9% 2.6% 2.6% 1.8% 2.0% 1.8% 2.0% 1.9% bedrooms Unspecified number of 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% bedrooms 4.87 When households join the housing register they are assigned a band which identifies their housing circumstances and needs. In Salford the following bands are used for members of the register: • Band A – Those households who are affected by regeneration (demolition and / or refurbishment) • Band B – Statutory homeless members • Band C – General housing need members with a local connection • Band D – Members with no housing need • Band M – Assessed medical need members • Band N – Members with no local connection 4.88 The following table shows the number of households on the housing register as at 1 April 2011 by need category and number of bedrooms required. Need category – proportion of households by band % of total households Total 1 2 3 4+ Source: Salix Homes Beds required -% 4.89 26.9 11.8 1.9 59.3 A 0.4 B 0.3 C 46.7 D 31.3 M 6.3 N 15.0 72.9 16.9 6.8 3.4 35.7 44.6 14.3 5.4 63.7 22.4 11.0 2.9 46.8 36.2 15.9 1.0 71.4 24.4 3.5 0.7 67.2 22.3 9.2 1.3 The table above shows that nearly half of the households on the register have a general housing need with a local connection, with about a third being assessed as having no need. Of those with a general housing need and local connection 63% require a one bedroom property. Those assessed with having no need generally require larger properties than those with a general housing need, whilst 194 the band with the highest proportion requiring three bedrooms or larger is Band B (statutory homeless). Step 4.3: The private rented sector 4.90 Data and analysis on the role of the private rented sector is set out in Chapter 2 of this SHMA (the current housing market), whilst the potential for this sector to meet some housing needs is discussed below. Stage 5: bringing the evidence together 4.91 The SHMA Guidance (page 52) requires that information about net need should be presented with evidence from the other stages of the assessment to inform decisions about appropriate policy interventions. The Guidance goes on to require (at page 53) that “as a minimum available information is presented on the following issues: • • • The proportion of current households in need experiencing different types of problems (i.e. homelessness, overcrowding, other) Current requirements for different sized affordable dwellings Current use of the private rented sector by households who are in housing need” Step 5.1: Estimate of net annual housing need 4.92 Having regard to the calculation of need set out above, it is estimated that there is a net additional need for 1,019 affordable dwellings per annum based on addressing the current backlog of need over a five year period. This would reduce to 273 dwellings per annum if the backlog was addressed over a ten year period. 4.93 The needs assessment model provides an estimate of the likely level of affordable need, although it needs to be recognised that there are a large number of assumptions built into it the model, and a variety of data sources are used. As such the findings of the assessment should be treated with a degree of caution, with actual need potentially being lower or higher than that estimated through the model. Data and analysis in Chapter 2 of this SHMA (under the active market section) clearly shows that the number of households on the waiting list for social housing is consistently rising, with 16,476 households waiting as of 1 April 2011, which is 16.2% of all households in the city. This indicates the need for affordable housing is significant. Step 5.2: Key issues for future policy / strategy Homelessness 195 4.94 DCLG Live Table 784 shows that in 2010/11 there were 245 households accepted as being homeless and in priority need. The main causes of homelessness are believed to broadly reflect national trends and include parents or friends no longer or able to accommodate; termination of assured short-hold tenancy; domestic violence; and left an institution or local authority care. 4.95 Although the number of homelessness acceptances has fallen there is a need to ensure that their needs are met. However, the issue is wider than meeting their accommodation needs, it is also important that measures are put in place to prevent homelessness occurring in the first instance. The city council have published a Homelessness Strategy covering the period 2008-2013102, and this includes an Action Plan aimed at reducing homelessness. The key objectives of the Strategy are to: • Reduce the use of temporary accommodation • Deliver early intervention to prevent homelessness • Widen housing choice and increase economic activity • Provide effective co-ordinated support to vulnerable young people Overcrowding 4.96 Data on the issue of overcrowding and under-occupation is set out in Chapter 2 of this SHMA (in the active market section). Data from the 2001 Census showed that 6% of dwellings are overcrowded and 74% under-occupied, whilst the 2007 Salford Housing Needs Assessment estimated that 2,273 households (2.3% of all households) are overcrowded and 40,243 households (41.5% of households) underoccupied. Of those dwellings deemed to be under-occupied, the assessment found that 71% of the under occupied dwellings are in the owner occupied sector whilst 21% are in the public sector (council and RSL). The findings of the 2010 Private Sector Stock Condition Survey are similar, with 69.9% of dwellings included within the Survey being under-occupied and 4.2% overcrowded. 4.97 The relatively low levels of overcrowding would suggest that this is not a significant issue for the city. However, in order to seek to minimise the potential for overcrowding, there will be a need to ensure that there is a good supply of new larger dwellings in all tenures. 4.98 In relation to under-occupation, there is little the city council can do in relation to this in the owner occupier and private rented sectors, given that the decision to under-occupy is outside of the city council’s control. However in the stock under the ownership of social housing providers, the city council and other registered providers could examine the potential for running downsizing schemes that help tenants move into smaller homes, thus making better use of the stock by potentially 102 Salford City Council. “Promoting Positive Prevention. Salford’s homelessness strategy 2008-2013” 196 freeing up larger stock for overcrowded households. Changes to welfare reform at the national level from April 2013, in relation to the under-occupation of social housing, are likely to have an impact on the levels of under-occupation. Affordable housing need 4.99 Meeting all of the identified need for additional affordable housing will be especially challenging (and more than likely impossible if there is a reliance solely on the provision of new affordable dwellings through planning gain), particularly having regard to the recent levels of affordable housing completions, as set out in the table below. 2004/ 2005/ 2006/ 2007/ 2008/ 2009/ 2005 2006 2007 2008 2009 2010 Social rented housing 29 37 18 176 71 212 2010/ 2011 Total 20042011 178 721 Intermediate 31 1 6 92 49 70 54 303 housing Total affordable 60 38 2 268 120 282 232 1,024 completions Total gross 1,622 1,162 2,237 2,800 2,012 872 840 11,545 completions (including affordable) Total affordable 3.7% 3.3% 1.1% 9.6% 6.0% 32.4% 27.6% 8.9% units as a % of all gross completions Source: Salford City Council Annual HSSA returns to DCLG, 2004-11. Some figures have been adjusted following an audit of data 4.100 The table above shows that between 2004 and 2011 there were a total of 1,024 gross affordable housing completions, representing 8.9% of the total gross completions103. The higher rate of affordable housing completions over the last couple of years principally reflects the availability of public subsidy (directed through the Homes and Communities Agency) for affordable housing as a result of a number of initiatives aimed at stimulating the housing market / economy (such as Housing Market Rescue packages, Housing Stimulus funding, Local Authority New Build etc). 103 These dwellings are in line with the definition of affordable housing in PPS3. Other affordable dwellings have been completed in the city (such as those under the LPC Launchpad scheme, the First Time Buyer Initiative), although they do not meet the definition of affordable housing as the dwellings are not affordable in perpetuity and / or staircasing receipts are not recycled. Also note that the council has only required affordable housing through planning gain since December 2006, and only schemes of 25 or more dwellings are required to provide affordable housing. 197 4.101 Looking forward, it is unlikely that the scale of affordable housing delivered in 2009-11 will be achieved over the near future, primarily due to a fall in available public subsidy for affordable housing. Additionally, given current uncertainty in the housing market it is also likely that the number of dwellings delivered through section 106 agreements (i.e. planning gain) will be limited in the short to medium term. 4.102 Having regard to the above, the city council will need to ensure that it seeks to maximise the affordable contribution secured through section 106 agreements, whilst still having regard to the impact such requirements will have on scheme viability. The city council will also need to continue to engage with the Homes and Communities Agency in relation to securing public funding for affordable housing schemes, and positively engage with registered providers of affordable housing in relation to them developing / managing affordable housing. This also suggests that the private rented sector will have an important role in meeting the needs of some of the households that the needs model suggests should ideally be housed in affordable housing. Requirement for different sized affordable dwellings 4.103 Data and analysis in relation to the requirement for different sized affordable dwellings is set out above in Step 4.2. The key findings and issues arising from this are set out below. 4.104 The information from the 2007 Housing Needs Assessment can help inform the judgement as to the most appropriate size of affordable dwellings, and this concludes that there are shortfalls of one, three and four bedroom properties, but a surplus of two bedroom homes. The needs assessment however does not have regard to the fact that some one bedroom needs could be met with two bedroom units, due to them being more adaptable and better able to therefore meet changing needs. 4.105 Although the Housing Needs Assessment considered that there was a surplus of two bedroom accommodation, other more up to date data suggests that there is a potential demand for all sizes of properties. The information from the housing register shows that the requirement for affordable housing is in the main for one and two bedroom dwellings, with 59.3% of all households registered on the waiting list requiring one bedroom, and 26.9% of the total number of households requiring two bedrooms (9,778 and 4,435 households respectively). Although the proportions requiring three and four bedrooms are less (at 11.8% and 1.9% respectively) the number of households requiring such accommodation is still significant, with 1,945 households requiring three bedrooms and 318 households requiring four bedrooms. 198 4.106 Although a lower number of households require four bedroom accommodation when compared to other dwelling sizes, information supplied by Salix Homes (and presented in Step 4.1 above) shows that the turnover in four bedroom dwellings between 1 April 2011 to 14 October 2011 was much lower than for other dwelling sizes. For instance, of the 578 houses managed by Salix Homes, there were only 10 tenancy terminations (a turnover of only 1.7%, which equates to an annual forecast turnover of 3.2%). Given such low turnover it is unlikely that the needs of those households who require four bedroom properties will be readily met, even through the number of households requiring four bedroom properties is much lower than for other sizes. 4.107 Information from the Choice Based Lettings system is also a good indicator as to the type and size of affordable housing that households require. Data showing the average number of bids by property size and type between 1 January 2011 and 13 October 2011 shows that there was an average 28 bids per property, with the number of bids for houses being around double that for apartments (41 bids and 20 bids respectively). The data also shows that the lowest number of bids received was for one bedroom houses (19 bids per property), with the highest number bids being for two bedroom houses (48 bids per property).It is clear therefore that there is a need for accommodation of all types and sizes of affordable housing. 4.108 Having regard to the available evidence, the city council will need to ensure that a broad range of affordable dwellings are provided, in terms of both type and size of dwellings. The city council can influence this by ensuring it has an appropriate planning policy framework in place, and that where public subsidy has been secured for the provision of affordable housing, that this is used to provide a variety of property types and sizes. Other housing that could address need Private rented sector 4.109 The DCLG Guidance recognises that the model for assessing needs does not take into account the role of other key areas of the housing market in directly meeting households in need. One area which could potentially meet need is the private rented sector. 4.110 Although the level of dwellings in the private rented sector is set in Section 2, quantifying the exact contribution that the sector can play in meeting housing need is particularly difficult. However, it is likely that the private rented sector will play an important role in providing accommodation for those who cannot afford to enter the owner occupied sector or gain access to the social sector. As noted earlier in the SHMA, since the credit crunch began, mortgage providers have restricted the availability of mortgages to only those with good credit scores and those with high deposits. As such, total gross mortgage 199 lending at the national level has fallen dramatically since the peak of the market in 2007. The effect of this is that those households who would traditionally have purchased their own property are likely to instead consider living in a private rented property. 4.111 There is evidence that the private rented sector is potentially being used to meet the housing requirements of those households who are in need. Earlier evidence presented in Chapter 2 of the SHMA shows that, as of December 2011, around 26% of those dwellings that were recorded on the Council Tax system as being occupied were in receipt of housing benefit. This 26% includes all dwellings in receipt of housing benefit, and so includes both private rented dwellings and social rented dwellings. It is however possible to separately calculate the proportion of private rented households in receipt of housing benefit. Having regard to this, there are 10,276 private rented dwellings in receipt of housing benefit (which is 12.6% of the total occupied private rented stock of 77,750 dwellings). Low cost market housing 4.112 As set out in PPS3, low cost market housing may be an important form of housing, particularly in the context of creating mixed communities. This SHMA has identified a general picture of falling house prices since the peak of the market in 2007, and this could potentially increase the supply of market housing which falls within lower price bands. However, the analysis also clearly outlines the current issues households, particularly first time buyers, are facing in obtaining finance in order to purchase housing. 4.113 A simple multiplication of the lower quartile income for households in each ward by 2.9 (the mortgage multiplier suggested within the DCLG Guidance for dual income households) indicates the potential house price which could be identified as being affordable for the lower quartile of the market, which could include some households who may be in need. It is possible to quantify the number of house sales in 2009/10 (1 April to 31 March) which fall below this threshold and could therefore potentially represent alternative options for households in need Lower quartile household income House price Total number of threshold (2.9 properties sold falling mortgage below lower cost multiplier) threshold Salford £22,399 £64,957 196 Source: 2011 CACI Household Income, Land Registry Sales (1 April 2009 to 31 March 2010) 4.114 As shown above there were 196 property sales that fell below the lower cost threshold in 2009/10. In this period there were a total of 2,389 property sales, and so therefore only 8.2% of all sales fell below the lower cost threshold. 200 Step 5.3: Joining up across the assessment Nat annual need and future annual change 4.115 The affordable housing need figure identified in this section of the SHMA is 1,019 net additional dwellings per annum for the next five years (ie. a total of 5,095 dwellings). 4.116 Chapter 3 of the SHMA identifies a number of different ways of calculating the change in the total number of households between 2011 and 2028, and converts this to net dwelling change over the same period. The table below assesses the affordable housing shortfall against the annual average requirements identified under Methodology E (i.e. the one used by the city council in its Publication Core Strategy). Methodology Greater Manchester Forecasting Model plus extra office growth Net annual affordable need Annual net dwelling requirement Housing requirement represented by housing need (%) 1,296 78.6% 1,019 4.117 As shown above, the annual affordable housing need is 78.6% of the total annual housing requirement, with the total affordable housing need of 5,095 dwellings representing 23.1% of the overall requirement identified under methodology E between 2011 and 2028. Determining an appropriate level of affordable housing 4.118 Paragraph 29 of PPS3 states that In Local Development Documents, Local Planning Authorities should: “Set an overall (ie plan-wide) target for the amount of affordable housing to be provided. The target should reflect the new definition of affordable housing in this PPS. It should also reflect an assessment of the likely economic viability of land for housing within the area, taking account of risks to delivery and drawing on informed assessments of the likely levels of finance available for affordable housing including public subsidy and the level of developer contribution that can reasonably be secured. Local Planning Authorities should aim to ensure that provision of affordable housing meets the needs of both current and future occupiers, taking into account information from the Strategic Housing Market Assessment” 4.119 Having regard to this, the city council will need to ensure that any targets that are set for affordable housing in its Core Strategy are based on an assessment of the impact that affordable housing 201 requirements will have on scheme viability. In addition, account will have to be taken of the findings of this SHMA, particularly in relation to: • Low levels of mortgage lending continuing to restrict access to owner occupation, and the potential growth of the private rented sector • A fall in the levels of available public subsidy for affordable housing • High house price to income ratios meaning the owner occupied sector is not an option for many new households • The increasing demand for social rented accommodation and low turnover of such dwellings • The potential for new affordable housing tenures (such as affordable rent) 202 5. Housing requirements of specific household groups 5.1 This section of the assessment considers the housing requirements of a wide range of specific household groups, namely: • Families • Large households in Broughton Park and Higher Broughton • Older people • People with support needs • Gypsies, travellers and travelling showpeople • Students • Households seeking higher priced housing Family housing Background 5.2 Section 2 of this assessment identifies how the supply of new dwellings in Salford over recent years has been dominated by apartments. Over the period 1 April 2003 to 31 March 2011, a total of 12,414 new dwellings were provided in Salford, and 75.9% of these were apartments (data for 2003 to 2008 relates only to new build dwellings, whilst the 2008 to 2011 data includes new build and gross additions changes of use / conversion schemes). 5.3 In terms of sites with planning permission for housing and saved Unitary Development Plan allocations, section 3 of this assessment explains that around 78.2% of the total supply of 11,821 dwellings would be in the form of apartments. Only 22.5% of dwellings would have three bedrooms or more, so the current supply of permissions and allocations is skewed heavily towards smaller dwellings. 5.4 At the same time, consultation on the Core Strategy has indicated that some developers, landowners and residents consider that there is a need to increase the supply of ‘family housing’. It is therefore appropriate to consider whether there is a demand for a significant increase in the amount of family housing in Salford, or whether it is appropriate that the supply of new dwellings is primarily in the form of smaller dwellings such as apartments. Identifying the size of future households 5.5 Details from the DCLG 2008-based projections relating to the size distribution of households in the forecast household growth were set out in section 3 of this assessment. However, it is the GMFM household forecasts rather than the DCLG 2008-based household projections that the conclusion in section 3 suggests should be used as the basis for estimating future household growth. 203 5.6 The GMFM outputs do not provide details of household size, and so for the purposes of this analysis it has been assumed that the mix of household sizes in the GMFM baseline forecast will be the same as in the DCLG projection, as shown in the table below. Household size 1 person 2 person 3+ person 4+ person 5+ person 6+ person % of total households in GMFM 2011 Baseline when DCLG DCLG 2008-based size distribution is applied to the total household projections household number 2011 2028 2011 2028 Change 42.94 47.91 43,862 56,873 13,011 28.82 27.62 29,442 32,792 3,350 14.99 12.73 15,307 15,109 -198 8.83 7.78 9,017 9,230 213 4.17 3.84 4,261 4,558 297 0.25 0.13 255 150 -105 Total 100.00 100.00 102,144 Source: DCLG 2008-based household projections 118,712 16,568 5.7 The preferred methodology for calculating household growth discussed in section 3 of this assessment also requires consideration of the likely sizes of the additional households that would result from the high level of office floorspace being proposed in Salford. As set out in section 3, it is estimated that this could generate an extra 6,752 households in addition to those identified in the GMFM 2011 Baseline forecast. 5.8 These households would be generated by migration, as a result of the extra employment opportunities, rather than internally through changes in headship rates. Consequently, it is considered likely that their size distribution will be more similar to that for all households (including those that already exist) than that of just the new households in the growth forecast. The forecast proportions for all households in Salford in 2028 have been used for this purpose and the relevant figures are shown in the table below (i.e. the percentages in the second column have been applied to the additional 6,752 households from the extra office development to give the figures in the third column, and then these have been added to the estimated size distribution of the baseline household growth from the previous table which is shown in the fourth column below to give the totals in the fifth column). Household size 1 person 2 person 3+ person % of total households in 2028 (DCLG 2008-based household projections) 47.91 27.62 12.73 Change in number of households (2011-28) Households GMFM 2011 Total from extra Baseline households office estimate (from floorspace previous table) 3,235 1,865 859 204 13,011 3,350 -198 16,246 5,215 662 Household size 4+ person 5+ person 6+ person Total 5.9 100.00 5.10 Change in number of households (2011-28) Households GMFM 2011 Total from extra Baseline households office estimate (from floorspace previous table) 525 259 9 213 297 -105 738 557 -97 6,752 16,568 23,320 The preferred methodology for calculating household growth also takes account of the likely implications of changes in the minimum age for being able to claim housing benefit as a single-person household. As described above, it is estimated that this will result in a reduction of 448 households, with 672 existing households reducing to 224 households that have an average household size of three people. On this basis, it has been assumed that 25% of the new households will be two person, 50% will be three person, and 25% will be four person. The table below shows the impact that this has on the overall estimated size distribution of household growth in Salford over the period 2011-2028. Household size 1 person 2 person 3+ person 4+ person 5+ person 6+ person Total % of total households in 2028 (DCLG 2008-based household projections) 7.78 3.84 0.13 Change in number of households (2011-28) Households Households Total from GMFM from benefit households 2011 changes Baseline and extra office growth 16,246 -672 15,574 5,215 56 5,271 662 112 774 738 56 794 557 0 557 -97 0 -97 23,320 -448 22,872 Proportion of change in the number of households in each size category 68.09 23.04 3.38 3.47 2.43 -0.42 100.00 It can therefore be seen that the majority of new households are forecast to be single-person households. Indeed, household growth is expected to be completely dominated by smaller households, with 91.1% being either one or two person households (this is slightly lower than the 96.4% when considering the DCLG 2008-based household projections in isolation). Translating household size into dwelling size – simplistic approach 5.11 The simplest approach to estimating the size of new dwellings required as a result of the forecast size distribution of the household growth set 205 out above would be to assume that on average each new household will occupy a property with the same number of bedrooms as the number of people in the households. Such an approach would assume that there is no significant overcrowding or under-occupancy in these new dwellings. 5.12 This approach would suggest that the vast majority (91.1%) of new dwellings should be in the form of one and two-bedroom properties. It would seem likely that dwellings of this size would be provided predominantly in the form of apartments. This would indicate that there is likely to be a very limited additional need in Salford for what might be termed family housing. 5.13 The data earlier in this section on the future housing supply identified that 22.5% of the supply of dwellings with planning permission would have three or more bedrooms. In terms of the supply of category 1 and 2 sites in the Strategic Housing Land Availability Assessment, 33.1% would be in the form of houses. On this basis, the supply would actually involve a higher proportion of larger dwellings than might be considered necessary, rather than there being an undersupply as some representations on the Core Strategy have suggested. 5.14 However, this approach takes no account of issues that impact on housing choices, such as the need for flexible accommodation, consumer preferences for larger dwellings, requirements for spare bedrooms for people to visit, and space to work from home, all of which are an upward pressure on size. Consequently, it could underestimate the demand for larger dwellings, constraining the supply available for families. As a result, a second approach that effectively factors in consumer preferences is set out below. Translating household size into dwelling size – detailed approach 5.15 This alternative approach to identifying what size of new dwellings is required to meet the forecast size distribution of household growth involves assuming that the current relationship between household size and dwelling size remains the same in the future. The survey data from the Salford Housing Needs Assessment 2007 (HNA) can be used to estimate this relationship between household size and dwelling size. 5.16 The weighted data from the survey has been used, as this is likely to be more representative overall than the unweighted data. The HNA explains the process of weighting as follows: “Survey data was weighted to match the suggested tenure profile shown by existing secondary sources. An important aspect of preparing data for analysis is ‘weighting’ it. … social survey responses never exactly match the estimated population totals. As a result it is necessary to ‘rebalance’ the data to correctly represent the population being analysed. Data was also weighted to be in line with the secondary data distribution recorded for the following information: 206 • • • • • • 5.17 Ward Number of people in household Household type Accommodation type Car ownership Ethnicity of household head”104 This weighted data is set out in the table below. Larger households and dwelling sizes have been grouped together because of the low numbers involved. Household Dwelling size (number of households) Total size households 1 bed 2 bed 3 bed 4 bed 5+ bed 1 person 9,342 14,479 10,245 866 403 35,335 2 person 1,028 10,623 15,459 2,387 297 29,794 3 person 0 3,545 9,062 1,548 403 14,558 4 person 20 685 7,398 2,387 338 10,828 5 person 0 446 2,286 1,375 346 4,453 6+ person 0 0 523 769 637 1,929 Total 10,390 29,778 44,973 9,332 Source: Salford housing needs assessment, 2007 2,424 96,897 5.18 The following table shows the same results in terms of the proportion the households of each household size that occupy the different sizes of dwelling. Household size 1 person 2 person 3 person 4 person 5 person 6+ person Dwelling size (% of households) 1 bed 2 bed 3 bed 4 bed 5+ bed 26.44 40.98 28.99 2.45 1.14 3.45 35.65 51.89 8.01 1.00 0.00 24.35 62.25 10.63 2.77 0.18 6.33 68.32 22.04 3.12 0.00 10.02 51.34 30.88 7.77 0.00 0.00 27.11 39.87 33.02 Total 10.72 30.73 46.41 9.63 Source: Salford housing needs assessment, 2007 5.19 2.50 Total households (%) 100.00 100.00 100.00 100.00 100.00 100.00 100.00 The next table applies these proportions to the estimated level of household growth identified above. However, it only uses the GMFM baseline household growth plus the extra households likely to result from the high level of office development proposed, and does not include the reduction in households expected as a result of housing benefit changes. The latter has been omitted at this stage because it 104 “Salford City Council Housing Needs Assessment: Technical Appendix” – Fordham Research (October 2007), paragraphs B1.2-B1.3 207 would be expected that single-person households who will no longer be able to afford to live on their own due to the changes in housing benefit rules will still expect to have their own bedroom, whereas some of the three and four person households in the HNA data actually occupied one or two bedroom properties. Including the benefit changes at this stage would therefore lead to a slight underestimate of the demand for larger dwellings. The household growth figure that is used is therefore 23,320 (16,568 from the GMFM 2011 Baseline plus 6,752 from the extra office growth). Household Dwelling size (number of households) Total size households 1 bed 2 bed 3 bed 4 bed 5+ bed 1 person 4,295 6,657 4,710 398 185 16,246 2 person 180 1,859 2,706 418 52 5,215 3 person 0 161 412 70 18 662 4 person 1 47 504 163 23 738 5 person 0 56 286 172 43 557 6+ person 0 0 -26 -39 -32 -97 Total % of total 5.20 4,476 19.20 8,780 37.65 8,592 36.84 1,182 5.07 290 1.24 23,320 100.00 An earlier section of this assessment explained how the number of households can be translated into a dwelling requirement, and it is appropriate to incorporate these stages into this approach to identifying the sizes of dwellings that are likely to be required. The first stage of this is to make an allowance for the reoccupation of 2,142 existing dwellings. It has been assumed that the size distribution of these will match that of the distribution of demand more generally as identified in the table above. The impacts of the housing benefit changes have then been factored in, with the same assumption as above that 25% of the new households will be two person, 50% will be three person, and 25% will be four person. The impacts of a 4% vacancy rate in new dwellings have then been allowed for, as have those of 2% of new dwellings being second homes. As discussed in section 3 of this assessment, this relatively high proportion of second homes is due to the particular characteristics and role of the apartment market in the Regional Centre. It has therefore been assumed that all of the second homes will be apartments. There is no detailed evidence on which to identify the size of the apartments being used as second homes, and so it has been assumed that 50% of the second homes will be one-bedroom apartments, and 50% will be two-bedroom apartments. The table below sets out the application of these assumptions. 208 Household size Dwelling size (number of dwellings) 1 bed 2 bed 3 bed 4 bed 5+ bed Total dwellings Total from last table % of total 4,476 19.20 8,780 37.65 8,592 36.84 1,182 5.07 290 1.24 23,320 100.00 Reoccupied vacant dwellings Updated total 411 4,065 806 7,973 789 7,803 109 1,074 27 263 2,142 21,178 Impact of benefit changes Updated total -672 3,393 56 8,029 112 7,915 56 1,130 0 263 -448 20,730 With 4% vacancy rate in new dwellings 3,535 8,364 8,244 1,177 274 21,594 2% second homes in new dwellings 220 220 0 0 0 22,035 Final total % of final total 3,755 17.04 8,584 38.96 8,244 37.42 1,177 5.34 274 1.24 22,035 100.00 5.21 This approach identifies a far greater need for larger dwellings compared to the much simpler methodology discussed above. However, 56.0% of new dwellings would still only require one or two bedrooms, which would most likely be in the form of apartments although some small houses would also be expected. This would suggest that 44.0% of new dwellings would need to have three or more bedrooms, which would most likely be in the form of houses if they were to attract families with children although some large apartments would also be anticipated. 5.22 The original source of the household sizes in this methodology is the DCLG 2008-based household projections. As discussed above, some of the household types can only be identified in terms of their minimum size rather than their actual size, because the categories refer to one or more other adult in the title (applies to some households involving three people or more). As a result, the size of dwellings required for some of these household types could have been underestimated, although this is unlikely to be significant given the numbers involved. Consequently, it is anticipated that there would be relatively little need for additional housing with four bedrooms or more. 5.23 It is also worth noting again that this methodology assumes that the existing relationship between household size and dwelling size remains the same. However, data in section 2 of this assessment explains that 209 Salford has a relatively high level of under-occupancy, and so this could be considered to be a potentially significant overestimate of the need for larger dwellings. This data identifies that there are 38,911 households living in dwellings with three bedrooms or more who only technically require dwellings of two bedrooms or less (out of a total of 67,597 households living in dwellings with three bedrooms, i.e. 57.6% of such dwellings could be considered to be under-occupied). This suggests that the above methodology could potentially overestimate the need for dwellings with three bedrooms or more by a factor of two. 5.24 However, the 2007 Housing Needs Assessment data also suggests that there is some overcrowding in existing dwellings, with 949 of the 25,825 two bedroom dwellings being overcrowded, and 785 of the 50,463 three bedroom dwellings. Although this overcrowding is a serious issue, its scale is significantly less than the level of underoccupancy. Therefore, in terms of the need for family housing, the above methodology for calculating the required range of dwelling sizes is likely to be at the top end of what might be required. Conclusion 5.25 Overall, therefore, these two methodologies suggest that the majority of new dwellings should have one or two bedrooms, given the likely size distribution of forecast household growth. The proportion of dwellings that should have three bedrooms or more could range from 9% to 44% on this basis. 5.26 A figure towards the bottom end of the range for larger dwellings (9%) would help to minimise under-occupancy, but could result in new housing struggling to meet the consumer preferences of many households. It would also provide less flexible accommodation that may not be able to adapt to a wide variety of evolving needs. 5.27 However, a figure towards the top of the range for larger dwellings (44%) could lead to the exacerbation of the high levels of underoccupancy currently found in Salford, a less efficient use of land, and potentially less affordable housing (as larger dwellings will inevitably be more expensive to build and therefore to buy or rent). 5.28 The appropriate mix of dwelling sizes therefore largely depends on the prioritisation that is given to these various issues, although it will also depend on whether it is considered appropriate to diversify the type of housing that is coming forward in different parts of the city and to encourage certain types of household such as families with children to live in Salford. 5.29 Given the high proportion of apartments in the recent supply of new dwellings (75.3% over the period 2003-2011), it may be more appropriate for the proportion of larger dwellings to be towards the top end of the range. This may lead to additional under-occupancy, but it would help to diversify the type of new dwellings being provided in the 210 city and ensure that the city’s housing stock is able to adapt to a wide variety of needs including families with children. Housing provision in Broughton Park and Higher Broughton 5.30 Although issues of housing need and demand will vary across Salford, there are particularly distinctive issues affecting the Broughton Park area and to a lesser extent Higher Broughton. Household growth 5.31 A detailed analysis of the 2001 Census indicates that the Jewish population in Salford has a very distinctive age profile as a result of the large strictly Orthodox population, with 35.4% aged 14 or under105. As a comparison, this age group accounts for just 18.9% of the total population of England and 19.0% of Salford. This young population has the potential to generate a significant growth in households over the next few decades. 5.32 In addition to this internal population and household growth, the analysis of the Census suggests that Salford has a net inflow of Jewish people (159 in the year leading up to the Census, which was the eighth highest net inflow of any local authority area in the country), and this is “likely to be from the in-flow of strictly Orthodox Jews from London”106. 5.33 A 2008 Orthodox Jewish Community Housing Needs Assessment107 found that the local Orthodox Jewish community is growing at a much higher year on year rate than the wider community and is estimated to increase in size by 50% between 2008 and 2021 based on projected birth increases and mortality rates. 5.34 The strictly Orthodox Jewish population has a strong geographical focus in the north-east of the city extending into neighbouring areas of Bury and Manchester. The highest proportions are in the Broughton Park area, with four output areas in that part of the city at the time of the 2001 Census having more than 70% Jewish population108. 5.35 The geographical area populated by the strictly Orthodox Jewish community is limited by religious requirements such as the need for synagogues and other facilities to be within easy walking distance. As the community has grown in this location so have the number and quality of facilities, for example in terms of educational provision, 105 “Jews in Britain: A snapshot from the 2001 Census” – D. Graham, M. Schmool and S. Waterman (Institute for Jewish Policy Research, 2007), p.43 106 “Jews in Britain: A snapshot from the 2001 Census” – D. Graham, M. Schmool and S. Waterman (Institute for Jewish Policy Research, 2007), p.36 107 “Orthodox Jewish Community Housing Needs Assessment” (Salford City Council, 2008) 108 “Jews in Britain: A snapshot from the 2001 Census” – D. Graham, M. Schmool and S. Waterman (Institute for Jewish Policy Research, 2007), p.33-34 211 reinforcing the attractiveness of this area as a location for strictly Orthodox Jewish people to live. 5.36 The combination of the strong internally-generated population growth, net in-migration and the cultural attractiveness of the area as a place to live means that there is likely to be a significant increase in housing demand within Broughton Park and parts of Higher Broughton over the Core Strategy period. Land availability 5.37 This is one of the most constrained areas of the city in terms of the availability of land for residential development. The SHLAA, identifies specific sites in the Broughton Park and Higher Broughton area to accommodate a net increase of 328 dwellings between 2011 and 2028, consisting of 69 houses and 259 apartments. One of the reasons for the low net change in houses is the proposed demolition of houses in the ‘Top Streets’ area, but it also reflects the very constrained land supply. The majority of the sites already have planning permissions, and this partly explains the relatively high number of apartments. 5.38 The SHLAA has a site threshold outside the Regional Centre and town centres of 0.25 hectares, except in the case of extant and lapsed planning permissions where all sites are included, and so there could be additional smaller sites that would be suitable for housing. As a result, a more detailed assessment of the Broughton Park area has been undertaken using aerial photographs and an indicative site size threshold of 0.10 hectares. This suggested only very limited additional potential, with the presence of protected trees being a major constraint. 5.39 The Broughton Park and Higher Broughton area typically has a moderate number of ‘windfalls’ on sites smaller than the 0.25 hectare threshold used in the SHLAA, providing an average net increase of around 14 dwellings per annum over the period 2000-2011 (approximately 2 houses per annum and 12 apartments per annum). If current policies were continued then it would be expected that a similar level of windfall provision would be achieved in the future. Government guidance states that windfalls should not normally be counted within the first 10 years of supply109, and so allowing for windfalls in this way would increase the total estimated supply over the period 2011-2028 to 399 dwellings (79 houses and 320 apartments). 5.40 The area therefore has the problematic combination of high demand and low supply. This is exacerbated by relatively modest incomes impacting on the ability to access housing in a location where prices are quite high. Data from 2010, which considered mean average household incomes and house prices rather than the median incomes and house prices used in section 2 of this assessment, indicated that 109 “Planning Policy Statement 3 (PPS3): Housing” – Department for Communities and Local Government (June 2010), paragraph 59 212 Broughton Park (rather than the wider Broughton Park and Higher Broughton area) had a local house price to income ratio of 6.1 (second only to Chat Moss within the city). Although this data showed that house prices in Higher Broughton were below the Salford average, they were relatively high compared to local incomes, giving a house price to income ratio of 4.9110. High housing demand and low supply is only likely to exacerbate these affordability problems. 5.41 Consequently, given this scale of housing demand and the constrained supply of developable housing sites, it may be appropriate to encourage an increased supply of windfalls within the area. This could be achieved for example by taking a more flexible approach to infill developments and the redevelopment of existing dwellings where they would result in a net increase of housing. If such a policy approach were taken, then it would be likely to result in the windfall supply increasing within the first ten years of supply, potentially from around 2016. Size of dwellings 5.42 The analysis of the Census data shows that “the religious makeup of Hackney in Inner London and of Salford in Greater Manchester is shown by the very high proportion of households with three or more dependent children in those areas”111. This is reflected in the very high proportion of the population that is aged 14 or under, as discussed above. 18.13% of households in the Broughton Park area consist of 5 or more people, by far the highest proportion of any part of the city (Winton is the next highest at 9.33%, and the city average is 6.55%). The contrast is even starker for households of 6 or more people, which account for 12.23% of households in Broughton Park but only 3.21% in the next highest area of Winton and 1.99% across the city as a whole112. 5.43 The 2008 Orthodox Jewish Community Housing Needs Assessment found that average household size in Broughton Park of 5.9 is around 2.5 times the national and local average, with this contributing to overcrowding (which was found to be 3 times higher in the Orthodox Jewish community than in the community as a whole). 5.44 This would suggest that it would be appropriate to encourage or possibly require a significant proportion of new dwellings in this area to be in the form of large houses, possibly with at least five bedrooms. This would help to ensure that appropriate housing is available to accommodate the growing number of large households in the area. 110 Houses prices from Land Registry (2009/10 average sales price) , and 2010 average household incomes from CACI PayCheck 111 “Jews in Britain: A snapshot from the 2001 Census” – D. Graham, M. Schmool and S. Waterman (Institute for Jewish Policy Research, 2007), p.46 112 2001 Census 213 5.45 The pressure for larger dwellings is perhaps seen to a greater extent through proposed changes to the existing housing stock than in the scale and type of new dwellings, as indicated by the number of planning applications for very large extensions in this part of the city. Such applications are often well beyond the standards set out in the city council’s House Extensions Supplementary Planning Document (SPD)113, for example in terms of the length of extensions along the common boundary, separation distances and the provision of dormers. Both during the production of that guidance and since then there have been representations from members of the strictly Orthodox Jewish community requesting that a less restrictive approach is taken to house extensions in the Broughton Park and Higher Broughton area. 5.46 In order to meet the needs of the significant number of large families in the area, there is an argument that an explicitly more permissive approach to larger extensions should be taken in this part of the city. This could be through different standards to the rest of Salford, or simply a statement that the standards in the house extensions SPD will not be applied in the Broughton Park and Higher Broughton area and that cases will be judged on their individual merits. However, there is a risk that this could result in significant negative impacts on the residential amenity and environmental quality of the area, resulting in a gradual decline in its attractiveness and detracting from the quality of life of existing residents. Great care is therefore required to find the appropriate balance of these various considerations. Older people 5.47 The DCLG Practice Guidance on SHMAs identifies older people as one of the groups for which it may be appropriate to consider specific housing needs. This recognises the importance of achieving a good mix of housing in the context of an ageing society. 5.48 Section 2 of this assessment included data from the ONS 2010 MidYear Population Estimates, which showed that Salford has a below average proportion of people aged 65 and over (14.6%, compared with 14.8% in Greater Manchester as a whole, 16.7% in the North West region, and 16.5% in England). It also identified that the city actually saw a relatively significant decrease in this age group of 1,500 people over the period 2001-2010, compared to a 4.5% increase in Greater Manchester, 7.2% in the North West and 9.8% in England (ONS MidYear Population Estimates). 5.49 Despite this recent decrease, Section 3 of this assessment identifies that there is likely to be a reasonably significant increase in the future in the number of households with household heads aged 65 or over. The DCLG 2008-based household projections suggest that there will be an increase of 5,252 such households over the period 2011-2028, 113 “House Extensions Supplementary Planning Document” – Salford City Council (July 2006) 214 whereas the GMFM 2011 Baseline forecasts a lower increase of 4,011 households. 5.50 The table below shows how this compares with other parts of Greater Manchester, as well as the regional and national figures, using the DCLG 2008-based household projections. Area Bolton Bury Manchester Oldham Rochdale Salford Stockport Tameside Trafford Wigan Number of households with household head aged 65 or over 2011 2028 Change 2011-28 30,054 39,915 9,861 20,528 27,423 6,895 36,726 43,679 6,953 23,301 30,663 7,362 21,010 27,773 6,763 25,032 30,284 5,252 36,601 47,670 11,069 24,824 34,381 9,557 24,527 31,286 6,759 36,124 48,739 12,615 % increase in the number of households with household head aged 65 or over 32.81 33.59 18.93 31.60 32.19 20.98 30.24 38.50 27.56 34.92 % of the total increase in households that has a household head aged 65 or over 82.76 75.36 13.84 74.50 96.23 28.68 66.73 70.77 36.82 79.49 Greater Manchester 278,727 361,813 83,086 29.81 48.63 North West 819,415 1,101,309 281,894 34.40 73.42 Source: Department for Communities and Local Government 2008-based household projections 5.51 The above table shows that Salford is forecast to have the lowest increase of the Greater Manchester districts in the number of households with a household head aged 65 or over, and the second lowest proportional increase after Manchester. It can be seen that the increase in these older households is expected to dominate household growth in some locations such as Rochdale (96%), Bolton (83%) and Wigan (79%), whereas it is only anticipated to account for 29% of all household growth in Salford. 5.52 The next table looks specifically at the forecast growth in single person households aged 65 or over, with the same geographical comparators. 215 Number of single person households aged 65 or over 2011 2028 Change 2011-28 Area Bolton Bury Manchester Oldham Rochdale Salford Stockport Tameside Trafford Wigan 16,530 10,631 23,007 12,498 11,375 14,979 19,479 14,205 13,131 18,235 22,509 13,852 28,403 16,339 14,796 18,418 25,454 20,702 16,427 25,257 5,979 3,221 5,396 3,841 3,421 3,439 5,975 6,497 3,296 7,022 % increase in the number of single person households aged 65 or over 36.17 30.30 23.45 30.73 30.07 22.96 30.67 45.74 25.10 38.51 % of the total increase in households that are a single person aged 65 or over 50.18 35.21 10.74 38.87 48.68 18.78 36.02 48.11 17.95 44.25 Greater 202,157 48,087 31.21 28.15 Manchester 154,070 North West 436,219 589,112 152,893 35.05 39.82 Source: Department for Communities and Local Government 2008-based household projections 5.53 This shows a slightly different picture, with the forecast increase in single person households aged 65 or over being similar in Salford to several other districts. However, Salford has the lowest proportional increase in this age and type of household (23%), and it also accounts for a relatively low proportion of all household growth in the city (19%). Single person households account for around 65% of all household growth in Salford where the household head would be aged 65 or over. 5.54 Nevertheless, although Salford’s existing population and future household growth is less dominated by older people and households than many other areas, there is still forecast to be a reasonably significant increase in the number of households with an older household head, and older single person households. This increase is likely to have implications for the type of housing that is required in the city. 5.55 The city council has published a housing strategy for older people (“Promoting Independence – Our Housing Strategy for people as they grow older in Salford”), the vision of which is “To ensure there is a wide range of good quality and appropriate housing and support services that promotes independence and wellbeing, provides choice and meets the changing needs and aspirations of people as they age in Salford”. 216 5.56 It is important not to caricature the housing needs of older people as they can vary enormously. However, it would generally be expected that an increase in the number of older households would lead to an increase in demand for the following: • Adaptable homes, for example with disabled adaptations or that could easily be adapted for those with constrained mobility (for example meeting the Lifetime Homes standard, or wheelchair standards) • Single level living (such as bungalows and appropriate apartment accommodation) • Sheltered accommodation • Retirement villages • Care homes 5.57 The relatively high proportion of the growth in older households that will involve single person households could potentially result in a significant amount of the additional demand focusing on housing options that provide additional comfort for those living alone, such as sheltered accommodation and retirement villages where independence can be combined with warden provision. Households with specific needs 5.58 This sub-section considers the demand for housing from households with specific needs, particularly support needs associated with disabilities. Consequently, there is some overlap with the issues of an ageing population discussed immediately above. Salford Housing Needs Assessment 2007 5.59 • • • • • • • 5.60 The Salford Housing Needs Assessment 2007 sought to estimate the number of households with support needs, looking at the following groups: Frail or elderly Persons with a medical condition Persons with a physical disability Persons with a learning disability Persons with a mental health problem Persons with a severe sensory disability Others The assessment warned that the data should be seen as broadly indicative rather than providing exact figures for recognised categories of care or support need, particularly given that the survey method of data collection meant that all requirements were self-assessed and the 217 sample sizes for some groups were small114. The results are summarised in the two tables below. Type of household No people with support needs Single support need only Multiple support needs Households % of households 72,561 74.9% 14,112 14.6% 10,227 10.6% Total 96,900 Source: Salford Housing Needs Assessment 2007 (Table 7.2) Not in unsuitable housing Support needs No support needs Number of households 100.0% % of total households in % of those in unsuitable unsuitable housing housing 19,227 24,339 21.0% 46.8% 66,749 72,561 8.0% 53.2% Total 85,976 96,900 11.3% Source: Salford Housing Needs Assessment 2007 (Table 7.7) 100.0% 5.61 This suggests that 25% of households in Salford have support needs, and around 42% of those households have multiple support needs. Almost 47% of households with support needs are living in unsuitable housing, although this does not mean that they require alternative accommodation, and adaptations to existing housing may be sufficient to address the unsuitability. 5.62 The next table identifies the size of households with support needs. It can be seen that the majority of need is found in smaller households, with 74% in one and two person households. The assessment identifies that around 48% of the households with support needs contain no older people, and around 38% contain only older people. Household size (persons) One Two Three Four Five Six or more Support needs 10,153 7,749 3,661 1,576 640 561 No support Number of % of total needs households households with support needs 25,182 35,335 28.7% 22,046 29,795 26.0% 10,898 14,559 25.1% 9,252 10,828 14.6% 3,814 4,454 14.4% 1,369 1,930 29.1% 114 % of those with a support need 41.7% 31.8% 15.0% 6.5% 2.6% 2.3% “Salford City Council Housing Needs Assessment” – Fordham Research (October 2007), paragraphs 7.2-7.4 218 Household size (persons) No support Number of % of total needs households households with support needs % of those with a support need Total 24,340 72,561 96,901 25.1% Source: Salford Housing Needs Assessment 2007 (Table 7.4) 100.0% 5.63 Support needs The graph below provides information from the study regarding the type of support needs that the households require, with some households having more than one need. This would suggest that many of the needs could be met through adaptations to existing dwellings, rather than necessarily requiring a move to purpose-built accommodation. Source: Salford Housing Needs Assessment 2007 (Figure 7.7) Private Sector House Condition Survey 2011 5.64 The 2011 Private Sector House Condition Survey included a question relating to the need for disabled adaptations. The table below summarises the key results (from Table 4.24 of the report). 219 Category Disabilities in household – no adaptations needed Disabilities in household – with adaptations Disabilities in household – with adaptations and more adaptations needed Disabilities in household – with no adaptations but adaptations needed Total households Total households Source: Private Sector Stock Condition Survey 2010 8,509 5,321 1,555 1,842 85,122 5.65 This suggests a much lower level of need for adaptations than the 2007 needs assessment, but this study excludes the significant number of households living in social rented accommodation owned/managed by City West Housing Trust and Salix Homes (given it focussed on private sector dwellings). 5.66 It can be seen that around 3,397 households were identified as needing additional disabled adaptations (4% of all households covered by the survey). The report suggests that the highest need is in Little Hulton and Broughton (paragraph 4.7.3). It is notable that there are more households that already have sufficient adaptations than those that require new/additional adaptations. 5.67 The following table identifies the type of adaptations required to enable people with disabilities to live independently, with some households requiring more than one adaptation (taken from Table 4.25). Disabled adaptations needed Total households Wider doorways 2,160 Emergency alarm 4,328 Straight stair lift 2,144 Redesign bedroom 890 Curved stair lift 2,308 Redesign kitchen 556 Ramp 693 Redesign WC 2,564 Grab hand rails 2,777 Redesign bathroom 1,708 Hoist 3,110 Other 2,384 Source: Private Sector Stock Condition Survey 2010 Other indicators 5.68 Salford City Council has been awarded £1,234,142 of disabled facilities grant funding for 2011/12, to support adaptations in private sector housing. 220 5.69 The table below identifies the proportion of people who are claiming incapacity benefit or severe disablement benefit. It also identifies the proportion of people claiming disability living allowance, some of whom will also be eligible for incapacity benefit or severe disablement benefit. This data therefore needs to be interpreted carefully, but provides a broad indication of the level of long-term illness that could potentially impact on housing needs. Area Barton Blackfriars Broughton Cadishead Claremont Eccles Irlam Kersal Langworthy Little Hulton Ordsall Pendlebury Pendleton Swinton North Swinton South Walkden North Walkden South Weaste & Seedley Winton Worsley & Boothstown Resident population (aged 16-64) 7,338 9,781 5,794 6,437 8,338 8,213 6,519 7,873 4,295 6,701 Incapacity benefit Number % Severe disablement benefit Number % Total incapacity and disablement claimants Number % Disability living allowance Number % 610 620 670 345 435 610 335 510 510 710 8.3% 6.3% 11.6% 5.4% 5.2% 7.4% 5.1% 6.5% 11.9% 10.6% 55 30 50 25 70 85 30 40 25 40 0.7% 0.3% 0.9% 0.4% 0.8% 1.0% 0.5% 0.5% 0.6% 0.6% 665 650 720 370 505 695 365 550 535 750 9.1% 6.6% 12.4% 5.7% 6.1% 8.5% 5.6% 7.0% 12.5% 11.2% 960 765 955 680 855 1,015 755 795 725 1,285 13.1% 7.8% 16.5% 10.6% 10.3% 12.4% 11.6% 10.1% 16.9% 19.2% 6,720 10,573 8,265 7,548 465 655 845 480 6.9% 6.2% 10.2% 6.4% 30 85 45 80 0.4% 0.8% 0.5% 1.1% 495 740 890 560 7.4% 7.0% 10.8% 7.4% 710 1,195 970 925 10.6% 11.3% 11.7% 12.3% 8,390 350 4.2% 40 0.5% 390 4.6% 730 8.7% 7,533 615 8.2% 35 0.5% 650 8.6% 1,090 14.5% 10,168 505 5.0% 90 0.9% 595 5.9% 1,120 11.0% 6,376 555 8.7% 55 0.9% 610 9.6% 1,025 16.1% 8,482 8,717 700 200 8.3% 2.3% 65 30 0.8% 0.3% 765 230 9.0% 2.6% 1,195 540 14.1% 6.2% Central Salford Salford West 57,442 4,610 8.0% 345 0.6% 4,955 8.6% 6,800 11.8% 96,619 6,115 6.3% 660 0.7% 6,775 7.0% 11,490 11.9% Salford 154,061 10,700 6.9% 830 0.5% 11,530 7.5% 18,280 11.9% 33.86 million 1.40 million 4.1% 0.15 million 0.5% 1.56 million 4.6% 2.64 million 7.8% England Notes: • Ward data is based on old ward boundaries (2003 CAS wards) • Resident population taken from Claimant Count Denominators - Current residents 2011 • Benefit claimants for wards taken from dataset Benefit claimants: IB/SDA for small areas (May 2011) 221 • • Benefit claimants for Salford and England taken from dataset Benefit claimants: Incapacity benefits and severe disability allowance (May 2011) (Incapacity benefit is the total of those claiming lower rate, higher rate, long term and credits) Disability living allowance provides a non-contributory, non means-tested and tax-free contribution towards the disability-related extra costs of severely disabled people who claim help with those costs before the age of 65. People can continue to receive the allowance after reaching age 65 if they continue to satisfy the entitlement conditions (www.nomisweb.co.uk) 5.70 It can be seen that the proportion of people claiming incapacity benefit and/or disability living allowance in Salford is significantly above the national average. The proportion claiming incapacity benefit is noticeably higher in Central Salford than Salford West, whereas Salford West has a slightly higher rate of disability living allowance claimants. 5.71 The highest claimant rates are seen in Broughton, Langworthy and Little Hulton. Pendleton has a relatively high proportion of people claiming incapacity benefit, but an average rate of disability living allowance claimants. Walkden North, Weaste and Seedley, and Winton all have relatively high proportions of people claiming disability living allowance, but only slightly above average levels of incapacity benefit claimants. The lowest claimant levels are in Worsley and Boothstown and Swinton South. There is therefore some inverse relationship between claimant rates and prosperity. Implications for housing demand 5.72 It is quite difficult to draw any clear conclusions from this data in terms of the implications for the type of housing that is provided in Salford. The proportion of people claiming incapacity and/or disability benefits in Salford is considerably higher than in England as a whole, and this citywide rate masks some significant variations between different wards. This suggests that the demand for housing that can meet particular support needs is likely to be relatively high in Salford, as indicated by the 2007 Housing Needs Assessment which identified that one quarter of all households have support needs. 5.73 The 2010 Private Sector House Condition Survey identified that there are more households living in homes with adaptations than there are households requiring adaptations, which suggests that good progress has already been made in Salford in terms of ensuring that suitable housing is available. It also suggests that many needs can be met through adaptations to mainstream housing rather than requiring purpose-built accommodation designed to meet a specific need. 5.74 This could be seen to indicate that the emphasis in the future should be on ensuring that new dwellings are designed to be as adaptable as possible, for example by meeting the Lifetime Homes standard, and that suitable support services are available to deliver adaptations and promote independent living. 222 Gypsies, travellers and travelling showpeople Existing provision 5.75 The scale of authorised provision of Gypsy, traveller, and travelling showpeople sites within the North West as of 22 January 2010 is shown in the table below. Area Bolton Bury Manchester Oldham Rochdale Salford Stockport Tameside Trafford Wigan Provision as of 22 January 2010 Authorised Gypsy and Authorised travelling traveller pitches showpeople plots 26 88 17 20 16 75 0 0 27 0 31 99 0 0 0 38 83 0 34 36 Greater Manchester 234 356 Cumbria sub-region 91 38 Cheshire sub-region 256 22 Lancashire sub-region 359 28 Merseyside sub-region 30 0 North West Total 970 444 Source: “Current authorised provision (gypsy and traveller pitches) in 2007: Revised version” – 4NW (published 25 January 2010, data as at 22 January 2010) 5.76 It can be seen that Salford has the third highest number of pitches for Gypsies and travellers of the districts in Greater Manchester, and provides 13.2% of the sub-region’s total provision. Greater Manchester provides 24.1% of the regional total. 5.77 In relation to authorised travelling showpeople provision, Salford has the highest number of plots in Greater Manchester, providing 27.8% of the sub-region’s total provision. Notably, Greater Manchester accommodates 80.2% of the region’s travelling showpeople plots, whereas there is no provision at all within the Merseyside sub-region. 5.78 The latest available data from the DCLG count of Gypsy and traveller caravans, as of 28 July 2011, is shown below. This relates to the total number of caravans rather than the number of pitches, with there typically being two caravans per pitch on an authorised site. 223 Number of caravans as of 28 July 2011 Authorised sites Unauthorised sites Area Bolton Bury Manchester Oldham Rochdale Salford Stockport Tameside Trafford Wigan Social 43 25 20 0 48 62 0 0 0 12 Private temporary 0 0 0 0 0 0 0 0 0 0 Private permanent 0 0 0 0 0 0 0 0 21 33 Total 43 25 20 0 48 62 0 0 21 45 Tolerated 0 0 0 0 0 0 0 0 0 0 Not tolerated 0 0 0 0 0 0 0 0 0 12 Total 0 0 0 0 0 0 0 0 0 12 Total of all caravans 43 25 20 0 48 62 0 0 21 57 Greater Manchester 210 0 54 264 0 12 12 North West 473 53 551 1,077 48 154 202 Note: Manchester data relates to July 2010 as no count was provided for July 2011 276 1,279 Source: Department for Communities and Local Government count of Gypsy and traveller caravans (November 2011) 5.79 This information indicates that some of the sites in the January 2010 data for pitch numbers may since have been lost. 29.5% of all caravans on authorised sites in Greater Manchester are in Salford. It can be seen that Greater Manchester has a very low proportion of caravans on private sites (20.5%) compared to the North West as a whole (51.2%), and there are no private caravan sites in Salford. The only unauthorised provision in Greater Manchester on 26 July 2011 was in Wigan. Sites in Salford 5.80 Salford currently has one Gypsy and traveller site at Duchy Road (Irwell Riverside) providing 31 pitches. These pitches are all social rented, and are currently occupied by a total of 62 caravans. The site has an area of 1.2ha (12,000 square metres). It is owned by the city council and managed on its behalf by Salix Homes. 5.81 Originally half of the site was for transit pitches, but due to an under provision of permanent sites within the city, some transit pitches have gradually become permanent pitches. The intention is that some of these permanent pitches will in future become available as transit pitches, as and when residents leave the site. A timeline for this will depend on the natural turnover of residents on the site. 5.82 Salford currently has three travelling showpeople sites which together provide a total of 99 plots: Regent Road Caravan Park – located next to the Gypsy and traveller site at Duchy Road, and is owned by the city council. The site is approximately 8244m² (0.8ha) in size, and provides 24 plots. • 224 • • 5.83 Brookdale Park – located at Cleggs Lane in Little Hulton, and is a privately owned site. The site is approximately 9,861 m² (0.99ha) in size, and provides 25 plots. Fairways – located at Clarence Street in Lower Broughton, and is privately owned. The site is approximately 12,148 m² (1.2ha) in size, and provides 50 plots. The Fairways site is located within the indicative floodplain, and would be affected by a severe flood event115. Caravans, mobile homes and park homes intended for permanent residential use are identified as highly vulnerable uses in Planning Policy Statement 25116, and consequently new developments should not be located on sites with a 1 in 100 or greater annual risk of river flooding. Therefore ideally the Fairways site should be relocated to a site at lower risk of flooding Need for additional gypsy, travellers and travelling showpeople accommodation 5.84 Various assessments of need have been undertaken to determine what future provision needs to be made for Gypsies and Travellers within Salford. This includes the Salford Housing Needs Assessment (2007), the Greater Manchester Gypsy and Traveller Accommodation Assessment (GTAA) (2008) and the North West GTAA (2007). 5.85 At a regional level 4NW (the former Regional Planning Body) undertook research into the need for new pitches and plots for travellers as part of a partial review of the North West Regional Spatial Strategy (RSS). An Examination in Public took place in March 2010, but due to the likely revocation of the RSS, the partial review was not completed or incorporated into the RSS. However, the Panel report was published following a Freedom of Information request to the Planning Inspectorate. The partial review took a policy based approach that considered the appropriate distribution of plots and pitches, rather than simply focusing on where the need was currently being generated. 5.86 The table below provides a summary of the various assessments of need for additional Gypsy and traveller pitches. 115 “Manchester City, Salford City and Trafford Councils Level 2 Hybrid SFRA” – JBA Consulting (March 2011) 116 “Planning Policy Statement 25: Development and Flood Risk” – Department for Communities and Local Government (March 2010) 225 Need for additional Gypsy and traveller pitches (time period and source) 2007-16 RSS (4NW 2007-16 (RSS 2007-17 (SCC Housing 2008-15 (GM RSS Partial Review Panel Report – not Needs Assessment) GTAA) submission)* issued)* Permanent PermaPermaPermanent Transit Transit Transit and transit nent nent pitches pitches pitches pitches pitches pitches pitches Area Salford 24 n/a 39 30 10 35 5 Greater Manchester n/a n/a 381 280 100 330 50 North West n/a n/a n/a 825 270 890 220 * 3% annual compound increase in the total pitches post 2016 Sources: Salford City Council 2007 Housing Needs Assessment (Fordham Research); Greater Manchester Gypsy and Traveller Accommodation Assessment (Arc4); 4NW RSS Partial review Submission Document; Panel Report into the North West RSS Partial Review (not issued) 5.87 All of these assessments identified some additional need in Salford, ranging from 24 to 40 pitches though with slightly varying time periods. The RSS partial review identified the need for transit as well as permanent provision. 5.88 The next table provides a summary of the various assessments of need for additional travelling showpeople plots Need for additional travelling showpeople plots (time period and source) 2007-17 (SCC 2008-15 2007-16 RSS 2007-16 RSS Housing needs (Greater (4NW RSS Panel Report assessment) Manchester Partial Review (not issued)** GTAA) submission)* 43 51 20 20 n/a 210 155 155 Area Salford Greater Manchester North West n/a * 3% compound increase in plots post 2016 ** 2% compound increase in plots post 2016 n/a 285 285 Sources: Salford City Council 2007 Housing Needs Assessment (Fordham Research); Greater Manchester Gypsy and Traveller Accommodation Assessment (Arc4); 4NW RSS Partial review Submission Document; Panel Report into the North West RSS Partial Review (not issued) 5.89 These assessments all identify some additional need in Salford, but this varies quite considerably between 20 plots in the RSS review and 51 plots in the Greater Manchester Gypsy and Traveller Accommodation Assessment. The methodology that is used for the accommodation assessments effectively means that locations where there is currently travelling showpeople provision are likely to show the greatest need for additional provision in the future. However, the RSS partial review took the view that new provision should be more evenly distributed, although this redistribution of demand was still relatively 226 limited as no provision at all was proposed in the whole of the Merseyside sub-region. 5.90 Further work will be required at the sub-regional level to ensure that the provision of new sites for Gypsies, travellers and travelling showpeople is properly distributed and coordinated. Student housing 5.91 There is one university within Salford (the University of Salford), which is located in the eastern part of the city. There are also two other universities relatively near by in central Manchester (the University of Manchester, and Manchester Metropolitan University). This generates a significant demand for student housing in the inner areas of the conurbation. 5.92 The University of Salford has two main campuses: • The Peel Park and Frederick Road campus, located on the western edge of the Manchester/Salford City Centre • The MediaCityUK Campus at Salford Quays, which opened in October 2011 5.93 The table below shows the number and type of students at the University of Salford in the 2010/2011 academic year. Number of students (2010-2011) HEFCE Non-HEFCE International Total Type fundable fundable Undergraduate 11,973 3,891 953 16,817 Postgraduate 2,072 401 1,109 3,582 – taught Postgraduate 381 215 596 – research Total 14,045 4,673 2,277 20,995 Note: HEFCE is the Higher Education Funding Council for England Source: University of Salford Financial Statements Year Ending 31 July 2011 Purpose-built student accommodation 5.94 There are a total of 3,245 purpose-built student bedrooms in the city, 52% of which the University directly owns and controls. A summary of the accommodation including a brief description is shown in the table below. 227 Site Description Castle Irwell University owned comprising both houses (11 people) & flats (6 persons) for undergraduates and postgraduates. Sports complex included within the Student Village and free car parking. Constantine University owned comprising 13 bed houses on Court campus. Horlock University owned comprising 14, 12 bed houses on Court campus. Bramall University owned close to the Adelphi Campus, Court providing accommodation for undergraduates. Matthias Leased to the university the flats which are usually Court shared between 2 – 3 people provide accommodation for postgraduates. Lester Court Owned by Campus Living Villages providing accommodation for both under and postgraduates. Colman Owned by Campus Living Villages providing Court accommodation for both under and postgraduates. iQ Student Owned by CRM Ltd and located close to Castle Irwell, Quarter it comprises a number of houses which contains six flats which are typically shared by 6 people. Total Number of rooms 1,058 87 168 346 290 376 379 541 3,245 Source: Information taken from The University of Salford Student Village Proposals Planning and Regeneration Statement by Turley Associates, planning application 11/60366/HYB and also www.accommodation.salford.ac.uk./accommodation_locations 5.95 The map below shows the location of the purpose built student accommodation in Salford. 228 5.96 Much of the existing accommodation was built in the 1960s and 1970s, and is in need of some modernisation. It may increasingly struggle to compete with alternative provision, as prospective students are said to 229 becoming much more discerning in their choice of accommodation. However, it is possible that recent increases in university fees could impact on both the demand for and expectations of student accommodation. 5.97 A Campus Plan, produced in April 2011, illustrates the university’s aspirations and vision for change. A key objective is the provision of oncampus student accommodation in order to increase animation, vibrancy and improve the campus experience. The university has indicated that it would like to guarantee accommodation to all first year undergraduates and also, if possible, to all overseas students. 5.98 In October 2011 the university was granted planning permission for the erection of up to 2,100 student bedrooms at the Peel Park campus (application number 11/60366/HYB). The application indicated that 1,949 of the new bedrooms would be direct replacements for those that are to be vacated elsewhere (1,058 bedrooms at Castle Irwell, 255 bedrooms at Horlock Court and Constantine Court, and 636 bedrooms at Matthias Court and Bramhall Court). 5.99 As well as plans for student accommodation on the main Peel Park campus, a private sector scheme has recently been granted for 240 bedrooms at St Simon Street in Greengate North (11/60830/FUL). A further application for private sector accommodation totalling 1,091 student bedrooms at Adelphi Street just to the east of the Peel Park campus is currently awaiting determination (11/59839/FUL). Students in private sector dwellings 5.100 Many students live in private sector rented housing rather than purpose-built student accommodation. Council Tax data can be used to give a broad indication of the number and distribution of private sector dwellings being occupied by students. It is only possible to identify those households where all occupants are students and consequently qualify for a Council Tax exemption, and so this data does not include all students who live in private sector housing. The data is shown in the table below. Ward Barton Boothstown and Ellenbrook Broughton Cadishead Claremont Eccles Irlam Irwell Riverside Kersal Number of occupied dwellings Number of % of occupied dwellings with dwellings with student discount student discount 5,777 14 0.24 3,895 6,022 4,483 4,278 5,369 3,988 5,249 4,737 230 4 76 10 28 16 2 256 37 0.10 1.26 0.22 0.65 0.30 0.05 4.88 0.78 Ward Langworthy Little Hulton Ordsall Pendlebury Swinton North Swinton South Walkden North Walkden South Weaste and Seedley Winton Worsley Number of occupied dwellings 6,568 5,588 8,300 5,472 5,117 4,681 5,270 4,473 Number of % of occupied dwellings with dwellings with student discount student discount 312 4.75 14 0.25 301 3.63 24 0.44 10 0.20 8 0.17 15 0.28 11 0.25 5,362 5,316 4,302 Total 104,247 Source: Council Tax data December 2011 50 14 5 0.93 0.26 0.12 1,207 1.16 5.101 The above table shows that 1.16% of all dwellings in the city are student households. The largest concentrations of student dwellings are in those wards that are in close proximity to the main university campuses (i.e. in Irwell Riverside, Langworthy and Ordsall). There is no ward where the proportion of occupied dwellings with student exemption from paying council tax is above 5%. Future demand for student housing 5.102 It is very difficult to estimate the likely future demand for student housing given recent increases in student fees to up to £9,000 per annum. It is possible that financial pressures could result in more students remaining in their family home, reducing the demand for student housing (both in terms of purpose-built accommodation and private rented housing). 5.103 In this context, it may be appropriate to ensure that a clear need is demonstrated before further purpose-built student accommodation is permitted, in order to avoid any potential oversupply of a housing product that has a very targeted market. 5.104 The very high concentration of students in south Manchester has been identified as having adverse impacts on the local housing market, and Manchester’s Publication Core Strategy seeks to limit further concentrations117. There does not appear to be any evidence that there is any similar concentration of students in private sector dwellings that affects part of Salford, although it will be important to keep this under review as patterns of demand can change quickly. 117 “Manchester’s Local Development Framework: Core Strategy Development Plan Document – Publication consultation” – Manchester City Council (February 2011), Policy H11 231 Higher priced housing 5.105 The key housing objective of the Greater Manchester Strategy is “creating quality places to meet the needs of a competitive city region”. It explains that: “Within the city region, there is need to focus on improving the match between the housing ‘offer’ and the aspirations of existing and potential new households and ensuring our housing policy is linked to improving life chances in deprived communities, attracting and retaining the best talent and moving towards a low-carbon economy.”118 5.106 The strategy makes a strong link between the provision of housing for skilled workers and the sub-region’s economic prospects, stating that: “The city region has to be known as a place that offers high quality housing in places where people at all levels of the market, including the highly skilled and talented, will choose, and can afford, to live and invest.”119 5.107 The need for housing in the higher price brackets is therefore considered to be an important priority for Greater Manchester. However, the areas where it is realistic to secure such provision are relatively limited. 5.108 The future economic performance section of chapter 3 of this assessment identifies that the number of workers in the highest skill categories (level 4) will see the greatest growth in Greater Manchester over the period 2011-2028. Given that highly skilled jobs tend to command higher salaries, it may be expected that the demand for higher cost housing will increase significantly over the next few decades. Scale of future provision in Salford 5.109 The section on the active housing market in chapter 2 of this assessment explains how the city has been split into five value areas on the basis of average sales values per square metre of residential floorspace. It describes those areas as follows: • Over £3,000 per square metre (relating to the Regional Centre within the inner relief route, and Salford Quays) • Between £2,600 and £3,000 per square metre (relating to Worsley, South Swinton, and Chat Moss) • Between £2,200 and £2,600 per square metre (relating to Broughton Park, Chapel Street / The Crescent, Exchange Quay, 118 “Prosperity for all: The Greater Manchester Strategy” – Association of Greater Manchester Authorities (August 2009), p.47 119 Ibid, p.48 232 • • Ellesmere Park and Monton, Boothstown, Ellenbrook, and South Walkden) Between £1,800 and £2,200 per square metre (relating to Trinity, Ordsall, Claremont, Eccles and Peel Green, Irlam and Cadishead, Swinton, Pendlebury and Agecroft, and North Walkden) Between £1,400 and £1,800 per square metre (relating to Higher and Lower Broughton, Charlestown and Lower Kersal, Pendleton, Weaste, Seedley and Langworthy and Little Hulton) 5.110 The specific sites identified in the Strategic Housing Land Availability Assessment (SHLAA) as being, or likely to be, deliverable/developable (i.e. what are referred to in that document as Category 1 and Category 2 sites) have been categorised according to these value areas. The windfall allowances set out in the SHLAA are only available on a subarea rather than a site-specific basis, and so the proportions which are likely to be in each value area have had to be estimated. This has been done on the following basis: • Broughton Park – 25% in low cost area; 75% in mid cost area • Charlestown and Lower Kersal – all in low cost area • Chat Moss – all in the mid/high cost area • Claremont and Weaste – all in the low/mid cost area • Crescent – all in the mid cost area • Eccles – 75% in the low/mid cost area; 25% in the mid cost area • Eccles New Road – all in the low cost area • Greengate – all in the high cost area • Greengate North and Trinity – all in the low/mid cost area • Irlam and Cadishead – all in the low/mid cost area • Liverpool Street – all in the mid cost area • Lower Broughton – all in the low cost area • Ordsall – all in the low/mid cost area • Ordsall Waterfront – 75% in the low/mid cost area; 25% in the mid cost area • Pendleton – all in the low cost area • Salford Central – 60% in the mid cost area; 40% in the high cost area • Salford Quays – all in the high cost area • Swinton and Pendlebury – 85% in the low/mid cost area; 15% in the mid cost area • Walkden and Little Hulton – 35% in the low cost area; 35% in the low/mid cost area; 30% in the mid cost area • Worsley and Boothstown – 50% in the mid cost area; 50% in the mid/high cost area 5.111 The table below shows the results of this, identifying the amount of the identified SHLAA supply in each of the value areas. 233 Cost area Low Mid/low - Within Regional Centre - Outside Regional Centre Mid - Within Regional Centre - Outside Regional Centre Mid/high High Total Number of dwellings % of city total Houses ApartTotal Houses ApartTotal ments ments 3,356 2,181 5,537 38.39 13.58 22.32 3,524 3,337 6,861 40.32 20.78 27.66 40 1,187 1,227 0.46 7.39 4.95 3,484 1,248 2,150 3,476 5,634 4,724 39.86 14.28 13.39 21.64 22.72 19.05 463 3,101 3,564 5.30 19.31 14.37 785 493 120 375 25 7,043 1,159 518 7,163 8.98 5.64 1.37 2.33 0.15 43.85 4.67 2.09 28.88 8,741 16,062 24,803 100.00 100.00 100.00 Excluding the Regional Centre - Low - Mid/low - Mid - Mid/high - High 3,356 3,484 785 493 0 2,181 2,150 375 25 0 5,537 5,634 1,159 518 0 Total 8,118 4,731 12,849 % of total excluding the Regional Centre 41.34 46.11 43.09 42.92 45.45 43.85 9.66 7.92 9.02 6.08 0.52 4.03 0.00 0.00 0.00 100.00 100.00 100.00 5.112 It can be seen that a significant proportion of the potential supply over the period 2011-2028 is within the high cost area (29%). However, that area consists solely of Salford Quays and that part of the City Centre within the Inner Relief Road. It therefore represents a very specific sector of the housing market, focused on high density ‘city centre’ apartment living, which may not be attractive to or suitable for many households. 5.113 In some ways it is the second part of the above table that is more informative, as it excludes the potential supply of dwellings within the Regional Centre where apartments dominate. This suggests that 87% of the potential supply is within the low and mid/low cost areas. The availability of higher cost housing outside the Regional Centre is therefore relatively limited, with only 4% in the mid/high areas and 9% in the mid areas (totalling 1,677 dwellings across these two categories). 5.114 It may therefore be appropriate to give consideration to whether there is the potential to increase the supply of housing land in the mid and/or mid/high areas, in order to support the Greater Manchester priority of increasing the supply of higher value housing within the conurbation. 234