House Prices and Affordability

The National Housing Federation's looks at the region's housing market annually, South West Home Truths 2010: Why investment in affordable housing matters, paints a bleak picture of the housing and economic challenge in the region. Housing Affordability is typically measured using the lower quartile [is the median of the lower half of the data set] house price to lower quartile incomes. This data can be accessed by district from DCLG live table 576. 

The measurement of house prices poses significant conceptual and practical problems, mainly because dwellings are heterogeneous assets whose prices can only be observed when they are sold. There are now seven main house price indices for the United Kingdom. In broad terms, each measures one of three different concepts: the value of a representative set of house transactions; the price of a house with "typical" characteristics; the value of the housing stock. The indices are constructed from different data using different methods. Consequently, the available measures of house prices can give conflicting or misleading signals about house price inflation.

- Access Robert Wood's Comparison of UK Residential House Prices and Indices available via the BIS Website.

Housing benefit is available to people on low incomes that need assistance to pay all or part of their rent.  Further information on housing benefit and eligibility is available from Directgov. Information for Local Authorities on Housing Benefit is also available via the Department for Work and Pensions. From 1 April 2011, changes to the local housing allowance (LHA) arrangements will come into effect, including how the LHA rates are worked out, further information is available from DWP. For more on this, follow the link to the DWP website.

Local Housing Allowance Direct holds data from the Valuation Office Agency (VOA) listing rents used to calculate the Local Housing Allowance (LHA) rates in England, the rents are detailed by Broad Rental Market Area (BRMA).

BRMAs are set by the Rent Service to define areas in which similar sizes of properties attract similar rents. BRMAs have replaced Local Reference Rents, for further inforamtion on changes to LHA follow the link. 

Local Reference Rent (LRR) – introduced in January 1996 with the purpose of limiting Housing Benefit levels for deregulated private rented sector tenants to the general level of rents for properties of the appropriate size in the relevant locality. The LRR is the midpoint or median of the range of weekly rents for all types of property with the relevant number of rooms and therefore excludes exceptionally high or exceptionally low figures. It acts as a ceiling on the amount of rent that can be taken into account for Housing Benefit purpose. When an application for Housing Benefit is referred for determination, the Rent Officer determines the relevant 'locality' based on expert knowledge of the housing market in the area. The appropriate size of dwelling is determined by applying the size criteria set out in the legislation and the criteria used are as follows:

> One bed room (or other suitable room for living) for each of the following: i) a married or unmarried couple; ii) an adult (aged 16+); iii) Two children of the same sex; iv) Two children less than 10 years old; v) A child.

> Two bed rooms for 1 to 3 occupiers

> Three bed rooms for 4-6 occupiers

> Four bed rooms for 7 + occupiers.

Proposed Rent is the contractual rent for private sector assured tenancy tenants who claim Housing Benefit. Sometimes it also includes service charges. For this data, Proposed Rent represents the median rent.

Further housing benefit data can be accessed through ONS neighbourhood statistics: You can search neighbourhood statistics at ONS.

DCLG House Price Index – June 2011

The Homes and Communities Agency has produced an Intermediate Markets Data Compendium to attempt to collate the wide range of information currently available into one reference point. The compendium includes data from a number of sources, covering key areas including:

• Demand and applications
• Sales
• Buyers
• Mortgages
• Post sales activities

When someone contacts a local authority to make a formal homelessness application they will usually be taken through some prevention processes first, such as mediation with landlords or relatives and debt advice. A housing options interview might also identify alternative routes to homelessness. In order to be accepted as homeless by the local authority the person must meet the following criteria:

• Is the person eligible (ie. not an asylum seeker)?
• Is the person homeless (ie. do they have somewhere they are legally permitted to reside)?

• Is the person intentionally homeless (ie. did they lose there last home because the didn't pay rent)?
• Does the person have a 'priority need' for accomodation (defined by 2002 homelessness legislation, includes things like 16 and 17 year olds, dependent children, disability)?
• Does the person have a local connection (eg. if they have family in Manchester but  apply in Bristol for no apparent reason)?

If a person meets the crieteria, they will be accepted as homeless by the local authority and will be placed in temporary accommodation. They will then receive priority in the allocations system to 'fast-track' them into a tenancy. 

Homelessness by Local Authority

Publications on Statuatory Homelessness data and Live tables provide useful information by geographical area or on a temporal basis by Local Authority. 

Not all homeless people are sleeping rough on the streets; some may be living in hostels or sleeping on a friend's floor. 

The Government has published guidance on evaluating the extent of rough sleeping. Total street count estimates are also available on the DCLG website. A Ministerial working group led by Housing Minister Grant Shapps has been set up to look at ways of tackling homelessnes. Further information can be found on DCLG website.