Part 1 ITEM NO. REPORT OF THE HEAD OF HOUSING SERVICES To the Lead Member for Housing Services On: 18th May 2006 TITLE: Housing Market Assessment for Little Hulton & Walkden RECOMMENDATIONS: That the Lead Member: 1. Notes the content of the report 2. Approves the publication of the main report EXECUTIVE SUMMARY: Housing Strategy 2004/2006 identified the requirement to produce local housing market assessments for neighbourhoods in Central Salford covering the Housing Market Renewal Pathfinder area, and West Salford. The main purpose of these assessments is to identify the key influences, and the drivers of housing market change at neighbourhood level, to increase an understanding of the dynamics of the housing market in Salford and to inform strategy and policy development within the city. The Housing Market Assessments would enable the access to the evidence base needed to create the mixed communities and the inclusion of affordable housing in new developments as required by the objectives set out in the draft (Planning Policy Statement 3) PPS3. These assessments are required to guide investment at both citywide and neighbourhood level and help target action to the most appropriate areas of the city. These would also support the future private sector housing policy, and the Neighbourhood Management process, and Neighbourhood Renewal Areas. In response to these requirements, we have produced two pilot housing market assessments, Broughton in Housing Market Pathfinder area (Central Salford) and Little Hulton & Walkden in West Salford. A Local Housing Market Issues paper would analyse the citywide key housing issues focusing on Central & West Salford respectively. These assessments would form the evidence base of our next housing strategy 2007-2010. The local housing market report for Little Hulton & Walkden was published in May 2005. The key findings and implications of the report together with more in depth analysis of more up-to-date primary data, and their spatial representation through GIS have formed the basis of this Housing Market Assessment for Little Hulton Community Committee Area covering Little Hulton, Walkden South, and Walkden North wards. 1 Consultation with stakeholders and residents has been an integral part of the process. A consultation plan has been developed to ensure the stakeholders’ involvement throughout the process. Little Hulton & Walkden Stakeholders Group made up of RSL representatives, Estate Agents, residents and NPHL have contributed to the report, and also consulted on the assessment. A draft assessment for Little Hulton & Walkden has been developed, and covers the Little Hulton, Walkden North, and Walkden South Wards. The assessment has provided key information on factors that influence the Housing Market in Little Hulton & Walkden Community Committee Area, and has analysed the housing demand and supply in the area, and identified housing market typologies for each ward within the community committee area. The key findings of the assessment are summarised below. BACKGROUND DOCUMENTS: Understanding change – housing markets IN Salford Housing Market Demand study- Northern Housing Consortium October 2003 Local Housing market for Little Hulton & Walkden May 2005 Census 2001 – Office for National Statistics ASSESSMENT OF RISK: Low THE SOURCE OF FUNDING IS: It is proposed to use the Housing Strategy Marketing Budget to produce the report professionally LEGAL ADVICE OBTAINED: Not Applicable FINANCIAL ADVICE OBTAINED: Not Applicable CONTACT OFFICER: Shahla Zandi. Shahla.Zandi@Salford. gov.uk Tel: 0161-9228774 WARD (S) TO WHICH REPORT RELATES: Little Hulton, Walkden North, and Walkden South wards KEY COUNCIL POLICIES: Making Future Happen in Salford – Housing Strategy 2004- 2006 Regenerating a great City - Salford’s Neighbourhood Renewal Strategy 2002 LINKS TO PARTNERS IN SALFORD THEMES: A city that’s good to live in 2 LINKS TO CABINET PRIORITIES AND PLEDGES: Housing Regeneration LINKS TO HOUSING STRATEGY PRIORITIES: Enable independent living in all our communities Provide a greater choice of home, and of housing services Bring all homes to decent standard Ensure equal access to homes and housing services LINKS TO PERFORMANCE: The report would provide some information related to the performance indicators below: BVPI 62 the proportion of unfit private sector dwellings made fit or demolished as a direct result of action by the local authority BVPI 64 Number of private sector vacant dwellings that are returned into occupation BVPI 106 Percentage of new homes build on previously developed land EQUALITY IMPACT ASSESSMENT: A stakeholder group has been set up to ensure the equality implications of the Housing Market Assessment in Little Hulton and Walkden. Information related to different BME groups, disabled, young people, and older people have been collected. DETAILS 1. Background 1.1 Housing Strategy 2004/2006 identified the requirement to produce local housing market assessments for neighbourhoods in Central Salford covering the Housing Market Renewal Pathfinder area, and West Salford. The main purpose of these assessments is to identify the key influences, and the drivers of housing market change at neighbourhood level, to increase an understanding of the dynamics of the housing market in Salford and to inform strategy and policy development within the city. 1.2 The Housing Market Assessments would enable the access to the evidence base needed to create the mixed communities and the inclusion of affordable housing in new developments as required by the objectives set out in the draft (Planning Policy Statement 3) PPS3. These assessments are required to guide investment at both citywide and neighbourhood level and help target action to the most appropriate areas of the city. These would also support the future private sector housing policy, and the Neighbourhood Management process, and Neighbourhood Renewal Areas. 3 1.3 In response to these requirements, we have produced two pilot housing market assessments for Broughton in Housing Market Pathfinder area (Central Salford) and for Little Hulton & Walkden in West Salford. A Local Housing Market Issues paper would analyse the citywide key housing issues focusing on Central & West Salford respectively. These assessments would form the evidence base for our next housing strategy 2007-2010. 1.4 The local housing market report for Little Hulton & Walkden was published in May 2005. The key findings and implications of the report together with more in depth analysis of more up-to-date primary data, and their spatial representation through GIS have formed the basis of this Housing Market Assessment for Little Hulton Community Committee Area covering Little Hulton, Walkden South, and Walkden North. 1.5 Consultation with stakeholders and residents has been an integral part of the process. A consultation plan has been developed to ensure the stakeholders’ involvement throughout the process. Little Hulton & Walkden Stakeholders Group is made up of RSL representatives, Estate Agents, residents and NPHL have contributed to the assessment. 1.6 A draft assessment for Little Hulton & Walkden has been developed, and covers the Little Hulton, Walkden North, and Walkden South Wards. The Assessment has provided key information on factors that influence the Housing Market in Little Hulton & Walkden Community Committee Area, has analysed the housing demand and supply in the area, and identified housing market typologies for each ward within the community committee area. The key findings of the assessment are summarised below. 2. Key findings and implications arising from the Housing Market Assessment for Little Hulton & Walkden 2.1 Key Implications – Housing Demand 2.1.1 Little Hulton Ward The significant decline in population over the ten-year study period is a possible indication that overall demand for housing has declined between 1991 and 2001. In addition the high proportion of single person households within Little Hulton supports further the perceived demand for affordable housing, potentially flats or small family dwellings. 2.1.2 Walkden South Ward The significant increase in population in this ward indicates a higher ‘stock’ of households or those who are seeking housing and thus demand is increasing. 2.1.3 There is a high level of demand for property in Walkden South from outside the ward. These together with higher levels of right to buy sales, again indicating healthy levels of demand in the housing market. Walkden North Ward The relatively stagnant population between 1991 and 2001 indicates that demand has remained consistent over this period. Walkden North has high proportions of single person and also single parent households, again giving an indication of demand for affordable housing and perhaps for smaller properties. 4 Walkden North is suffering from low levels of mean household income, high levels of economically inactive and unemployed residents. This gives an indication for high demand in the social and private rented sector rather than for privately owned dwellings. 2.2 Key Implications – Housing Supply 2.2.1 Little Hulton Ward This ward also has the lowest occurrence of owner occupied dwellings and it remains significantly lower that that of the Salford and England and Wales average. The net reduction of nearly 400 properties in 2004 – 2005 (Resland Survey) indicates reduced supply in the housing market. In summary, housing market supply in Little Hulton ward is unbalanced and disproportionately weighted to terraced property and Local Authority and social rented tenures. 2.2.2 Walkden South Ward Detached and semi detached are the predominant properties accounting for nearly three quarters of the stock. In addition there are a higher proportion of newer dwelling constructed post 1985 at over twice the rate of the other two wards within the CCA. In respect of tenure type, owner occupation is very high in the Walkden South ward, exceeding all wards within CCA, Salford Citywide and the England and Wales average. 2.2.3 Walkden North Ward Walkden North stock profile is predominantly is terraced dwellings and an older housing stock. Significantly a higher proportion of owner occupied properties exists in comparison with Little Hulton ward, although still below that of Walkden South and the citywide picture. 3.0 Conclusions and Housing Market Typologies 3.1 Little Hulton Ward In terms of the current property prices and the growth in property prices over the study period 2000-2004, the Little Hulton Ward remains below that of the other wards within the CCA, the City, and the North West Region. Importantly, whilst the current mix of tenure and property types meets current demand i.e. the demand for affordable privately owned housing and high levels of social housing, this mix does not allow for future improvements in housing market health through the provision of housing for the economically active and providing a mix of tenure. Thus the current supply does not offer an improvement in market health. The scoring system indicated that the Little Hulton Ward housing market suffered from ‘medium demand’ and ‘high turnover’ resulting in a ‘Unstable’ market typology. This typology definition indicates an ‘Unstable’ market is comprised of high turnover areas and turbulence due to high residential mobility. Interestingly, the ‘unstable’ typology indicates that this type of 5 housing market ‘requires further data analysis in order discern the rudiments of market change’. 3.2 3.3 Walkden South Ward The Walkden South ward housing market is the most stable and affluent within the Community Committee Area and this is reflected by the increase in house prices over the period 2000 - 2004. It has also amongst the highest performing markets throughout both West Salford and also on a citywide basis. Strong socio economic conditions coupled with an increase in population have resulted in high levels of demand for owner occupied tenure of semi and detached property type. Supply has met this demand adequately. Importantly however, Walkden South was the only ward within the CCA that showed a decrease in house sales perhaps indicating market stabilisation but also an affordability issue in this area. In respect to market typologies, the scoring system showed ‘high’ demand and ‘low’ turnover for the Walkden South ward. Thus the resulting matrix indicated a ‘self-sustaining’ typology. Interestingly, the definition of this typology includes ‘could intensify affordability problems’. Walkden North Ward In spite of increases in house prices between 2000 and 2004 at a rate similar to the Salford average, actual property prices remain relatively low on a citywide and North West basis. This ward suffers from poor socio economic conditions and an imbalance in property type. However, market ‘health’ in Walkden North may be slightly more positive due to higher levels of owner occupied properties and also a more stable population over the study period. The scoring system labelled Walkden North as a market of ‘Medium’ turnover and ‘Medium’ demand, resulting in a market typology of ‘Stable’. The stable market is defined as a ‘mid point in classification, with sufficient turnover and sustainable demand.’ 3.0 A full copy of the assessment is attached in Appendix 1 3.1 The assessment, and the above information, and the key issues paper will provide the evidence base for development of our new housing strategy for 2007-2010. 4.0 Production and distribution of the Housing Market Assessment 4.1 The assessment will be produced in a PDF document on Internet. 4.2 It is proposed that a summary leaflet be produced for further consultation and distribution within the community. 5.0 Recommendations 5.1 The Lead Member is recommended to: 1. Note the content of the assessment. 2. Approves the publication of the main report and a summary leaflet for consultation. 6