Gateshead and Newcastle Strategic Housing Market Assessment

Gateshead & Newcastle Strategic Housing Market Assessment ‐ 2010
3 THE CURRENT LOCAL HOUSING MARKET
3.1 Introduction
3.1.1 An important element of this SHMA is to consider the relationship between Newcastle and
Gateshead and other local authorities in the Tyne & Wear City Region.
3.1.2 Broadly this section consists of:‐
‣ Identifying housing market boundaries;
‣ The North East Regional context;
‣ Housing market boundaries in the North East region;
‣ Migration Patterns;
‣ Internal movement within Newcastle by Sub‐Area;
‣ Internal movement within Gateshead by Sub‐Area;
‣ Travel to Work Patterns;
‣ The Newcastle and Gateshead Market.
3.2 Identifying Housing Market Boundaries
3.2.1 Before establishing the extent of the Newcastle and Gateshead Housing Market, it is
important to ensure that there is a common understanding of what is meant by the term
‘housing market’.
3.2.2 A market is where buyers and sellers exchange goods or services for an agreed price. A
housing market is a complex market for a variety of reasons:‐
‣ Housing is a high value commodity. The decision to purchase is of great importance to
individuals due to the scale of the investment and the time required to pay off this
investment;
‣ Housing can also have an emotional attachment and moving is often both expensive and
stressful;
‣ Housing is built to last and because of this, only a fraction of the stock is for sale and
available to purchase at any point in time;
‣ The housing market is highly regulated, the location and volume of new development is
controlled through planning policies and procedures;
‣ Housing is a basic human requirement and resources are provided to ensure that those
who cannot access market housing are adequately housed through either direct
provision of housing or subsidy.
3.2.3 A housing market has a strong spatial dimension. Location matters to people. Most buyers
seek to move within the same sub‐region because they want to continue living in that area
for reasons such as family, employment or access to particular services such as schools;
Affordable housing and housing benefit add to the market complexities.
3.2.4 A housing market is defined in the Guidance Advice note as typically comprising an area in
which around 70% of all housing moves are contained.
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