Strategic Housing Market Assessment - North Devon District Council

SHMA: Torridge and North Devon Update
3.86 Estimates developed by Housing Vision indicate strong growth in private
renting in North Devon and Torridge such that the sector has more than
doubled in size since 2001 to reach over 22% of all housing. As a result, the
scale of the private rented sector substantially exceeds the social rented
sector’s 9% of homes. Such growth resulted in a decline in home ownership
as properties have been transferred between sectors.
3.87 The growth of the private rented sector has good and bad points. It has been
important in extending flexibility and choice, and in maintaining a supply of
housing when turnover has reduced in the home ownership and social rented
sectors. However, homes purchased by investors - who are still active - are
likely to be those accessible to first time buyers which has the effect of further
excluding them from the market and placing an upward pressure on lower
value prices.
3.88 With a turnover conservatively estimated at 33%, the private rented sector
now makes a major contribution to housing supply. Compared with the home
ownership sector, it has a different profile with flats the main property type
advertised, though detached houses still make up one quarter of supply.
Estate and lettings agents report that the rental market is very strong, with
properties letting quickly.
3.89 Monthly rents are higher in North Devon for almost all types of
accommodation. In terms of eligibility for housing support, average rents are
only close to Local Housing Allowance Rates for 1 and 2 bed flats in both
districts and for 3 bed flats in Torridge, and in all cases in few locations.
3.90 Valuation Office Agency data for 2011, which typically profiles the lower 40%
of the market, identified that 2 bed properties or smaller made up over half of
properties on which a rent determination was made; 29% were 3 bed and
18% were 4 bed. In the context of the application of the Local Housing
Allowance shared accommodation rate to all single people under 35 years
old, an estimated supply of 8% shared and bedsit accommodation will
become more important.
3.91 Overall, the private rented sector is effective in meeting the requirements of
single people and couples - whose numbers will continue to increase - and
the requirements of smaller family households who are less well provided for
in the home ownership sector.
The home ownership sector
3.92 Although the number of properties has increased by around 5,000, it is
estimated that the growth in private renting has resulted in the home
ownership sector falling in proportionate terms from 73% of all homes in 2001
to 67% in 2011. However, compared with the national picture which has
generally seen a drop in completed sales, the sector has maintained sales
volumes equivalent to a turnover rate in 2011 of almost 5%. However, by
141