Strategic Housing Market Assessment - North Devon District Council

SHMA: Torridge and North Devon Update
June 2012, estate agents reported that the sales market was sluggish and
they are pessimistic about any improvement. Prices remain stable as sellers
have become more realistic.
3.93 Average prices increased in 2010 and fell in 2011 but are still above the level
for 2009. Reflecting the profile of the housing stock, detached properties
made up almost 40% of sales in 2011, terraced houses over 33% and flats
and apartments only 12%. This pattern reflects both the historic low supply of
smaller homes and the difficulty first time buyers are experiencing in entering
the housing market. Towns are generally cheaper than rural areas and there
are major house price hotspots around Croyde, Woolacombe and adjacent to
the Exmoor National Park.
3.94 Overall, as most sales are of houses, the home ownership sector is currently
more effective in meeting the requirements of families and is less effective for
singles and couples, demand from whom will continue to increase.
The intermediate housing sector
3.95 According to Housing Vision estimates, the intermediate sector has grown
from 0.5% to 1.0% but, despite the emphasis placed on its development in
recent years, it constitutes a minority tenure.
3.96 324 completions between 2001 and 2012 were equally divided between the
districts, the majority of which were for shared ownership. Combined with
totals at the 2001 Census, these completions imply there are now 472
intermediate properties in North Devon and 301 in Torridge.
3.97 The supply of Intermediate Housing through turnover is notoriously low as
staircasing to full from shared ownership is not typical. Even if a 4% turnover
rate is applied - below the full cost rate - this implies an annual supply of no
more than 31 homes across the area.
The social rented sector
3.98 According to Housing Vision estimates, the social rented sector has declined
from just over 10% to just over 9% and remains significantly below regional
(13.1%) and national (17.8%) averages.
3.99 There are currently almost 7,000 social rented properties across the area - a
9% increase since 2001 - with 64% located in North Devon. Due to the
disproportionate impact of Right to Buy sales, the stock is heavily skewed
towards sheltered housing and smaller properties; 30% are 1 bed or bedsits;
33% are 2 bed; 32% are 3 bed and only 2% are 4 bed properties or larger.
3.100 As a result of turnover, an average of 436 social rented properties are
available each year which is less than 10% of those advertised in the private
rented sector. Reflecting the composition of the stock, most lettings in 2010-
142