Strategic Housing Market Assessment - North Devon District Council

SHMA: Torridge and North Devon Update
people (53%) followed by couples (27%). Two parent families made up 13%
of the total and lone parents 17%. No older people were housed in this sector.
4.64 52% of purchasers earned £22-29,999 - which is in excess of median gross
incomes from full-time work in either district - and a further 28% earned £14-
21,999.
4.65 Information suggests that the intermediate housing sector is most successful
in housing people who were previously living with family or friends (50%) and
those who were previously renting privately (almost 33%). Only 7% were
previously renting from a local authority or housing association, indicating a
lack of access to this type of product by that applicant.
What is the current pattern of need and demand for market housing
4.66 Looking to market intelligence, agents in North Devon reported that demand
for homes for sale is from a mix of households with no particular type
dominant, estimated ratios of locals to incomers to the area varied from 50:50
to 70:30. Cheaper properties of up to £200k were selling well especially where
they were attractive to investors who account for 5% to 25% of sales; second
home owners accounted for between 5% and 30% of sales. There is demand
for new homes, including for shared ownership, but a very limited supply.
4.67 Everything was renting well with nothing difficult to let. Several agents
considered that the recent Local Housing Allowance changes had made
landlords less willing to let to tenants claiming the Allowance.
4.68 Agents in Torridge reported that demand is from a mix of households with no
particular type dominant. There is continued interest from investors who
account for between 10% and 75% of sales. Demand from second home
owners was less strong, accounting for between 10% and 50% of sales.
Where new homes are available, demand is strong from a variety of
households and there is a latent demand for shared ownership/equity which
sells well when available, and mostly to local people.
4.69 The rental market is strong with nothing difficult to let; only one agent reported
any impact from the recent LHA changes as tenants under 35 were trying to
downsize to maintain their eligibility.
What is the pattern of affordability
4.70 Applying an affordability threshold of 25% of gross equivalent to 34% of net
household income, most housing in both districts is unaffordable for those on
average incomes and all housing is unaffordable to those on lower quartile
incomes. In the market sector, only rented properties ranging from shared to 3
bed homes; 1-3 bed intermediate ownership flats; re-sale and new-build
ownership 1 bed flats are affordable to those on average incomes.
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