East Midlands Regional Spatial Strategy 2005/06

Figure 3.6 - Ratio of House Price to Salaries 2006 (Q2)
No data for Derbyshire Dales
Source: House Prices Land Registry April
to June 2006
Salaries: ASHE Mean Gross annual
earnings of residents 2005
Note different years used to calculate ratio
Data Analysis
3.26 Affordable housing completions in the East
Midlands have increased from 1,534 in 2003/04 and
1,406 in 2004/05 to 2,079 in 2005/06. The target
figure for affordable housing is to achieve 3,400
dwellings per annum in the East Midlands (excluding
Northamptonshire). Although still below this target
progress is being made.
3.27 Mean house prices across the East Midlands
have not changed much in 2006 compared to 2005
following a number of years that saw significant price
rises.
3.28 A comparison of average house prices and
average income levels at district level for the East
Midlands (a measure of affordability) shows a range
of outcomes across the East Midlands, although the
pattern for 2006 remains similar to that in 2005.
There are a number of areas that have experienced
industrial decline where house prices have remained
constrained compared to incomes, while other, often
rural areas, show a higher ratio of house prices to
average incomes.
Policy Commentary
3.29 Affordable housing provision rose significantly
in 2005/06, but still remains below target. Although
significant progress is being made, it is clear that
affordable housing is not being delivered to the
extent that the RSS states is required. Information
has been provided by the Housing Corporation on
completions they have funded and the level of
funding that may be available in the future. This does
include an element of acquiring existing stock. The
remaining affordable housing needs to be
negotiated through Section 106 agreements, and
some of that may require additional public subsidy.
Levels of finance are a major constraint to meeting
affordable housing targets.
3.30 The issues of affordability and affordable
housing targets are now being reviewed in much
more detail by the ten Housing Market Assessments
across the region.
Policy 19:
Regional Priorities for Managing the Release of
Land for Housing
RSS states a need to work jointly across
administrative boundaries to manage to release
of sites to ensure a sustainable pattern of
development is achieved. Priority areas of action
include the built up areas of Derby, Leicester,
Lincoln, Northampton, Nottingham (including
parts of Eastern Derbyshire), Chesterfield,
Mansfield and across regional boundaries.
East Midlands Regional Spatial Strategy Annual Monitoring Report 2005/06
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