Housing Needs Assessment 2006 - Westminster City Council

2. Housing Needs Assessment - background2. Housing Needs Assessment - background2.1 IntroductionThe assessment closely follows guidance set out by the Office of the Deputy Prime Minister in‘Local Housing Needs Assessment: A Guide to Good Practice’ (July 2000). It should be noted thatthroughout this report reference is made to the ODPM Guidance, although at the time of publicationthe Department was titled DETR. The main aspect of the ODPM guide is its Basic NeedsAssessment Model (BNAM) which is discussed further in this chapter.In March 2005 a ‘discussion draft’ of a revision to the above guidance was published. In additionthe Housing Markets Assessments Draft practice guidance published by the ODPM in December2005 provides advice on how housing need should be assessed. This report has taken account ofsome of the main changes proposed in the new guidance and several elements of the methodology,such as the affordability test and unsuitable housing categories, have been adjusted accordingly. It isunlikely that these will change when the new guidance is finalised.The study also looks at housing requirements using our ‘Balancing Housing Markets’ methodology(BHM). This is a demand-led method which looks at potential housing shortages (and surpluses)across the whole housing market – including affordable housing. This requirement has been broughtinto focus as part of the Audit Commission’s Comprehensive Performance Assessment (CPA). TheCPA includes the requirement for local authorities to consider ‘balancing housing markets’.In carrying out this assessment using both the BNAM and the BHM we are able to cast someconsiderable light on the housing situation in the City of Westminster. The two methods are quitecomplementary. The BNAM looks predominantly at trend data whilst the BHM studies households’future aspirations, expectations and affordability.The two methods taken together provide detail on certain crucial matters, such as the types ofaffordable housing which can meet housing need and suggested affordable housing policy responses(such as target and threshold levels).2.2 Key points from the housing needs assessment guideThe basis for carrying out housing needs assessments has been standardised by the publication ofthe Guide (formally: Local Housing Needs Assessment: A Guide to Good Practice – ODPMHousing, July 2000). Since the Guide provides the test of a good Housing Needs Assessment, it isimportant to summarise its key features. This section is devoted to that purpose.PAGE 23