Housing Needs Assessment 2006 - Westminster City Council

6. Financial information and affordabilityExpected tenureTable 6.3 Affordability and expected tenureAfford owneroccupationAfford privaterentAffordabilityUnable toafford markethousingTotalOwner-occupied 2,541 233 466 3,240Private rented 228 2,043 3,868 6,139Social rented 43 502 3,897 4,442TOTAL 2,812 2,778 8,231 13,821Source: City of Westminster Housing Needs Survey 20066.6 Assessing affordability – potential householdsThe Housing Needs Assessment ascertained whether or not potential households (namely personswho currently live as part of another household and commented on further in the following chapter)would be able to access the private sector housing market by asking the following question to thesurvey respondent:‘In your opinion, will they be able to afford suitable private sector housing in the City ofWestminster area (this can either be rented (excluding the use of housing benefit) orbought?’This would appear to be broadly in line with ODPM guidance which says:ODPMGuide‘It is difficult to estimate the incomes of future newly forming households. Unlesspotential household members are interviewed specifically, it is not practical tocollect complete income data relating to this group through a housing needssurvey. Even where the fieldwork includes concealed household interviews, thereare doubts as to the value and reliability of any income data which might becollected.’ [Section 4.4 (page 62)]‘One way around this problem is to substitute a subjective judgement about futurehousing prospects in place of a formal affordability test.’ [Section 4.4 (page 60)]It should be noted that this approach is used when assessing the ability of potential households toafford market housing in the balancing housing markets assessment in Chapter 12. Future estimatesof the needs from household formation are based on past trend information – an approach in linewith the ODPM guide.PAGE 65