Agenda item

Councillor Matthew Vaux (Cabinet Member for Partnerships, Housing, Legal and Governance and Public Protection) explained that the Local Housing Market Assessment (LHMA) was a Statutory requirement of all LAs, under the Housing Act 1985, and placed a duty on LAs to periodically assess the level of housing need in the County. LHMAs were considered as part of the evidence base for preparing Local Development Plans (LDP), Strategic Development Plans (SDP) and Local Housing Strategies. LAs were expected to rewrite LHMAs every five years and refresh the LHMA once during a five-year period (between years two and three). Ceredigion was currently at the refresh stage and the deadline for submission was 29 March 2024.

Ceredigion County Council’s in-house Research, Housing and Planning Policy teams used the newly developed WG provided tool to undertake the refresh. Unfortunately, versions of the tool did not work due to technical errors with the tool and the declining household projections for Ceredigion, which subsequently resulted in a delay in the production of the LHMA. WG undertook amendments to the tool, and the LA were now working with version 3.2, which had provided the outputs outlined in the report. Despite this, the LA were not entirely satisfied with the figures produced by the tool given the significant difference to figures provided historically, particularly around the affordable and open market need. 

The intention for the next LHMA rewrite was to commission a demographer/planning consultant to produce a range of population and housing growth scenarios for Ceredigion. This would provide further clarity on the housing growth options available, which could feed into the WG LHMA tool. Further consideration of this and subsequent costings would be undertaken in due course and part of the commissioning would be to provide a methodological approach for the Council to use in-house longer term, for undertaking the LHMA in future years.

Caitlin Theodorou, Research and Performance Officer provided an overview of the headline results for the LHMA. It was noted that a letter had been sent from the Leader of Ceredigion County Council to the Welsh Minister for Housing to express concerns with the Tool’s methodology and outputs. A written response had been received in early February. Hopefully, during the next rewrite, WG would be open for discussions. 

Members were provided with the opportunity to ask questions which were answered by Officers present and Councillor Matthew Vaux. The main points raised were as follows:

·       The greatest need as estimated by the tool was for 1-bedroom properties. The tool utilized data from the Housing Register and given that over half of people in emergency accommodation were single people, there was a clear need for 1-bedroom properties in towns, more so than in the past.

·       The importance of delivering property to future proof was deemed key, however, it was noted that the Housing Register considered the needs rather than the wants of people hence why the greatest need was for 1-bedroom properties. There could be implications on affordability, such as the bedroom tax if properties were too large.

·       Given the pause on the replacement LDP, the LHMA would have limited impact, however, a replacement LDP or SDP would require a full re-write of the LHMA, with a full re-write required by March 2025. The refresh had enabled the LA to raise concerns with the Tool’s methodology and output.

·       Although the delivery of 145 affordable units a year for the first 5 years would address the backlog of housing needs, there was a need for adequate housing across the board.

It was AGREED to approve the LHMA following the end of the consultation period and adopt.