Housing: Construction
The question
To ask the Secretary of State for Housing, Communities and Local Government, whether assessment of local housing needs includes (a) share of second homes, (b) prevalence of short-term lets and (c) local house-price-to-income ratios.
Answered by Matthew Pennycook
The government’s revised standard method for assessing local housing need, introduced in December 2024, uses a baseline of local housing stock, adjusted for affordability using median workplace-based affordability ratios. The affordability adjustment directs more homes to where they are most needed.
As set out in the government’s response to the proposed reforms to the National Planning Policy Framework, which can be found on gov.uk here, the revised standard method does not adjust the housing stock baseline to account for vacant and second homes.
Local authorities have powers available to respond to locally specific concerns related to vacant and second homes.
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