Assessing Housing Affordability Donna Milton, Managing Director, Arneil Johnston
Components of Housing Affordability Assessment • What evidence do you need & what factors should be considered?
Rental Benchmarks • LHA rates up to 44% below commercial values • RSL rents up to 75% below commercial values • RSL rents up to 55% below LHA rates
Customer Sounding BoardValidating income to rent ratio assumption • 90% willing to pay between 20%-40% but spending significantly more • 50% are spending between 40%-50% of their income on rent alone
Structure of local economy & local income profile are key drivers in PRS affordability
Knowing the Customer… Rural area: PRS tenant base income profile • 35% of all local households can’t afford market rents • 49 % of PRS tenants can’t afford market rents
Housing Affordability Policy Investment & rental strategy should be informed by evidence of… Customer engagement & informed dialogue on priorities is essential…