Private Sector Rent and Local Housing Allowance Comparison Report ...

Brighton & Hove

Private Sector Rent and Local Housing Allowance Comparison Report Summary Annual Review 2015/16

Private sector homes advertised to rent in Brighton & Hove on rightmove.co.uk during 2015/16: average of 35 within LHA limits at any one time (out of 864) Studio

1-Bed

Single People under 35 and other sharers Single People over 34 Couples without children Families with children

Rent and Local Housing Allowance Comparison 1 April 2015 to 31 March 2016

26

2-Bed

3-Bed

4-Bed

0

1

5

1

0

6

2 2

1

Monthly snapshot of properties advertised in the City Single people over 34: Studio properties The chart shows the number of studio properties counted in the monthly snapshots that were within the 1-bed LHA limit during 2015/16. The snapshot in April 2015 counted 47 (59% of 80) studios within the LHA limit but this figure decreased to 8 (32% of 25) in October. Although the number increased in the following monthly counts it still remained below the number within the LHA limit counted in April.

Brighton & Hove Studio homes advertised for rent within the 1-bed LHA limit 60

47 39

37

40

32

32

24

28

22

19

20

12

8

10

0 Apr-15

Jun-15

Aug-15

Oct-15

Dec-15

Feb-16

Number of studios monitored within LHA limit

The chart shows the shortfall between the average advertised cost and the LHA limit for the studio properties counted in the monthly snapshots from April 2015 to March 2016.

Brighton & Hove Average monthly rent shortfall: Studio £40

10

£20

In 7 out of the 12 months, the average advertised cost of studios counted in the monthly snapshots was above the 1-bed LHA limit. This is an increase when compared to previous years.

24

24

22

20

16

4

£0 -£20

-4

-9

-12

-19

-20

-£40 -£60 Apr-15

Jun-15

Aug-15

Oct-15

Dec-15

Feb-16

Couples without children: 1-Bed properties The chart shows the number of 1-bed properties counted in the monthly snapshots that were within the 1-bed LHA limit during 2015/16. At 6 (3% of 184), the snapshot in July counted the highest number of 1-beds within the LHA limit for the year but in other monthly snapshot counts the number of 1-beds within the LHA limit was never above 5.

Brighton & Hove 1-bed homes advertised for rent within the 1-bed LHA limit 10 8

6

5

6 4 1

1

Apr-15

Jun-15

2

1

2

1

1

0

1

0

1

0 Aug-15

Oct-15

Dec-15

Feb-16

Number of 1-bed monitored within LHA limit

The chart shows the shortfall between the average advertised cost and the LHA limit for the 1-bed properties counted in the monthly snapshots from April 2015 to March 2016. Throughout the year the average advertised cost was above the 1-bed LHA limit with shortfalls ranging from £228 in December to £293 in March.

Brighton & Hove Average monthly rent shortfall: 1-bed £350 £300 £250 £200 £150 £100 £50 £0

241 251

Apr-15


271 256 255 274 265 261

Jun-15

Aug-15

Oct-15

293 252 228 235

Dec-15

Feb-16

2

Families with Children: 3-Bed properties The chart shows the number of 3-bed properties counted in the monthly snapshots that were within the 3-bed LHA limit during 2015/16. In the months of June, July and February there was 1 property within the 3-bed LHA limit but in all the other months there were none.

Brighton & Hove 3-bed homes advertised for rent within the LHA limit

5 4 3 2

1

1

0

1

1

0

0

0

0

0

0

0

0

0 Apr-15

Jun-15

Aug-15

Oct-15

Dec-15

Feb-16


The chart shows the shortfall between the average advertised cost and the LHA limit for the 3-bed properties counted in the monthly snapshots from April 2015 to March 2016. Throughout the year the average advertised cost was above the 3-bed LHA limit with shortfalls ranging from £541 in June to £655 in the following month of August.

Brighton & Hove Average monthly rent shortfall3-Bed £800 542 562 541

£600

617 655 611 599 580 575 543 563 572

£400 £200 £0 Apr-15

Jun-15

Aug-15

Oct-15

Dec-15

Feb-16

Single People under 35 and Others Sharing: 4-Bed properties The chart shows the number of 4-bed properties counted in the monthly snapshots that were within the LHA limit for 4 people sharing during 2015/16. The number of 4-beds counted in the monthly snapshots that were within the LHA limit ranged from a high of 8 in the months of June and December to just 1 in the month of September

Brighton & Hove 4-bed homes advertised for rent within the LHA limit calculated for 4 people sharing 12 10 8 6 4 2 0

8

7

8

7

6

6

5

4 1 Apr-15

Jun-15

Aug-15

4

2

Oct-15

2

Dec-15

Feb-16


The chart shows the shortfall between the average advertised cost and the LHA limit for 4 people sharing the 4-bed properties counted in the monthly snapshots from April 2015 to March 2016. Throughout the year the average advertised cost was above the LHA limit for 4 people sharing with shortfalls ranging from £349 in April to £576 in November

Brighton & Hove Average monthly rent shortfall: 4-Bed (calculated for 4 people sharing) £700 £600 £500 £400 £300 £200 £100 £0

484 349

564 576

413 384 385

Apr-15


529

Jun-15

Aug-15

Oct-15

478

426 408 376

Dec-15

Feb-16

3

Trends in the private rented sector property market Number of homes advertised for rent since April 2011 to March 2015 The chart shows the number of properties counted in the monthly snapshots from April 2011 to March 2016.

Brighton & Hove Number of homes advertised for rent 1,200 1,000

Over the years there has been a gradual increase in the number of properties advertised for rent

800 600 400 200 0 Apr-11

Apr-12

Apr-13

Apr-14

Apr-15

Number of homes monitored

Number of homes advertised for rent within LHA limits since April 2011 to March 2015 The chart shows the number of properties counted in the monthly snapshots that were within the relevant LHA limit for the size of property from April 2011 to March 2016 Over the five years there has been a noticeable fall in the number of properties that are affordable to households in receipt of housing benefit

Brighton & Hove Number of homes within LHA rates 250 200 150 100 50 0 Apr-11

Apr-12

Apr-13

Apr-14

Apr-15

Number of homes monitored within LHA rates

Percentage of homes advertised for rent within LHA limits since April 2011 to March 2015 The chart shows the percentage of properties counted in the monthly snapshots that were within the relevant LHA limit for the size of property from April 2011 to March 2016 Again, it shows the noticeable fall in the number of properties that fall within the LHA rates; from 16% of properties falling within the rates in April 2011 to 3% in March 2016.

Brighton & Hove Percentage of homes within LHA rates 25% 20% 15% 10% 5% 0% Apr-11

Apr-12

Apr-13

Apr-14

Apr-15

% of homes monitored within LHA rates

Percentage of homes advertised for rent as student lets since April 2012 to March 2016 The chart shows the percentage of 4-bed properties advertised as student lets counted in the monthly snapshots from April 2012 to March 2016.

Brighton & Hove Percentage of 4-beds advertised as student lets 80% 60%

It shows an increase in the percentage of properties let for students over the four years with student lets representing 56% of all 4-beds advertised in April 2012 to 75% in March 2016


40% 20% 0% Apr-12

Apr-13

Apr-14

Apr-15

4

Changes per year since 2011/12 Change in average advertised asking price The chart shows the average increase in the monthly rent each year for properties identified in our monthly snapshots since April 2011. Over the years there has been an annual increase in the average advertised costs to rent across all the different sized properties with 4-bed properties showing the highest increase

Brighton & Hove Average annual rent increase: April 2011 to March 2016

£70

£59.50

£60 £50

£37.50

£40 £30

£42.46

£43.75

2-bed

3-bed

£21.35

£20 £10 £0 Studio

1-bed

4-bed

Comparison with the Consumers Price Index (CPI) and Retail Price Index (RPI) The chart compares the average annual rent inflation to the CPI and RPI indices. The cost to rent all the different sized properties has increased at a greater rate than the CPI and the RPI indices

Brighton & Hove Average annual rent inflation: April 2011 to March 2016 5.0% 4.0%

4.6% 3.6%

3.5%

3.5% 3.0%

3.0%

2.2%

2.0%

1.5%

1.0% 0.0% Studio

1-bed

2-bed

3-bed

4-bed

CPI

RPI

Monthly Local Housing Allowance Rates (LHA) for Brighton & Hove

2011/12 2012/13 2013/14 2014/15 2015/16

2

1-bed £639 £650 £650 £657 £663

Single Household Home 2-bed 3-bed £804 £980 £800 £950 £818 £950 £826 £988 £834 £998

4-bed £1,392 £1,400 £1,400 £1,414 £1,471

2-bed £681 £667 £682 £688 £716

Shared Home 3-bed £1,021 £1,001 £1,023 £1,032 £1,074

1

4-bed £1,362 £1,335 £1,364 £1,376 £1,432

Methodology This Annual Review brings together data collected on a monthly basis from properties advertised on the Rightmove website from April 2014 to March 2016 (inclusive). The monitoring took the form of monthly snapshots and therefore properties may have been included more than once whilst other properties that were advertised on the weeks that data was not collected will have been missed. The figures in this Annual Review do not always add up due to rounding up or down when working out the averages. 1 2

LHA total assumes each bedroom occupied by someone on single room rate As the LHA varied over the year we have taken the average


5

Miles Davidson Housing Sustainability & Affordable Warmth Manager t: +44 (0)1273 293150

Sue Garner-Ford Strategy & Performance Officer t: +44 (0)1273 293055

Housing Strategy Team Brighton & Hove City Council Housing Centre, Unit 1 Fairway Trading Estate Eastergate Road, Brighton, BN2 4QL t: 01273 293055 e: [email protected] Rent and Local Housing Allowance Comparison 1 April 2015 to 31 March 2016

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