Arun Councillor Says South Coast Could Be New Cornwall As House Prices Rise

A councillor has expressed concerns over house prices in Arun district, which they say may be exacerbated by commuters moving south.

Councillors were discussing how to incorporate the government’s new ‘first homes’ requirement into the council’s own planning policies on Tuesday (November 30).

Martin Lury (LDem, Bersted) expressed concern that house prices ‘are rising rather quickly’ and asked ‘just how affordable’ these first homes could be for Arun residents, and especially those under 40.

He also expressed concern that cost and demand could see further pressure from commuters moving to the coast.

“I saw a very interesting programme on Cornwall,” he said, “The house price increase is phenomenal, absolutely phenomenal. 

“I suspect that one thing the pandemic has done, is enabled a lot of people to change their work life balance and actually work from home rather than scooting up to London. 

“Now, I fear those pressures will come down to the south and the south west coast.”

However, planning policy committee chair Ricky Bower (Con, East Preston) disputed this comparison, putting the situation in Cornwall down to second home ownership rather than moving commuters.

According to London-based estate agent Hamptons, According to London-based estate agent 61,830 Londoners bought homes outside the city in the first half of 2021 – the highest since records began.

Hamptons attribute this to a rise in flexible or home working and high house prices.

The estate agents also found that the South East and East of England were the most common destination for those moving out of the city, with the proportion moving to coastal local authorities also on the rise.

More than a quarter of those moving out of London during the first half of 2021 were first-time buyers, according to Hamptons.

They could stand to benefit from a new government policy which will soon require local authorities to make 25 per cent of affordable housing ‘first homes’.

These houses would be sold at a 30 per cent discount on market rates, at a cost of no more than £250,000.

First time buyers are the target market for these properties and in order to be eligible they must have a combined income of no more than £80,000.

Other affordable tenures will be agreed based on each council’s local plan.

Council officers also expressed concerns about the ‘accessibility’ of first homes to those living within Arun.

They said that a ‘significant gap’ between the income of Arun residents under 40 and the income required to buy a starter home was identified in 2017; though this was based on a market discount of 20 per cent rather than 30 per cent.

Arun has paused an update to its local plan but the first homes requirements will come into force from December 28.

As a result, the council will decide an interim position to provide clarity for developers.

Currently, 30 per cent of units at housing developments larger than 11 homes should be ‘affordable’ under Arun’s planning policies.

Of these, 75 per cent should be offered with affordable rent and 25 per cent should be ‘intermediate housing’ which is offered to those who would be unable to rent or buy a home at market rates.

But the new first homes requirements will now take up 25 per cent of these units, with intermediate homes taking up 8 per cent. The remaining 67 per cent will be affordable rentals.

The planning policy committee unanimously backed the interim policy, which will now be taken to full council for approval.