5 Year Housing Land Supply Report 2025
APPENDIX A - Standard Methodology Calculation
The following calculation uses the standard method as described in National Planning Practice Guidance.
Step 1 - Setting the baseline: 0.8% of existing housing stock for the area
Set the baseline using the value of existing housing stock for the area of the local authority (Table 125: dwelling stock estimates by local authority district). The baseline is 0.8% of the existing housing stock for the area, and the most recent data published at the time should be used.
- For Ribble Valley:
- Existing Stock = 30,270
- 0.8% = 242.16
Step 2 - An adjustment to take account of affordability
The housing stock baseline figure (as calculated in step 1) is then adjusted based on the affordability of the area. The affordability data used is the median workplace-based affordability ratios, published by the Office for National Statistics at a local authority level. The mean average affordability over the five most recent years for which data is available should be used.
No adjustment is applied where the ratio is 5 or below (this is not the case for Ribble Valley). For each 1% the ratio is above 5, the housing stock baseline should be increased by 0.95%. An authority with a ratio of 10 will have a 95% increase on its annual housing stock baseline.
Where an adjustment is to be made, the formula is as follows:
Adjustment Factor equals ((five year average affordability ratio minus 5) divided by 5) multiplied by 0.95 plus 1
Table 11 - Average Affordability Ratio in Ribble Valley
YEAR | Affordability Ratio |
---|---|
2020 | 6.22 |
2021 | 6.58 |
2022 | 7.15 |
2023 | 6.27 |
2024 | 6.23 |
AVERAGE | 6.49 |
Adjustment factor for Ribble Valley equals 1.2831
Minimum annual local housing need figure equals housing stock baseline multiplied by adjustment factor, which equals 242.16 multiplied by 1.2831, which equals 310.71 (311 dwellings to the nearest whole dwelling)
NOTE: The minimum annual housing need figure has been calculated utilising the latest data tables on dwelling stock (including vacant) published on 22nd May 2025.