Fordham Research

Key concepts and acronyms defined in SHMA & PPS3 Guidance

Term Description
SHMA Strategic Housing Market Assessment: one that involves all tenures and is set in a stakeholder process that produces results for a given set of market and sub-market areas
HMA Housing Market Area: There is no single definition available for an HMA
Guidance The key reference is PPS3 of November 2006, as quoted above, which is supported by SHMA Practice Guidance explaining a detailed approach to producing an SHMA, which was published in March 2007 (Version 1) and August 2007 (Version 2). There is very little difference between the two versions.
Stakeholder involvement Stakeholders are defined as various interest groups with a central interest in the housing market. They include public officials, specialist quasi public and voluntary bodies concerned with housing (e.g. Housing Associations (RSLs) and private sector bodies such as house builders, private landlords, estate and letting agents).
All tenure approach A key feature of the CLG approach in PPS3 is that all tenures should be covered. This means that the former Housing Needs Assessment (HNA) which focussed on a technical analysis of the need for affordable housing, has been subsumed in a much wider and less technical process.
Evidence base PPS3 gives the evidence base, of which an SHMA is a key part, a central role in determining policy. This give more responsibility to the process and documentary results of it, but also more scope for it to affect such figures as the RSS target, which historically has been 'top down' from higher levels of government, but which is now becoming more of a compromise between local 'bottom up' evidence and 'top down' direction.
RSS Regional Spatial Strategy: A statutory document which sets out both the overall housing numbers to be built and also the affordable proportions for a given region. The RSS is consulted upon so that the local views and the local evidence base of the SHMA is a part of the process.
LDF Local Development Framework. This is the planning structure within which sites for development and other infrastructure improvements are programmed. It includes the locally detailed translations of the overall RSS targets.
RHS Regional Housing Strategy: This is the non-statutory companion of the RSS, addressing specifically housing issues.