|Supporting Policy with GIS|
Scotland, Mortgage to Rent
The Scottish Executive has implemented a policy which attempts to counter the 900 odd house reposessions each year in Scotland. When an owner-occupier meets certain criteria they can apply to have their house bought by a Registered Social Landlord (RSL). The inhabitant can then continue to stay in the house by paying rent to the RSL instead of a mortgage to a lender. The main advantage to this is that a social rent is much less than a mortgage payment.
Part of the criteria to be met by any prospective applicant is that their house value does not exceed the average value in their area. I was responsible for creating representative average figures for the policy and for provide postal code indices to allow the website to automatically provide average figures depending on postcodes entered on-line.
Working with policy customers, I generated geographic boundaries based upon Local Authority and Housing Market Areas. This created 56 areas covering Scotland. Second Hand sales data were then processed for each of these areas. To ensure average figures were meaningful, the sales prices were logged, averaged then processed to remove statistical outliers. The mean of the resulting population provided the average sale figure for each local area.
This method ensures that local average prices recognises local housing dynamics. For example, Scottish Borders Local Authority has two average price values: one for the northern area within the Edinburgh housing market area; and one for the remainder of the area outwith the Edinburgh housing market area.
|(page updated ) Neil Mackinnon|