I'd be grateful for some views on how the LHN is going to work.
I was going through the detail of the "Housing Need Assessment" PPG and hit something I don't think I understand. In case study 2a it concludes "The capped figure is lower than minimum LHN and therefore the figure is 1330". To my mind it should say something like "Annual household growth at 950 is higher than previous policies at 850 and that is why the cap is 1.4 x 950 = 1330. "
Note also that the way caps work is quite different to the model we made some while ago. We applied the cap to the market signal itself, while the PPF now makes clear that the cap is applied to previous requirements.
There is a more general point in my mind about how the capping process plays out over multiple plan reviews. I may need to do a worked example because it is not clear to me how quickly even significant differences between a starting requirement and a LHN figure get made up through successive 40% jumps.
