Land use Planning System and Housing Development Process in Malaysia

61 Choices for housing demand also takes account of market conditions reflected in terms of selection by price and location preferences (Ratcliffe, 1981; Thrall, 2002). Thus, income and ability to pay are the critical factors and it can easily be argued that those households with the highest incomes have the greatest housing ‘choice’ (Golland and Gillen, 2004). In this context, housing demand is ultimately an issue which tells us more about the choices which households make in moving house or in gaining access to a new dwelling.

In the light of the above and in order to ensure the local housing requirement is adequately met, the housing planning process should recognise that the housing requirements are not only driven by population trend but also by the affordability and choices of each household. With regard to this, Golland and Gillen (2004) suggest that in estimating the actual requirement for housing, it is necessary to take account of household’s income, their ability to pay, their preference in terms of price and location and their choice in terms of tenure, types, form and method of housing to be developed.

The suggestion is concurred by Nicol (2002) who suggests that the concept of housing requirement should be viewed at two separate levels. The first is in terms of overall housing requirements so called broad housing needs. The second level is the determination of the degree to which the households require certain house types, prices, locations and tenures.

The significance of those aspects has been recognised in the housing planning process in the UK and other European countries. Boelhouwer and van der Heijden (1992) and Golland and Oxley (2004) clarify that formulation of housing policy in European countries has been increasingly directed towards improving housing choice rather than quantity by trying to meet the aspirations of households wanting to own homes. In the UK, since early 1980s, the formulation of housing policies has changed from previously focussing on meeting broad housing needs to one which is focusing on and addressing the specific demands of households (Golland and Gillen, 2004).