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No some families of six adults in a 3 bedroom in Butuetown could earn 15 times more than a little old pensioner in a 5 Bedroom house in Lisvane. Your house value has feck all to do with what you earn or what services you use, or what you can afford to pay it's stupid.
Probably a combination of both would give the fairest outcome.
I pass through regularly, there was no implication towards the people of Butetown whatsoever, my Mum and Dad grew up in the old Docks and my Nan got moved to the flats in Bute Street when her house was knocked down, my other Nan lived near the back of the Central Station. I still know fine people from there, it was purely for council tax comparison.