Supplementary Planning Guidance (SPG)

Transcription

1 CYFARWYDDYD CYNLLUNIO ATODOL SUPPLEMENTARY PLANNING GUIDANCE Supplementary Planning Guidance (SPG) Affordable Housing May

2 1. Providing affordable housing in order to meet housing need is an important aspect of planning policy on Ynys Mon. The level of that need on Ynys Mon has been established by an Island wide housing needs survey. Such general data on need can be supplemented by housing need profiles for individual communities, and other information that can be obtained from supplementary local surveys. The SPG will contribute to the Planning and Housing strategies of the Council. 2. Affordable housing is widely defined as dwellings to meet the needs of those who live in unsuitable accommodation and whose incomes prevent them from buying or renting suitable houses and low cost market housing. Affordable housing can comprise of a combination of subsidised rented housing, subsidised low cost home ownership including shared ownership and "low cost market housing". A supply of all these types of housing is required to maintain balanced communities. 3. The delivery of such housing requires close co-operation between the Council's Planning and Housing Services, along with social partners and the development industry on the Island. 4. There are a range of new development sites where the Local Planning Authority will expect (in priority order) the need for affordable housing to be addressed by either: (1) on site provision or (2) off site provision or (3) by the payment of a sum in lieu of such provision. 5. The failure to properly address affordable housing need can be a material reason for refusal of permission for development. The Council's clear preference is for the on site provision of affordable homes by developers in order to secure mixed communities on the Island. 6. This SPG sets out the procedures and mechanisms for making decisions on such matters. It includes a requirement for applicants to have "strong local connections" in respect of affordable housing provided through exception sites and low cost market houses. 7. In setting out clearly the expectations of the Development Plan system, with regard to affordable housing, the Council hopes that the delivery of such housing through the planning system on Ynys Mon will improve in the future. This will compliment the work carried out on general land supply, particularly Joint Housing Land Availability Studies as required by TAN The Council expects developers to come forward with the differing requirements of affordable housing addressed as part of the initial design proposals for a new housing scheme. 9. The design of affordable housing scheme should be of the highest order so as to enhance the quality of local communities on the Island. 2

3 10. The Council is reviewing its property portfolio to identify opportunities for affordable housing. 3

4 1. Introduction and Purpose 2. Definitions - Affordable Housing and Housing Need 3. Co-operation to Delivery Affordable Housing 4. The Provision of Affordable Housing 5. Design 6. Procedures 7. Agreements 8. Housing Exception Sites 9. Council Land and Affordable Housing 10. Conclusion Appendices 1. Housing Strategy 2. Acceptable Cost Guidance 3. Procedures 4. Flow Diagram 5. Exception Sites Procedure 6. Affordability Calculator (Affordable Housing Assessment Form) 7. Legal Heads of Agreement References 4

5 INTRODUCTION AND PURPOSE "A community's need for affordable housing is a material planning consideration which may be properly taken into account in formulating development plan policies... It may be desirable in planning terms that new housing development in both rural and urban areas should incorporate a reasonable mix and balance of house types and size to cater for a range of housing need". Planning Policy Wales para (March 2002) "The term describes the circumstances where a household is living in housing which falls below minimum standards or fails to meet their essential needs in other ways and does not have sufficient income to rent or buy even the cheapest housing at prices prevailing in the housing market". Local Housing Needs Assessment - A Good Practice Guide, Welsh Officer (May 1999) 1.1 This document is supplementary planning guidance issued by the Isle of Anglesey County Council in support of adopted and emerging development plan policies. The relevant plans and associated policies are: Ynys Mon Local Plan (1996) - specifically Policy 51 and Policy 52 Gwynedd Structure Plan (1993) - Policy A9 Ynys Mon Unitary Development Plan - Policy HP The purpose of this Supplementary Planning Guidance (SPG) is to provide detailed advice to local communities, developers and other users of the planning system on how the Development Plan policies on affordable housing will be applied. Therefore, the SPG helps strengthen the contribution that the planning system can make to help meet the significant challenge of providing extra affordable housing on Ynys Mon. However, it must be recognised that planning decisions can form only one part of a wider strategy as the planning system which, by and large, only deals with applications for new housing development. Such development comprises only a small part of the overall housing stock. The Council's Housing Strategy (March 2004) has five key themes: Quality and Energy Efficiency of Dwellings Design, Accessibility and the Usability of dwellings Housing Needs and Housing Markets Community Sustainability and Social Inclusion Flexible Service and Support Frameworks. This SPG will play a particular role in responding to the third of the above themes which is reproduced at appendix one. Wider issues are also addressed through the Council's Housing Strategy, including the renovation of existing properties, working with private landlords and so on. 1.3 However, the Council recognises that people should be able to select properties to buy or rent in a range of communities throughout the Island in 5

6 accordance with their needs, aspirations, means and within the broad framework of planning and housing policies established by the County Council and the Welsh Assembly Government. This also requires sustainable development so those in housing need can access other services, e.g. schools, buses etc. A community's need for affordable housing is a material planning consideration and the planning system will endeavour to increase the supply of affordable housing through negotiation with developers. Likewise, a failure to address issues of affordability can provide reasons for refusal of development at the planning application stage. 1.4 The Council has allocated a range of housing sites for general market purposes in the Development Plan. The Council wishes to ensure that under UDP policies the affordable housing benefits people in need who have "strong local connections". Definitions are provided to this effect. 1.5 However, in the short term, sites progressed for approval under the policies of the adopted local plan must comply with the definition of "local person" as defined in policies 51 and 52 of the plan: "A local person is defined as someone who has had his/her only or principal home OR his/her place of work within Ynys Mon for a period of 5 or more years. (The period of 5 years can be made up in part by living and in part by working in Ynys Mon)". 6

7 DEFINITIONS - 'AFFORDABLE HOUSING', 'HOUSING NEED' AND 'STRONG LOCAL CONNECTIONS' a) 'Affordable Housing' 2.1 Technical Advice Note (TAN ) of the Welsh Assembly Government states, "The term 'affordable housing' or 'affordable homes'... encompasses both low cost market and subsidised housing (irrespective of tenure, exclusive or shared ownership, or financial arrangements) that will be available to people who cannot afford to occupy houses generally available on the open market". The definition is therefore wide ranging and the purpose of the Council's planning policies is to increase the number of such affordable homes on the Island. 2.2 "Affordable housing" therefore consists of both: a) dwellings which aims to satisfy the needs of those who live in unsuitable accommodation and whose incomes prevent them buying or renting suitable housing. and, b) Low cost marking housing which can be made available at a price which is lower than the prevailing market but which meet the requirements of people who cannot afford the prices of general market housing as their income levels prevent them from purchasing the type/size of property they need. Examples include dwellings supported by the Home Buy scheme or other shared quality arrangements and properties controlled by covenant. UDP Policy HP7 refers to "affordable dwellings" to ensure that all forms of residential development - houses, flats, maisonettes etc - are used to provide for affordable homes, and not just houses. 2.3 Affordable housing therefore means dwellings of an adequate design standard which are accessible to such groups of people. Low cost market housing will not assist those most in need of affordable housing but can help a local community by improving the mix and type of housing which is available. The role of "exception sites" is dealt with in section 8 below. b) 'Housing Need' 2.4 "Housing Need" - The guidance used for the Anglesey Housing Need Survey stated that "the term need describes the circumstances where a household is living in housing which falls below minimum standards or fails to meet their essential needs in other ways and does not have sufficient income to rent or buy even the cheapest housing at prices prevailing in the market". 2.5 This definition helps make the distinction between the role of affordable housing provided for housing need as defined for the Housing Needs Survey and other low cost ("cheaper") market housing which can help to secure a mix of affordable dwelling and design types in new housing projects in towns and the rural villages on Ynys Mon. 7

8 Need might arise for various reasons including: People who do not own a house and who are establishing a new home e.g. marriage; Young, elderly, people with disabilities/medical problems, or retired people requiring smaller or specialised accommodation; Households that include people who are employed, or about to be employed in Ynys Mon, including key workers; People who live outside Ynys Mon but who have established family ties with the Island; People dependant on for giving support to people on Ynys Mon. In each case evidence of the need for an affordable dwelling will be required to be shown and appropriate legal agreements on properties approved under the policies for affordable housing. c) 'Strong Local Connections' 2.6 For affordable housing that is provided for rent the occupancy of the dwellings will be controlled via the common waiting list and the approved allocations policy of the Council. These Council policies already take account of a person's connections with the local community, in addition to the severity of their housing need. 2.7 For "Low Cost Market Housing" and "Exception Sites" the applicant/occupants will need to prove (a) housing need and (b) Strong Local Connections which will be defined as: a person who satisfies at least three of the following descriptions: his/her parents were permanent residents n the area at the time of his/her birth he/she was in permanent residence in the area for five years as a child attending school or who for special reasons attended a school outside the area but would have been expected to attend a local school but for these special reasons; he/she is currently resident in the area, or previously resided in the area for a continuous period of fifteen years as an adult; he/she is currently employed in the area, or has an open ended offer of employment in the area which he/she cannot accept unless he/she is resident in the area; he/she currently has a parent living in the area; in the case of a person over the age of 55 he/she has a son or daughter or a step son or step daughter or adopted son or daughter currently living in the area; he/she has the support of the community/town council for their status as a "local person". ch) Level of Need 2.8 The Anglesey Housing Need Survey of 2001 suggested that "there is a significant requirement for additional affordable housing in the Council area". (Ch 11 - Volume III). It also established that "there is an annual need over the next five 8

9 years for 589 affordable homes... (and) there is an estimated annual shortfall of 311 affordable dwellings per year for the next five years". (A gross requirement of 589 minus a 278 annual supply of units, giving net annual requirement of 311). The greatest need exists amongst residents in the private rented sector (Vol III - Ch 4). 2.9 In addition to that survey the Council's Housing Waiting List provides information on an ongoing basis to inform decisions on housing maters and will also inform the preparation of housing need profiles for local communities Whilst it is plain that the housing needs of the Island will change over time, the Council has nonetheless established the level of evidence required by Planning Policy Wales (March 2002) and Technical Advice Note 2 (Planning and Affordable Housing 1996) to seek the delivery of affordable housing via the Planning system on Ynys Mon This general evidence of need can be supported, and explored in greater detail when individual applications for development are to be considered. Such profiles can be improved with inputs from local communities The Planning Service will look at data on housing need which can be provided by the Housing Service in the form set out in the table below: Village / Town Total Stock No properties sold through RTB No properties acquired via Homebuy No applications on common housing register No applicants on HomeBuy register No empty homes No properties for sale Local Authority RSLs Private Rented (est HB and common register) Annual Turnover (% age of stock) This information can be supplemented by local surveys, and views from community councils etc The Council can also accept supplementary information from developers in respect of housing affordability within communities or for individuals on the Island. 9

10 The Council, in line with the Assembly guidance, must be assured that such information comes from reliable and robust data sources and relates to local house prices and rents, local incomes and the available supply and suitability of housing In those situations where a developer seeks to argue that affordable dwellings cannot be provided on a specific project then the County Council will expect a detailed viability analysis of the scheme and associated costs. The Council may choose to retain external expert advice to help in such discussions. Standard development costs such as demolition works, landscaping, noise bunds, flood prevention measures, archaeological and ecological surveys etc will not be considered as abnormal costs. 10

11 CO-OPERATION TO DELIVER AFFORDABLE HOUSING 3.1 There can be little doubt that the challenge of providing sufficient affordable housing has been central to many housing and planning concerns over recent years. The lack of such housing is often described in terms of a "crisis" now affecting both rural and urban areas. It has generated considerable discussion, and it can be seen that government policy places a responsibility on local authorities to develop policies and initiatives in response to this challenge. The theme of much government policy is the need for "sustainable communities"; a message which also lies at the heart of the "Vision" and which underpins the Development Plan for Ynys Mon. 3.2 The Council accepts its responsibility in this matter and this SPG identifies the procedures and practises which will be in place to assist other players including the development industry, their advisors and agents, to help make the necessary progress in delivering a range of housing suitable to help meet this challenge. A corporate approach, based on co-operation between Council Services, is required to secure a greater provision of affordable housing and which draws upon the Housing, Planning, Legal and sometimes Property Services of the Council. 3.3 Of course, and as is stated in the Housing Need Survey, "there is no reason to think, once housing need has been established that all need must be met through the planning system". The report on the 2001 Survey goes on to explain that changes within the existing housing stock can effectively help to address the needs identified. Such action is informed by the Council's Housing Strategy. 3.4 Land Registry data gives a clear indication why affordable housing has become a major issue on Ynys Mon, as in other parts of Wales and the UK. House Price Changes UPDATED Last Quarter 2000 Last Quarter 2003 % Change Detached 87, ,370 69,64 Semi-Detached 50, Terraced 37,128 66, Flat/Maisonette 78, , * All - Average 64, , (* small number of sales on the island in this category leads to major variations) Such price increases are clearly way in excess of increases in wages over the same period and will have made the problem of accessing suitable housing more challenging. 3.5 In the light of such figures the operation of effective responses to the challenge of affordable housing therefore requires ever closer co-operation between the Planning and Housing services, along with other players in the housing process like registered social landlords and local builders/developers. 11

12 THE PROVISION OF AFFORDABLE HOUSING 4.1 In order to help all parties deal with this SPG a number of definitions and criteria are required. a) What is Affordable? 4.2 Central to the requirement for affordable housing is a calculation of the relationship between income and property/rental prices in the local housing market. To be affordable: the rend for a dwelling must be no more than 30% of the net household income, or mortgage payments should not be more than 3 times net disposable household income, including spouse or partner's. (Income less income tax and national insurance but including housing benefit (if any). Total housing costs, including Service Charges where applicable, must fall within the 30% of income level. b) "Affordable" House Prices 4.3 To help inform negotiations on affordable housing some further guidance is required on what the Council consider to be suitable price range to ensure the provision of affordable housing within development schemes. Government guidance suggests that the publication of actual figures as to the price of affordable housing is not always helpful because of changes in house price/income relationships over relatively short periods. 4.4 The Council takes the view that to be affordable, and maximising access opportunities for people in affordable need, then low cost market housing should be made available at around the prices set out in the Acceptable Cost Guidance (ACG) for the use of social housing grant as published by the Welsh Assembly Government. It is inevitable that the details of individual site development characteristics willi impact upon the situation. The ACG is banded to recognise the different costs in market areas across the Island. The ACG at the time of preparing this SPG (Spring 2004) is shown at appendix two, but always ask for the latest version. 4.5 It should not be assumed that financial subsidy is always available in the form of Social Housing Grant when calculating land acquisition costs. It is important that SHG free schemes be allowed to proceed to maximise the potential of affordable housing provision of Ynys Mon. c) Thresholds - When is Affordable housing to be provided? 4.6 All sites of 10 or more as identified in Policies 51 and 52 in the Ynys Mon Local Plan, and on sites of 10 or more (or 5 or more in villages) as identified in Poilcy 12

13 HP7 in the emerging UDP. The Council consider that the UDP Policy HP7, read alongside the Local Plan policies, on affordable hosing is a material consideration when planning applications are to be determined. (the Council will implement the policy on site area if it is felt applicants are seeking to undermine the threshold - the policy will apply to all sites of 0.3 hectare or more). 4.7 Developers will therefore be expected to take this requirement into account when negotiating the purchase of land for development and preparing design proposals for sites. ch) Types of Affordable Housing 4.8 The following 3 options are available to the applicant to provide the affordable housing. In priority order they are: (1) Properties to be sold / leased to Registered Social Landlords (RSLs). This form of accommodation is characterised by below market rents usually paid weekly. It is important to ensure these units are secured on a permanent basis. The level of rent charged by an RSL is treated by the Council as being affordable to those in greatest need. (2) Properties for rent with occupier conditions tied to the Council's Housing Allocation Policy and occupants to be nominated off the Council's Waiting List. (3) Properties to be sold at an agreed figure with the Council subject to covenants and resale agreements. 4.9 The Council will consider other arrangements suggested by developers, but these must ensure affordability in perpetuity If following viability analysis of a scheme it is agreed that on site provision is not made then the options are: (4) Payment in lieu to the Council's Affordable Housing Fund, this will be used by the Council to fund alternative affordable/social housing when sufficient funds have been generated and suitable opportunities arise which are in line with the Local Housing Strategy. (5) Provision of affordable housing on an alternative site as agreed by the Council and the developer. This is not the Council's preferred method but it may be appropriate if there are good planning reasons why on site provision is not suitable. Phasing and Timing The affordable dwellings to be provided under these policies will be timed and/or phased by legal agreement across a development site so that the affordable units are provided by a specified stage in the development. Such agreement will ensure the affordable units are spread throughout the development. 13

14 d) Low Cost Market Housing 4.11 In addition to those people identified as being in housing need via the 2001 Survey there are other people who cannot access the housing market due to the prevailing house prices relative to their incomes. The Council recognises that not all of the people who wish to obtain low cost housing may be living in unsuitable accommodation, indeed some may just with to join the property ladder for the first time, but they are in affordable need as they are unable to access the housing market to meet their requirements. As stated earlier low cost market housing is not considered an appropriate response for people in strictly defined housing need and who require affordable housing as defined and quantified by the housing need survey. Low cost market housing can however make a very valuable contribution to securing an adequate range and type of housing on Ynys Mon. The key challenge is to ensure that dwellings provided under this route are affordable to people on low and modest incomes Mixed types of development are to be encouraged in order to meet the differing needs of urban and rural communities including starter homes and the need of older people, single person households etc The Council excepts developers to come forward with the differing requirements of affordable housing addressed as part of the initial design proposals for a new housing scheme As stated above legal agreements will be required to ensure such housing remains available to those in affordable housing need in the future. dd) Housing Needs/Community Profile 4.15 The 2001 survey shows the justification for affordable housing policies in Ynys Mon wide and as the strategic planning and housing authority the Council will seek to enable the maximum number of opportunities. The Council's Housing Service will help identify the particular needs within any given area of the Island and provide a housing profile of that need to the Planning Service. That can be supplemented by information from the developer provided it is robust and reliable. This information will help the Council to determine which of the options set out above is most suitable to the settlement concerned and to help inform the negotiations with developers The findings of the 2001 census are also available to help increase our understanding of local communities and can be supplemented by further local data collection. e) What does affordable in perpetuity mean? 4.17 Affordable in perpetuity (either to rent or buy) means that the dwelling must be: Affordable to the first occupier; 14

15 Affordable to potential subsequent occupiers from the local area; Be occupied by people in need of affordable housing 4.18 To achieve this situation the developer concerned requires a binding section 106 agreement or planning obligation which limits: Occupancy of the dwelling to those in housing/affordable need; The value of the dwelling on resale to a formula 4.19 If no Registered Social Landlord is involved then the Council will need to hold a covenant or resale agreement on the property(s). This mechanism provides a trigger to alert the Council to the resale of the property and again the valuation of the property can be determined in order to maintain it as an affordable house. 15

16 DESIGN a) High Quality of Design 5.1 The Council believe that the way in which the developer approaches the design of a residential housing, or mixed use, scheme can fundamentally help to address the issues of affordable housing. Rather than standardised styles of building for schemes of bungalows, detached and semi detached properties the Council feel more variety is required to address the needs of those in affordable need, the elderly, younger age groups and others. The Council will expect high standards of design, layout and landscaping for all housing schemes including those having an affordability element. The schemes should respect the character and distinctiveness of the area in which they are being built and should be located to be indistinguishable from general market housing provided on the site. 5.2 The Council wishes to see design approaches that spread the affordable dwellings across a development site and not simply provide them in one block. b) Space Standards 5.3 An issue that can be of critical importance to secure a project that is designed to allow partnership work with Housing Associations, and for the use of Social Housing Grant in the scheme, is the space standards of the dwellings concerned. The Welsh Assembly Government publish development quality requirements that the County Council will refer to in those negotiations where the space to be provided in affordable homes projects is a matter of concern. 5.4 The Welsh Housing Quality Standard can also help create appropriate standards for local developments. c) Permitted Development Rights 5.5 To secure affordability in the longer term it is likely that the permitted development rights will be removed from the properties constructed as affordable housing. ch) Modern Methods of Construction 5.6 The Council is aware of the developments in technology that might allow for modern methods of construction to provide efficient and cost effective responses to the need for more affordable homes. The Council will continue to monitor such developments in technologies and actively seek to exploit appropriate opportunities which can benefit local communities. d) Non Traditional Dwelling 5.7 The Council is also aware of the interest and potential of non traditional methods of supplying dwellings, e.g. cabins and chalets. The Council does not 16

17 discount the potential of such opportunities but will have a keen interest to ensure they are located in appropriate locations which meet principles of sustainable development. 17

18 PROCEDURES 6.1 In operating procedures for affordable housing the Council has a clear preference to see: a) on site provision by developers; b) where the developer claims they cannot afford any suitable and affordable housing provision they must demonstrate this by a viability analysis, c) Where there are good planning reasons for which, though the site is in principle suited to provide a contribution of affordable housing, developers persuade the Council that the provision should be off site (either by way of housing elsewhere or a financial contribution) then the Council has options and possibilities in mind which are loosely described at appendix three. Appendix four shows a flow diagram for dealing with applications involving affordable homes. 6.2 In those exceptional circumstances where payment in lieu is proposed in place of on site provision then a standard formula will be applied to provide a guide to the contribution expected from the developer. The formula is set out at option four in appendix three. ch) Discussions and Negotiations Discussions and negotiations relating to these policies must be conducted with a representative of the Council's Planning Services in attendance to ensure there is no misunderstanding with regard to the provisions that will be included in legal agreements and other conditions. Whilst the Council will welcome and encourage discussions between the development industry and social partners it is important to ensure the integrity of the planning process to secure effective implementation of the development plan policies. 18

19 LEGAL AGREEMENTS 7.1 In order to secure affordable housing in perpetuity and to ensure that relevant schemes conform to approved planning policy legal agreements and obligations will be sought in appropriate circumstances. In the case of schemes where: a) the developer build and then transfers affordable housing units to a RSL then covenants will be required for; b) schemes with no involvement of an RSL, c) off site agreements, As well as ch) low cost housing schemes d) exception sites Legal agreements will be required. Legal Heads of Agreement for each type of scheme are shown at appendix three. 19

20 a) Definition of exception site HOUSING EXCEPTION SITES 8.1 In exceptional cases planning policy allows for permission to be granted on land which lies outside of the defined development boundaries of settlements in order to provide for affordable housing need in local communities. These are called "exception sites". On such sites the same considerations will apply with regard to design etc as set out above. The key issues to be satisfied are:- The site is on the edge or immediately adjoining a recognised settlement, The exception dwellings(s) will meet an identified housing need, The dwelling(s) are subject to legal agreement securing affordability in perpetuity, The design provides appropriate space standards and fits in with its surroundings while ensuring it is suitably designed to act as an affordable dwelling. 8.2 An exception site can be for a single dwelling, or a group of dwellings, all of which can help meet housing need. A group of dwelling might provide the opportunity for a mix of tenures. In the case of affordable housing development that is applied for as an "exception" to normal planning policies (see Planning Policy Wales March 2002 para ) then the site concerned must be on the edge or immediately adjoining a settlement recognised in the development plan. As the site is not considered suitable for open market housing then this reduces the normally high land values to the prices for the agricultural use of the land. Like all other development the site must meet the criteria for sustainable development, have adequate access and should not be affected by issues such flood risk, air noise or other planning constraints. As the "exception" site is for people in affordable need then it makes sense to ensure the housing can access local services such as shops, schools etc. Appendix five shows how discussions/applications for exception sites will be processed. 8.3 Development on such sites will be subject to legal agreement to ensure the dwelling(s) are affordable and occupied by persons have a strong local connection on first occupation and in perpetuity. This may restrict people's ability to get back in to the open market but as their needs change they can apply for a different affordable home. Exception sites for affordable housing will not be permitted in open countryside away from settlements because there is an over riding need to protect the character of open countryside, secure efficient settlement patterns for the future and reduce the reliance on the use of private cars. 8.4 The housing to be built should be occupied by people who can be shown to be in affordable housing need as described in section 4 (a) above and legal agreements will therefore be required in relation to such housing to ensure they remain available as affordable housing the future for people with strong local connections. With the recent upward shift in house prices on the island it is to be expected that a larger number of people are in affordable need. 8.5 The Council will wish to monitor the number of dwellings permitted on exception sites. As a general rule the number of such exception sites should not exceed the size of the settlement within the settlement hierarchy as set out in the 20

21 Local Plan/UDP. In effect the largest number of such sites should relate to the larger settlements where the usual public services are available. b) Affordability Calculator 8.6 For those people who make applications for exceptions sites then a justification is required for their housing need. A simple calculator of whether people are in need of affordable housing support can help in the decision making process on these policies. The Assessment Form at appendix six is suggested for this purpose and is based upon the guidance within the Homebuy scheme. A letter from the Building Society confirming the borrowing capability o the household in need will also be considered as an alternative. The Council's Housing Service will asses the information presented and advise the Planning Service if the applicant is in need of affordable housing and justifies and exception to normal policy. Given the requirements to assess such information and the associated legal agreements then applications of this nature will take longer than the target period of 8 weeks to determine. A procedure for this process is outlined at appendix four. 8.7 The Council believe that with the significant rise in property prices over recent years, and the associated need for more affordable homes, that a more proactive approach to housing exception sites is possible in order to help meet the need for affordable homes in communities on the island. Such an approach does not mean to abandon the planning history of any particular settlement nor to ignore the principles of sustainable development but to proactively help communities to identify plots/parcels of land suitable for affordable housing. 21

22 COUNCIL LAND AND AFFORDABLE HOUSING 9.1 Due to the importance which now attaches to this issue the County Council will seek to promote a number of schemes for affordable housing on Council owned land which is surplus to operational requirements. Some of the land will be adjacent, and on the edge of settlements and thus considered suitable for "exception" housing sites. It will however be subject to the same policy tests as any other land suggested by private developers or individuals, including the need for a strong local connection, to ensure its suitability in line with the principles of sustainable development. 22

23 CONCLUSION 10.1 This SPG sets out the Council's expectations and requirements as regards the development of affordable housing under planning policies. The procedures in the appendices will assist developers and others to understand the processes involved in implementing development plan policies The effective implementation of the Council's planning policies, in line with the additional guidance in this SPG, will help to address the challenge of increasing the supply of affordable homes on Ynys Mon. 23

24 Housing Needs and Housing Markets Summary of Problems and Challenges: APPENDIX ONE HOUSING STRATEGY a. Housing needs on Anglesey are substantial. They arise, in the main, due to a natural net increase in households. b. Housing demand on Anglesey is also substantial and is, in part, reflected in recent increases in house prices. c. Restrictions on housing development in some areas have reduced the scope for meeting locally arising housing needs and demands. d. The lack of sufficient suitable and affordable housing is a contributory factor in young people leaving the island. These relate to Strategy Objectives because: a. Effective responses to both housing needs and demands are necessary to ensure that strategic economic agendas are addressed. b. Retention of people on the island who can contribute to its economic and social life necessitates an adequate supply and range of good quality housing. Option(s) selected to tackle the problems and meet the challenges are: a. Ensuring that the over development of housing does not take place in sensitive areas (e.g. Areas of Outstanding Natural Beauty) b. Ensuring, overall, an adequate supply of different types of tenures of housing to respond to housing needs and demands c. Promoting the bringing back to use of empty dwellings d. Encouraging the bringing back to use of dwellings over shops, notably in Holyhead, Llangefni, Amlwch and Menai Bridge, but also in other communities e. The appointment / designation of a staff member with a specific remit in relation to empty dwellings and dwellings above shops f. Using planning tools and 'pooling' planning gains in order to ensure an appropriate supply of social rented housing and where appropriate, low cost market housing g. Investigating the potential for the strategic expansion of selected established communities h. Directing an element of the new framework for grants and loans with particular attention being given to first time buyers i. Development of an equity retention scheme that offers building plots to self builders. j. Maintaining and refining a scheme that offers building plots to self builders k. Continue to review and monitor the success of the homebuy scheme, and if appropriate, commit relevant level of resources through the Social Housing Grant Programme, and consider the availability of recycled capital receipts from previous participants in the scheme. Progress is to be monitored through: a. Analysis of waiting and transfer lists on a quarterly basis. b. Undertaking a comprehensive housing needs assessment and housing market analysis in The comprehensive guidelines for local authorities regarding housing markets, issues by the Welsh Assembly Government, have been noted. These will guide this work and mark a moving on from what otherwise might be a narrowly framed housing needs approach. See Welsh Assembly Government (2002) "Local Housing Market Analysis". 24

25 APPENDIX 2 ACCEPTABLE COST GUIDANCE FIGURES /2008 Isle of Anglesey 1 Amlwch, Llaneilian, Llannerch-y-medd, Trewalchmai. 2 All except listed as 1, 3, 4 & 5 3 Holyhead, Llanddaniel Fab, Llanddona, Llanfaelog, Llanfair- Mathafarn - Eithaf, Llanfihangel Ysgeifiog, Llangefni, Llanidan, Penmynydd, Pentraeth 4 Cwm Cadnant, Llangoed, Llanfairpwllgwyngyll, Menai Bridge, Trearddur 5 Beaumaris Table 1 - Self-Contained Units - General Needs and Elderly Unit Band 1 Band 2 Band 3 Band 4 Band 5 Band 6 7 person 4 bed house 154, , , , , ,600 6 person 4 bed house 136, , , , , ,100 5 person 3 bed house 117, , , , , ,000 4 person 3 bed house 111, , , , , ,600 4 person 2 bed house 105, , , , , ,300 3 person 2 bed house 86,500 93, , , , ,800 3 person 2 bed 94, , , , , ,300 bungalow 3 person 2 bed flat 85,200 89,500 93, , , ,200 2 person 1 bed flat 73,100 77,000 80,900 88,700 94, ,200 1 person 1 bed bedsit 55,400 58,500 61,600 67,800 72,700 77,700 Shared Abbeyfield 73,300 75,900 78,500 83,700 87,900 92,000 Table 2 - Self-Contained / Shared Housing - Supported Housing Newbuild Part of Larger Development Residents Staff General Needs Equivalent* General Supplement** Fire Supplement** 1 2p 1b flat 5,100 2, p 2b flat 5,100 2, p 2b house 10,100 3, p 3b house 10,100 3, p 4b house 13,900 4, p 4b house 13,900 4,600 *For schemes with no General Needs equivalent Housing Directorate will provide specific guidance **Per dwelling Where applicable use appropriate General Needs Wheelchair supplements Table 3 - Wheelchair Supplements* General Needs Band 1 Band 2 Band 3 Band 4 Band 5 Band 6 Occupancy <=3P 35,600 40,900 46,200 56,800 65,200 73,700 25

26 4P 40,500 45,700 50,900 61,200 69,500 77,800 >=5P 52,100 58,200 64,300 76,600 86,400 96,300 *Per dwelling 26

27 APPENDIX THREE PLANNING AND AFFORDABLE HOUSING - OPTIONS PROCESS STEP 1 STEP 2 STEP 3 Steps 1-3 are the same for all options Trigger planning policy based on size of development Local Planning Authority to consider if site is required for affordable housing by consulting Housing Service and joint discussion of the housing needs survey and profile LPA to inform applicant of prioritised options: 1. Sold/leased to Registered Social Landlord (RSL) 2. Rental/occupier conditions 3. Sold within affordability zone Option 4/5. Only if no need is identified on site OPTION 1 - SALE / LEASE TO RSL LPA lead Planning ask Housing whether Housing / RSL wish to buy / lease? If yes* - STEP 4 RSL and developers meet with Council (Housing lead) STEP 5 and agree details of scheme Developer advised LPA of agreement and details STEP 6 LPA issue decision with standard 106 agreement * If no then discuss other options OPTION 2 - DEVELOPER TO RENT OUT STEP 4 Planning notify Housing so that - Housing and developer can meet to agree STEP 5 STEP 6 * occupancy management * rent levels Housing notify Planning of outcome of above Developer confirms agreement to Planning and S106 agreement made in order to issue decision 27

28 OPTION 3 - LEGAL AGREEMENTS / COVENANTS LOW COST MARKET HOUSING STEP 4 Planning inform Housing so that Housing can meet developer to identify: * Sale price * Occupancy criteria (including strong local connection) STEP 5 STEP 6 STEP 7 and notify Planning of result LPA advises developer of price and arrangements for qualifying tenants and affordability share Developer agrees S106 signed and decision issued OPTION 4 - PAYMENT IN LIEU (Only operates if no need in settlement concerned) STEP 4 LPA inform developer no need in area and request payment in lieu ** STEP 5 Developer agrees and payment made to Housing Revenue (Affordable) Fund STEP 6 LPA issue decision with S106 to ensure payment FORMULA ** Payment is based on a formula calculated as follows Total number of units Affordable Units % Accepted Cost Guidance (ACG) X X X Relevant social housing grant rate (56%) = Sum payable 28

29 OPTION 5 - ALTERNATIVE SITE This option is only used in exceptional circumstances if no need exists in an area / affordable inappropriate for the development site STEP 4 STEP 5 STEP 6 Developer informs LPA site not suitable Developer with Council identify alliterative site for affordable provision (need not be new build) Section 106 to be agreed with consent agreeing: * Development in tandem * Ratio / % age * occupancy criteria 29

30 APPENDIX FOUR FLOW DIAGRAM 30

31 APPENDIX FIVE PROCEDURES FOR ASSESSING "EXCEPTION SITES" 1. RECEIPT OF INITIAL INQUIRY (OR PLANNING APPLICATION) Planning policy team to assess site against normal planning criteria and information on constraints, site history etc Factors to be considered Highways and access Landscape/Biodiversity interest Flood Risk Safety/Hazardous/Noise constraints Information on workplaces Green Field / Brown Field / unused buildings in the area Contaminated Land Waste Water Utility supplies Access to local services (bus, shops, school etc) Site History Other relevant Development Plan policies. Discuss with Planning Control Officer IF SITE NOT SUITABLE ON PLANNING GROUNDS THEN PROCESS ENDS - OR APPLICATION TO BE REFUSED 2. ELIGIBILITY - IF SITE SUITABLE THEN A) Meeting with applicant to explain the exception policy and associated requirements B) Individual applicant to submit income details to validate the need for an "exception site" including housing market information about the settlement and surrounding area (houses for sale, market prices etc) C) Applicant to prove local person/strong local connection CH) Housing Services advise on the merits of the application for affordable housing D) If a developer is involved on a site for more than one exception unit then an agreement is required over occupancy conditions and how to agree availability in perpetuity 3. AGREEMENT If relevant policies and agreements are satisfied the planning application is processed in normal manner and consent with associated agreements approved. 31

32 APPENDIX SIX FFURFLEN ASESU ANGENION TAI AFFORDABLE HOUSING ASSESSMENT FORM INCWM (Yn ol Mis) INCOME (per month) Incwm Net Ymgeisydd Un Net Income Applicant One Incwm Net Ymgeisydd Dau Net Income Applicant Two Cyflog Ychwanegol (e.e. Goramser) Additional Wages (e.g. Overtime) CYFANSWM INCWM (1) TOTAL INCOME (1) GWARIANT Morgais Taliad Yswiriant (Anghyflogaeth /Salwch) Taliad Yswiriant Eiddo Taliad Bywyd Cynilion e.g. TESSA, ISA ayb Yswiriant Car Costau Rhedeg Car Benthyciad Car Treth Cyngor Treth Dwr Trydan Nwy Bwyd Ffon ty a symudol Trwydded Teledu Taliadau Pensiwn Gwarchod Teulu/Cynnal Plant Benthyciad Banc Cardiau Credyd/Cardiau Siopau Eraill: Noder Isod EXPENDITURE Mortgage Insurance (Redundancy/Sick) Property Insurance Life Assurance Payment Savings e.g. TESSA, ISA etc Car Insurance Motor Expenses Car Loan Repayment Council Tax Water Rates Electricity Gas Food Home & Mobile Telephone Television Licence Pension Payments Child Minding / maintenance Bank Loan Repayment Credit Cards / Store Cards Other: Please Note Below CYFANSWM GWARIANT (2) GWEDDILL MISOL (1-2) TOTAL EXPENDITURE (2) DISPOSABLE INCOME (1-2) 32

33 APPENDIX 7 Heads of Terms for Section 106 Agreements Securing Affordable Housing These heads of terms provide an outline only as to what is required in a legal agreement to secure affordable housing. The precise terms of each agreements will be the subject of negotiation during the course of each planning application. Where a Registered Social Landlord (RSL) is involved Identifying that part of the site which provide affordable hosing and the number of those dwellings Confirmation of the provision of affordable housing through a (preferably names) RSL Restriction of the provision of affordable housing Reference to allocation criteria for affordable housing (Where appropriate) alternative means of providing affordable housing where reasonable steps to secure funding for RSL development have failed (Where provision of affordable housing by shared ownership) provisions for second and subsequent sales, restriction on re-sale price and allocation criteria on resale. Low Cost Renting Where No RSL is involved Identifying that part of the site which will provide affordable housing and the number of those dwellings Provision as to phasing of the development to ensure completion of affordable housing before completion of remainder of development Reference to the allocation criteria to be used for the affordable housing and provisions that LPA can police occupation to ensure compliance with agreed criteria Provisions as to rent structure (Where applicable) provisions as regards management arrangements. Low Cost Housing for Sale Identifying that part of the site which will provide affordable housing and the number of dwellings Provisions as to phasing the development to ensure completion of affordable housing before completion of remainder of development Criteria to define those who may purchase the affordable housing Criteria to determine initial sale price Mechanism for calculating price of second and subsequent sales (Where applicable) provisions for relaxation of price or allocation restrictions but in exceptional cases only (e.g. demonstrable and long term failure to sell subject to the restrictions). 33

34 REFERENCES Planning Policy Wales March 2002 Welsh Assembly Government Technical Advice Note Welsh Office Ynys Mon Local Plan 1996 Isle of Anglesey County Council Gwynedd Structure Plan 1993 Gwynedd County Council Ynys Mon Unitary Development Plan 2001 Isle of Anglesey County Council Application of Planning Policy Relating to Housing. Letter from Sue Essex AM 30 January, 2003 Supplementary Planning Guidance June 2003 Chester City Council Housing Need Survey 2001 Fordham Research for Isle of Anglesey County Council Housing Strategy March 2004 Isle of Anglesey County Council Supplementary Planning Guidance Affordable and Key Worker Dwellings June 2002 Oxford City Council Affordable Housing Supplementary Planning Guidance August 2001 North Somerset Affordable Homes for South Shropshire People December 2002 South Shropshire District Council Supplementary Planning Guidance on Planning Gain (draft) January 2004 Macclesfield Borough Council Affordable Housing Code of Practice North Devon District Council Affordable Housing Need in Harrogate District February 2001 Harrogate District Local Plan Strategy and Policy Guidance on Delivering Affordable Housing Carrick District Council Supplementary Planning Guidance Wealden District Council National Assembly web site (Housing / Planning sections) Office of the Deputy Prime Minister web site Housing Corporation web site 34