Deliverability of Housing and the Strategic Housing Land Availability Assessment Housing Evidence Base Briefing Note 8:



Similar documents
London Borough of Havering. Draft Planning Guidance Note on Affordable Housing. Commuted Sum Payments

Site Assessment for Neighbourhood Plans: A toolkit for neighbourhood planners

Assessment of the 5 year Supply of Deliverable Sites in South Oxfordshire April Background

Section 106 affordable housing requirements

Agenda item number: 5 FINANCE AND PERFORMANCE MANAGEMENT OVERVIEW AND SCRUTINY COMMITTEE FUTURE WORK PROGRAMME

Town and Country Planning Act 1990 Section 78 Summary Proof of Evidence

North Somerset Council Core Strategy Affordable Housing Policy: Viability and Deliverability Advice

Asset Based Income Streams

Ref: Joint Core Strategy (JCS) - Comments on Gloucester on behalf of Taylor Wimpey

HERTSMERE BOROUGH COUNCIL REPORT TO EXECUTIVE

RE: CONSULTATION ON THE DEVELOPMENT MANAGEMENT AND THE SITE ALLOCATIONS DPD CONSULTATION DOCUMENT REPRESENTATIONS MADE ON BEHALF OF SAFESTORE.

National Occupational Standards. Valuation of Residential Property for Secured Lending

Spotlight Bridging the Gap in Housing November 2013

Renewable and Low Carbon Energy Study for Central Lincolnshire

Bristol Housing Market in 2015 A Summary. In brief: Housing Stock

AFFORDABLE HOUSING AND LOCAL DEVELOPMENT FRAMEWORKS

LEWES DISTRICT AND SOUTH DOWNS NATIONAL PARK AUTHORITY LEWES DISTRICT JOINT CORE STRATEGY INDEPENDENT EXAMINATION

FLOOD RISK STATEMENT IN SUPPORT OF THE CONNECTING HERNE BAY AREA ACTION PLAN PREFERRED OPTIONS DOCUMENT

Shaping the Future of North East Lincolnshire

Guildford borough Local Plan Local Development Scheme 2015

DRAFT V5. PFSC 16/05/2014 Appendix 1. Outline Plan to deliver the County Council s investment property Strategy

Gateshead and Newcastle Viability and Deliverability Report Gateshead and Newcastle Core Strategy and Urban Core Plan Evidence Base

Making Homes Affordable Labour s Plan for Housing

HIGH PEAK BOROUGH COUNCIL. Report to the Corporate Select Committee. 19th January 2016

Department of Economic Development & Transportation SMALL BUSINESS SUPPORT PROGRAM GUIDELINES

09 February Housing Strategy Team Welsh Government Rhydycar Business Park Merthyr Tydfil, CF48 1UZ. Dear Sir/Madam

Adur District Council Housing and Central Services Committee 22 March 2007 Agenda Item 9

South Hampshire. Strategic Development Areas. Deliverability Study. Final Report. The Partnership for Urban South Hampshire

Schneps, Leila; Colmez, Coralie. Math on Trial : How Numbers Get Used and Abused in the Courtroom. New York, NY, USA: Basic Books, p i.

Date: 13 March Chief Executive

Selling off the stock

ARLA Members Survey of the Private Rented Sector

HOMEBUYER PROGRAM MANUAL (Existing & New Construction) AMENDED DECEMBER, 2008

Commission for Ethical Standards in Public Life in Scotland

WILTSHIRE CORE STRATEGY EXAMINATION - LAND AT STATION ROAD, WESTBURY.

Report. Prepared for. Report for CIL Charging. GVA St Catherine s Court Berkeley Place Bristol BS8 1BQ (0) gva.co.uk

Corporate Director Environment and Community Services

Risk Disclosure Statement

Third-Quarter Financial Release Discussion Material

Approved by Management Committee 24/03/11 Strategy Document

Help to Buy Buyers Guide. Homes and Communities Agency August 2014

A Guide to Pre-Application Advice and Fees and Planning Performance Agreements

COLLECTIVE INVESTMENT SCHEMES ACT 2008 COLLECTIVE INVESTMENT SCHEMES (REGULATED FUND) REGULATIONS 2010

Safe, Warm & Secure. Home Improvement Loan Scheme. Application Form for Owner-Occupiers

Welcome Welcome to the public exhibition for development at Bowman Field. This exhibition provides an overview of the proposals for the site.

an Inspector appointed by the Secretary of State for Communities and Local Government

NORTH AYRSHIRE COUNCIL CORPORATE ASSET MANAGEMENT STRATEGY JANUARY 2013

Issue 2 Are the charging rates informed by and consistent with the evidence?

UNDERSTANDING HOUSING DECISIONS IN THE NEW ZEALAND RESIDENTIAL PROPERTY MARKET

EAST AYRSHIRE COUNCIL CABINET 21 OCTOBER 2009 TREASURY MANAGEMENT ANNUAL REPORT FOR 2008/2009 AND UPDATE ON 2009/10 STRATEGY

PENSON FINANCIAL FUTURES, INC.

Next steps to zero carbon homes

Fylde Coast Strategic Housing Market Assessment - Summary. April 2008

AUSTRALIA S BROKEN HOUSING SYSTEM

Financial Health and Funding in Colleges

LONDON BOROUGH OF BROMLEY TEMPORARY ACCOMMODATION PROCUREMENT STRATEGY 2015

Pre-application advice from the Planning and Development Service at Torridge District Council.

Proposed LDP Settlement Strategy Appraisal

Place Scrutiny Briefing AGENDA ITEM 13

ANNEX ON FINANCIAL SERVICES

Asset Management & Capital Strategy 2015/16

Badger BC. Investments Ltd. Business Plan A wholly owned subsidiary of Broxbourne Borough Council

Annex A: Examples of S106 re-negotiation. 1. Ashford Borough Council

Spotlight Key Themes for UK Real Estate in 2015

Housing in the UK - A Case Study of Homeless Living

Page 79. London Borough of Sutton. The Executive - 6 July Report of the Executive Head of Community Living

Cambridge City Council. To: Council 23/2/2012. Julia Hovells, Housing Finance & Business Manager

THE ARLA REVIEW & INDEX

Draft London Plan Early Minor Alterations Mayor s response to comments at Assembly & Functional Bodies consultation stage

Sixth Statutory Managers Report

Affordable Housing Your Guide to the Rent to Buy Scheme

THE HUD FHA CERTIFICATION REQUIREMENTS WHAT EVERY CONDOMINIUM SHOULD KNOW ABOUT HOW TO BECOME CERTIFIED TO OBTAIN FHA BACKED FINANCING

1 To review the office market in Bakewell in the light of pressures for change from office to residential in town centre sites.

3 PROPOSED REPORTING OF DEVELOPMENT MANAGEMENT PERFORMANCE MONITORING TO THE REGULATORY PLANNING COMMITTEE

The South West Regional Spatial Strategy: Schedule of the Secretary of State's Proposed Changes and Reasons - For Public Consultation July 2008

ANNEX XI REFERRED TO IN ARTICLE 3.19 FINANCIAL SERVICES

Appendix 11: AFFORDABLE HOUSING TERMS & CRITERIA

SHARE TRADING POLICY

ANNEX IX REFERRED TO IN ARTICLE 3.20 FINANCIAL SERVICES

Preventing Wasted Housing Supply Draft Supplementary Planning Document

Implementation Plan: Development of an asset and financial planning management. Australian Capital Territory

Essex County Council / Southend Borough Council

Pembrokeshire Coast National Park Authority Pembrokeshire Local Development Plan. Land Allocation Implementation Study Final Report

ADVICE NOTE BUYING AND SELLING YOUR FLAT. A summary of the typical events when buying and selling a leasehold flat

Policy Response Buy to Let Tax Relief

Securing the future availability and affordability of home insurance in areas of flood risk

Share Trading Policy December 2010

Leicester and Leicestershire Local Investment Plan

Briefing Paper on Equity Release

Havering Employment Land Review

CABINET. 8 June 2010 REPORT OF THE CORPORATE DIRECTOR OF FINANCE AND COMMERCIAL SERVICES

Vacant Properties Rehabilitation Program

Leases on Indian Reserves

Section 2. Commentary. Chapter 6 Help with housing costs

Development Viability

Charging for Pre-Application Advice. Guidance Note London Borough of Newham. March 2015

Help to Buy: Equity Loan scheme 19,394 properties 791 million 184,995 36,999 First Time Buyers, account- ing for 16,964 (87.

Variation No. 2 of the Louth County Development Plan Louth County Core Strategy

SOLCO LIMITED ACN (Company) TRADING POLICY

Borough of Glassboro, New Jersey May Redevelopment Plan for Rehabilitation In the Borough of Glassboro May 2010

Transcription:

Deliverability of Housing and the Strategic Housing Land Availability Assessment Housing Evidence Base Briefing Note 8: National Policy Context The NPPF i (paragraph 159) states that local planning authorities should have a clear understanding of housing needs in their area. They should prepare a Strategic Housing Land Availability Assessment to establish realistic assumptions about the availability, suitability and the likely economic viability of land to meet the identified need for housing over the plan period. Draft National Planning Practice Guidance has been made available to guide the Assessment of Land Availability ii and this guidance once formalised will replace the previous 2007 Strategic Housing Land Availability Practice Guidance iii. Definitions Deliverability the NPPF (paragraph 47) states that for a site to be considered deliverable, sites should be available now, offers a suitable location for development now, and be achievable with a realistic prospect that housing will be delivered on the site within five years BN9 and in particular that development of the site is viable. Sites with planning permission should be considered deliverable until permission expires, unless there is clear evidence that schemes will not be implemented within five years, for example they will not be viable, there is no longer a demand for the type of units or sites have long term phasing plans. Developable the NPPF goes on to define that to be considered developable, sites should be in a suitable location for housing development and there should be a reasonable prospect that the site is available and could be viably developed at the point envisaged. The Planning Advisory Service iv considers that the SHLAA is an essential piece of evidence which provides consistent and comparable up to date information on the availability, suitability and deliverability of sites. It allows authorities to understand what sites are theoretically available for allocation, what sites have planning permission and to provide detailed information on past development which can be used to inform windfall calculations. Overview It is difficult to predict how much housing will be delivered in Cornwall during the twenty year plan period as this is outside of the control of planning. What is important is that the Local Plan can be delivered. Past completion rates do give some indication of the likely delivery rates Cornwall can expect to achieve and this suggests that we should be able to deliver between 42,000 and 50,000 new homes based on past long term trends. The development industry does have concerns about deliverability and this is mainly due to the current economic crisis and a lack of both homebuyer and developer finance. In terms of the availability of land to be developed for housing the Strategic Housing Land Availability Assessment (SHLAA) has identified sufficient land to accommodate over 100,000 new dwellings and capacity is therefore not an issue for Cornwall. The latest Housing Trajectory BN9 confirms that Cornwall has at least a 5.6 year supply of Version 1: November 2013 1

land against the higher target of 48,000 (previous consultation) and a 6.7 year supply of land against the current consultation target (42,250). Context Land values are determined by the demand for land for particular uses relative to the supply of land for these uses. Price premiums indicate a shortage of land in a locality for a particular use, i.e. a high price for land generally indicates a shortage of land for that particular use. Housing land in Cornwall v attracts higher values than that for employment purposes and significantly higher values than land in agricultural use. The combination of the restricted ability of purchasers to borrow and buy properties at the moment, combined with the reduced ability of developers to access financing to purchase land has led to a marked decrease in short term demand for housing land and a consequent fall in land values. This is an unprecedented set of economic circumstances prevailing in the current economic climate that do not flow from a reduction in real long term demand vi. Economists and property experts predict that after a period of re-adjustment, underlying demand will return to recent levels, albeit at restructured prices, but no-one is venturing to predict how long recovery will take, although most experts consider that within 4 to 5 years a recovery will be underway. Whilst the short term demand for housing in Cornwall may have fallen as a result of a lack of confidence in the market and financial constraints, medium and long term demand for housing is still considered by the market to be relatively strong. This is underpinned by the well publicised national housing shortage arising from a continuing high level of new household formation combined with record low levels of new house building BN6. Deliverability of sites depends on land owners accepting these new economic circumstances. In some circumstances these land owners could significantly delay development on large urban extensions since many agents fear that some owners have entrenched views of land values, i.e. high expectations. The Local Plan: Strategic Policies Proposed Submission Version vii tries to meet many objectives in terms of the distribution of housing, including the need to redress an imbalance between jobs and homes, the need for regeneration, and the requirement to meet affordable housing needs. However, the distribution of housing growth to meet these objectives and housing need sometimes results in a direction of growth to areas where deliverability prospects are lower than for more attractive areas. Past Experience - Previous Rates of House Building Previous house building rates are not an indication of future house building rates but are useful as an indication (almost a control figure ) of likely future delivery rates. Since 1991 viii, 46,000 houses have been built in Cornwall, giving an annual average of 2,100. Since 2001, 29,740 houses have been built in Cornwall giving an annual average of 2,500. House building rates in Cornwall have experienced both peaks and troughs in delivery since 1976, as shown in the graph below. Version 1: November 2013 2

4000 Housing Completions in Cornwall since 1976 with Long Term Average 3500 3000 2500 2000 1500 1000 500 0 1976-1977 1979-1980 1982-1983 1985-1986 1988-1989 1991-1992 1994-1995 1997-1998 2000-2001 2003-2004 2006-2007 2009-2010 2012-2013 This allows us to calculate a long term average (2,265 per year since 1976), which is as realistic an indication of a house building delivery rate as is possible as it incorporates both upturns and downturns in the market. If house building were to continue as it has over the past twenty years, then we could reasonably expect to deliver 42,000 homes (2,100 per annum) for the period 2010-30. If house building delivery were to continue as it has over the past ten years, then we could reasonably expect to deliver some 50,000 homes (2,500 per annum) for the period 2010-30. Despite concerns over the decline in the housing market nationally and locally, housing delivery in Cornwall has remained fairly buoyant since 2007. Housing Delivery has averaged almost 2,500 per year for the last six years (2007-13) and has averaged 2,200 completions per year over the last three years (2010-13). Future Capacity - the Strategic Housing Land Availability Assessment (SHLAA) A SHLAA was undertaken in 2010 ix to assess the capacity of sites around the main towns in Cornwall, and this resulted in a potential capacity of some 92,000 dwellings. This work has been further refined through the preparation of town frameworks x and sites have been proposed that can more than meet the growth figures proposed for the main towns. A further call for sites was carried out in 2012 and the SHLAA has now been updated and extended to include sites in the towns and other settlements across Cornwall. Early indications are that there is capacity to accommodate about 116,000 xi new dwellings in Cornwall and this does indicate that there is more than enough capacity to accommodate any of the levels of growth proposed. Note of Caution 1: A site s inclusion in a SHLAA does not imply that it will be made available for housing. The SHLAA is a technical study and not a policy document. It identifies possible housing sites and assesses overall housing potential but ultimately decisions on which sites should be brought forward Version 1: November 2013 3

for development will be determined through either the Cornwall Local Plan process or through planning applications. A key part of the SHLAA and plan making is to understand how a local authority s supply will be delivered over time and to develop a trajectory to ensure that a deliverable supply meets the objectively assessed requirement BN1 which in terms will be used to inform the five year land supply BN9 calculations. Development Industry Perspective An essential part of the process of a robust SHLAA is the involvement of developers in the process. This ensures developers are the key source of information to help with assessing supply and the trajectory. Registered providers can also provide useful information in relation to the delivery of affordable housing. The Cornwall SHLAA was prepared with significant input from the partners who make up the SHLAA Panel, and in line with current government guidance this includes house builders, social landlords, property agents, and others such as the Environment Agency and Highways Agency. This ensures that all relevant data are brought together and that partners are engaged at the earliest stages in the plan making process. The SHMNA xii also included some discussion with developers and a number of conclusions were made about the housing market in Cornwall: Agents were keen to emphasise that the housing market varies greatly across Cornwall, and generally house prices and rents have been over recent years, and continue to be, fairly static. There were exceptions at a local level which have seen higher signs of market volatility. Rents in general are perceived as not significantly changing for the last 1 to 2 years. A large number of developers are active in Cornwall either building properties or looking for potential new development sites. Developers considered that there is a perceived polarised market in Cornwall, with affluent and desirable development areas including Truro, Penryn, Fowey, Mevagissy, St Agnes and areas along the coast. By contrast there was a perception that less desirable areas include inland locations, such as Bugle, St Stephen, Nanpean, Camborne and parts of Redruth. Developers stated that build out rates vary greatly dependent on the size of the developer and the location of sites. Some developers anticipate an 18-20 dwellings per annum build out rate; whereas others predict up to 120 dwellings per annum could be constructed on the right site in a strong market location given the scale of demand. Whilst the messages around the strength of the market were consistent, developers did note that there were a number of obstacles impacting on the delivery of new housing. This included high land prices, low household incomes in some areas, high construction costs and a low rate of sales in weaker market areas. Problems for small scale developers include a lack of finance. Developers had mixed views about the future housing market in Cornwall. The majority agreed that the market will not improve until mortgage availability increases. At present, many people in Cornwall are struggling to save for a deposit and acquire a mortgage. Developers reported that they are increasingly looking to incentivising schemes, such as First Buy and Home Buy, and one developer stated that house sales are often dependent on the ability to offer the benefits of these government funded schemes. Peter Brett Associates xiii were also commissioned to undertake a delivery based approach looking at the capacity of the area to provide housing from a housing Version 1: November 2013 4

market delivery perspective. Discussions took place with many national and local developers, agents operating in the housing market in Cornwall, as well as with Council Officers responsible for the development of the Town Frameworks. These discussions reached consensus conclusions about the capacity of the housing market areas to deliver growth as proposed at that time in the Core Strategy Preferred Approach xiv : The capacity of the housing market now and in the foreseeable future was considered to be limited. The Peter Brett Associates xv assessment of market capacity demonstrated that there was a gap between what was currently proposed in terms of housing requirements (48,850) and what appeared to be deliverable. This gap was considered to be in the region of 2,500 fewer dwellings in the main settlements which would reduce the housing requirement to about 46,300. In considering the issue of a potential under delivery, there was a need to acknowledge and accept that there were/are some artificial factors in play at this point in time. There is very clearly a demonstrable housing requirement, there are development sites able to address that need, but the delivery of housing was and is stalled by the inability of developers and potential buyers to borrow money in normal ways. If this credit shortage were eased, the industry could set about meeting what will by then be a pent up requirement very effectively. The Council might therefore consider that the gap between the requirement and delivery, might be presented as a timing issue rather than requiring a fundamental change. Risk Assessment Caution needs to be used in identifying sites for development through a SHLAA as a common misunderstanding is that all of the se sites could come forward for development. As indicated in Note of Caution 1 above - the SHLAA is a technical study in that it identifies possible housing sites and assesses overall housing potential but the final decision on which sites should be brought forward for development will be determined through either the Cornwall Local Plan process in terms of site allocations or through planning applications. Examination Findings The proposed housing supply for an area is not the same as the objectively assessed need for the area, but it is an important element of the evidence base to demonstrate that there is sufficient land available to meet the housing target and to comply with the five year land supply assessment. Inspectors have made this clear in advice on core strategies, particularly in relation to: Ryedale the SHLAA gives insufficient guidance about the release, delivery and scale of proposed housing development Bath & North East Somerset - in that the wide range of material of potential relevance has made it impossible for me to be clear as to the assumptions which the Council has made about these sites and the consistency of its approach. Does the capacity of sites in the SHLAA reflect a preliminary application of the PPS25 sequential test where the site occupies land in more than one flood zone? I also want to be clear as to the latest position regarding the deliverability of these sites and have set out specific questions. Use in Cornwall Local Plan An analysis of housing deliverability has been used throughout the development of the Cornwall Local Plan (previously known as the Core Strategy) and the following papers accompanied or were available at the time of each consultation: Version 1: November 2013 5

Strategic Housing Land Availability Assessment 1 (November 2010) accompanied the Core Strategy Options Report and Our Preferred Approach for a Core Strategy - http://www.cornwall.gov.uk/default.aspx?page=32790 Housing Land Availability Assessments and Trajectories were available for the Core Strategy Options Report, Our Preferred Approach for a Core Strategy and Cornwall Local Plan: Strategic Policies Pre-Submission Version - http://www.cornwall.gov.uk/default.aspx?page=22474 Strategic Housing Land Availability Assessment 2 (preliminary results - early 2013) were available to inform the Cornwall Local Plan: Strategic Policies Pre-Submission Version - http://www.cornwall.gov.uk/default.aspx?page=32813 Accompanying Briefing Notes: BN1 Objectively Assessed Need BN6 Why do we need to build more houses and what are the consequences of building too few or too many homes? BN9 Five Year land Supply & Flexibility Allowance Further Information: 1. A Strategic Housing Land Availability Assessment (SHLAA) will establish realistic assumptions about the availability, suitability and the likely economic viability of land to meet the identified need for housing over the plan period 2. A Housing Land Availability (HLA) report monitors delivery against a Local plan housing target on an annual basis, and usually forms part of a local authority s Monitoring report. i DCLG (2012) National Planning Policy Framework - https://www.gov.uk/government/publications/national-planning-policy-framework--2 ii DCLG (2013) Assessment of Land Availability - http://planningguidance.planningportal.gov.uk/blog/guidance/assessment-of-landavailability/what-is-the-purpose-of-the-assessment-of-land-availability/ iii DCLG (2007) Strategic Housing Land Availability Practice Guidance - https://www.gov.uk/government/publications/strategic-housing-land-availability-assessmentpractice-guidance iv Planning Advisory Service (2013) Ten Key Principles for Owning your Housing Number Finding your Objectively Assessed Needs - http://www.pas.gov.uk/pas/core/page.do?pageid=3766455 v ORS/Three Dragons (2012) Housing Strategic Viability Assessment - http://www.cornwall.gov.uk/default.aspx?page=33997 vi The National Housing & Planning Advisory Unit makes it very clear that the current recession will have little impact on the number of homes required over the next twenty years. Recessions do not have a big impact on household growth but they do cause a dip in house building. Homes lost in that dip will need to be made good later in the period. In Cornwall Council (2011) Housing Growth Targets - http://www.cornwall.gov.uk/default.aspx?page=32791 vii Cornwall Council (2013) Local Plan: Strategic Policies Proposed Submission Version http://www.cornwall.gov.uk/default.aspx?page=32813 viii Cornwall Council (various) Annual Monitoring Reports www.cornwall.gov.uk Version 1: November 2013 6

ix Cornwall Council/Entec (2011) Cornwall Strategic Housing Land Availability Assessment - http://www.cornwall.gov.uk/default.aspx?page=19177 x Cornwall Council (2010) Place Based Plans - http://www.cornwall.gov.uk/default.aspx?page=24898 xi This figure includes un-assessed SHLAA 2012 Call for Sites submissions only. A density multiplier of 40 dwellings per hectare and net developable areas has been broadly applied. The net developable areas applied are as follows: a) Below 25 units: 100% of site area (net); b) 25-50 units: 85% of site area (net); c) Over 50 units: 70% of site area (net). It is important to note that these are crude initial calculations which do not take factors into account such as site overlap or that some sites are likely to be removed from the process. This includes where there is a reliance on a small number of large sites. There is overlap with SHLAA1 sites. The combined SHLAA will also incorporate potential housing capacity from other sources. xii GVA/Edge Analytics (2013) Strategic Housing Market Needs Assessment Main Report: Plymouth City Council, South Hams District Council, West Devon Borough Council, Cornwall Council and Dartmoor National Park xiii Peter Brett Associates (2010) Housing Requirement for Cornwall - http://www.cornwall.gov.uk/default.aspx?page=32813 xiv Cornwall Council (2012) Our Preferred Approach for a Core Strategy http://www.cornwall.gov.uk/default.aspx?page=32791 xv Peter Brett Associates (2012) Housing Requirement for Cornwall - http://www.cornwall.gov.uk/default.aspx?page=32813 Version 1: November 2013 7