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Flashcards in Housing Strategy & Provision Deck (36)
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1

What is the key Planning legislation?

- National Planning Policy Framework
- Localism Act 2011
- Town and Country Planning Act 1990

2

What is the NPPF?

Last revised in 2019
Provides a national framework that local authorities then prepare their Local Plans in line with.
Key policies in 2018 edition include;
- Speeding up the planning process and making it more simple
- Increased housebuilding of a higher quality
- Encourage Build to Rent and affordable housing
- A review on land banking by putting pressure on developers

3

What are CIL and S106? What are the differences?

CIL - Set tariffs per sqm pooled for wider LA infrastructure. Charging schedule on LA website. Cannot be used to secure affordable housing. Only charged on net increase in GIA sqft.

S106 - section in the Town and Country Planning Act 1990).) Set out in a legally binding agreement that is negotiated on a site-by-site basis. Must be in direct relation to the development and its immediate area. Can be used to secure affordable housing.

4

What is the Infrastructure Act 2015?

Makes it easier to convert empty or redundant buildings to productive use, particularly new homes.
Enables surplus public sector land to be sold more quickly by reducing red tape.

5

What is the Housing & Planning Act 2016?

Aims to increase the construction of starter homes. Starter homes are to be sold at a discount of at least 20% of the market value and always for less than £250,000 outside of Greater London (and £450,000 in Greater London)

6

Neighbourhood Planning Act 2017?

Aims to strengthen neighbourhood planning and speed up with planning process to enable more houses to be built.

7

How do you think recent changes will impact the delivery of affordable housing?

1. Introduction of CIL – may result in pressure on AH delivery as CIL is non negotiable and can reduce the amount of money ‘in the pot’ for affordable housing
2. Social and affordable rent increases to be capped at CPI – 1% a year for the next four years – reduce income for housing associations which may reduce amount available to deliver new affordable housing, also will reduce the viability of new scheme as rents will not increase in line with build costs
3. Right to buy – may deplete stock of affordable housing if not replaced

8

What is a Viability Assessment and why is it required?

The NPPF says that development sites should not be overburdened by planning obligations which jeopardises their viable delivery. Viability Assessments are required where proposals do not comply with levels of planning obligations or affordable housing in adopted policy.

9

What are the different types of affordable housing?

1. Social rented – owned by LAs or RPs, guideline target rents are determined through the national rent regime
2. Affordable rented – let by LAs or RPs to eligible households, subject to rent control requiring a rent of no more than 80% of local market rent
3. Intermediate – homes for sale and rent provided at a cost above social rent, but below market values; includes shared ownership, shared equity, discounted market sale and intermediate rent

10

What changes have recently been announced for housing strategy?

Budget 2020:
- an extension of the Affordable Homes Programme with a new, multi-year settlement of £12 billion
-over £1 billion of allocations from the Housing Infrastructure Fund to build nearly 70,000 new homes in high demand areas across the country
Planning for the Future 2020:
- £400m for Brownfield delivery & launching for

11

What is a SHMA?

Strategic Housing Market Assessment. An assessment of future housing requirements in an area, to inform the local plans strategy and housing targets (by tenure and type). It also includes detailed analysis of the housing requirements of important sub-groups of the population. Based on statistics and projections produced by Office of National Statistics.

12

What is a SHLAA?

Strategic Housing Land Availability Assessment. Determines the quality and suitability of land potentially available for housing development. An assessment should:
• identify sites and broad locations with potential for development;
• assess their development potential;
• assess their suitability for development and the likelihood of development coming forward (the availability and achievability).
Sufficient land supply should be identified for meeting housing need for the next five years.

13

Why are SHMAs and SHLAAs used?

Required by NPPF
Used to inform local plans, underpin local planning policy
Annual Monitoring reports checking targets being met.

14

How are Local Plans prepared?

1. Collection of evidence base – SHMA and SHLAA
2. Public consultation on options
3. Publish draft plan for consultation
4. Examination in Public
5. If found sound, the Plan will be adopted

15

What Local Plan is applicable in your jurisdiction?

Cambridge Local Plan 2018
- AH - 11-14 units =25% / 15+ units = 40%.
South Cambridgeshire Local Plan 2018
- AH - 11+ units = 40% / mix 30/30/30/10
East Cambridgeshire Local Plan 2015
- AH - 40% to the south of the district / 30% to the north of the district. Mix - emphasis on family housing (3&4 beds)

16

Who are the registered providers of affordable housing

Registered providers include local authority landlords and private registered providers (such as not-for-profit housing associations and for-profit organisations). eg Clarion Housing Group or L&Q.

17

How does the planning system seek to protect the greenbelt?

National green belt policy was introduced in 1955 and has remained virtually unchanged since, with only limited guidance on its interpretation and, indeed, purpose. This has led to a raft of criticism over the methodology applied to green belt reviews and assessments during emerging plans.
Regardless of the criticism, however, it is clear that authorities are now accepting that to progress to a robust local plan, a Green Belt Assessment is a critical piece of evidence.

18

How is your housing market performing?

-Cambridge house prices have generally mirrored London and South East and experienced drops in values in recent years (as affordable locations like midlands see growth).
- Housing delivery continues in order to cater local demand, generally in hinterland sites (underpinned by HTB).
- Brexit uncertainty dampened the housing market last year, with many buyers opting to wait until greater clarity achieved.
- Greater number of owner-occupiers, fewer investors in the market.
- Covid 19 - has now affected the practicalities of buying and selling homes

19

How are political, economic and demographic factors affecting the housing market in your region?

Brexit - uncertainty (consumer confidence)
Covid 19 - global disruption causing financial damage
Government policy - change to HTB
Environment - societal pressure to implement in construction - causing high build costs
Affordability - average income 12.5 times (city) / 7 times (SCambs) - affordable options required.

20

What are the Technical Housing Space Standards?

The government have created a new form of technical planning standards used solely within the planning system by local authorities.

21

What is local delivery requirements according to local SHMAs?

Cambridge sub-region (SHMA), May 2013
City = 14,000 from 2011 to 2031
South Cambridgeshire 2013 = 19,500 from 2011 to 2031
East Cambs 2016 = 12,900 from 2014 to 2036

22

Explain the situation of SHMAs in your region?

Cambridge Sub-Region Housing Market Area produced a Strategic Housing Market Area Assessment (SHMAA) in 2013 for the area, which has just been updated. The document assesses Cambridgeshire and the Housing sub region and identifies an additional dwelling figure of 93,000 dwellings by 2031. (market and affordable housing)

23

Bury St Edmunds - Affordable housing mix?

The National Planning Policy Framework states that affordable housing shall only be required for sites of 0.5ha and over or for 10 dwellings and over.

Our Core Strategy policies would then require 30% affordable housing.

24

Bury St Edmunds - How did you establish a suitable mix

- I reviewed the Local plan to assess local housing needs, which included SHMA data.
- I used ONS to assess the housing market by key subgroups and demographics.
I cross-checked my mix with similar schemes in the locality.

25

How are Local Plans examined?
Soundness Self-Assessment Checklist?

The Local Plan will be examined by an independent inspector whose role is to assess whether the plan has been prepared in accordance with the Duty to Cooperate, legal and procedural requirements, and whether it is sound. A plan is sound if it is:
• Positively prepared – prepared based on a strategy which seeks to meet objectively assessed development and infrastructure requirements
• Justified – the plan should be based on proportionate evidence
• Effective – the plan should be deliverable over its period
• Consistent with national policy – the plan should enable the delivery of sustainable development in accordance with the policies in the NPPF

26

What happens if a local authority doesn’t have a local plan adopted?

The NPPF states that where there is not an up to date Local Plan there will be a default presumption in favour of sustainable development.

27

What happens if a LA has consistently underperformed on the delivery of housing?

Fails to meet 95% pass mark - put in place an action plan.
Below 85% of the requirement, revisit the local plan, and identify a 20% buffer.
Below 65% - face the presumption in favour of sustainable development (this is changing to 75% in 2020)

28

What is a Viability Assessment and why is it required?

The NPPF says that development sites should not be overburdened by planning obligations which jeopardises their viable delivery. Viability Assessments are required where proposals do not comply with levels of planning obligations or affordable housing in adopted policy.

29

Is there any guidance on FVA?

The RICS produce a Financial Viability in Planning guidance note promoting best practice.

30

How would you undertake a Viability Assessment?

1. Determine the benchmark land value – Existing use value plus premium, AUV, Market Value or purchase price paid
2. Calculate the residual land value of the proposed scheme
3. Deduct the benchmark land value from the residual
4. If positive (surplus) use scenario testing to determine the appropriate level of obligations and AH
5. If negative, cannot afford any further obligations or AH
6. Submit to the LA who will appoint an assessor to review it