1. Summary

1.1 This report examines the implications, for the implementation of the adopted Hampshire County Structure Plan, of the new Regional Planning Guidance (RPG), Planning Policy Guidance (PPG) Note 3 'Housing' and the emerging results of urban capacity studies. The Government Office for the South East (GOSE) has confirmed the view previously expressed by Hampshire County Council, that the Hampshire County Structure Plan complies with PPG3. The baseline housing provision, including the Major Development Areas (MDAs) at Basingstoke, South East of Eastleigh, Andover and West of Waterlooville, is committed to development by the Structure Plan's policies but additional urban capacity should reduce the need to build on non-MDA greenfield sites. Some of the reserve provision will also need to be released, in due course, to satisfy the requirements of the new RPG. On current information, the Government's target of 60% of new housing being built on previously developed land by 2008 should be met or bettered in Hampshire.

2. Introduction

2.1 The policies of the adopted Hampshire County Structure Plan 1996-2011 (Review) provide a 'baseline provision' for 80,290 new homes 1996-2011 (Policy H2) and a 'reserve provision' to accommodate up to 14,000 more homes during the period 2001-2011 (Policy H4). The baseline provision includes four MDAs (Basingstoke; South East of Eastleigh; Andover; and West of Waterlooville) (Policy H3). A fifth MDA (Winchester City (north)) is part of the reserve provision (Policy H4). The relevant policies are reproduced in Appendix 1. The mechanisms for reaching decisions on whether to release the reserve provision are set out in Supplementary Planning Guidance 'Implementing Policy H4' which was adopted by the three strategic planning authorities earlier this year.

2.2 The reserve provision policy (H4) enables the supply of land for housing to be adjusted to match the requirements of the new RPG, and to take account of emerging additional urban housing capacity. These matters are examined in more detail below.

2.3 When the Structure Plan was prepared, it envisaged that the baseline housing provision 2001-2011, additional to that carried forward from the previous Plan, would be accommodated as follows: 56% within built-up areas, 16% as small scale additions to built-up areas and 28% as MDAs (Table A on page 55 of the Plan).

2.4 The whole of the baseline provision, including the four MDAs which are an integral part of it, is unconditionally committed to development by the policies in the adopted Structure Plan.

2.5 The situation in respect of the reserve position is slightly different. Although the relevant policy (H4) requires local plans to identify provision for up to 14,000 dwellings (including the Winchester City (north) MDA and extensions to the baseline MDAs at Basingstoke, South East of Eastleigh and West of Waterlooville), the sites involved will not be released for development unless and until the strategic and local planning authorities decide they are needed. In other words, local plans must identify the full reserve provision, but will hold back its release for actual development.

2.6 In managing the implementation of Policy H4, additional urban capacity for housing can be exploited as an alternative to the development of greenfield reserve sites. Policy H4 explicitly states that the rate of development of land in existing urban areas across the whole of the Structure Plan area will be one of the issues to be considered before greenfield reserve allocations are considered for release for development.

3. Regional Planning Guidance

3.1 The Structure Plan's baseline-plus-reserve approach ensured that the housing policies were sufficiently flexible to accommodate a range of possible outcomes to the recent debate about housing provision in the South East Region.

3.2 The Secretary of State published the definitive new RPG for the South East of England in March this year. It covers the period 2001-2016. The RPG states that 6,030 new homes should be provided for each year from 2001 to 2006 in Hampshire, including Southampton and Portsmouth (the area covered by the Hampshire County Structure Plan). It adds that development plans across the Region should provide for the same rate beyond 2006, although the RPG raises the likelihood of even higher rates of building when it is reviewed.

3.3 The RPG figure is significantly above the baseline housing provision in the Structure Plan (5,352 per annum). It means that, in addition to all of the baseline provision, up to about half of the reserve provision may need to be developed up to 2011 (see Appendix 2). The amount of 'greenfield' development necessary, including the reserve position of MDAs, will depend on the amount of housing which can be accommodated on urban sites across the Structure Plan area. This issue is explored further below.

3.4 Notwithstanding this calculation, local plans should still identify all the reserve provision set out in Policy H4 (see paragraph 2.5 above). Decisions on where and when that part of the reserve provision required by RPG will actually be released for development will be taken in future years by the strategic and local planning authorities, in the way set out in Supplementary Planning Guidance 'Implementing Policy H4'.

4. Planning Policy Guidance Note 3 'Housing'

4.1 Planning Policy Guidance Note 3 on Housing (PPG3) spells out the Government's new approach to housing provision called 'plan monitor and manage'. The PPG places more emphasis on the recycling of previously-used land and higher quality design of housing developments. It calls for development plans to ensure that previously-used (brownfield) land is developed before greenfield sites are built on; and sets a target that 60% of new housing should be built on previously developed land. It is important to note, however, that the PPG specifically acknowledges that not all development can take place within urban areas, and that some building will be necessary on greenfields. The PPG states that its new approach will require an early review and alteration of most development plans.

4.2 The Hampshire Structure Plan's baseline plus reserve approach enacts the 'plan monitor and manage' approach, while the Plan's policies (notably UB1, S1, H2 and H4) aim to make the best use of opportunities for housing within existing built-up areas. Policy H4 specifically states that the rate of development of land in existing built-up areas will be a factor to be considered in reaching decisions on whether any greenfield reserve sites should be released for housebuilding.

4.3 Although the Structure Plan's strategy is to make the best use of opportunities for development within existing urban areas, it recognises that not all the required development can be accommodated there, and so some greenfield development will be necessary. The Plan includes a number of MDAs as the most sustainable option for accommodating the bulk of that greenfield development. The Strategy therefore embodies the sequential approach set out in PPG3, which is: urban site opportunities first, then urban extensions, then sites at nodes in good public transport corridors.

4.4 When the Structure Plan was being prepared, it was envisaged that 56% of additional new housing 2001-2011 would be within existing built-up areas, (see paragraph 2.3 above). During 1999/2000 (the latest year for which information is available) 60% of new homes were built on previously developed land in the Structure Plan area. Urban capacity studies are identifying additional urban sites for housing. All this points to the Government's target of 60% by 2008 being met or bettered in Hampshire.

4.5 The preceding paragraphs bear out Hampshire County Council's previously expressed view that the adopted Hampshire County Structure Plan complies with PPG3, and that consequently the Plan does not require an early review to bring it into line with the PPG. This view has just been confirmed by the Government Office for the South East (GOSE). In response to a letter from the Hampshire County Planning Officer on this question, GOSE points out that the Secretary of State decided that the Structure Plan in its final form generally accorded with the draft PPG3 and that this remained the case when the PPG was published in its final form (copy of GOSE letter attached as Appendix 3).

5. Urban Capacity Studies

5.1 Assessments of the capacity of urban areas to accommodate additional housing were undertaken by Hampshire local authorities in the mid to late 1990s and the results were taken into account in finalising the Structure Plan's housing policy figures. In line with Government guidance, fresh urban capacity studies are underway in nearly all Hampshire local authorities, as follows:

	Study completed	Study to be done by Dec 2001
Basingstoke and Deane	·
East Hampshire		·
Eastleigh		·
Fareham		·
Gosport		·
Hart		·
Havant		·
New Forest	·
Portsmouth	·
Rushmoor		·
Southampton	·
Test Valley		·
Winchester	·

NB: Not all completed studies have yet been published.

5.2 To achieve consistency of methodology and thus results across the Structure Plan area, officers of the strategic and local planning authorities have prepared guidelines for these studies (see item elsewhere on the agenda).

5.3 The additional urban housing capacity which is identified will be used to reduce or obviate non-MDA baseline greenfield allocations within that district. It is possible that the urban capacity in a district may exceed its baseline housing figure (eg Southampton - see paragraph 5.6 below). In

that event, the opportunity would exist to deploy this 'excess' urban capacity, as explained in paragraph 2.6 above, to obviate the release of a greenfield reserve site, either in that district or elsewhere in the Structure Plan area.

5.4 Until urban capacity studies are completed by all local planning authorities, it will not be possible to ascertain the scope for this substitution, but the picture emerging from the studies already completed is described below. The possibility that urban capacity may replace the release of greenfield reserve sites does not, however, remove the obligation on local planning authorities to continue to identify the whole of their reserve provision in line with Policy H4 (see paragraph 2.5 above). The need to release any of that reserve provision will be assessed annually by the strategic and local planning authorities in the light of monitoring, including of urban capacity.

5.5 The study completed in Southampton has identified potential capacity for new housing which, with existing sites and houses built since 1996, exceeds the Structure Plan housing policy figure by some 2,700 dwellings. This 'excess' can be considered for development instead of releasing some of the greenfield sites from the reserve provision. The capacity of urban sites identified in the study in Portsmouth is substantially below the Structure Plan policy figure. However, this is only a partial estimate of the City's urban capacity, because some potential sources of additional capacity were not explored. The study's scope is to be broadened in line with the urban capacity guidelines drawn up by the strategic and local planning authorities.

5.6 Studies undertaken by Basingstoke and Deane Borough Council and Winchester City Council have also identified more urban capacity for housing than previously thought. This will reduce the amount of non-MDA greenfield land which needs to be allocated for housing. However, it is not sufficient to obviate the need to develop the baseline MDAs in those districts, even if such substitution were permissible under the Structure Plan's policies.

6. Affordable Housing

6.1 PPG3 attaches importance to providing affordable housing. The need for it in Hampshire continues to grow as rises in house prices have outstripped average increases in incomes, especially since 1998. A target for affordable housing provision and a policy to achieve it is included in most local plans. Research is being undertaken jointly by the strategic and local planning authorities in Hampshire to establish whether any new measures are needed to ensure affordable housing is provided, and to forecast future requirements. This work will feed into the review of the Structure Plan.

6.2 A possible drawback of accommodating more housebuilding on previously developed land is that it may deliver fewer affordable homes than the equivalent development on greenfield land. Housing sites larger than 15 dwellings or 0.5 hectare are required by Government to include a proportion of affordable homes. A considerable proportion of previously developed sites within Hampshire towns and villages are likely to fall below this threshold. Greenfield sites, in contrast, tend to be larger and be above the threshold.

6.3 The MDAs are potentially a substantial source of new affordable housing and every effort must be made to maximise the number of affordable homes within them. A protocol is being prepared on how the county and district councils can work more closely to maximise the contributions which developers, within the MDAs, will make towards the provision of infrastructure and community facilities. Mechanisms to maximise affordable housing will also be covered. The protocol will be presented in draft to the next meeting of this Joint Advisory Panel for approval as Supplementary Planning Guidance.

7. Conclusion

7.1 The current Hampshire Structure Plan complies with both the new PPG3 and the RPG. The latter requires provision for new housing in excess of the baseline provision of the Structure Plan; which will mean the release in due course of some of the Policy H4 reserve sites. Local plans must identify all of the reserve provision, although whether/when the components of that reserve provision are actually released for development will be decided in the future in the light of monitoring. Increased urban capacity should reduce the call on the greenfield component of the reserve figure.

Recommendation

That the three strategic planning authorities be recommended to:

(i) welcome the statement from the Government Office for the South East that the adopted Hampshire County Structure Plan generally accords with the new Planning Policy Guidance Note 3;

(ii) recognise that the new Regional Planning Guidance means the need to release some of the reserve provision in addition to all of the baseline provision;

(iii) welcome the additional potential for new housing within existing urban areas, which should reduce the amount of housebuilding which needs to take place on greenfield sites; and

(iv) inform the Hampshire local planning authorities of the conclusions in this report.

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

1. Published works.

2. Documents which disclose exempt or confidential information as defined in the Act.

TITLE LOCATION

None.

6584/SR

APPENDIX 1

Adopted Hampshire County Structure Plan : Housing policies H1-H4

H1 Local plans should, in accordance with Policies H2 and H4, make provision for up to 94,290 dwellings in the period April 1996 to March 2011.

H2 Provision will be made in local plans for the development of 80,290 additional dwellings in Hampshire between April 1996 and March 2011, with the following distribution between the Districts:

H3 Out of the total provision of 80,290 additional dwellings in Policy H1, provision for 12,000 dwellings will be met by the development of new communities in line with the individual MDA Policies and will be distributed as follows:

H4 In addition to the housing provision in Policy H2, a reserve housing provision will be identified in local plans to accommodate up to 14,000 additional dwellings in the period 2001-2011, distributed as follows:

The need for allocations of land to be released to accommodate this reserve provision will be determined by the local and strategic planning authorities in the light of the policies in revised RPG9. The strategic planning authorities will only support the release of individual greenfield allocations to meet this reserve provision where monitoring of the Structure Plan and Local Plans indicates there is a compelling justification to do so. Issues to be considered in reaching a decision will include:

(i) the rate of development of land in existing built-up areas (including development of land and buildings previously vacant, underused, derelict or released from a former use) across the whole of the structure plan area; and

(ii) the programme of development of local plan allocations and windfall and brownfield sites.

Wherever possible, the release of this allocation should be brought forward through alterations to the appropriate local plan.

APPENDIX 2

New Regional Planning Guidance: Implications for housing provision in Hampshire

1. RPG policy

The RPG specifies housing provision as follows:

· 2001 to 2006

39,000 per annum new homes in South East outside London

6,030 per annum in Hampshire including Southampton and Portsmouth

· After 2006

"After 2006, it is likely to be necessary to plan for a higher figure of 43,000 individual dwellings (in the region) in but that will be a matter for review under our flexible 'plan, monitor and manage' approach. Where development plans are reviewed and the new plan extends beyond 2006, they should continue to provide for additional dwellings at the above average rate (the rate to 2006) until such time as any different rate is adopted following review of the RPG."

2. Implications for Hampshire including Southampton and Portsmouth

Revised RPG figure: 6,030 per annum

Minus Structure Plan baseline provision

(policy H2 total divided by 15): 5,352 per annum

Residual to be met from Structure

Plan reserve provision (policy H4): 678 per annum

Over period 2001 - 2011 this is: 6,780

i.e. 48% of the 14,000 reserve provision in policy H4