Archived decisions

Contact: Sue Clark, ext 5890 email: [email protected]

1. Summary

1.1 The following decision is sought:

That the views set out in section 5 should provide the basis for the County Council's response to this consultation.

2. Reason

2.1 The Government has invited views on proposed changes to planning policies for affordable housing and on reusing employment land for housing. Comments are required by 31 October 2003.

3. Other Options Considered and Rejected

3.1 Taking no action.

4. Conflicts of Interest Declared by the Decision Maker or a Member or Officer consulted - None.

5. Dispensation granted by the Standards Committee - Not applicable.

6. Reason(s) for the Matter being dealt with if Urgent - Not applicable.

Approved by: ................................ Date: ...................................

Councillor T K Thornber

Contact: Sue Clark, ext 5890 email: [email protected]

1. Summary

1.1 The Minister of State for Housing and Planning has made a statement clarifying aspects of the Government's policy for planning of new housing. The Government has also published consultation papers on proposed changes to Planning Policy Guidance Note 3: Housing (PPG3). Comments are required by 31 October 2003. The County Council's response proposes that the changes in relation to affordable housing are generally welcomed. However, the proposed changes relating to the reuse of employment land for housing are opposed.

2. Introduction

2.1 In July 2003 the Minister of State for Housing and Planning, Mr Keith Hill, made a statement clarifying aspects of the Government's policy for planning new housing set out in PPG3, and on some changes which he proposes to make to the national planning guidance on new housing.

2.2 The Minister has also announced proposals for changes to PPG3 guidance on affordable housing and on reusing employment land for housing in the changes. Comments are sought on the proposed changes to PPG3, but not on the content of the Statement. A briefing note giving more details of both was sent to all County Councillors.

3. The Statement

3.1 The Statement by the Minister for Housing and Planning clarifies certain aspects of the Government's policy for planning of new housing set out in PPG3. These clarifications are as follows:

(i) Local Plans should make provision for at least ten years' potential supply of new housing, of which sites for at least five years' supply must be specifically shown on the Local Plans Proposals Map. Those sites may last longer than five years if `windfall sites' become available.

(ii) Although local authorities will still be required to manage the release of the sites for development, as part of `Plan, Monitor, Manage', the Statement says that any phasing of the release of sites must not be arbitrary and must ensure timely delivery of the housing numbers in Regional Planning Guidance.

(iii) Local authorities must more actively review whether land which is allocated for industrial or commercial use, but is not being taken up for that purpose, could instead be used for housing (see also 4.2 below).

(iv) Local highway considerations should not, without good justification, stifle house-builders in their efforts to achieve well-designed, higher density housing.

(v) The PPG3 standard of a maximum of 1.5 car parking spaces per new dwelling should be an average over the local authority's area - in rural locations, for example, higher levels of off-street parking may be appropriate, counterbalanced by lower levels in urban areas.

(vi) Planning policies on the mix of housing (size, type and affordability) to be provided within a local authority's area should be based on an up-to-date understanding of the housing required.

3.2 The Statement concludes by saying that the Government looks to local authorities to actively facilitate the delivery of the housing needed in their communities in the form of well-designed, higher density residential developments. It adds that, at a future date, the Deputy Prime Minister will set out how the Government will take forward the commitment in the Budget report to "improve the performance of planning authorities that are not delivering an adequate supply of new housing - including incentives, support and engagement - followed, where necessary, by intervention".

4. The Proposed Changes to PPG3

4.1 Affordable housing negotiated through the planning system makes an important contribution to meeting affordable housing needs; currently around 18,500 houses per annum nationally. A change is proposed to PPG3 to secure more affordable housing, but it is emphasised that this must not make development unviable. The change would amend paragraphs 9-20 and 71 of PPG3 and replace Circular 6/98 on Affordable Housing. In particular the minimum site size on which affordable housing is required would be reduced from 1 hectare/ 25 dwellings to 0.5 hectare/15 dwellings, and local authorities would in future be able to allocate sites solely for affordable housing on land within or adjoining villages. The main changes are detailed in the attached appendix.

4.2 The other change proposed to PPG3 is the addition of a new paragraph (42a) which would allow land currently allocated for industrial or commercial use in development plans and redundant commercial buildings to be used for housing or mixed development unless a convincing case for retention can be made. The Office of the Deputy Prime Minister considers that the proposed change complements the current expectation that local authorities should, when revising their plans, review the justification of all sites allocated for employment uses and, where appropriate, consider their release for housing.

5. The County Council's Response

Affordable Housing

5.1 The changes proposed to PPG3 in relation to affordable housing are generally welcomed, in particular a reduction in the site size threshold above which affordable housing can be sought. However the majority of Hampshire local authorities already have in place thresholds of 15 dwellings or less, so the proposed change will result in a smaller increase in the amount of affordable housing built in Hampshire than would otherwise have been expected. It is considered that the threshold should be identified through the regional or local plan process and not set out in national planning policy guidance as need varies markedly from area to area. The change, which would help local authorities the ability to allocate small sites solely for affordable housing on land within or adjoining villages, is also welcomed as it will help authorities to meet local housing needs in rural areas.

5.2 The delivery of affordable housing also depends on the availability of housing grant. A mismatch between allocations and grant availability could delay the delivery of general market housing.

Reusing Employment Land for Housing

5.3 The intention of this change to PGG3 is that local authorities should allow land currently allocated for industrial or commercial use in their development plans, and redundant commercial buildings, to be used for housing or mixed development, unless a convincing case for retention can be made.

5.4 There is, at present, a very wide disparity between the values of land for employment use and for housing in the South East. This disparity has been increasing over recent years and, according to property consultants Austin Adams' most recent market bulletin, housing land prices are now three times higher than Industrial/B8, whereas in 1995 they were the same. This disparity is encouraging landowners to seek to develop their land for housing rather than employment. Consequently, there has been a significant loss of existing employment sites to housing in Hampshire. This is particularly evident in the two cities and the older urban boroughs where new employment related investment is most needed.

5.5 The health of the business sector and its capacity to increase prosperity in the county could be adversely affected if the policies envisaged in the PPG lead to a reduction in the range of choice and flexibility of premises available to firms. The prospective changes could also encourage landowners of land allocated for employment use to hold that land back, in the hope of securing the markedly better returns from housing. This would serve to further reduce the range of choice of sites and premises open to businesses hoping to continue investing in Hampshire.

5.6 The Economic Development Officer supports the view that this proposed change to PPG3 should be strongly opposed for the reasons set out above.

Recommendation

That the views set out in section 5 should provide the basis for the County Council's response to this consultation.

8249/SC

APPENDIX

MAIN CHANGES PROPOSED IN THE CONSULTATION ON PPG3 - INFLUENCING HOUSING SIZE TYPE AND AFFORDABILITY

1. Regional planning bodies are required to work closely with local authorities, housing providers and the Regional Housing Board in order to maintain an up-to-date understanding of housing requirements. The Regional Housing Strategy and the Regional Spatial Strategy should be informed by a common evidence base.

2. There is increased importance attached to up-to-date housing needs assessments. Housing needs assessments are to be drawn up jointly by planning and housing departments working closely with housing providers. The programme of needs studies is to be coordinated by the Regional Housing Board who should maintain consistency of approach. The draft guidance suggests that assessments may be most appropriate conducted at the sub-regional level.

3. Greater emphasis is placed on the role of the Regional Spatial Strategy in planning for affordable housing.

4. Previous advice has been that planning policy should not be expressed in favour of any particular form of tenure. The draft guidance allows local authorities to specify tenure but only where this would address an identified housing need that otherwise would not be met by other types of affordable housing.

5. All local planning authorities will be expected to include policies in their local plans to deliver affordable housing. Local plan targets for affordable housing must be achievable and consistent with the delivery of planned future levels of housing provision.

6. Local plans are to identify residential and mixed-use sites on which affordable housing will be expected along with the proportion of affordable housing that will be sought.

7. Local planning authorities are to ensure that their requirements for affordable housing do not make development unviable.

8. The national site size threshold on which affordable housing can normally be sought is lowered to 0.5 hectares or developments of 15 dwellings or more. Local planning authorities may, however, seek affordable housing on smaller sites in urban and rural areas where this can be justified in the local plan. No lower limit is identified in the proposed policy guidance. (The current national threshold is 1 hectare or developments of at least 25 dwellings, with the ability to adopt a lower threshold of 0.5 hectares or 15 dwellings where a local planning authority can demonstrate `exceptional local constraints' and justify its proposals through the local plan process.)

9. The approach to providing for housing in rural areas through an exceptions policy is to be replaced. The proposed changes require local planning authorities to make sufficient land available within or adjoining existing villages to meet the needs of local people. Particular attention is to be given to the contribution from small sites. Sites which may not otherwise be released for housing may be allocated solely for affordable housing. In this case the affordable housing provided should meet local needs in perpetuity.