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

1. Summary

1.1 The report provides information about the consultation paper on draft Planning Policy Statement 3: Housing (PPS3) and its key proposals. The Committee is asked to comment on the proposed response to the consultation paper.

2. Corporate Strategy

2.1 This report supports Aim 2 (Stewardship of the Environment) of the Corporate Strategy by influencing Government policy.

3. Introduction

3.1 In December 2005 the Government published for public consultation its draft Planning Policy Statement 3: Housing (PPS3). Responses to the consultation are invited by 27 February 2006. This PPS and accompanying guidance (currently being drafted) will, in due course, replace Planning Policy Guidance Note 3 Housing (PPG3) and Planning Circular 6/98: Planning and Affordable Housing. The Government has drafted PPS3 in the light of its review of PPG3 and the responses to two consultation papers, `Planning for Mixed Communities' and `Planning for Housing Provision', which were published in January and June 2005.

3.2 The Office of the Deputy Prime Minister (ODPM) summarises the consultation paper on PPS3 as follows: "The new PPS3 will set out the national planning policies for housing, which regional planning bodies and local authorities should take into account in developing regional spatial strategies and local development frameworks. Its objective will be to deliver new homes at the right time in the right place. The national policy framework will reflect the need for flexibility in planning between urban and rural areas, and in areas experiencing high or low demand. The aim is that the planning system is used to its maximum effect to ensure the delivery of decent homes that are well designed, make the best use of land, are energy efficient, make the most of new building technologies and help to deliver sustainable development".

3.3 The Government's key objective for planning for housing is to ensure that everyone has the opportunity of living in a decent home, which they can afford, in a community where they want to live. To achieve this objective the Government is seeking to:

(i) ensure that a wider choice of housing types is available, for both affordable and market housing, to meet the needs of all members of the community;

(ii) deliver a better balance between housing demand and supply in every housing market and to improve affordability where necessary; and

(iii) create sustainable, inclusive, mixed communities in all areas. Developments should be attractive, safe and designed and built to a high quality. They should be located in areas with good access to jobs, key services and infrastructure.

3.4 The consultation paper on PPS3 can be viewed on the Office of the Deputy Prime Minister's (ODPM) web site at http://www.odpm.gov.uk/index.asp?id=1162075. Appendix 1 comprises an extract from a factsheet on planning published by the ODPM in December 2005 which summaries information about the draft PPS3. Appendix 2 sets out the questions on which the ODPM would particularly like views and the proposed County Council responses. The Director of Environment will respond on behalf of Hampshire County Council, having consulted the Executive Member for the Environment: North Hampshire and Spatial Strategy.

4. Key Proposals in Draft PPS3

4.1 The main elements of draft PPS3 are:

(i) A new approach to determining the regional level of housing provision and its distribution based on sub-regional housing market areas, rather than local administrative boundaries.

(ii) A requirement on regional planning bodies and local planning authorities to take account of affordability and other housing market information (including advice from a proposed National Advice Unit) alongside other factors when deciding levels of housing provision. The Government intends to establish an independent National Advice Unit, by autumn 2006, to strengthen the evidence and analysis on improving housing market affordability available to regional planning bodies throughout the regional planning process. The Unit's objective will be to advise on the implications of the Government's long term affordability objectives for the level and broad distribution of future house building.

(iii) An approach to improving affordability in the housing market based on allocating and identifying sufficient land for housing where it is needed. Local authorities would be required to identify a rolling five-year supply of developable land for housing, with a further 10 years' supply identified for future development. In general, local authorities would not be able to phase land within the five-year supply.

(iv) A continued commitment to provide 60 percent of new housing on brownfield sites by 2008. Local authorities would be required to develop brownfield land strategies, prioritise developable brownfield land and work pro-actively with partners to bring brownfield sites forward for development.

(v) A continued commitment to make the best use of land. The minimum density of 30 dwellings per hectare would be retained, but there would be a more flexible approach to density above that level that better takes account of local circumstances.

(vi) A commitment to high quality design, with local authorities encouraged to develop design codes or site briefs.

(vii) A new approach to affordable housing based on sub-regional housing market assessments. Regional planning bodies and local authorities would be able to set overall targets for affordable housing provision and identify separate targets for social rented and intermediate housing. The indicative national minimum threshold for affordable housing would be 15 dwellings, but local authorities would be able to set a different threshold (or thresholds) where appropriate.

(viii) Local authorities would be required to make sufficient land available for market and affordable housing in order to sustain rural communities.

(ix) There would be an enhanced role for Sustainability Appraisal to take account of environmental impacts.

5. Comments on the Proposed Approach

5.1 Some aspects of PPS3 are to be welcomed however there are significant concerns relating to a number of the proposals.

(i) The proposals in draft PPS3 continue to reflect the Government's view that rising house prices and affordability problems are in large part a consequence of the long-term under supply of housing and a planning system that does not take adequate account of information about the market and respond accordingly. The argument is that by making more land available in response to market indicators, the supply of housing will increase and affordability will improve. This thesis is not accepted because in order to have any significant impact on the price of housing in the South East, a huge number of additional new homes would have to be built and this would have a significant adverse environmental impact as well as very large infrastructure costs. It is considered that the most appropriate way to help those in genuine housing need is to increase investment in affordable housing.

(ii) The sustainability of new development does not appear to have been given sufficient priority. The draft PPS3 includes elements that are complex and impractical that would make it more difficult for the planning system to balance the full range of environmental, social and economic considerations. The proposals introduce a set of new and complex tools for regional planning bodies and local planning authorities based on sub-regional housing market areas. These include detailed housing land availability assessments and housing market assessments working across administrative boundaries and with a wide range of stakeholders. The practical difficulties associated with such an approach are considerable. Past experience suggests that changes in Government policy on the provision of housing lead to uncertainty and delay with adverse effects on delivery.

(iii) The emphasis placed on the role of sub regional housing market areas is a concern. Information about sub regional housing markets should inform sub regional planning, along with a range of other social, environmental and economic factors, rather than be the basis for it. In addition, much of the data required for housing market assessments is not readily available for areas below whole districts and so estimates would need to be made for parts of districts. Where districts are divided between different housing market areas, working across administrative boundaries with a wide range of stakeholders will cause considerable practical difficulties and is likely to have an impact on the accuracy of estimates.

(iv) The likely outcome of the PPS3 proposals is that a higher proportion of housing will be built on greenfield sites because the proposals require local planning authorities to identify a rolling supply of developable land for housing, but do not normally allow them to make an allowance for windfall development on brownfield sites. The local circumstances which allow local planning authorities to make an allowance for brownfield windfall is not clear. It is considered that all local planning authorities should be able to make a reasonable allowance for brownfield windfall sites when determining their housing land supply.

(v) The policy relating to the sustainable design and construction of large new developments should be strengthened. Local planning authorities should be able to require applicants to apply the principles of sustainable design and/or construction as appropriate on strategic sites (recognising that some sustainable design/construction measures may not be practical on smaller sites); the draft PPS3 only states that local planning authorities should encourage applicants to apply these principles.

(vi) Draft PPS3 states that the overall target for affordable housing provision should take account of the anticipated levels of finance available as well as the need for affordable housing. In the South East the amount of finance available is likely to result in fewer new affordable dwellings being built than are needed. As the target for affordable housing is likely to be determined by the level of finance available rather than the need for affordable housing, in some areas it may seem that the amount of resources required to produce sub regional Housing Market Assessments is excessive.

(vii) It is not clear how local planning authorities can minimise environmental impacts and maintain the character of some residential areas or environments (eg where the area is currently a low density residential area characterised by large houses on large plots with significant tree cover) when the minimum density should be no less than 30 dwellings per hectare.

5.2 The comments above are included in the proposed response set out in Appendix 2.

6. Impact Assessments

6.1 Assessment of the Race Relations (Amendment) Act has been considered in this response but no adverse impact has been identified in terms of race, creed or gender.

Recommendation

That Members consider and endorse the proposed response prepared by the Director of Environment to the Government's Consultation Paper on Planning Policy Statement 3: Housing, as set out in Appendix 2.

844/SC

APPENDIX 1

EXTRACT FROM "FACTSHEET 3: PLANNING" PUBLISHED BY THE OFFICE OF THE DEPUTY PRIME MINISTER

FACTSHEET 3: Planning

Draft Planning Policy Statement 3: Housing

What is it?

A new draft planning policy statement for housing (PPS3), designed to make planning more responsive to housing need and demand, ensuring everyone has the opportunity of a decent home, which they can afford, in a community where they want to live.

Why is it needed?

The Barker review identified constraints in the planning system as a potential barrier to housing supply. The Government accepts that the planning system is currently not responding effectively to the housing market and housebuilding is not keeping pace with demand. In high demand areas, local authorities are not always working to identify sustainable sites for the new homes their communities need. In some low demand areas, housebuilding is continuing at a pace that outstrips demand. Neither approach will deliver sustainable communities with the right mix of homes, services, jobs and green spaces that residents need.

What will it do?

The Government's objectives are to:

· ensure that a wide choice of housing types is available, for both affordable and market housing, to meet the needs of all members of the community;

· deliver a better balance between housing demand and supply in every housing market and to improve affordability where necessary;

· create sustainable, inclusive, mixed communities in all areas. Developments should be attractive, safe and designed and built to a high quality. They should be located in areas with good access to jobs, key services and infrastructure.

How will it work?

Draft PPS3 introduces:

· A new approach to setting housing numbers, using sub-regional housing market areas - the areas within which people search for a home - as the basis for planning new housing, rather than local administrative boundaries.

· A requirement on regional planning bodies and local planning authorities to take account of affordability and housing market information alongside other factors such as the environment and infrastructure when deciding how many homes to build.

· Improve affordability in the housing market by allocating and identifying sufficient land for housing where it is needed. Local authorities will be required to identify a rolling supply of at least five years' worth of developable land for housing, with a further 10 years' supply identified for future development.

· A continued commitment to deliver against our target to provide 60% of new homes on brownfield sites by 2008 to minimise pressure on greenfield land. Local authorities will have to develop a brownfield strategy, prioritise developable brownfield land and work proactively with partners to bring brownfield sites into development.

· A continued commitment to make the best use of land. The minimum level of 30 dwellings per hectare is retained. But PPS3 promotes a more flexible approach to density above that level, that takes better account of local circumstances, where local authorities set a density range appropriate for particular types of location. There will be higher densities in city centres than in the suburbs for example.

· A commitment to high quality design, encouraging local authorities to apply design codes or site briefs to sites for new housing. This will speed up planning decisions for new housing as developers will be clear what is expected, and ensure the needs of local people are paramount.

· A new approach for planning for mixed communities to ensure that a wide choice of both affordable and market housing is available, to meet the needs of all members of the community. Local planning authorities and housebuilders are encouraged to work in partnership to ensure developments are mixed and deliver a wide range of housing.

· A continued commitment to Sustainability Appraisal to take account of environmental impacts in the local area.

What won't it do?

Draft PPS3 does not:

· Introduce a crude price trigger approach to planning for housing. It aims to ensure market considerations are taken into account alongside economic, social and environmental factors to ensure sustainable housing development.

· Apply only to areas of high housing demand in the South East. All regions will benefit from an approach that takes better account of local housing markets. Draft PPS3 aims to help regional and local authorities understand their housing markets and improve the balance between supply and demand of housing in all areas.

· Sacrifice good planning for housing delivery. In deciding planning applications local authorities will always have to take into account whether the site makes efficient use of land, offers a good housing mix, is of high quality design, and would not have an unacceptable impact on the environment.

· Mean that any of the existing regional plan reviews have to start again. The new style Regional Spatial Strategy (RSS) is designed to be flexible, part of a continuous planning process that takes into account the changing dynamics of the region and new and emerging Government policies.

What's the background?

ODPM has reviewed the current planning policy for housing, PPG3, which was published in 2000. Current and emerging planning policy for housing is contained in several documents, which is confusing for local authorities, developers and the public.

On 18 July 2005 we announced our intention to replace PPG3 with a new shorter, clearer planning policy statement for housing. This was widely welcomed. In July we also consulted on Planning for Housing Provision, which set out our objectives for delivering a better supply of housing through the planning system.

The draft PPS3 takes into account the responses to this consultation, along with those from a previous consultation, Planning for Mixed Communities, which we published in January 2005. For more details on these previous consultations, see press releases: http://www.odpm.gov.uk/index.asp?id=1002882&PressNoticeID=1772 [Planning for Mixed Communities, 24 January] http://www.odpm.gov.uk/index.asp?id=1002882&PressNoticeID=1900 [Planning for Housing, 18 July]

What is the timetable?

PPS3 is now open to public consultation until 27 February 2006. We aim to publish the final document by summer 2006.

What other planning changes are there?

In addition we will:

· Merge regional housing and planning functions by September 2006 to ensure regions take a strategic view of meeting housing and infrastructure needs together.

· Establish a new, independent National Advice Unit by Autumn 2006 to strengthen the evidence and analysis on improving housing market affordability available to merged regional housing and planning bodies when they are deciding the right level of housing for their region.

· Accelerate planning appeals for housing cases. The Planning Inspectorate will adopt a new target to set up inquiries or hearings for housing cases within 20 weeks and issue a decision within a further 10 weeks in 80% of cases. We will also explore ways to make the appeals system more responsive to the needs of users.

APPENDIX 2

Consultation Questions

Questions on which we would particularly like your views

Name:

Organisation: Hampshire County Council

Address: The Castle, Winchester, Hampshire. SO23 8UD

E-mail address: [email protected]

1. Do the policies set out in draft PPS3 deliver the Government's housing objectives (set out in paragraph 1)?

Response

The policies will deliver some but not all of the Government's objectives.

The County Council is concerned that the sustainability of new development does not appear to have been given sufficient priority. The draft PPS3 includes elements that are complex and impractical that would make it more difficult for the planning system to balance the full range of environmental, social and economic considerations. In particular the likely outcome of the PPS3 proposals is that a higher proportion of housing will be built on greenfield sites because the proposals require local planning authorities to identify a rolling supply of developable land for housing, but do not allow them to make an allowance for windfalls on brownfield sites.

The proposals introduce a set of new and complex tools for regional planning bodies and local planning authorities based on sub-regional housing market areas. These include detailed housing land availability assessments and housing market assessments working across administrative boundaries and with a wide range of stakeholders. The practical difficulties associated with such an approach are considerable. Past experience suggests that changes in Government policy on the provision of housing lead to uncertainty and delay with adverse effects on delivery.

2. Are the arrangements for delivering PPS3 clearly set out in relation to:

(a) Working in sub-regional housing markets

Response

Yes, the arrangements are clearly set out in PPS3 and draft practice guidance but the emphasis placed on the role of sub regional housing market areas is a concern. Information about sub regional housing markets should inform sub regional planning, along with a range of other social, environmental and economic factors, rather than be the basis for it. Much of the data required for housing market assessments is not readily available for areas below whole districts and so estimates would need to be made for parts of districts. Where districts are divided between different housing market areas, working across administrative boundaries with a wide range of stakeholders will cause considerable practical difficulties and is likely to have an impact on the accuracy of estimates.

(b) Determining the regional level of housing provision and its distribution

Response

Yes, however the proposals in draft PPS3 continue to reflect the Government's view that rising house prices and affordability problems are in large part a consequence of the long-term under supply of housing, and a planning system that does not take adequate account of information about the market and respond accordingly. The argument is that by making more land available in response to market indicators, the supply of housing will increase and affordability will improve. This thesis is not accepted because in order to have any significant impact on the price of housing in the South East, a huge number of additional new homes would have to be built and this would have a significant adverse environmental impact as well as very large infrastructure costs. The County Council considers that the most appropriate way to help those in genuine housing need is to increase investment in affordable housing.

(c) Allocating and releasing land for housing

Response

No.

The local circumstances which allow local planning authorities to make an allowance for brownfield windfall is not clear. It is considered that all local planning authorities should be able to make a reasonable allowance for brownfield windfall sites when determining their housing land supply. The draft practice guidance appears comprehensive but the County Council considers that both occupied and vacant dwellings are part of the existing housing supply. Bringing empty homes back into use is to be encouraged but will not result in a net addition to the housing supply. If they are counted again it would be double counting. There is also the question of how to monitor this aspect as planning permission is not required to bring an empty dwelling back into use.

(d) Making the efficient use of land

Response

Yes, with reservations.

The brownfield strategy is clear. However it is not clear how local planning authorities can minimise environmental impacts and maintain the character of some residential areas or environments (eg where the area is currently a low density residential area characterised by large houses on large plots with significant tree cover) when the minimum density should be no less than 30 dwellings per hectare.

(e) Planning for Mixed Communities

Response

Yes, with reservations.

Draft PPS3 states that the overall target for affordable housing provision should take account of the anticipated levels of finance available as well as the need for affordable housing. In the South East the amount of finance available is likely to result in fewer new affordable dwellings being built than are needed. As the target for affordable housing is likely to be determined by the level of finance available rather than the need for affordable housing, in some areas it may seem that the amount of resources required to produce sub regional Housing Market Assessments is excessive.

(f) Planning for Rural Housing

Response

Yes, the policies relating to planning for rural housing are clear and appropriate for the sustainability of rural communities.

(g) Designing for Quality

Response

No comment as this is a matter for local planning authorities rather than Hampshire County Council.

(h) Greening the Residential Environment

Response

Yes, with reservations.

The arrangements for delivering PPS3 are clear, however it is considered that the policy relating to the sustainable design and construction of large new developments should be strengthened. Local planning authorities should be able to require applicants to apply the principles of sustainable design and/or construction as appropriate on strategic sites (recognising that some sustainable design/ construction measures may not be practical on smaller sites).

(i) Managing Delivery and Development

Response

No comment as this is a matter for local planning authorities rather than Hampshire County Council.

3. Are the Definitions set out in Annex A Clear?

Response

Yes, the definitions set out in Annex A to PPS3 are clear.

4. ODPM is committed to producing policy that promotes equality of opportunity and good relations between people of different racial groups and eradicates unlawful discrimination. We are in the process of completing an equality impact assessment and would welcome views on whether the policies set out in draft PPS3 will impact differently on people from different ethnic groups, on people with disabilities and on men and women?

Response

No comment.