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RHAF_061207_Agenda Item 5a Delivering the HGP

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RHAF_061207_Agenda Item 5a Delivering the HGP Powered By Docstoc
					Place Shaping and the
Housing Green Paper

Richard McCarthy
Director General Housing and Planning
                                                        Outline



•Context - Current housing issues

•Government response - Housing Green Paper

•Role of planning to deliver on housing and place shaping

•Local Development Frameworks

•What needs to change

•The broader picture – economy and climate change



                                                              2
                                                                                                                                     Context

Key Challenges:

•   Growth in households continues to exceed supply of houses

•   Despite recent improvements, housing completions remain historically low


                            New dwelling completions in England
                      400
          thousands




                      300
                      200
                      100
                       0
                            1946
                                   1950
                                          1954
                                                 1958
                                                        1962
                                                               1966
                                                                      1970
                                                                             1974
                                                                                    1978
                                                                                           1982
                                                                                                  1986
                                                                                                         1990
                                                                                                                1994
                                                                                                                       1998
                                                                                                                              2002
                                                        CLG live table 244, ASD                                                          3
                                                                                Context
                                            Ratio of house prices to earnings
                                            (lower quartile) 1999 and 2006
    As a consequence

•   As demand has grown
    faster than supply
    affordability has
    worsened in all regions

•   The lower quartile
    house price to earnings
    ratio increased from
    3.84 in 1999 to 7.12 in
    2006.

•   Households waiting for social housing has risen by 60% in 10 years

•   0.5 million households are living in overcrowded accommodation

•   Households in temporary accommodation has doubled in 10 years
                                                                                      4
                                                  Government response

Housing Green Paper announced
• plans to increase housing supply over time to deliver two million new homes by
 2016 and three million by 2020

• new housing target to deliver 240,000 additional homes a year by 2016


Reinforced by PBR/CSR 07

• New Growth Points, including for the first time areas in the North of England

• Proposals for 10 eco-town schemes

• New £500million Housing and Planning Delivery Grant over the next 3 years

• New £300 million Community Infrastructure Fund

• New Planning Charge to support infrastructure

• Higher target of 200,000 new homes on surplus public sector land by 2016         5
                                               Government response


   Not just more houses – but better and more affordable homes


• Confirmation of target to ensure all new homes are zero carbon by 2016

• £8bn programme for affordable housing from 2008-11 with increases in
every region

• at least 70,000 affordable homes to be built a year by 2010/11

• at least 45,000 of these homes to be provided for social rent

• plans to help at least 25,000 households into Low Cost Home Ownership
per year

• new opportunities for councils to build additional social rented and shared
equity homes on their land through new Local Housing Companies and ALMOs
                                                                           6
                                Local Government place shaping role


Local Government White Paper identified place-shaping as a key role for
local government

Place shaping involves
    •  strategic leadership bringing together agencies and partners
    •  joint vision for the future through the SCS and LDF core strategy
    •  spatial planning – to shape places and facilitate sustainable development
    •  delivering outcomes

The HGP makes it clear that Government is strongly committed to increasing
housing numbers through the RSS process.

LAs need to engage positively, through spatial planning, through the strategic housing
role, by engaging with partners at local / regional level and in private sector and through
efficient development control

Without engagement / positive planning the risk is that
    •   developers shape places for you
    •   you will run into difficulty under the new LG performance framework.
                                                                                        7
                                                   Delivery through planning

Local Development Framework Core Strategy as the spatial vision


LDF core strategy isn’t just a planning document, it is the vision of what a local
authority wants to achieve, expressed in spatial terms.

It brings together the land, infrastructure and capital investment needs for key
services / outcomes over the long term including housing, education, health, transport,
economic development etc – can also include strategic sites.

Other Development Plan Documents set out more detail for action areas or specific
themes – but only where necessary for delivery of the core strategy.

The core strategy is underpinned by the infrastructure plan and – with the new planning
charge – provides the means to fund and deliver the vision.

By bringing together key agencies and the private sector it should provide the platform to
deliver this in a planned way

                                                                                         8
                                                   Delivery through planning

Crucially in the HGP context - planning identifies land for housing in a
sustainable way

Planning Policy Statement 3 (housing policy) requires Local Authorities to

    •   identify a rolling 5 years worth of deliverable sites (available, suitable and
        achievable)

    •   identify land for housing for at least 15 years ahead in suitable locations.


•   Making sufficient land available for housing is one of the indicators in the new LG
    performance framework

•   It will be rewarded by Housing and Planning Delivery Grant

•   If 5 years land is not available PINS inspectors will be more likely to give housing
    applications approval on appeal

                                                                                           9
                                             Delivery through planning

Strategic Housing Land Availability Assessments are key


•   They identify suitable land for housing over the long term (15 years)

•   They provide the evidence base to underpin both LFD core strategies and
    other DPDs

•   Where appropriate - land identified in SHLAA can be formally allocated in
    development plan documents.

•   In places where an area action plan or housing allocation DPD are not
    appropriate, or proportionate, or not yet in place - a properly prepared
    SHLAA can be a material considerations for planning decisions.

HPDG proposals are to reward LAs who have a SHLAA in place – starting
in April 08
                                                                               10
                                                 Delivery through planning

RSS housing numbers are not ceilings



The appropriate level of housing should be determined through an assessment of a range
  of issues including
    • Evidence of need and demand
    • Affordability
    • Sustainability

Delivery of numbers in RSSs

    •   There is no expectation that the level of housing set out in RSSs should be treated
        a maximum or ceiling
    •   In many places it will be more appropriate to treat these as a minimum
    •   None of the emerging Regional Spatial Strategies should refer to maximums given
        current affordability levels and some are explicit that these are minimums

Flexibility
     • Regional and local planning bodies must have plans that are flexible enough to
        respond to changing housing market circumstances
                                                                                      11
                              Delivery of land: Where are we now?


PPS3 required LAs, from 1 April 2007, to be able to demonstrate whether
they have a 5 year supply of specific, deliverable sites for housing.
Whist we know that some LAs are delivering on this, progress is slow –

•   Fewer than 15% of LAs have so far published their assessments

The overall amount of land released for housing has decreased over the
last 10 years

•   Although housing numbers have gone up – this has been achieved by
    increasing density.

•   For the future - the supply of land will have to go up as well

•   Need more outlets not just a few large sites.

                                                                          12
                                                    Land released for housing
                               Previous use of land changing to residential use, 1996-2004


3,500
                             All not previously developed land
                             All previously developed land
3,000



2,500



2,000



1,500



1,000



 500



   0
        1996   1997   1998         2000            2001          2002            2003        2004
                                                                                                    13
                                               Delivery through planning

Local Development Frameworks in the wider context


Key linkages

   •   Sustainable Community Strategy provides the strategic vision for a place,
       identifies priorities and how to address difficult cross cutting issues

   •   Local Development Framework Core Strategy reflects that long term vision
       spatially and brings partners together to focus on place, land, infrastructure
       and capital investment.

   •   Local Area Agreement sets out priority objectives and provides LSP with a
       mechanism for setting joint targets and clarifying who is responsible for
       delivery. You may wish to include housing supply in key 35 targets.

LDF Core Strategies need to be developed alongside the SCS and LAA – many
LAs have moved LDFs to the corporate centre.


                                                                                    14
Planning Together: LSPs and Spatial Planning
                                  (CLG 2007)




                                       15
                                                                                            LDFs: Where are we now?
                                                                   Slippage of time
                                        Slippage in programme of DPD production 2006 - 2007 and forecast over CSR07

                                 1600


                                 1400


                                 1200
      number of DPDs submitted




                                 1000


                                 800


                                 600


                                 400


                                 200


                                   0
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                                                                                   month/year

                                                   Intended programme of DPD production (In effect LDS August 07)
                                                   Total number of submissions to SofS (Reg 28) according to GO Estimates August 07
                                                   Actual submissions to SofS (Reg 28) August 07
                                                   Intended programme of DPD production (In effect LDS June 06) Cumulative total.


No of plans: 1,000 plans were originally forecast by end 2007 – only 150 now expected.

Quality of plans: 25% of submitted plans found to be unsound or withdrawn following advice
that would be found unsound.                                                        16
                                      Position in the West Midlands


RSS
The RSS Phase 2 Revision is due to be submitted in December 2007. This
proposes to increase regional housing growth to 19,000 per year to 2016, reducing
to 17,600 per year to 2026 (compared to around 12,500 in the current RSS)

Need to push on with LDF delivery now
Significant delays have occurred in DPD delivery and we need to see the pace pick
up urgently to deliver our collective aspirations. At present we expect only one
West Midlands authority to have adopted a Core Strategy by April 2009

Housing Growth
Four Growth Point Expressions of Interest and four Eco-town EOIs in this region
have been passed to the Government Office for assessment




                                                                                  17
                                                What needs to change

We believe LDFs remain the right approach – compared to old plans they are
they are more strategic, more flexible, more front loaded and evidence based.
However…

we recognise that the LDF process is not easy and, in some places, over-
engineered

We are simplifying the process through legislation, and new guidance from
April 2008 will for example

   •   Streamline the consultation processes so they are proportionate

   •   Allow for plans to be fixed when problems arise rather than having to
       start the process all over again

   •   Remove sustainability appraisals where the issues have already been
       considered

   •   Restate the elements of soundness
                                                                           18
                                               What needs to change


In the meantime,

•   do not stop work on your development plan documents – especially
    core strategies

•   get the 5 year land supply in place

•   complete the Strategic Housing Land Availability Assessments

•   talk to the Government Office to ensure that what you are doing will meet
    requirements


Support is available though the Planning Advisory Service and there is the
opportunity to discuss with the Planning Inspectorate prior to submission.

                                                                          19
                           Planning performance - Housing and
                                        Planning Delivery Grant
LDFs are a statutory requirement and we will

   •   incentivise delivery through HPDG, which will reward the delivery of
       sound core strategies and priority housing allocation plans on time

The Local Government Performance Framework includes indicators on

   •   The provision of land for housing – realistic 5 and 15 year supply

   •   housing completions – payments based on numbers delivered relative
       to stock

   •   development control performance – abatements where performance
       falls

These will also be incentivised through Housing & Planning Delivery Grant -
£510m over 3 years

Planning Performance Agreements are agreements between developers
and LAs on the timescales for determining applications. Applications
                                                                         20
determined in line with PPAs will be exempt from development control targets.
                                                       What needs to change

There needs to be a recognition that LDFs represent a fundamental change from old
style plans and require a different approach

LGA document - “Planning at the Heart of place shaping” set out some clear do’s and
don’ts

Do not
   •   Defer or stop developing plans – the world will never stand still

     •   Plan in silos – LDF core strategy must be fully integrated with key LA strategies

     •   Produce DPDs without questioning whether they are necessary and add value

Do
     •   Put planning at the heart of what you do – it lies at the centre of the strategic
         LA role

     •   Integrate spatial issues into community consultation

     •   Look for help and support

     •   Resource LDFs properly
                                                                                       21
                                                            The broader picture
Focus on Housing Green Paper – but needs to be seen in the context
of LGWP, Planning WP, SNR, Climate Change Bill etc

Significant responsibilities at LA level to develop an effective spatial vision for your
area:

    •   New economic development duty

    •   Leading role in carbon reduction

    •   Leading role on housing supply

    •   New responsibilities on skills

    •   Leading role on developing the new single regional strategies and work at
        sub regional level through MAAs etc

New powerful tools in place to shape and fund infrastructure – esp if tied to
prudential borrowing

    •   Supplementary business rate

    •   New planning charge – underpinned by infrastructure plan and LDF
                                                                                           22
All these issues are underpinned by partnership working and good planning
                                                     Conclusion



   Place-making

        Place shaping

                Spatial planning

are all essentially addressing the same issues and all underpin


                        Successful sustainable communities




                                                                  23

				
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