Planning matters

Our award winning blog gives a fresh perspective on the latest trends in planning and development.

Community Engagement – Swipe right for development?
Even with the most meaningful of public exhibitions, having a say in what your city or neighbourhood should be like can often feel like a complex and time-consuming process. Recognising that community engagement has the propensity to also be dominated by those with the loudest voices, many applicants are looking at a new wave of digital tools to help make the consultation process a more interactive and inclusive one. Capitalising on the smartphone era, a range of new technological advances are being made within the community engagement space – with mobile apps leading the way.  
It is fair to say that in the UK, the procedural logistics of notifying local communities of forthcoming new developments have remained rather similar since the system’s invention with the [1]. Today, it can be the case that one of the first encounters local communities have with proposals in their neighbourhoods come in the form of a piece of A public notice fixed to a lamp post. Interested local residents must then navigate developers’ or local authority websites, sifting through often a multitude of documents, such as planning statements, technical drawings, and design and access statements (that are themselves often divided into multiple files) before forming an opinion and commenting on a proposed development.
Apps, modelled on gaming and dating applications, are increasingly being employed as a means of making the planning process more transparent, as well as allowing local residents to register their support for, or objections to proposals in their neighbourhood, more easily.
In Santa Monica, California, for example, the app CitySwipe provides local residents with images of potential development scenarios – from street furniture and parking, to murals and market stalls. With simple “yes or no” questions being asked, residents are encouraged to swipe through and select their preferred options, accordingly. The Cityswipe engagement strategy runs alongside the usual formal City Council online survey as an additional way of shaping the emerging community plan and understand the local community’s aspirations for the area. The app is also used to reduce City Council costs of producing development notices in local papers and sending consultation letters.

Downtown Santa Monica City Swipe App (Source: dtsmcityswipe.com)

Lichfields is continually exploring different means of engaging with previously harder to reach members of local communities and recognises the contribution apps can make. Closer to home, Greater Manchester is pioneering an interactive mobile-friendly map to highlight potential development sites city-wide. The Greater Manchester Open Data Infrastructure Map combines various types of ‘big data’ - from water and transport networks to property prices and brownfield land - offering a comprehensive overview of the city’s infrastructure. Recently, an additional map layer has been added, showing proposed development sites in the emerging Greater Manchester Spatial Framework. This layer combines sites allocated by the Council with those promoted by residents and developers. Users can also select specific sites to view the Council’s assessment(s) of each.
In Edinburgh, UrbanPlanAR, Linknode and Heriot-Watt University have produced a mobile augmented reality architectural visualisation platform for planners and local communities. TrueViewVisuals is a commercial platform for architectural and infrastructural visualisation, which also attempts to better engage people in the planning process. The use of 3D data enables ‘in-field visualisation’ of proposed schemes. As such, users are able point their phone or tablet at a development site as if taking a picture and see a visualisation of the planned building on their screen – think Pokémon Go for planning! My colleague Mark’s blog discusses this technique in further detail.
The use of apps in community engagement reflect the fast-paced world we inhabit, by allowing views to be given at a swipe or touch of a screen. Moreover, apps can simplify what might be otherwise regarded as long-drawn-out planning exercises into being something more tangible for local communities to grasp.
Technology, of course, is not the only way to improve and increase community engagement in planning, as not everyone is comfortable with using such platforms. However, it does present an additional tool for engaging with new groups – an opportunity which is constantly being tried, tested and refined.

[1] Town and Country Planning Act 1947.

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Revised NPPF: a new beginning at the end of a long and winding road?
The final version of the revised National Planning Policy Framework (NPPF) was published on 24 July 2018, on the very last day before summer Recess and avoiding Parliamentary debate. In contrast, the draft version (published in March for consultation) had been announced by the Prime Minister Theresa May at a dedicated launch event.
Much has changed in the make-up of Government in the four months since the consultation started (not least, the Housing Secretary and Housing Minister); however, and notwithstanding the huge amount of responses received (almost 30,000), changes made to the final version of the revised NPPF focus on clarifications and re-wording, with very few more significant amendments.
Naturally, wider implications and potential impacts of the new policies will become clearer over time; for now, we have identified eleven points where changes have been made following the draft NPPF’s consultation and which are worth bearing in mind.
1. Using design policies as a key to boosting house building
The revised NPPF gives a new centrality to design policies, as they are considered instrumental in delivering new homes. In his Written Ministerial Statement announcing the launch of the revised Framework, Housing Secretary James Brokenshire said:
‘[…] Critically, progress must not be at the expense of quality or design. Houses must be right for communities. So the planning reforms in the new Framework should result in homes that are locally led, well-designed, and of a consistent and high quality standard.’
Chapter 12 ‘Achieving well-designed places’ is where this renewed rhetoric is translated into policy. Paragraph 124 specifies that ‘being clear about design expectations, and how these will be tested, is essential’ for achieving sustainable development. Effective engagement e.g. with local communities (including through workshops), the use of ‘local design standards or style guides’, and the refusal of permissions for developments of poor design are some of the ways the revised NPPF aims to achieve this objective.
Crucially, para 130 requires local planning authorities (LPAs) to make sure that the quality of approved developments does not materially diminish ‘between permission and completion, as a result of changes being made to the permitted schemes’.
2. Planning application viability assessments as exception to be justified
The front-loading of viability assessment at plan-making stage (rather than when determining applications) was already anticipated by the draft revised NPPF, as the expectation was to be for plans to set out the levels and types of affordable housing and other infrastructure that would be required from proposed developments.
However, changes included in the final version are quite significant when compared to both the original NPPF and the draft revision, particularly around paragraphs 34 and 57.
The revised NPPF’s paragraph 34 on development contributions removes the possibility for plans to set out circumstances when further viability assessment may be required in determining individual planning applications. The reasoning is in para 57: the revised NPPF puts the burden on applicants ‘to demonstrate whether particular circumstances justify the need for a viability assessment at the application stage’.
Furthermore, para 57 goes on to state that it will be for the decision maker to decide about the weight to be given to the viability assessment ‘having regard to all the circumstances in the case’ (including whether the plan/evidence is up to date, and potential changes to site circumstances).
3. Standardised methodology and Housing Delivery Test confirmed (for now)
The new standardised methodology to assess housing needs and the Housing Delivery Test are two of the most anticipated changes to housing policy that the Government is bringing forward, and they are reflected in the revised NPPF (and accompany documents).
Unsurprisingly, neither has been significantly amended when compared to previous consultation versions, probably reflecting the inherent complexities behind their ‘construction’. However, of interest in relation to the standardised methodology is the Government response to the draft revised NPPF consultation which highlights:
‘[…] it is noted that the revised projections are likely to result in the minimum need numbers generated by the method being subject to a significant reduction, once the relevant household projection figures are released in September 2018. In the housing White Paper the Government was clear that reforms set out (which included the introduction of a standard method for assessing housing need) should lead to more homes being built. In order to ensure that the outputs associated with the method are consistent with this, we will consider adjusting the method after the household projections are released in September 2018. We will consult on the specific details of any change at that time.’
In short, the methodology is confirmed for now, but everything may change, following the release of household projections in September 2018 (see this Lichfields blog for further details).
4. Lower requirement for small (and medium) sized sites
The draft revised NPPF’s requirement for at least 20% of the sites identified by LPAs in their plans to be half a hectare or less has been changed and potentially made more achievable.
The final version of the revised NPPF now expects LPAs to accommodate at least 10% of their housing requirement on ‘small and medium sized sites’ (up to one hectare) through their development plans and brownfield land registers. Furthermore, it is recognised that the 10% target may not be achievable in all circumstances; in such cases, the preparation of the relevant plan policies should detail the ‘strong reasons’ that make the target unachievable.
5. More clarity on strategic and non-strategic policies
The draft NPPF’s reference to ‘strategic’ and ‘local’ policies - which caused confusion in relation to spatial development strategies, and appeared to undermine the need for local plans - has been clarified.
The final revised NPPF now distinguishes between strategic policies (which should look over a minimum of a 15-year period) and non-strategic policies (included in local plans, when these are not considered strategic policies, and in neighbourhood plans). Both ‘strategic’ and ‘non-strategic’ policies are defined in more detail in Annex 2: Glossary.
6. Town centre diversification promoted
The rapid changes that are affecting the retail sector and, as a consequence, England’s town centres are acknowledged and reflected in the final version of the revised NPPF. It recognises that diversification is key to the long-term vitality and viability of town centres, to ‘respond to rapid changes in the retail and leisure industries’. Accordingly, planning policies should clarify ‘the range of uses permitted in such locations, as part of a positive strategy for the future of each centre’.
The draft revised NPPF’s reference to town centres in decline has been removed, possibly because of its unclear wording and most probably in wider recognition of the effects that changed shopping habits are already having on town centres.   
7. Land assembly and compulsory purchase
Reflecting wider debates about the role of LPAs in bringing forward enough land for housing developments to meet their identified needs (and the Government’s 300,000 homes/year target), paragraph 119 now details some of the powers that proactive LPAs should use.
These include specific reference to facilitating land assembly, where possible, and using compulsory powers where this is considered beneficial to ‘meeting development needs and/or secure better development outcomes’.
8. Green Belt: of course it’s here to stay
Unsurprisingly, Green Belt policies have not changed significantly from the draft version published for consultation; however, two minor changes in wording are of interest.
Paragraph 136 on exceptional circumstances to amend Green Belt boundaries now refers to these being ‘fully evidenced and justified’, an addition since the draft revised version. While this might appear to be a more stringent requirement, new para 137 specifies that, to justify the existence of exceptional circumstances, an LPA ‘should be able to demonstrate that it has examined [it was ‘should have examined’] fully all other reasonable options for meeting its identified need for development’; this might seem like a minor change, but it could give more flexibility and a clearer path for LPAs considering releasing Green Belt in exceptional circumstances.
9. Heritage policies retained and restored
Heritage and historic environment policies are generally in line with those proposed in the draft revised NPPF. Importantly, LPAs are now expected to maintain ‘or have access to’ a historic environment record (paragraph 187). One of its purposes is to be used to ‘predict the likelihood that currently unidentified heritage assets […] will be discovered in the future’.
Changes to the way the impact of proposed development on the significance of designated heritage asset is assessed, which were already anticipated in the draft revised NPPF, are now confirmed and further clarified; paragraph 193 states that ‘great weight should be given to the asset’s conservation […] irrespective of whether any potential harm amounts to substantial harm, total loss or less than substantial harm to its significance’.
Finally, where a development proposal will lead to less than substantial harm to the significance of a designated heritage asset, ‘this harm should be weighed against the public benefits of the proposal including, where appropriate, securing its optimum viable use’. The term ‘optimum viable use’ was included in the original NPPF but not in the draft revised NPPF.
10. A change to transition
The policies in the revised NPPF are material considerations to be taken into account in determining planning applications ‘from the day of its publication’ (i.e. from 24 July 2018).
Importantly, the policies in the 2012 NPPF still apply to examining plans submitted on or before 24 January 2019.
Interestingly, footnote 69 is amended to clarify that for spatial development strategies, ‘submission […] means the point at which the Mayor sends to the Panel copies of all representation made’; this is an amendment specifically made to reflect the stage reached by the draft London Plan, particularly when compared to the draft revised NPPF wording (which referred to ‘submission’ being a later stage, specifically the point in which copies of the strategies intended for publication are sent to the Secretary of State).
Accordingly, the new draft London Plan will be examined against the original NPPF policies – a relief to the Mayor no doubt.
11. ‘Social rent’ back in and starter homes loosen up
The revised version of the glossary at Annex 2 includes reference to social rent again, as an ‘affordable housing for rent’ product rather than in its own right; any reference to social rent housing was previously deleted from the draft revised NPPF’s definition of affordable housing.
Further amendments have been made to the definition of ‘affordable housing’, particularly in relation to starter homes. Interestingly, previous reference to the maximum annual household income of eligible buyers (£80,000, or £90,000 in London) has now been removed and left as a matter for secondary legislation; this is to reflect the fact that the Housing and Planning Act 2016 does not explicitly refer to those income thresholds.
Might this signal the ‘resurgence’ of starter homes? Unlikely.
Overall, the impression is that the process of updating and reviewing the 2012 NPPF has been more complicated than many expected it to be, and the continuous changes in the Department and then Ministry surely have not helped (five Housing Ministers and three Secretaries of State since the NPPF review was first announced).
Perhaps as a result of it having taken a good while, the revised NPPF seems to better reflect the new approach taken by the Ministry, the renewed centrality that housing policies have within the Government’s agenda and all of the case law that has come about from testing the 2012 Framework in the courts. The new NPPF even reflects Sir Oliver Letwin’s emerging findings on housing delivery, by effectively recognising that the quality and design of housing development is crucial to ensuring greater community support.
Some reforms do seem ambitious, particularly around viability assessments and given the English plan-led system, and the practical impacts of these reforms ought to be tested and monitored over a longer period of time to understand whether Government has struck the right balance.
As acknowledged in James Brokenshire’s Written Ministerial Statement, the revised NPPF alone will not be enough solve the housing crisis; other reforms, the support of central Government, cooperation with/between stakeholders, local authorities and communities are all crucial elements in addressing the housing challenges the country is facing.
As usual in these cases, whether the revised NPPF represents a new beginning or rather a false start is too soon to be said, as its final judgement will be solely based on its achievements and/or failures.
See the ‘Revised National Planning Policy Framework’ suite of documents here
Lichfields will publish further analysis of the consultation on the draft revised NPPF and its implications. Click here to subscribe for updates.

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The National Infrastructure Assessment: Today’s ‘Tomorrow’s World’
On 10 July 2018, the National Infrastructure Commission[1] (‘NIC’) published its ‘National Infrastructure Assessment’ (‘NIA’). The document sets out an ambitious and long-term plan for the delivery of infrastructure in the UK from 2020 to 2050 with a series of recommendations that are intended to equip the country with the infrastructure that it most needs.
Intended to be the first of a series of similar assessments published every five years, the report builds on work carried out and described in an earlier and interim report published in October 2017 entitled “Congestion, Capacity, Carbon: Priorities for National Infrastructure”. The NIC seeks to move the agenda forward and sets out several ‘targets’ that are based on responses received to the interim report, as well as findings from engagement with a range of organisations in recent months and also through the NIC’s own analysis and modelling.
The foreword of the NIA, by Sir John Armitt, Chair of the NIC, notes that: -

’Providing the right infrastructure for the future does not just entail delivering the running water, roads and rail that traditionally spring to mind, although these are important. The UK needs fast, reliable internet connections. It needs low cost energy and transport that doesn’t harm the planet. It needs to make cities liveable for the growing urban population. It needs to reduce the plastic waste that can end up in our oceans. It needs water supply and flood defences that can respond to the risk of extreme floods and drought. All this needs to be done in a way that is well designed, and affordable for the government and the public.’

So whilst those looking forward to an Arthur C. Clarke version of the UK’s future may therefore be disappointed, the report acknowledges that presenting a more realistic ‘Tomorrow’s World’ is necessary to provide guidance to planners and policy makers.

It is clear that the NIA seeks to leave the delivery of the more ‘traditional’ infrastructure (rail, road, utilities, airports) to the now established consenting processes and policy vehicles that have been set up to assist in bringing them forward by operators, providers and developers. The NIA, meanwhile, is interesting for perhaps two reasons. First in providing a focus on the types of infrastructure in which the UK should be investing but perhaps would not otherwise come forward without a clear step-change in government thinking; and second in establishing a new way to think about infrastructure, with a focus on how it affects the population’s quality of life and the success of the economy.

We will examine the details of the document over the coming weeks and months but, for now, we provide a short summary of the key targets identified by the NIA.

In addition to this, the NIA sets out recommendations to improve how decisions are made on infrastructure proposals, including through the establishment of a clear framework for measuring infrastructure performance, and also to bring about better-quality design of nationally significant infrastructure projects.  On the latter, the board proposes the establishment of a National Infrastructure Design Group and the use of design panels to review development proposals.

Finally, the report reviews how the proposals will be funded and financed making the comment that: -

“The recommendations set out in this Assessment are not simply a wish list. The recommendations are affordable within the resources set out by the government and provide a full costed plan for infrastructure spending without significant additional costs to billpayers.”

Some headlines from the NIC’s recommendations as to how resources should be allocated throughout the period to 2050 include:-

  • Prioritising broadband and electric vehicle charging in the short term and prioritise urban transport over intercity transport in the 2030s;
  • Balancing rail expenditure in the 2020s with other priorities and establish a budget of £24 billion from 2023/24 to 2039/40 for Northern Powerhouse Rail;
  • Providing a gradual increase in the budget for flood protection but also allow some headroom in the budget in the latter years towards 2050 to allow for new technologies that may emerge;
  • Giving local authorities more powers to capture a fair proportion of the increases in the value of land for planning and infrastructure provision.

In conclusion, and whilst a little light on exciting new methods of space travel or other headline-grabbing futurology, the NIA does set out a realistic and considered approach to the country’s infrastructure priorities. We look forward to the Government’s response on this vision of our future later this year.

[1] Chaired by Sir John Armitt CBE, the NIC was established in 2015 as an executive agency of the Treasury.  Its aim is to provide impartial, expert advice and make independent recommendations to the government on economic infrastructure. This advice is shaped from the commissioning of studies and engagement with government, industry, interest groups and other stakeholders from which views are gathered on future infrastructure needs and solutions.

 

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Vacant building credit: Boosting the viability of brownfield sites
It is no secret that the redevelopment of brownfield sites is generally beset with more abnormal costs than a typical greenfield site. This is often a major hurdle that can delay or even stymie the redevelopment of brownfield sites. It is the viability issues that stalls or prevents development, or makes such sites less attractive to the market. This is where Vacant Building Credit [VBC] is relevant and why landowners and prospective developers should think twice before demolishing existing buildings.
The recent consultations on the revised National Planning Policy Framework [NPPF] and Planning Practice Guidance [PPG] both show a clear drive and emphasis on a ‘brownfield first’ approach to new development. They set out proposed changes to how viability is considered in planning therefore VBC is a particularly topical element of the current PPG.
VBC is a national Government, PPG-derived financial incentive for the development of brownfield sites with vacant buildings. VBC does not exist in Wales or Scotland. The credit is used to offset existing floorspace against proposed, so as to reduce/ remove locally-set contributions towards affordable housing that would arise via planning obligations. Of course, the PPG is only guidance and therefore can be applied to local circumstances as a material consideration - or not, by individual councils.
VBC has the potential to help prospective developers with issues of viability, depending on a council’s own plan policies and their stance on the guidance. This blog explains what VBC is, when it does and doesn’t apply, and how it may benefit project viability.

Background

VBC was introduced by a written ministerial statement of 28 November 2014 as an incentive ‘… to tackle the disproportionate burden of developer contributions on small-scale developers, custom and self-builders[1]. So why are the details of VBC not widely known? It may be because its introduction was challenged in the High Court[2] and the VBC guidance was subsequently – but only temporarily -withdrawn. The Government appealed the decision and it was reinstated in the PPG in May 2016. It is now proposed to be referenced in the new NPPF (currently at draft paragraph 64) which would add to its weight.

VBC policy

Policy and guidance on VBC is found in both the original written ministerial statement and the PPG paragraphs on planning obligations [21 to 23]. Paragraph 64 of the draft NPPF includes reference to vacant buildings offsetting affordable housing contributions, although it is not explicitly described as VBC. Local Plan policies relating to VBC are very thin on the ground; one of the few examples is in the Draft London Plan, which includes Policy H9 (Vacant Building Credit).

When VBC applies

According to the PPG, VBC is applicable in cases where either a vacant building is brought back into lawful use, or it is demolished and replaced by a new building. In either case, the gross floorspace of the relevant vacant building(s) can be used as a ‘credit’ when the LPA calculates any affordable housing contribution. Vacant floorspace can potentially offset the affordable housing requirements for any given site by a proportion relating to the quantum of existing floorspace compared to that proposed.
VBC will not normally apply if the building has been made vacant for the sole purpose of the re-development (and claiming VBC), nor if the building is covered by an extant or recently expired planning permission for the same, or substantially the same development.
Policy H9 of the draft London Plan holds the policy position that VBC is ‘in most circumstances’ not appropriate in London and unlikely to bring forward additional development. The draft policy includes criteria where exceptions might arise and VBC could be applied. For a building to be considered vacant, it has to have been vacant for a continuous period of at least five years before an application is submitted. The applicant is also required to provide evidence that the site has been actively marketed for at least two of those five years at realistic prices. In short, the draft London Plan is written to discourage the application of VBC; it is implicit in draft Policy H9 that viability is not seen as a constraint to housing delivery on brownfield sites. In the rest of England, there are - as yet - no other similarly drafted policies.

 

The maths: How VBC can boost viability of brownfield development

The basic calculation can be summarised with the following simple formula:

(Net change in Floorspace/Proposed Floorspace)*Policy Requirement=Site Affordable Housing Requirement

The PPG includes an example at Paragraph: 022 Reference ID: 23b-022-20160519. And here is a worked example here for clarity, based on the following assumptions:

     
 

Existing gross floorspace: 10,000 sq. m

Policy affordable housing requirement: 30%

Proposed development: 352 dwellings with a total floorspace of 30,000 sq. m (representing an average dwelling size of 85 sq. m)

The difference between the existing gross floorspace (vacant buildings on site) and the proposed new build floorspace is 20,000 sq. m i.e. the proposed development would result in 20,000 sq. m more of development in this example.

On this basis the Affordable Housing Contribution is (20,000/30,000)*30%=20%

Rather than a requirement of 106 (30%) affordable units the requirement is reduced to 70

 
     

 

From the above calculation it can be deduced that if the floorspace to be demolished is greater than the proposed floorspace, the affordable housing contribution would be zero.
There are many other ways in which vacant buildings can effect the planning strategy. Developers and land owners would need to consider the financial burden of rates that may persist by keeping a vacant building in situ. Benefits of keeping vacant buildings on site can relate to consideration of visual impact. The mass or scale of an existing building can be a helpful material consideration in comparing the same of the proposed development. For example where large industrial buildings are being replaced by residential development often the latter has a lesser visual impact . Existing buildings on site also provide a fall back position in terms of traffic generation. This can help with making the case for acceptable highways impact of new development.

 

VBC means there can be value in keeping vacant buildings standing, until a planning application for redevelopment has been determined; this element of a site’s wider planning strategy may improve scheme viability, by reducing or removing any requirement for affordable housing.

[1] Written Ministerial Statement (WMS) of 28 November 2014[2]  West Berkshire District Council and Reading Borough Council v Secretary of State for Communities and Local Government [2015] EWHC 2222 (Admin)

 

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