Planning matters

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Planning for economic needs – implications of the amended PPG
Amid the flurry of pre-summer recess updates to the Planning Practice Guidance were two new additions on planning for economic needs. The first relates to specific guidance on, “how can authorities assess need and allocate space for logistics?” (new para 31), and second, guidance on the wider question of, “how can the specific locational requirements of specialist or new sectors be addressed?” (new para 32).

The addition of logistics within the PPG is perhaps not surprising given it was one of the notable updates made to the revised NPPF published earlier this year. As we have summarised previously, it is welcome to see this critically-important sector being given specific recognition (particularly as the sector is not always universally welcomed at a local level) and this is now reflected in the guidance. Importantly, the PPG emphasises that policies for logistics should be formulated “separately from those relating to general employment land”.

However, this has typically not been the case in all local plans. Part of the issue is that logistics space markets and networks often cut across local authority boundaries, with wide functional economic market areas and specific needs in terms of access to the strategic transport network, power capacity and labour supply. This emphasises the need for collaboration between local authorities and also engagement with logistics operators and developers – the sector should embrace this invitation to help plan-makers better understand their current and future needs.

Further, research by Lichfields on the ‘last mile’ segment of logistics highlighted that planning is to some extent still catching up with this fast-moving sector, and needs to better understand industry trends. Some 58% of authorities surveyed viewed the lack of an up-to-date local plan as a key barrier to meeting last mile needs. The PPG now points to a broad range of evidence being considered to help determine local logistics needs, including “changes in the local population and the housing stock as well as the local business base and infrastructure availability”.

The second addition to the PPG on understanding the locational requirements of specialist or new sectors appears, at face value, to be a recognition that traditional ‘predict and provide’ approaches to employment land forecasting are not without their limitations. The PPG cites high tech, engineering, digital, creative and logistics as examples of such industries, where clustering can drive innovation, productivity and economic growth. These and other fast-growing sectors don’t always fit neatly into traditional B use class definitions, so it’s arguably a rallying call for a more nuanced understanding of the inter-relationships between sectors and space and the factors that drive competitive advantage. More qualitative evidence and engagement with businesses and occupiers in this regard will contribute to better plan-making.

Echoing the revised NPPF (see para 81a), there’s also now specific reference in the PPG to the need to take account of policy and evidence contained in Local Industrial Strategies. There are currently 6 Local Industrial Strategies in place nationally, and with more on their way, they will have an increasingly important role to play in setting the direction of policy as well as future public funding to support delivery. Lichfields’ work on a number of Local Industrial Strategies nationally has reinforced how getting land use planning policies right is critical to facilitating local economic ambitions. The challenge now is how to translate broad strategies to enhance regional economic productivity into clear and focused policies in future local plans, and having the evidence in place to back these up.

Image credit: DNPBFN SWNS Alamy Stock Photo

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Special Delivery: The new PPG on ‘Housing Supply and Delivery’ – determining the five-year housing land supply
In wider updates to the Planning Practice Guidance (‘PPG’), a new section on ‘Housing Supply and Delivery’ has been published. It mostly incorporates existing content from the now much reduced ‘Housing and economic land availability assessment’ section.

In this first blog overviewing the new PPG section, I take a look at key changes regarding deliverability, ‘clear evidence’, and minor clarifications as to how to calculate five-year housing land supply (‘5YHLS’), which will to some extent help clarify matters following a series of divergent approaches in recent appeal decisions.

Deliverability

The definition of deliverable in the revised NPPF (July 2018 and its February 2019 update) introduced a more rigorous approach to assessing whether a Local Planning Authority (‘LPA’) could demonstrate a 5YHLS. It represented a critical step towards the objective of “significantly boosting the supply of homes” as discussed in this recent blog. However, the PPG underpinning the assessment of a whether a site is ‘deliverable’ lacked clarity, a point seemingly conceded by the Government[1].

The primary new guidance, ref. ID 68-007, replaces former PPG paragraph ID: 3-036.

1) Additional guidance on what can form ‘clear evidence’

Referring to the type and form of information that can provide ‘clear evidence’ (or what the PPG now refers to as ‘further evidence’) to justify sites that fall within point (b) of the definition of deliverable (i.e. sites that have an outline permission for major development, or allocated sites), the new guidance has been fleshed out to indicate such evidence may include:

  • “current planning status – for example, on larger scale sites with outline or hybrid permission how much progress has been made towards approving reserved matters, or whether these link to a planning performance agreement that sets out the timescale for approval of reserved matters applications and discharge of conditions;
  • firm progress being made towards the submission of an application – for example, a written agreement between the local planning authority and the site developer(s) which confirms the developers’ delivery intentions and anticipated start and build-out rates;
  • firm progress with site assessment work; or
  • clear relevant information about site viability, ownership constraints or infrastructure provision, such as successful participation in bids for large-scale infrastructure funding or other similar projects.”

The guidance elaborates on and combines the bullet points from its predecessor. There are new references to ‘firm progress’ for the submission of an application or site assessment: still suggesting the need for some tangible evidence to be published/corroborated with developers. But gone is the specific reference to a ‘statement of common ground’ (SoCG), removing any suggestion that a SoCG is a pre-requisite for clear evidence on a site being deliverable – supporting the findings of the ‘Land to the South of Williamsfield Road’ appeal inspector[2].

The new guidance also states that to demonstrate a five-year supply “robust, up to date evidence needs to be available”. Combining this with the references to ‘current planning status’ suggests that the ‘Woolpit’ principles[3] regarding the temporality of evidence to the base date should not be applied so strictly. The new wording could result in trajectories becoming more of a ‘living’ documents. But this does not address the problem where new evidence is used to retrospectively justify a supply position with an increasingly old base date, whilst not providing enough information to show forward visibility over the next five year.

2)  Further clarification that the lists are ‘closed’?
The PPG appears to further clarify that types of sites not listed in the definition of deliverable (such as emerging allocation sites) are not types that can be considered ‘deliverable’. Its use of the word ‘namely’ in listing four types of site which require further evidence to be considered deliverable indicates the list is closed. Appeal decisions have generally been consistent in supporting a ‘closed definition’.

That said, in the recent Secretary of State decision at the ‘Former North Worcestershire Golf Club’[4] the Inspector accepts that sites that fall outside the definition of deliverable could be deliverable if there was evidence that housing completions will occur within the five-year period. However, whilst the Inspector’s conclusions were based on the old PPG the actual Secretary of State decision was issued after the new guidance was published. Consequently, there remains ambiguity on this point.

Removal of guidance related to local benchmarks for lead-in times/delivery rates

A key part of any five-year land supply assessment is considering how quickly deliverable sites will deliver new homes: how long will they take to deliver completions and at what build rate. Former PPG paragraph ID: 3-047 had stated:

“Local planning authorities may need to develop a range of assumptions and benchmarks to help to inform and test assessments. Assumptions can include lapse/non-implementation rates in permissions, lead-in times and build rates, and these assumptions and yardsticks can be used to test delivery information or can be used where there is no information available from site owners/developers to inform the assessment. Assumptions should be based on clear evidence, consulted upon with stakeholders, including developers, and regularly reviewed and tested against actual performance on comparable sites. Tables of assumptions should be clear and transparent and available as part of assessments” (my emphasis).

This paragraph, and any reference to the need to develop local assumptions (i.e. regarding lead-in times and delivery rates), has been removed from the PPG. While it is ought to be obvious that assumptions over how much sites will deliver in the five-year period should be based on robust evidence, the lack of guidance on this point is unfortunate.

Further minor clarifications

Pepper potted throughout the new section are various clarifications about technical issues that can mostly confirm what has become common practice over the past twelve months. While many could be seen now as ‘stating the obvious’, these clarifications remove any ambiguity there might have been and presumably answer questions that had been posed to MHCLG.

  • Clarification that sites that fall within point (a) of the definition of deliverable[5] are “deliverable in principle” (ID: 68-007).
  • Buffers are not cumulative (ID: 68-022) and should be applied to any backlog accrued (ID: 68-031)
  • Further clarification as to why backlog is not added where the standard method is used (ID: 68-031).
  • Clarification that whether an LPA can or cannot demonstrate a 5YHLS has no bearing on the Housing Delivery Test results (ID: 68-033).
  • Confirmation that consequences of the HDT (i.e. 20% buffer and action plan) apply concurrently (ID: 68-042).

Interestingly, the guidance does not clarify whether an ‘oversupply’ of housing in the early years of a local plan should affect calculations of housing land supply, a topic that was the unresolved subject of a recent High Court judgment.[6]

Image credit: Woodland Animations Ltd, a DreamWorks Animation Company

[1] As explained in its February 2019 response to Question 5 of its earlier consultation:  https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/779792/LHN_Gov_response.pdf[2] APP/E2001/W/18/3207411[3] APP/W3520/W/18/3194926, DL70[4] APP/P4605/W/18/3192918 (IR14.47)[5] Annex 2, NPPF[6] Tewkesbury Borough Council v Secretary of State for Communities Housing and Local Government & Ors [2019] EWHC 1775 (Admin) (08 July 2019) 

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Change in the historic environment – implications of the amended PPG
Much of the focus of the revised Planning Practice Guidance (PPG) has been on green belt, housing and the effective use of land yet there has also been a raft of updates which have implications for the historic environment.
 

Non-Designated Heritage Assets

PPG previously recognised that there was no requirement for LPAs to prepare a list of non-designated heritage assets, though encouraged them to do so. The revised wording is much stronger. Plan-making bodies, it says:
“should make clear and up to date information on non-designated heritage assets accessible to the public to provide greater clarity and certainty for developers and decision-makers. This includes information on the criteria used to select non-designated heritage assets and information about the location of existing assets”.
LPAs can still also identify non-designated heritage assets through the decision-making process, though rather being encouraged (as it was previously), this should now only be done “in some cases”. The focus instead is now on LPA’s identifying their non-designated heritage assets in advance, rather than at application stage.
PPG also now confirms that “only a minority [of buildings] have enough heritage significance to merit identification as non-designated heritage assets”. This is much stronger than the wording in the previous version and indicates a shift away from non-designated heritage assets sweeping up everything that is old and traditional to a much more selective category.
Realistically it will not be possible for LPAs to capture all non-designated heritage assets within a list. There will always be buildings or structures which, on detailed consideration, appear to be more significant than previously thought. LPA resources are also stretched and lists of assets will require both time and resource. That said, a list of non-designated heritage assets within each authority would help land owners, developers and decision-makers to identify at an early stage whether there are heritage assets which need to be considered as proposals for development and change progress.

Optimum Viable Use

The National Planning Policy Framework (NPPF) says that harm to a heritage asset which is categorised as “less than substantial” should be weighed against the public benefits of the proposal, including securing its optimum viable use.
Demonstrating that a proposal represents the optimum viable use of a heritage asset is tricky, but the Government has provided some clarification on the issue through its amendments to PPG.
The revised version clarifies that, where there are a range of alternatives uses, the optimum viable use is the use which is both “economically viable” and likely to cause the least harm to the significance of the asset.
We now have clarity though that this option must stack up financially and not simply be an option which is physically capable of being achieved, which is useful. That said, while the wording has shifted, it still confirms that the optimum viable use may not be the use that brings the greatest financial return.
The evidence required to demonstrate that a heritage asset has no viable use has also been updated, though PPG still doesn’t explain how this should then be dealt with in the planning balance. There is no longer a need to demonstrate that the heritage asset is redundant, it no longer needs to be marketed to “all” potential buyers and the prospective purchaser must also now be willing to find a “viable” use for the site, rather than simply finding a new use.
Inspectors are often concerned that insufficient evidence has been provided that the use proposed is in fact the optimum viable use. Often, they feel that alternative uses exist which would represent the optimum viable use of the building but have not been identified or considered by the applicant. Unfortunately, there is still no clarification on how to demonstrate that alternative uses have been considered.
 

Assessing impact

Decision-makers have grappled with the concepts of “substantial harm” and “less than substantial harm” since they were first introduced.
Lichfields draws on a methodology for environmental impact assessment to quantify the effect of proposals on the significance of heritage assets. Consideration is given to the nature (e.g. adverse) and degree (e.g. minor) of the effect. Once this has been established, the harm is then given a category (e.g. less than substantial harm).
Where this intermediate step to quantify harm is not undertaken in the decision-making process, and harm is simply categorised as ‘substantial’ or ‘less than substantial’, it is difficult for a decision-maker to weigh this in the planning balance or carry out their statutory duty. How can a decision-maker know if the benefits outweigh the harm if they don’t know whether that the effect is so slight that its almost neutral or so harmful that its almost substantial?
Much-needed clarification on this has now been provided by government. The revised PPG is clear that ‘less than substantial harm’ and ‘substantial harm’ are simply categories of harm. It confirms that it is no longer enough to simply identify the category of harm; further articulation about where the proposal sits within that category will now also be required.

Some other notable changes

  • Where relevant, applicants must now explain how understanding significance and setting has informed the development of the proposals
  • Reflecting and enhancing local character and distinctiveness (with regard given to the prevailing styles of design and use of materials in a local area) is now identified as a means of conserving/enhancing heritage assets
  • Works to a private dwelling which secure its future are recognised as a public benefit
  • Detailed definitions of archaeological, architectural, artistic and historic interest are provided, drawing on those set out in the draft Conservation Principles document published for consultation by Historic England in 2017, though this has not yet been re-issued following consultation and could be subject to change.
  • The section on the setting of heritage assets has been updated to reflect case law which has emerged over the last few years

 

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Town centres and retail – implications of the amended PPG
The overdue update of the PPG does not radically change the approach to town centres and retail but there is a clear shift in emphasis. Restricting out-of-centre development is not the key to saving town centres and high streets, they need to change and evolve to respond to structural changes in the economy.
Minor amendments to the PPG tighten the wording of advice relating to the sequential and impact tests but limited further clarification is provided. There is no mention of disaggregation when applying the sequential test, but the availability of alternative town centre sites within a reasonable period of time should take account of scale and complexity of the proposed scheme i.e. it’s open to debate.
A key change is the Government’s response to the Solo Retail Limited v Torridge District Council (March 2019) judgement, which indicated the PPG relating to the impact test “cannot and should not be interpreted and applied in an overly legalistic way as if it was setting out mandatory requirements.” The diagram highlighting the steps that should be followed when carrying out impact assessments has been deleted. This change should allow applicants more flexibility when producing proportionate impact assessments.
The relevance of the list of indicators of a centre’s health and vitality have been downgraded from “are relevant” to “may be relevant”, although new indicators include: the balance between independent and multiple stores, barriers to new businesses and the evening/night time economy.
The main shift is the increased support for town centres to adapt and change, by providing a wide range of complementary uses, evening and night time activities. The PPG refers to town centres developing their own unique brand and offer services beyond retail. The creation of hubs or groups of particular uses in centres e.g. restaurants and leisure use in encouraged. Local planning authorities can still define primary and secondary retail frontages but this is not mandatory. The use of frontages and policies to control the mix of uses need to be justified i.e. where it clearly supports the vitality and viability of a centre. This change implies a more flexible and location specific approach to the protection of retail uses.
Finally, the need for a collaborative partnership approach between local authorities and other parties is reiterated and expanded, with a list of relevant stakeholders provided.
A note of caution, the Solo Retail Limited v Torridge District Council judgment is still a reminder not to interpret the new PPG too legalistically.

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