News
Housing planning news, April 2018
03 Apr 2018
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Headline news |
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Prime Minister launches revised NPPF to improve the delivery of new homes
Local authorities will have to satisfy a housing delivery test, focused on driving up the number of homes completed in their areas, in addition to using a new standardised methodology for ‘determining the minimum number of homes needed […] unless there are exceptional circumstances that justify an alternative approach’.
To provide increased certainty for the development industry, the new draft national policy also intends that plans should set out the contributions expected in association with particular sites and types of project. Draft planning practice guidance to accompany the new Framework refers to developer accountability and transparency in the context of viability assessments, in order to enable communities ‘to understand the outcomes of viability assessment and see what infrastructure and affordable housing has been delivered through developer contributions’.
DCLG, National Planning Policy Framework, 2012
MHCLG, National Planning Policy Framework, draft text for consultation, 5 March 2018
Prime Minister's Office, 10 Downing Street, Theresa May’s speech on making housing fairer, 5 March 2018
MHCLG, Draft Revised National Planning Policy Framework: consultation proposals, draft text, and associated documents including draft planning practice guidance and Housing Delivery Test: draft measurement rulebook
Lichfields, National Planning Policy Framework Review: what to expect? (focusing on the then most anticipated elements of the subsequently published draft)
Lichfields, Draft revised National Planning Policy Framework: a change in narrative, (a post-publication blog, covering draft policies not included in the blog above)
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Quote of the month |
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[...] the way I view it is that we want the relationship between councils and developers to be more like – I am not saying we would set up a contract – contract for delivery, with clear expectations and some accountability at the end of it, including, potentially, financial penalties.’
Dominic Raab, Housing Minister, giving evidence on MHCLG housing priorities to the Housing, Communities and Local Government Committee, 12 March 2018 |
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‘Supporting housing delivery through developer contributions’: new consultation proposes changes to planning obligations and CIL
- streamlining requirements for setting/reviewing community infrastructure levy (CIL) charging schedules;
- removing s106 pooling restrictions (for authorities that have adopted CIL, or that satisfy other requirements);
- allowing CIL to be based on the existing use of land;
- introducing a ‘Strategic Infrastructure Tariff’, for combined authorities, and joint committees with plan-making powers; and
- indexation being linked to house prices, or CPI/CPI and a factor of house prices for non-residential development.
MHCLG, Supporting housing delivery through developer contributions: consultation
Lichfields Planning News March 2017, report of the independent CIL Review Group (page 7)
Spring Statement 2018 - financial support to boost house building
Funding announcements included:
- £100 million to help support – via land acquisition and preparation - the Mayor of the West Midlands’ plan to deliver 215,000 homes by 2030/2031 (the ‘West Midlands Housing Deal’);
- support via the Housing Infrastructure Fund for whichever of the 44 shortlisted Housing Growth Area bids (as subsequently announced on 21 March, alongside the Greater Manchester and West of England housing packages, and the Oxfordshire Growth Deal) are selected;
- confirmation of a £1.67 billion funding package for London to build affordable housing. This would be for 26,000 more affordable homes (including social rent and London Affordable Rent, flexible shared ownership and rent to buy). This would bring total funding for affordable housing in London to £4.8 billion; and
- £60 million investment to boost the Housing Growth Partnership Fund, in support of small and medium-sized housebuilders.
HM Treasury, Spring Statement 2018
Lichfields’ Economic Outlook, Spring Forward
MHCLG, Government investment to unlock more homes across England
Draft revised NPPF: themes and the detail on housing
In addition, the Lichfields’ Insight Focus on the draft revised NPPF provides detailed commentary on the housing-related policy proposals of the NPPF, including:
- the staged introduction of a standard methodology for identifying local housing need;
- the housing delivery test;
- the Statement of Common Ground (that in effect would document steps taken in the Duty to Cooperate);
- viability and developer contributions at plan-making stage; and
- the allocation of housing sites for achieving a sufficient supply of land for new homes.
Lichfields Insight Focus, Draft Revised National Planning Policy Framework
Lichfields blog, NPPF consultation proposals – what could they mean for town centres?
Lichfields blog, NPPF consultations – what could they mean for designers?
Lichfields blog, Draft NPPF: heritage policy is conserved…
Draft planning practice guidance on viability and housing matters
- Viability (also published as a separate draft, on 5 March);
- Housing delivery;
- Local housing need assessment;
- Neighbourhood plans;
- Plan-making; and
- Build to rent.
No formal consultation deadline is given for the submission of comments although it is assumed that responses should be made as for the main consultations i.e. by 10 May.
Letwin Review - market absorption rates 'fundamental' to slow build out
As reported on the same day by Lichfields, the Update explains how and why Letwin has considered ‘exclusively the question why, once major housebuilders have obtained outline planning permission to build large numbers of homes on large sites, they take as long as they do to build those homes’. He goes on to identify that the ‘absorption rate’ (i.e. the rate at which homes can be sold), is the ‘fundamental driver’ of build out. He acknowledges that the absorption rate is largely determined by the type, (including ‘size, design, context and tenure’) and pricing of new homes, and the limited opportunities for other housebuilders to enter large sites putting large housebuilders ‘in a position to exercise control over these key drivers of sales rates’.
Accordingly, Sir Oliver Letwin raises further questions that he is to investigate in the coming months, relating to:
- how the absorption rate would be affected if large sites were to be ‘packaged’ in ways that foster the delivery of different products;
- what would happen to absorption rates if the reliance on large sites were to be reduced; and
- what implications a different absorption rate would have on the current business models of major housebuilders.
Finally, the Update concludes that he will also ‘investigate what effect faster build out rates would be likely have on the ‘land banks’ held by major builders’.
The results of his analytical work are expected by the end of June in the form of a Draft Analysis; recommendations in a final report will be produced in time for the Autumn Budget.
Lichfields’ Economic Outlook, Spring Forward
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The Lichfields perspective |
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The wait has been long, but the revised NPPF offers much to think about in the coming weeks and months; the planning reform process is far from finished and the Government has clearly acknowledged that. Whether this alone will be enough to change the current situation, increase housing affordability, and achieve and sustain the golden target of 300,000 new homes a year, it is clearly too soon to be said.
Giorgio Wetzl, Policy Researcher |
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Disclaimer: This publication has been written in general terms and cannot be relied on to cover specific situations. We recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Lichfields accepts no duty of care or liability for any loss occasioned to any person acting or refraining from acting as a result of any material in this publication. Lichfields is the trading name of Nathaniel Lichfield & Partners Limited. Registered in England, no.2778116