Wales planning news, April 2022

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Wales planning news, April 2022

12 Apr 2022
 

 

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 Headline news

 
     
 

Increased council tax for second homes

An increase to the maximum amount of council tax premiums for second homes has been announced by the Welsh Government. The rate at which local authorities can set council tax premiums on second homes and long term empty properties will increase by 200% and this will take effect from April 2023. Councils will be able to decide what level they are going to charge up to the maximum rate. Premiums are currently set at a maximum of 100% for second homes. The Welsh Government has encouraged local authorities to apply premiums on second homes to improve the supply of affordable housing.
The Welsh Government is also adapting the criteria for self-catering accommodation being liable for business rates instead of council tax. The current rules allow properties that are let for at least 70 days when they are available for at least 140 days in a year to pay business rates rather than council tax. The new rules will increase these thresholds to being available to let for at least 252 days and actually let for at least 182 days in any 12-month period. The changes have been introduced to demonstrate that holiday accommodation is contributing towards the local economy when let on a regular basis rather than properties lying vacant for prolonged periods. This change will also be effective from April 2023.

Welsh Government, Press Release, New tax rules for second homes

     

 

Quote of the month

 
     
     
     
 

It is clear that we as a country are facing a housing crisis. So many people cannot afford to live in their local areas, and the situation has worsened during the pandemic. These changes will make a difference, enabling councils to respond to their local circumstances, and start to close the loophole in the current law. It's a first, but important, step on a journey towards a new housing system that ensures that people have the right to live in their community.

Designated Member Sian Gwenllian MS speaking on the increases to council tax premiums for second homes
 
     
     

 

Service update: Planning and Environment Decisions Wales

The Welsh Government has provided an update on the current status of Planning and Environment Decisions Wales (PEDW) services.
  • The majority of decisions are now being issued within ministerial timescales.

  • All new appeals submitted up to the 1 March have now been registered.

  • There still remains a backlog of cases waiting to be started but resources have been allocated to reduce this.

  • Applicants should wait a minimum of nine weeks after receiving an acknowledgement when enquiring about an appeal.
PEDW also reports that having engaged with all Chief Planning Officers, there will continue to be a default of virtual meetings where these are public.
 

Planning and Environmental Decisions Wales, service update  

New North Wales Transport Commission

Lee Waters MS, Deputy Minister for Climate Change has announced a new transport commission for the north of Wales known as The North Wales Transport Commission. This is in response to the Welsh Government's Roads Review Panel which considered a wide range of transport schemes and has set out how these schemes will be considered and aligned to the new Wales Transport Strategy which was outlined in March 2021 and previously discussed here.
The year long review will develop recommendations for road, rail, bus, and active travel across north Wales. The panel will be led by Lord Terry Burns who carried out a similar review in South East Wales. The announcement of the transport commission follows recommendations from the Welsh Government’s Roads Review Panel to cancel current plans for the A55 Junction 14/15 and 16/16A improvements scheme.
Deputy Minister for Climate Change, Lee Waters said: “As well as looking at the A55 corridor, the North Wales Transport Commission will also look at how we can improve sustainable transport options in rural areas. This will need a shift of investment towards public transport and I’m very pleased Lord Burns has agreed to lead a panel of local experts to set out a detailed list of projects that will be needed to make this a reality”.
 

Welsh Government, Written Statement: Roads Review - Initial Report and North Wales Transport Commission

Natural Resources Wales warns of frequent flooding

Natural Resources Wales (NRW) has warned that flooding is becoming “the new reality” in Wales and that the need to prepare for these events is more important than ever. Chief Executive of Natural Resources Wales, Clare Pillman said: “The central focus given to climate change in the Welsh Government's programme for government, and the emphasis placed on mitigating future flood risk in the Co-operation Agreement between Labour and Plaid Cymru are all welcome strides forward…But while progress has certainly been made, the climate problem has also accelerated. Which is why our thinking and our actions to help mitigate and adapt to its impacts needs to go further and faster if we're to secure the improved flood-risk outcomes we need for the people of Wales".
A flood hydrology roadmap has also been published by the Flood and Coastal Erosion Risk Management Research and Development Programme and the Environment Agency. The roadmap aims to set out a 25-year vision for flood hydrology in the UK and an action plan to realise that vision. The roadmap is designed to help with:
  • design and maintenance of flood defences;
  • national and local flood risk assessment and mapping;
  • the design and operation of flood forecasting and warning schemes;
  • design and operation of sustainable drainage systems; and
  • understanding the impact of climate change on future flood risk.
Andrew Wall, National Flood Risk Services Manager at NRW said: “The increasing frequency of extreme weather events and severe flooding in Wales over recent years has rightly put the spotlight on the importance of understanding how our rivers, lakes and reservoirs respond to heavy rainfall”.
 

Natural Resources Wales, 'Record-breaking floods are not the exception – they are the new reality'

Flood and Coastal Erosion Risk Management Research and Development Programme and Environment Agency, Flood hydrology roadmap

Natural Resources Wales, 'NRW playing a key role in delivery of a 25-year vision to help predict and manage flood risk'

Cardiff to deliver 4000 homes by 2030

Cardiff Council will build 4000 new homes by 2030, including 2800 new council homes as part of new investment in housing totalling £800m. This was confirmed in a Cardiff Council Cabinet meeting on 10 March which considered the Housing Revenue Account (HRA) Business Plan for 2022-2023. The Business Plan includes a number of objectives including:
  • Building new council homes;
  • Investing in existing homes and community facilities;
  • Preventing homelessness;
  • Tackling poverty and supporting people into work; and
  • Moving towards zero carbon.
The programme has already started, with 816 new properties built, of which 613 are council homes. A further 522 homes are currently being built with another 506 achieving planning permission. An additional 1729 homes are also in the pipeline. The Council has also planned to utilise alternative energy heating systems in future homes such as ground or air source heat pumps as well as cladding and solar panels for all low rise blocks of flats. Cabinet Member for Housing and Communities, Cllr Lynda Thorne commented on the Plan: This is not just about building quality homes. Access to services and a healthy local economy are essential for safe and strong communities. Our programme will deliver both enhanced and new neighbourhoods where people are proud to live.”

Cardiff Council, Cabinet Meeting, 10 March 2022, Housing Revenue Account Business Plan

Welsh Government Budget commitments

The Welsh Government has committed to a number of spending pledges for housing in its yearly Budget. Spending on Social Housing Grants will be £310m in 2022-23, up from 205m this year. This will increase again to £330m in 2023-24 and £325m in 2024-25. The Budget also allocated £580m for the decarbonisation of social housing up to 2024-25 and a further £72m to hasten the pace and scale of the decarbonisation process for Welsh Homes. Other measures include the allocation of £1m to establish a national construction company that will support councils and social landlords in improving the supply of social and affordable housing and an additional £10m to Tai Ffres, a partnership between the Welsh government, Llamau and United Welsh. This partnership will help those aged between 16-25 who do not meet the criteria for support from the homelessness services find another way into housing.
 

Written Statement: The Final Budget 2022-23

Welsh Government, Final Budget 2022 to 2023

Senedd Research, Interactive diagram to explore the 2022-23 Final Budget

Welsh Government, Final Budget 2022-23, Explanatory note

The effect of new phosphate targets on housing delivery in Wales

In January 2021, Natural Resources Wales introduced new tougher targets and guidance for phosphate pollution in riverine Special Areas of Conservation (SACs) across Wales. As a result of the new targets, it has become necessary to identify ways in which to ensure that new residential developments do not increase the nutrient load on SACs following discharge from a sewage treatment work. This issue is discussed in greater detail in this Blog.
 

The effect of new phosphate targets on housing delivery in Wales (lichfields.uk)

Building Safety: Residential Property Developer Tax

The legislation introducing the UK wide Residential Property Developer Tax came into force on 1 April 2022. This is a new 4% tax which will applies to the largest residential property developers on the profits they make on UK residential property development. It will affect companies or groups of companies undertaking UK residential property development with annual profits in excess of £25 million and is to contribute towards the cost of removing unsafe cladding.
 

Finance Act 2022, Part 2, Residential Property Developer Tax

Chief Planner Letter: Best and most versatile agricultural land

The Minster for Climate Change Julie James has sent a letter to all Chief Planners which seeks to clarify planning policy covering the Best and most versatile agricultural land and solar PV arrays. Planning Policy Wales paragraphs 3.58 and 3.59 outlines the policy for protecting Wales’ Best and Most Versatile (BMV) agricultural land (grades 1, 2 and 3a). PPW states that: ‘…..in development plan policies and development management decisions considerable weight should be given to protecting [BMV] land from development, because of its special importance’. The letter outlines that where BMV land is identified within a proposed solar PV array development, unless other material considerations indicate otherwise permission should be refused. Local Planning Authorities are required to consult with the Welsh Government before granting planning permission for any development that would involve the loss of 20 hectares or more than BMV land. The Department for Climate Change will object to applications which involve the loss of BMV agricultural land unless other significant material considerations outweigh the need to protect the land.
 

Welsh Government, Letter to Chief Planning Officers  

 

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