Housing Land Requirement – A very average approach

The Scottish Government recently amended Scottish Planning Policy (SPP) and introduced a new Planning Advice Note (PAN 1/2020 – December 2020). This was widely recognised as a move to avoid the tilted balance becoming a mainstay of the Scottish planning system and to direct the industry toward a standardised methodology for calculating the extent of a 5 year housing land supply (HLS) against housing land requirements (HLR). It was also acknowledged to be an interim intervention in advance of National Planning Framework 4 being approved, at which point it would be expected that these measures will be incorporated.

 

Lichfields has been particularly interested in the latter two of these moves, that being the introduction of the average method for calculating 5 year HLS requirements in PAN 1/2020. We, alongside many others in the property industry, have concerns that this move would constrain the delivery of homes to a level below that being planned for and demonstrated as needed through Development Plans (SDPs and LDPs).

 

A Court of Session decision issued on 21 July 2021 concluded that the changes to SPP and the introduction of PAN 1/2020 were unlawful. As a result, they will cease to affect the Scottish planning system for now.

 

However, the policy amendments and new guidance were not found to be unsound in content, rather that the consultation process which led to their adoption was insufficient and unfair. It follows that these policy and guidance measures could be reintroduced subject to suitable consultation, such as that which must take place in the lead up to approval of National Planning Framework 4.

 

It is vital for the development industry to understand the implications of the average method of calculating 5 year housing land requirement (HLR), as was promoted in the now quashed PAN 1/2020, are understood as the Scottish Government moves toward publication of National Planning Framework 4.