Planning for Housing - a New Approach
Thursday, January 24, 2008
by
Murray Shaw
Someone at the Scottish Government clearly did not think much of the Christmas TV schedule and has spent a good part of the Christmas holidays preparing important consultation documents to issue. Four or five emerged in the first part of the New Year. Of these possibly the most significant in practical terms is that on “Planning for Housing”, a revised version of SPP3.
The current version of SPP3 was published in February 2003. By the time the revised version takes its place the guidance in that document will be some 5½ years or so out of date. That is quite a long period given the pressures that have been on the housing market over that period particularly in relation to prices. Indeed the introduction to the draft SPP3 acknowledges that the current version “has not been as effective as intended, particularly in regard to the generous release of land for housing. Persistent difficulties in bringing forward land for housing identified in Local Plans, and the resultant delays in the creation of new houses, illustrate the continuing problems facing local authorities and house builders”. Given that statement it is hoped that the revised draft will be adopted sooner rather than later.
Housing is clearly a big topic. The current draft has been the subject of extensive consultation with “stakeholders” including the development industry. There are significant issues in relation to housing in Scotland. Despite the very significant increases in house prices over the last 5 years there has been little increase in relation to house completions. Many sites which have been identified in Strategic Plans have simply not come forward. This in some instances is nothing to do with any issue with the local authority but rather due to problems with other bodies including public sector bodies as a result of inadequacies in the infrastructure system.
The present Scottish Government signalled their position in October of last year when they published a consultation document entitled “Firm Foundations”. This set out a very clear intent to increase the number of house completions from somewhere around 25,000 per year to 35,000 per year. While “Firm Foundations” was only a discussion document given the extent to it is referred to in the draft SPP3 there can be little doubt that the Scottish Government intends to implement Firm Foundations and implement it as quickly and as fully as it can.
The introduction to the draft SPP3 indicates that in reviewing the existing guidance the following principles in particular have been looked at:-
1. The link between assessing housing demand and need and means of implementation to meet that need.
2. The link between identified housing requirements and the use of land to meet these with the intention that there should be better match between the two.
3. The provision of more affordable housing.
4. Improvements in quality and design generally and in particular around energy efficiency.
5. The recent changes in the planning system in Scotland.
6. Providing revised guidance on HMOs and housing land audits.
On first reading it looks as if in certain respects the draft SPP3 is intended to be more prescriptive than its predecessor. It certain contains specific guidance in relation to a number of issues including Strategic Housing Need and Market Assessment Guidance (SHNMA), housing land audits and houses in multiple occupation as well as housing needs assessments. While guidance in relation to these topics has existed previously that guidance has generally not been as specific nor has it been found in documents which have the status of an SPP. This presumably emphasises the concerns which exist regarding the ability to produce new houses in Scotland.
The revised document in a number of places refers to “robustness” and “clarity”. For example in paragraph 6 reference is made to strategic housing need and market assessments with the comment being made that these “will provide a robust evidence base and clear vision for the provision of housing, to be set out in Local Housing Strategy which will include housing supply targets and guide the preparation of the Development Plan”. There has been some debate about the extent to which all housing requirements should be dealt with in documents such as these. The draft SPP3 apparently intends to make it clear that indeed all aspects should be taken into account and specifically provides that allocations should be made for all sectors. Paragraph 81 specifically states ”that planning authorities should also consider allocating sites specifically for affordable housing to meet requirements identified by the SHNMA and LHS”.
In its guidance on housing market areas (a key part of the housing land supply debate) the draft guidance makes clear that while an element of mobile demand may be identified (i.e. demand which will not necessarily be met in a particular housing market area) any requirement should “always be allocated in Development Plans relating to individual local authority areas”. This is likely to be welcomed by the development industry who have been concerned about the difficulties which arise from a demand being identified but that demand not being specifically allocated, meaning debates take place about which local authority should actually provide the houses required to meet that demand. Quite often these debates fail to reflect the fact that what is being talked about is building houses on the ground for people to live in (rather than some theoretical issue), a subject of critical importance.
Clearly critical to this guidance are the requirements in relation to strategic housing need and market assessments and local housing strategies. Paragraph 21 identifies that local authorities “should move towards” adopting Strategic Housing Needs and Market Assessments as the basis for identifying future housing need and demand. The phrase “move toward” may be thought to be somewhat vague and may in fact defeat in practice what is intended. Having said that the guidance makes clear that there will be separate guidance provided in the near future regarding the preparation of local housing strategies. The more consistency there is in relation to documents such as these the less scope there is for unnecessary debate. Many Local Plan Inquiries have been taken up with debate upon the methodology (for example in relation to South Ayrshire during the Inquiry held a couple of years ago). That debate is both expensive in terms of time and money and unsatisfactory.
The introduction to this draft SPP3 makes clear that the previous document has failed. In the introduction reference is made to the intention to have a generous supply of land for housing. That concept is echoed in paragraph 34 where in terms it is stated “planning authorities should allocate a generous supply of land for housing on a range of sites within each housing market area”. That guidance appears to be looking to a 10 year frame with sites being allocated specifically for the first 5 years with the sites that are provided for supply for the foreseeing 5 years identified. It appears to be accepted that developments plans might well provide the “trigger” for release of sites, release being allied to the outcome of the annual monitoring process. Paragraph 49 identifies that if shortfalls exist it is for the planning authority to take steps to ensure that a minimum 5 years supply is maintained including by means of identifying additional sites and granting planning permission provided proposals comply with the overall locational strategy and other policies or the development plan. That language may mean debates take place about the relative importance of maintaining a 5 year supply as against other provisions of the development plan.
It is clear that quality is not to be ignored. While the draft identifies that providing “an adequate supply” of decent housing at prices people can afford” is a key aim quality developments are to be provided where possible, possibly as part of a mixed use development.
Additional guidance is given in relation to urban capacity studies. Helpfully it is indicated that the private sector should be involved in these to make them “as transparent as possible”. There have been instances in Scotland where local authorities acting as planning authorities have come up with information and numbers which have simply been presented to developers who have had no idea about how the outputs have been identified.
In a number of instances the underlying guidance from SPP3 (the 2003 version) is carried forward. Brownfield land is identified as being a source of supply which may reduce the amount of greenfield land required. Likewise infill developments are identified as a suitable source of supply but in the absence of suitable brownfield and infill sites it is accepted that greenfield releases particularly next to built up areas may be necessary. In this age of sustainability access to transport is identified as a key consideration and it is noted that authorities may conclude that release of “certain areas of greenfield land will result in a more sustainable pattern of development than relying on brownfield sites”.
Guidance of this sort cannot ignore affordable housing and of course this draft does not seek to do so. The benchmark figure of 25% found in PAN74 is referred to. The suggestion now is that there should be detailed supplementary planning guidance on how affordable housing is to be delivered. If however this is to be effective the private sector needs to be involved in the preparation of that guidance and consulted upon it.
Scotland is of course diverse in terms of its geography. The draft therefore looks at the position in relation to rural areas in addition to the built up areas and carries forward the language of SPP15 which identifies greater scope for development in rural areas. Specifically it is noted that demand for housing in rural areas may help secure economic, social or environmental benefits.
Perhaps the last area of interest is the reference to developer contributions. Specifically the guidance supports the importance of developer contributions but indicates that the Scottish Government is to review the operation of the system in Scotland. Interestingly enough apart from commenting upon the delays which may result it is noted that “it is right in principle that the public should benefit from the uplift in value of land due to the grant of planning permission, while ensuring that the planning system and developer contributions facilitate sustainable economic growth”. That language almost harks back to the Planning Gain Supplement. It will be particularly interesting therefore to see what proposals emerge in relation to this important topic.
Consideration of this draft takes place until the Spring of 2008. The document which emerges as a result of that consultation to replace the existing SPP3 will be an important document for the housing industry in Scotland.
For more information email Murray Shaw or call 0141 228 8000.
The information contained in this article is given for general information only and does not constitute legal advice on any specific matter.