Housing strategy and provision L1 Flashcards
(35 cards)
Tell me about the key economic indicators for residential development.
Finance rates and mortgages, house prices - all dictate the GDV of development appraisals and if developers can afford to deliver on schemes.
In contrast, inflationary pressures can increase build costs and labour costs, again impacting the viability of development and the number of projects therefore starting.
Tell me about the key demographic indicators for residential development.
Population growth, income levels, employment patterns, environmental concerns
Tell me about a method to assess and identify overall housing needs.
Housing and economic needs assessment - undertaken by the LPA- utilising the ‘standard method’ as set out in the NPPF
LPAs must follow the standard method when developing their Local Plan, unless ‘exceptional circumstances’ apply. The housing need figure generated by the standard method should be a starting point in the planning process, rather than a housing target
Three steps in standard method:
1) Assessing projected household growth using 2014-based household projections
2) Adjusting this figure upwards in areas where house prices are higher relative to the earnings of people who work there
3) Capping the level of increase that any one LPA can face, depending on the status of its existing plans.
Dec 2022 - The new standard method essentially retains the same steps as the original, but after the first three steps are complete, certain urban areas have their housing need figure increased by 35% (London)
What is one of the options for housing providers to meet these housing needs?
Joint ventures between housing associations and private developers can deliver affordable housing tenures that are of need in the local authority
How can developers/local authorities/other housing providers you have experience of source development opportunities?
Liaising with land agents and acquire sites that are being actively marketed.
Off-market opportunities - speculatively approaching landowners
Joint venture / partnerships with land owners (St Edward JV & National Grid St William JV as examples)
What statutory considerations are you aware of?
Building:
- Building Safety Act 2022 - The legislation is intended to improve the design, construction and management of higher-risk buildings.
- Building Regulations - Part O, L etc
Planning:
- The Planning act
- The Town and Country Planning Act 1990
- The localism act
- The Planning and Compulsory Purchase Act
Statutory Area Designations (SPAs, National Parks, Local Nature Reserves) - given special status or purpose by the acting body and is defined by law
What non-statutory considerations are you aware of?
Local Planning policies - not legally binding but need to adhere to (affordable housing, unit mix, tenure, scale/massing etc)
Community engagement - again not legally binding but important to ensure applications deliver community benefits
Non-Statutory Area Designations (Local SINCs, World Heritage Sites, listed buildings, registered parks and gardens, ) - Non-statutory designations however may be managed by statutory bodies and protected via other mechanisms as opposed to a specific law.
Tell me about the Housing and Planning Act 2016.
The Housing and Planning Act 2016 is a piece of legislation that was enacted in 2016 to address various issues related to housing and urban planning. It introduced several significant changes and reforms aimed at tackling housing challenges, promoting homeownership, and streamlining planning processes. E.g.:
- Starter Homes: Introduced affordable homes for first-time buyers.
- Planning Streamlining: Simplified planning processes.
- Rogue Landlords: Enabled penalties for unlawful practices.
- Social Housing: Supported Right to Buy for housing association tenants.
- Empty Homes: Allowed local authorities to charge extra council tax on vacant properties.
- Homelessness Prevention: Required local authorities to prevent homelessness.
- Neighbourhood Planning: Empowered communities in local development decisions.
- Infrastructure Levy: Proposed a new levy for funding infrastructure in developments.
What is a Strategic Housing Market Assessment (SHMA) and how is it prepared?
A Strategic Housing Market Assessment (SHMA) is a study conducted to understand the current and future housing needs and demands of a particular area. The primary purpose of a SHMA is to inform housing policies, strategies, and planning decisions to ensure that adequate and appropriate housing is provided to meet the needs of the local population.
How they’re prepared:
Identify and define the housing market area;
Establish the Objectively Assessed Need for housing (market and affordable);
Analyse supply (existing stock and pipeline development);
Assess forecasts and trends in supply/need;
Provide recommendations on housing-related strategies and policies.
What do SHMA’s provide an insight into?
A SHMA identifies the relevant housing market area and provides an analysis of housing market trends, including the current balance between supply and demand.
This provides the following key outputs:
- Current number of households with an unmet housing need.
- Total future number of households during Local Plan period.
- Number of households who cannot afford market housing.
- Analysis of housing mix requirements of the future households.
- Specific housing requirements such as older people and shared housing.
Can you give me an example of an element included within a SHMA?
Key elements:
- Current number of households with an unmet housing need.
- Total future number of households during Local Plan period.
- Number of households who cannot afford market housing.
- Analysis of housing mix requirements of the future households.
- Specific housing requirements such as older people and shared housing.
What is a Strategic Housing Land Availability Assessment (SHLAA) and how is it prepared?
A SHLAA is a study of sites which have the potential of accommodating residential development. It identifies the site, the constraints, the likely number of dwellings and determines when the land might be developed for housing.
Authorities will undertake a Call for Sites, which encourages landowners and other interested parties to provide information of sites for the SHLAA. Usually information requested at submission relates to landownership and availability, any known constraints, proposed developments (and associated planning application references if available) and anticipated timescales for delivery.
The Assessment will only consider sites which meet a set threshold in either dwelling capacity and/or size, with national guidance noting that a site should be capable of delivering five or more dwellings. An authority may consider alternative site size thresholds.
How do the SHLAA and SHMA or together to help identify allocations?
SHLAA - identifies the deliverable sites within the borough.
SHMA - helps to identify the type/need for development onsite, to feed into the use class proposed within the allocation
What sources other than SHLAAs/SHMAs are useful in identifying likely housing demand or appropriate development sites?
Local development plans
Site allocations SPDs
Brownfield registers
What policies are being implemented at national/regional/local levels?
Proposed changes to NPPF including:
1) Making local housing targets advisory
2) Removing the need for local authorities to continually demonstrate a deliverable 5-year housing land supply. (if their plan is up-to-date in last 5 years)
3) Removing the need for LPAs to review their green belts, even if meeting housing need would be impossible without such a review
Who are the key stakeholders in the process? (SHLAA/SHMA)
Local Authorities
Developers
Housing Associations
General public / local communities
Landowners
Who are the delivery vehicles involved in housing provision?
Local Authorities - stand as the decision maker
Housing associations - work in partnership with LA’s and developer to develop and manage social housing
Private developers (all sectors)
Government agencies (Homes England) - will provide funding to unlock development sites
Private Rented Sector
How do the various housing delivery vehicles work in partnership to increase the overall housing supply / provide affordable housing?
Local Authorities set development guidelines for developers in planning policy before then acting as the decision maker on planning applications.
Developers utilise this guidance to deliver housing schemes, often in close collaboration with the local council through the pre-application process.
Affordable housing is secured by the local council through S106 agreements
Tell me about housing tenures and how these are defined?
Market housing - private housing for sale where the price is set in the open market
Affordable housing tenures include social rented, affordable rented and intermediate housing. Eligibility is determined with regard to local incomes and local house prices.
Social rented housing - owned by either local authorities or registered providers of affordable housing
Affordable rented housing - AR is subject to rent controls that require a rent of no more than 80% of the local market rent
Intermediate tenures - describes a range of homes for sale and rent provided at a cost above social rent, but below market levels. This can include shared equity (shared ownership and equity loans) and intermediate rent
Shared ownership - occupier will buy/mortgage a share of the new build property of a HA. The HA keeps ownership of the remaining share and the occupier will pay rent on this share. Can buy up to 75% of the property.
What are the affordable options in the current market?
In London:
Shared ownership - aimed at first time buyers. Under the scheme you can buy at least a 25% share in a home and pay a regulated rent to the freeholder on the remaining share.
Discount market sale - low cost home ownership product where a HA offers a discount on the purchase of a new build property.
London Living Rent - LLLR provides homes with rents based on a third of local household incomes. Money saved can then go towards a deposit for a home.
Where might it be possible or appropriate to provide residential development without affordable housing?
Where the Financial Viability Appraisal of the scheme demonstrates that development onsite cannot reasonably afford to deliver affordable housing. This may be due to circumstances such as on the delivery of a surplus utility site where extraordinary costs for site remediation are required.
A Permitted Development Rights scheme is exempt from s106 agreements meaning they do not have to contribute to affordable housing.
How would the housing type and mix by typically identified in a new development?
A developer would undertake a review of the local development plan to ascertain the Council’s requirements in regard to affordable housing provision and tenure split. Guidance on unit mix will also be set out within this development plan.
The developer will continue to work with the LPA throughout the pre-application process to ensure that the proposed tenures and mix are reflective of their latest need.
Who are the key stakeholders in relation to housing issues?
Government bodies - play a role in housing policy and regulation
Developers - responsible for facilitating housing supply
Housing associations - provide affordable housing
Financial institutions - provide financing options to homebuyers and developers
Local communities/general public - they are the end user and those being affected by the lack of housing supply
What is Objectively Assessed Need and why is it important?
Objectively Assessed Need (OAN) refers to the evidence-based assessment of the need for new housing in a specific area over a defined planning period. It is important because it forms the basis of an area’s housing targets which local plans will need to meet. Essentially dictating the quantum of development that an LPA will need to plan for.
