Housing strategy and provision L1 Flashcards

1
Q

Tell me about the key economic indicators for residential development.

A

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.

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2
Q

Tell me about the key demographic indicators for residential development.

A

Population growth, income levels, employment patterns, environmental concerns

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3
Q

Tell me about a method to assess and identify overall housing needs.

A

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)

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3
Q

What is one of the options for housing providers to meet these housing needs?

A

Joint ventures between housing associations and private developers can deliver affordable housing tenures that are of need in the local authority

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4
Q

How can developers/local authorities/other housing providers you have experience of source development opportunities?

A

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)

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5
Q

What statutory considerations are you aware of?

A

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

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6
Q

What non-statutory considerations are you aware of?

A

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.

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7
Q

Tell me about the Housing and Planning Act 2016.

A

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.:

  1. Starter Homes: Introduced affordable homes for first-time buyers.
  2. Planning Streamlining: Simplified planning processes.
  3. Rogue Landlords: Enabled penalties for unlawful practices.
  4. Social Housing: Supported Right to Buy for housing association tenants.
  5. Empty Homes: Allowed local authorities to charge extra council tax on vacant properties.
  6. Homelessness Prevention: Required local authorities to prevent homelessness.
  7. Neighbourhood Planning: Empowered communities in local development decisions.
  8. Infrastructure Levy: Proposed a new levy for funding infrastructure in developments.
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8
Q

What is a Strategic Housing Market Assessment (SHMA) and how is it prepared?

A

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.

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9
Q

What do SHMA’s provide an insight into?

A

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.
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10
Q

Can you give me an example of an element included within a SHMA?

A

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.
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11
Q

What is a Strategic Housing Land Availability Assessment (SHLAA) and how is it prepared?

A

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.

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12
Q

How do the SHLAA and SHMA or together to help identify allocations?

A

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

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13
Q

What sources other than SHLAAs/SHMAs are useful in identifying likely housing demand or appropriate development sites?

A

Local development plans
Site allocations SPDs
Brownfield registers

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14
Q

What policies are being implemented at national/regional/local levels?

A

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

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15
Q

Who are the key stakeholders in the process? (SHLAA/SHMA)

A

Local Authorities
Developers
Housing Associations
General public / local communities
Landowners

16
Q

Who are the delivery vehicles involved in housing provision?

A

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

17
Q

How do the various housing delivery vehicles work in partnership to increase the overall housing supply / provide affordable housing?

A

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

18
Q

Tell me about housing tenures and how these are defined?

A

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.

19
Q

What are the affordable options in the current market?

A

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.

20
Q

Where might it be possible or appropriate to provide residential development without affordable housing?

A

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.

21
Q

How would the housing type and mix by typically identified in a new development?

A

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.

22
Q

Who are the key stakeholders in relation to housing issues?

A

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

23
Q

What is Objectively Assessed Need and why is it important?

A

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.

24
Q

Where would you find policy in relation to housing strategy and provision?

A

In the LPA’s development plan or supplementary planning documents. Specifically ‘Housing’ policies will give guidance on affordable housing, unit mix and tenure.

25
Q

Tell me about the ‘Standard Method’ for assessing local housing need and why is it important?

A

The standard method for assessing local housing need provides a minimum starting point in determining the number of homes needed in an area.
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)

The Standard Method ensures LPA’s housing requirements are set at a level which helps to deliver the government’s target of 300,000 new homes P.A. Ensuring these targets are planned for in local plans, issues of housing supply should be alleviated to a degree.

26
Q

Tell me about the deliverable five year housing land supply?

A

The National Planning Policy Framework requires local planning authorities to identify and update annually a supply of specific deliverable housing sites sufficient to provide a minimum of five years’ worth of housing against their housing requirement set out in adopted strategic policies.

27
Q

What level of buffer is required for the five year housing land supply?

A

The Five Year Housing Land Supply (5YHLS) must also include a buffer of 5% to allow for choice and competition in the market. This buffer must be increased:

to 10% if we want to show our Five Year Housing Land Supply through a recently adopted local plan or an annual position statement; or

to 20% buffer if an LPA has recorded an HDT measurement below 85%; requiring said LPA to deliver more homes in the future to make up for its previous shortfalls. The proposal is for this 20% buffer to be removed (pending the outcome of a consultation).

28
Q

What is the Housing Delivery Test?

A

The Housing Delivery Test (HDT) is an annual measurement of housing delivery across the country. Introduced in 2018, the HDT assesses the number of homes built in each English local authority with its housing need over the previous three-years. The outcomes of the HDT reflect delivery levels:

More than 95% of housing requirement – Passed - No action

85% - 95% - Action Plan - The local authority must produce an action plan to lay out steps it will take to increase their housing delivery

75% - 85% - Buffer - A 20% buffer will be added to the local authority’s 5-year land supply and an action plan must be produced

Less than 75% (less than 45% up until 2020) – Presumption in favour of sustainable development - All planning applications must be granted if they accord with an up-to-date development plan unless the site is protected under the National Planning Policy Framework or the adverse impacts of development significantly outweigh the benefits

29
Q

Why can planning appeal decisions be very important in considering housing development and requirements?

A

Appeal decisions can:

  • set precedents that influence future decisions and policies. They establish interpretations of planning law and policy
  • clarify and provide guidance on the application of planning policies
  • provide a formal mechanism to resolve disputes between developers and LPAs, enabling development to proceed - influencing housing supply
30
Q

Can you briefly tell me what is going on in the housing sector in an area of your expertise?

A

The London housing market is facing a ‘slowdown’ in delivery of new housing:

Rising interest rates are limiting consumer demand. Sales rates have fallen which is impacting live sites, but also the residual valuations of new development opportunities meaning less sites are being acquired, less going through planning, causing less to be delivered in future.

This is in combination with increased costs related to:

  • Build cost inflation
  • Regulatory changes impacting viability (second stair requirement, updated GLA London Design Guidance etc, Part O, Part L)
31
Q

Explain what the Dynamic Purchasing System is.

A

The Dynamic Purchasing System (DPS) is a procedure available for contracts for works, services and goods commonly available on the market

32
Q

What is the outcome of the latest Housing Delivery Test results?

A

The key headlines from the latest results are:

228 LPAs face no action, up from 217 LPAs in 2020.

24 LPAs will be required to prepare only an action plan, down from 33 LPAs in 2020.

A further 20 LPAs will also be required to apply a 20% buffer to their five-year housing land supply, up from 19 LPAs in 2020.

The presumption in favour of sustainable development has been triggered in 51 LPA areas across England, down from 55 in the HDT 2020 results.

33
Q

What is permission in principle?

A

The permission in principle consent route is an alternative way of obtaining planning permission for housing-led development which separates the consideration of matters of principle for proposed development from the technical detail of the development. The permission in principle consent route has 2 stages: the first stage (or permission in principle stage) establishes whether a site is suitable in-principle and the second (‘technical details consent’) stage is when the detailed development proposals are assessed.

Cannot be used on major planning applications - more than 10 units. In this instance you would use an outline application which is similar.

34
Q

What Is windfall housing?

A

A site not specifically allocated for development plan, but unexpectedly becomes available for development during the lifetime of a plan. Most “windfalls” are referred to in a housing context.