The main topic of conversation for anyone within the planning sphere is of course the White Paper and what is being called a major overhaul of the planning system. The government has however acknowledged that changes of this magnitude don’t happen overnight and in the meantime, the show must go on!
Enter the snappily named Changes to the current planning system consultation which proposes changes to the housing need method, further proposals regarding First Homes, increasing the size of development exempt from affordable housing obligations and the increased use of Permissions in Principle.
The proposals are aimed at improving the current system for now whilst the overhaul proposed in the White Paper takes place in the background.
Standard Method for Assessment Local Housing Need to change
Proposals are included to introduce a new element relating to existing housing stock levels in the area and an affordability adjustment in an attempt to deal with ongoing issues with the method. Standard Method buffs will no doubt go into the detail of the proposals but I do not intend on doing this here other than to highlight that the method is changing and those with a keen interest may wish to review and comment on the proposals.
First Homes to be brought in
The government is moving forward with First Homes which they first consulted on back in February. Not much has changed and the proposals are to require 25% of all Affordable Housing as First Homes. The minimum discount for First Homes will be 30% but could be as much as 40% or 50% depending on local plan policy. The homes will be for first time buyers with a local connection to the area or key workers only and subject to restrictions on future sales. The Consultation seeks views on how the remaining 75% of Affordable Homes should be determined in light of local plan policy, exemptions, discount levels and exception sites. First Homes will be secured via Section 106 Agreements with the government providing standard drafting for this purpose until “IL”, the new proposed Infrastructure Levy detailed in the White Paper, comes forward.
The original consultation encouraged a move away from shared ownership and the current consultation now seeks views on how existing policies securing traditional forms of affordable housing should be applied. Those with an interest in the ongoing provision of shared ownership may therefore wish to make representations on this.
No affordable housing for sites of 40/50 units or less for a temporary period
Many will remember the controversy surrounding the “10 unit or less policy” which provided that affordable housing should not be sought for sites securing 10 dwellings or less, the intention being to help small to medium sized house builders. In a bid to aid economic recovery the Government are now proposing to increase this to a massive 40 to 50 units, albeit for a time limited period. This proposal is likely to have a major impact on affordable housing delivery in areas with mainly in-fill development. This will presumably be an amendment to national policy however, not a statutory requirement.
Permissions in Principle to apply to Major Development
Finally the relevance of Permissions in Principle (PIPs) is set to increase. Those reading the white paper will note the emphasis on automatic permissions and the comparisons with PIPs are noteworthy. This is therefore the obvious step in moving forward with their proposals sooner rather than later by increasing the application of PIPs to major development sites of up to 150 units or 5 hectares, subject to Environmental Impact Assessment provisions. When first introduced the PIP route was not favoured by developers but this may now change.
For those with a particular interest in Housing Need calculations, Affordable Housing and Permissions in Principle, the Consultation closes on 1 October 2020.
The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at August 2020.