5. Question 11/12: Do you agree with Policy 4? If not why not and what alternative would you suggest? Do you agree with the level of affordable housing being sought in Policy 4? If not why not and what alternative would you suggest?
5.1 Policy P4 seeks the provision of 50% affordable housing on sites of 11 dwellings or more/ 1000sq m. Affordable housing is defined as social rented, affordable rented, intermediate tenure and starter homes all of which should be available at costs that are affordable to households whose needs are not met in the open market.
5.2 The level of affordable housing is justified on the basis that the Council has a high level of unmet housing need, as set out in the Strategic Housing Market Assessment (SHMA)Strategic Housing Market Assessment) Objectively Assessed Need for Affordable Housing.
5.3 The supporting text explains that the policy target is set at 50% on the basis that this will include 20% Starter Homes, with the remaining 30% split between rent(22%) and shared ownership (8%). The supporting text at paragraph 193 explains that the Council anticipate that the greater values derived from delivery of starter homes will be able to support this approach, "but further evidence will be pursued to justify this."
5.4 In this respect, the level of affordable housing sought through Policy P4 assumes that Starter Homes should be over and above provision of other tenures of affordable housing. BDW and Gallagher Estates Ltd are unable to support this position in principle for the following reasons.
5.5 The Strategic Housing Market Assessment (SHMA) Strategic Housing Market Assessment) Objectively Assessed Need for Affordable Housing advises at 7.1-7.3 that;
"On completion of the calculation of the need for affordable housing, the PPG says, at Reference ID: 2a-029-20140306:
The total affordable housing need should then be considered in the context of its likely delivery as a proportion of mixed market and affordable housing developments, given the probable percentage of affordable housing to be delivered by market housing led developments. An increase in the total housing figures included in the local plan should be considered where it could help deliver the required number of affordable homes. It is clear that a Planning Authority should consider whether or not the housing target in the Local Plan should be increased to assist with meeting the need for affordable housing.
The total annual affordable housing need in Solihull of 210 households per year (as calculated in Chapter 5, Table 5.10) represents 28.7% of the annual projected household growth in the Borough between 2014 and 2033 (732 households per year as identified within the full OAN calculations14). This proportion of new housing as affordable appears achievable to deliver in Solihull.
It is clear that the Council can be confident that the affordable housing requirement can be met by the OAN identified and no adjustment is required to this figure. The figure of 28.7% is similar to the proportion of new affordable housing required within the LTBHM model, 26.9% as indicated in Table 4.3, providing further evidence that the assumptions reflect the realities of the current housing market locally."
5.6 The actual need for affordable housing to meet needs arising in the Borough over the plan period is therefore, around 28.7% and not the 50% included under Policy P4.
5.7 Additionally, the Housing and Planning Act 2016 amends the definition of "affordable housing" with regards to planning obligations under the Town and Country Planning Act 1990 (as amended) to include starter homes (as defined in Part 1 of the Act).
"159. Planning obligations and affordable housing.
(1)After section 106ZA of the Town and Country Planning Act 1990 (inserted by section 158 above) insert—
106ZB Enforceability of planning obligations regarding affordable housing
(4) In this section "affordable housing" means new dwellings in England that—
(a) are to be made available for people whose needs are not adequately served by the commercial housing market, or
(b) are starter homes within the meaning of Chapter 1 of Part 1 of the Housing and Planning Act 2016 (see section 2 of that Act)."
5.8 To date Government guidance has not been updated in the NPPF and the existing definition of affordable housing continues to apply. Notwithstanding, it is clearly the Governments' intention to do so and therefore, the provision of Starter Homes will be included in the national policy definition of affordable housing in due course.
5.9 The Draft Local Plan is seeking to apply the provision of Starter Homes as additional to identified need for affordable housing. In effect this is double counting, given that some of the need identified through the SHMA will be met by the delivery of Starter Homes.
5.10 On this basis, Policy P4 as drafted would not be sound and would not be either "positively prepared" to meet the identified need for affordable housing or justified, based upon evidence from the SHMA. Additionally, the policy would not be consistent with national policy.
5.11 The Policy text should be amended to accord with the national policy definition and that set out in Section 159 of the Ac.t
Viability
5.12 Whilst it is noted that Policy P4 includes provision for an off-site financial contribution where on site delivery is not viable or feasible, this ignores the fact that it may not be viable to secure delivery of affordable housing in particular circumstances or a financial contribution.
5.13 In fact, it remains that there is no evidence to test delivery of affordable housing across a range of site/development scenarios.
5.14 Paragraph 173 of the NPPF is clear that, "Plans should be deliverable. Therefore the sites and scale of development identified in the plan should not be subject to such a scale of obligations and policy burdens that their ability to be delivered viably is threatened"
5.15 The need for effective assessment of the impact of such obligation is set out at paragraph 174, which advises that;
"They should assess the likely cumulative impact on development in their area of all existing and proposed local standards, supplementary planning documents and policies that support the development plan, when added to nationally required standards. In order to be appropriate, the cumulative impact of these standards and policies should not put implementation of the plan at serious risk"
5.16 In the absence of any such assessment of viability and deliverability, BDW and Gallagher Estates Ltd are concerned that Policy P4 in unduly onerous and would place an undue burden on new development, that would threaten the ability for developers to be able to bring sites forward.
5.17 As such Policy P4 would also fail the test of soundness on the basis of non-compliance with national policy.
5.18 The impact of such a significant requirement for the delivery of affordable housing, coupled with need for new education and community facilities, open space and physical drainage and utility infrastructure, as well as investment in highways and accessibility will threaten deliverability.
5.19 This is almost certainly likely to be the case in respect of larger greenfield schemes which will need to deliver significant levels of new infrastructure early through the development process.
5.20 The real issue is how to deliver more housing, including affordable across the market. This can only be achieved by significantly increasing the supply of new homes, which in turn will require a very substantial increase in the amount of land coming through the planning system for residential development.
Actions required to achieve soundness
5.21 Policy P4 should be amended to set the requirement for affordable housing to be 29% to meet the identified needs set out in the SHMA. The policy text should be amended to;
"Contributions will be expected to be made in the form of 29% affordable dwelling units on each development site, but will take account: (policy text continues)".
5.22 The policy should also specifically define affordable housing to include Starter Homes or defer to the national definition given the evolving position in this respect. The policy text should be amended to;
"Affordable housing includes social rented, affordable rented, intermediate tenure or starter homes"
5.23 Additionally the policy text should be amended from;
"Where on site provision is not feasible or viable there will be a financial contribution towards the provision of affordable housing that would not otherwise be provided within the Borough"
to
"The requirement for the provision of affordable housing is subject to viability. Where it is not viable to secure delivery of affordable housing through development, planning applications should be supported by a Viability Assessment to demonstrate as such."