Support for development
The planning policy framework in the White Paper is supportive of higher levels of development by aiming to simplify and speed up planning. Government will also be exploring a new approach to developers' contribution to infrastructure, expecting more efficient land use through higher densities and reviewing space standards. In terms of developer contributions, this includes both reform of Community Infrastructure Levy (CIL) and an attempt to standardise an ‘open book’ approach to Section 106 agreements.
The document stopped short of making radical changes to the Green Belt with a reiteration of the Conservative Manifesto commitment to protect it. The White Paper does however provide a clear process for a local authority that wishes to review the extent of the planning constraint, if it can demonstrate there is not enough land within the urban area or other appropriate locations for development.
These are the principles on which the Minister for Planning endorsed the Green Belt review in the Birmingham Plan, which released land for 6,000 new homes. In addition, proposals allow for development on brownfield sites in the Green Belt where it contributes to the delivery of Starter Homes.
Steps were also taken to align development and transport, with emphasis on building around new strategic infrastructure. Specific reference is made to the role of the National Infrastructure Commission including its interim report on the Cambridge-Oxford Corridor, which identified the potential for significant levels of new homes and jobs.
Housing assessments must reflect true need
To deliver these overarching aims the White Paper sets out a series of mechanisms, starting with the building blocks of planning. Under the proposals, councils must provide up-to-date local plans based on an ‘honest assessment of the need for new homes’, with reference to a more standardised assessment of need. This is long overdue.
Academic estimates of housing need tend to be significantly higher than the trend-based household projections. The 2014 update of the Barker Review suggested 320,000 market homes per year would be needed to keep house price growth in line with the Europe-wide average. Christine Whitehead and Neil McDonald’s work for the TCPA suggested a figure of 312,000 homes per year is required in order to deal with the backlog from recent under-delivery.
A truly ‘honest assessment of need for new homes’ by each local authority would therefore have to add up to at least 300,000 in order to really address the housing shortfall.
However, currently inconsistent and selective assessment methods have led to wildly different results and an overall shortfall in assessed housing need of 86,400 homes a year.
Our analysis of the 285 local authorities with up-to-date housing needs assessments, suggests that their numbers would add the equivalent of 1.1% of their existing housing stock a year. If we apply this increase across all 326 authorities in England, total housing need would add up to 213,600 homes per annum, 25% less than the 300,000 that we really need.
The standardised method for assessing housing need recommended by the Local Plans Expert Group is a step towards fixing these issues, and we estimate that it could add up to national need of around 300,000 homes a year.
But planning for more homes in the right places is a key issue. As proposed, the locations where the imbalance between supply and demand is most acute would not necessarily see the highest uplifts.
The suggested method for accounting for market signals puts Kensington & Chelsea in the same affordability band as Boston in Lincolnshire. We have devised a simpler system with more bands and higher maximum uplifts, which arrives at a similar national total but focusses more on extra homes in the most unaffordable markets.
It will be important that the standardised method is a starting point, allowing authorities to plan for higher job growth and the homes that those workers will need.