Meeting documents

Cabinet
Wednesday, 3rd December, 2003

APPENDIX 2

AFFORDABLE HOUSING HOMES

Housing Survey 2000

B7.68 Government guidance in PPG3 and Circular 6/98 and Structure Plan policy 35 stresses that local plans should help deliver affordable homes to meet community needs.

B7.69 In order to assess need the Council carried out a detailed housing survey in 2000. The study's key objective was to identify and assess the full range of housing need within the District and the need for affordable housing over the next five years.

B7.70 Its main conclusions were:

· On 1.4.99 there were 2,428 households on the Common Housing Register (waiting list) and it was estimated that in addition 290 homeless households would need housing per annum.

· In addition there are 2,925 concealed households (households living within an existing household e.g. young people wishing to set up their own homes).

· Of the 2,925 concealed households only 775 (26%) earn over £20,000 and 60% have annual incomes below £17,500 and there is a need for affordable rented housing for a large number of such households.

· The average price paid by first time buyers in 1999 was £70,958 with average annual incomes of £23,503, and there is a considerable under-supply of affordable properties for households on incomes of £20,000 or below.

B7.71 The survey concluded that the private rented sector makes little contribution to meeting the need for affordable homes. Rental levels would not be affordable to many concealed households unless they contribute a very high proportion of their disposable income.

B7.72 After excluding concealed households which can afford to purchase a dwelling and those on the waiting list and making a discount for two person households the affordable concealed need is 1,554 in 1999. Taking account of those on the Common Housing Register, homeless, the relets re-lets available from the current stock, and projections for population growth, the affordable housing need at April 2006 is estimated to be 1,732. This excludes 935 households planning to leave the area because of a lack of affordable housing.

B7.73 As a result of the relationship between house prices and wages in the area all of these will need to be subsidised housing. As well as rented accommodation, this could include shared-equity dwellings where the occupant part-owns and part-rents the property from a social landlord. In addition there is scope for a limited number of low-cost market dwellings to meet the needs of those concealed households which are able to access the housing market. These will be largely in parts of the District where house prices are lower such as Norton-Radstock. In Bath, Keynsham and many villages this is unlikely to meet affordable homes needs However, the affordability of low-cost market dwellings will be dependent upon the relationship between household income and local house prices, which can vary considerably over time. Self-build housing may also need to be considered as a form of affordable housing if it can be secured as affordable in perpetuity.

B7.74 Based on the income/dwelling price relationship affordable housing for the purpose of policy HG.8 is defined as:

"the range of both subsidised and market housing that will be available for those whose incomes generally deny them the opportunity to purchase or rent houses on the open market as a result of the local relationship between income and market price".

B7.75 In terms of the type of accommodation preferred by concealed households there was a strong demand (57%) for small accommodation, especially flats, reflecting the predominance of single people or childless couples. 83% prefer small units with one or two bedrooms, although this varies across the District.

Affordable Housing on Large Sites

B7.76 Government advice in PPG3 states that where there is a demonstrable lack of affordable housing to meet local needs - as assessed by up-to-date surveys and other information - local plans should include a policy for seeking affordable homes on suitable developments. In line with this and JRSP pPolicy 35 the aim is to seek to negotiate with developers for an element of affordable housing homes will be sought on suitable sites in Bath, the towns Keynsham, Norton-Radstock, and R.1 villages, rural settlements and elsewhere, both those allocated in pPolicy GDS.1 and windfalls arising from HG.4.

B7.77 The selection of suitable sites depends on a number of factors including the proximity of local services and facilities, access to public transport; whether there will be particular costs associated with development of the site; whether the provision of affordable housing would prejudice the realisation of other planning objectives that need to be given priority in development of the sites; and distribution of need for affordable homes.

B7.78 A target of at least 1,732 additional affordable homes by 2006 represents about 50% of the residual large site housing requirement at 1.4.1999. A further Housing Needs Survey will be carried out later in the Plan period and, given current trends, this may reveal an even greater need for affordable homes in the District. Even allowing for a contribution of affordable homes from small sites or re-use of empty residential properties there will still be a large shortfall in provision unless a very high percentage of affordable homes is sought on all large allocated and windfall sites. Government guidance on site size thresholds on which an element of affordable housing can be sought is set out in Circular 6/98 on Planning and Affordable Housing.

B7.79 Restricting provision in the urban areas and larger villages to sites of 25 or more dwellings or 1 hectare or more as set out in the Circular would further diminish potential supply. Policy HG.8 is supported by Supplementary Planning Guidance, which gives more detail in terms of the proportion of affordable homes that will be sought on sites falling within the thresholds set out below. The percentage figure is based on the most recent Housing Needs Survey and, if necessary, will be amended to reflect the findings of future Surveys. Developers are encouraged to contact the Local Planning Authority in order to discuss affordable housing requirements at the earliest possible stage.

B7.80 Given this and taking account of the need to consider issues of suitability and viability, the Plan sets a target of 30% affordable homes to be sought on housing developments of 15 or more dwellings or residential sites of 0.5 ha or more allocated or coming forward as windfalls in Bath, Keynsham, Norton-Radstock, Peasedown St. John and Paulton. Government guidance on site size thresholds on which an element of affordable housing can be sought is set out in Circular 06/98 on Planning and Affordable Housing. Restricting provision in the urban areas and larger villages to sites of 25 of more dwellings or 1 ha or more, as set out in the Circular, would further diminish potential supply.

B7.80A However, Circular 06/98 (paragraph 10i)c) also advises that Local Planning Authorities outside London may require contributions towards affordable homes on developments of 15 dwellings or more, or on residential sites of 0.5 ha or more, if this can be justified by exceptional circumstances. Given the level of need for affordable homes in the District, and taking account of the need to consider issues of site suitability and viability, it is justifiable to set a threshold at this level on sites that are allocated or that come forward as windfalls in Bath, Keynsham, Norton-Radstock, Saltford, Peasedown St. John and Paulton.

B7.81 In For the same reasons, in smaller villages with a population of less than 3,000, where there will be more limited opportunities, the site threshold will be residential developments of 10 or more dwellings or residential sites of 0.5 ha or more. The same threshold will apply to windfall sites coming forward outside settlements defined in Policy SC.1. On-site provision will be a priority in all cases where an affordable homes contribution is sought. However, in exceptional circumstances the Council will consider off-site provision.

B7.82 In Bath this should deliver around 400 570 affordable homes, in Keynsham 190 30, in Norton-Radstock 100 110 and around 100 90 in rural villages. These figures take account of residential development coming forward on sites allocated in Policy GDS.1, windfall sites and sites with an outstanding planning permission at April 2003.

B7.82A Prior to granting planning permission, the Council will wish to satisfy itself that the affordable homes will be occupied initially and in perpetuity by people who in the first instance are in need of such accommodation and are either already a resident of, or have strong local connections with, the District. Being employed within the District will be considered to represent a strong local connection and will enable key workers to access affordable accommodation. Examples of arrangements to ensure that these requirements are met are given in para B7.89 below.

POLICY HG.8

 

Based on the findings of the most recent Housing Needs Survey, a A target of 30% a significant proportion of affordable dwellings homes will be sought within the scope of pPolicy GDS.1, where any residential development is proposed, and policy HG.4 on all other sites falling within the site size thresholds set out in the Local Plan, taking account of the site's suitability in terms of:

 

i) the proximity of local services and facilities and access to public transport;

 

ii) whether there are abnormally high costs associated with development of the site;

 

iii) whether it would prejudice the realisation of other planning objectives that need to be given priority in development of the site; and

 

iv) distribution of need.

 

Where provision of an element of affordable housing is justified residential development will only be permitted where:

 

i) occupancy of the affordable housing is restricted to people who are:

 

(a) in need of such accommodation due to their inability to compete successfully in the local housing market; and

 

(b) residents who in need of separate accommodation and are either currently living in or having have strong local connections with the District;

 

ii) the benefits of the affordable housing will be enjoyed by successive as well as initial occupiers; and

 

iii) the affordable housing is integrated with general needs housing in such a way that it secures a mix of dwelling size, type and affordability on the site.

RURAL EXCEPTIONS SITES

B7.83 Where there are genuine difficulties in securing an adequate supply of affordable housing to meet local needs in rural areas, PPG3 foresees Local Plan policies being drawn up to allow the release of small sites where housing will not normally be permitted. Policy 35 of the JRSP carries forward this advice.

B7.84 It is envisaged that some local needs housing will be met within the terms of policies GDS.1 and HG.4, 5, and 6. However, the 2000 Housing Survey shows a need for around 380 affordable homes in rural areas by 2005. Completions of affordable homes in rural areas on non exceptions sites since 1999, together with that being sought on sites allocated in policy GDS.1 and expected contribution from large windfall sites, amounts to a total of around 110 80 dwellings. Therefore particular needs which cannot be met under these policies may justify the release of other land in special circumstances and this eventuality is allowed in policy HG.9.

B7.85 Such releases are limited to villages classed in policy SC.1 as R1, R2 & R3 settlements. In sensitive Green Belt locations only very limited provision will be considered provided it is consistent with the function of the Green Belt.

B7.86 Other small settlements, hamlets or small groups of dwellings are unsuitable for such provision because of the impact on the character of the countryside, and/or openness of the Green Belt and it would be contrary to sustainability objectives.

B7.87 In villages, particularly around Bath, the ability of those on the Common Housing Register and concealed households to purchase property is very limited because of the high cost of such properties. This applies even to small flats or terraced houses. There is also a relative scarcity of flats. In addition low cost market housing is inappropriate on rural exceptions sites due to the difficulty of safeguarding such housing as low cost in perpetuity through the planning system. In these circumstances housing for rent or purchase will need to be subsidised and the definition of affordable housing for rural exceptions sites is as follows:

".... that provided, with subsidy, for people who are unable to resolve their housing needs in the private sector market because of the local relationship between housing costs and incomes."

B7.88 Under the special arrangements set out in HG.9 the Council will wish to be satisfied that there is a demonstrable local need for affordable housing. Evidence of this will be expected to be forthcoming from the Local Authority's own Common Housing Register and from detailed surveys to be carried out by Parish Councils or other recognised bodies in co-operation with B&NES Bath & North East Somerset Housing Services.

B7.89 The Council will also wish to satisfy itself before granting permission in these special cases that the affordable housing will be reserved to meet local needs and remain affordable both initially and in perpetuity. The Council will therefore need to be satisfied that secure arrangements can be made to impose restrictions on occupancy to ensure that this is achieved. Examples of such arrangements are:

- involvement of a village trust or registered social landlord with a suitable lettings policy;

- covenants designed to give priority to first time buyers from the locality;

- agreement between the Council and the developer under Section 106 of the Town and Country Planning Act, 1990; and

- through planning conditions.

B7.90 These special schemes would be directed at particular local needs identified as the result of the surveys described above. Generally 'local' would be taken as meaning needs arising, and capable of being met, within a particular parish. In certain circumstances however this definition may be widened to take in the needs of adjacent parishes. As a first priority, the housing will be restricted to residents of the parish or group of parishes and then to individuals with strong local connections such as those having family in the parish or parishes, or who have lived there for a significant period in the past or are employed in the area.

B7.91 The scale, location and design of housing developed under policy HG.9 'exceptions' policy is of particular importance - and a range of other Local Plan policies will be relevant to consideration of any schemes.

POLICY HG.9

 

As an exception, residential development will be permitted on land outside the scope of policies GDS.1, HG.4, HG.5, and HG.6 to meet a demonstrable and particular need for affordable housing that cannot be met in any other way, provided that:

 

i) the local need is genuine, and arises and is capable of being met

 

(a) within an individual parish; or

 

(b) within a group of parishes well related to the proposed scheme;

 

ii) the occupancy of such housing shall be restricted to:

 

(a) as a first priority, people who are currently living in, and who are long-standing residents of, the parish or group of parishes and who are in need of separate accommodation, or

 

(b) as a second priority, people who are not resident in, but who have strong local connections with, the parish or group of parishes;

 

iii) its benefits in meeting local needs are retained in perpetuity by restricting occupancy

 

(a) in line with (ii); and

 

(b) to people in need of such accommodation due to their inability to compete successfully in the local housing market.

 

iv) the development is limited to villages defined in policy SC.1 as R1, R2 & R3 settlements;

 

v) the development comprises a small group of dwellings within or adjoining the built up area of the village well related to existing developments and surrounding uses and which would not adversely affect the character of the village; and

 

vi) it is consistent with the purposes of the Green Belt.