Planning on the doorstep 
 
planning and the big issues: 
Rural Housing 
 

Steve Barker 

16th January 2014 
                                  www.pas.gov.uk 

What planning can do to deliver homes in rural areas?  
Planning Advisory Service Workshop 
              Jo.Lavis - Rural Housing Solutions Presented by: 
Lin Cousins -Three Dragons 

## First, Your Thoughts…..?

Is planning for rural housing different? 
 
- Is there anything different about the type of housing that 
we might want to provide in rural areas? 
  
- Are there different circumstances/factors that affect what 
or how we deliver in rural areas? 
 

## We Will Look At

- National policy and guidance for housing in 
rural areas 
 
- What this looks like in practice 
 
- Explore with you Viability  - the key stone to 
delivery 
 
- Offer ways you can ensure rural housing is 
part of your council's planning approach 
 

## Nppf: Foundation Stone

3 Ps 
  R Responsive to different circumstances 
positive plan-led 
proactive 
Explicit/specific requirements for rural areas 

## E Nppf: Development In Rural Areas Support Development In Rural Areas To Create: Prosperous Rural Economy - All Types Of  Businesses Thriving Communities Requires **Responsiveness To Rural Circumstances**: Eg: Not Applying Sequential Approach To Location Of Small  Scale  Rural Business Different Approaches To Sustainable Transport - Not Rule Out Rural Development On 'Use Of The Car' Grounds Nppf: Housing Wide Choice - Quality Homes

•Must deliver to meet objectively assessed need 
 
•Must have 5 year **deliverable** site supply (+5% - 20%) 
 
•Identify size/tenure and type for particular locations 
 
•Policies for providing affordable housing - preferably on 
site 
 

## Nppf: Rural Housing

Plan to meet local needs for market and particularly affordable housing Consider allowing market housing where will significantly increase affordable to meet local need Locate development where it will enhance vitality of community - hubs and clusters Avoid isolated dwellings in the countryside 

## National Planning Guidance: Rural Housing

"Assessing housing need and allocating sites should be considered at **a strategic level** and through the Local Plan and/or neighbourhood plan process. However, all settlements can play a role in delivering sustainable development - and so blanket policies restricting housing development in some settlements and preventing other settlements from expanding should be avoided unless their use can be supported by robust evidence." 
 

## Evidence Requirements

Building Evidence for your rural policies Housing Needs Assessments Use range of existing data Ward level data at a minimum 
ONS Neighbourhood Stats 
 
County Council research team(?) CBL/Waiting list data at settlement level 
 
level and type of need & turnover Housing Need Assessments Sub-market analysis Use of existing data over surveys Include: Population projections and structure Housing market signals 
prices/rents 
 
affordability 
 
turnover Land Availability Assessment Land availability assessment ALL sites 
Call for land includes all sites/
 
landowners/local publicity 
 
Policy should address divergences between local conditions and comparator areas within and outside the LA 

## Community Led Housing Needs Supportive Local Plan Framework For: Housing Development - Including Affordable Policies For Community Led Development Las Legal Duty To Support Neighbourhood Plans Through:

- 
technical assistance - e.g. evidence/planning advice 
- 
organising the independent examination 

## - Responsible For Organising The Community  Referrendum Some Las Incorporating Community Plans Into Local Plan Example Shropshire Council - Development Strategy (Policy Cs4)

- 35 % of development to rural areas - Communities put themselves forward as possible 'hub' 
or 'cluster' 
- Intense community engagement in deciding type of 
development needed 
- Rewards for accepting development 

## Example

Harrogate Borough Council 
- Differential rural affordable housing policies 
- threshold = - Affordable housing requirement = on sites <3 units 
40% in rural 
- Allocates rural exception sites with 
- Affordable Rent/Shared Equity (50%) - Cross subsidy from local needs sale housing 
- Resale price pegged at affordable value 
 

## Example

Cornwall Council  Cross-subsidy on rural exception sites 
 
- Must meet proven need and have community support - Target 60% affordable housing 
- Land price set at no more than £13k per plot - Unfettered open market provides cross-subsidy 
 

## Any Questions? Exercise

Without discussion - please will each person at your table rank the four policies from 1 to 4 

1 is for most effective  in your area  
4 is the least useful? 
 
Then please add up the scores so your table can see the overall ranking of policies at your table. 

## Discussion Points: - What Are The Strengths Of The Most 'Popular' Policy And Why Is This?

•
What would you change to improve the least well rated policy? 
•
Policy Example 4 deals with Rural Exception Sites - does this cover 
everything you want to see in a RES policy  

## Understanding Viability Helps You Meet The Challenges

- Cannot ignore……… 
 
- Informed assessments  
 
 = mutual understanding/  transparency 
= saves time and resources 
= informs policies 
- Evidence 
= Defensible plans, CIL and decisions 
 
 
SECURES THE BEST DEAL AVAILABLE  
 

## Viability

•A first mention in C6/98! - increasingly visible..! •NPPF - 'sites and the scale of development … should 
not be subject to such a scale of obligations and policy burdens that their ability to be developed viably is threatened' and "provide a competitive returns to a 
willing land owner and willing developer" 
•Viability of whole plan (including SHLAA) + individual 
schemes 
•NPG - no single approach to assessing viability!   
Viability - rural dimension An additional rural option for delivery……..   
Consider whether "…some market housing would facilitate the provision of significant additional affordable housing to meet local needs.." (will look at the implications of this later…) 

## Gives Us 3 Potential Housing Scheme Types……..

| Allocated                            |  sites in Local Plan     |                                      |     |                                  | Residual valuation drives land price    |
|--------------------------------------|--------------------------|--------------------------------------|-----|----------------------------------|-----------------------------------------|
| With affordable housing contribution |                          | Market return for landowner          |     |                                  |                                         |
| (part of 5 yr land supply)           |                          |                                      |     |                                  |                                         |
|                                      |                          |                                      |     |                                  |                                         |
| Windfall                             | site                     |                                      |     |                                  |                                         |
| With affordable housing contribution |                          | Residual valuation drives land price |     |                                  |                                         |
|                                      |                          |                                      |     |                                  |                                         |
| Rural Exception                      | site                     |                                      |     |                                  |                                         |
| Primary function to provide          |                          |                                      |     | allocated for market development |                                         |
| affordable housing                   |                          |                                      |     |                                  |                                         |
|                                      |                          |                                      |     |                                  |                                         |

## Viability Principles

"We recommend that the residual land value approach is taken when assessing the viability of plan-level policies…." 

## Residual Value - Basic Building Blocks

But this is not just about AH……. 

## Whole Plan Viability Impact Of Recent Changes To Funding Policy On Viability Impact Of Local Needs And Perpetuity Policies On Viability

- Too restrictive = risk to lenders ( 
development and mortgage) No lending = no funding = no delivery 
 
- Keep local connection criteria 
realistic 
- Have wide final geography for 
cascade 
- Appropriate timescales within 
cascade 
 

## Refrshment Break

Demonstration of 'basic'  
 viability model 
 

## 

•What key trade-offs does the model highlight for 
you?    
 
•What other factors might affect viability that are 
not covered in the basic model?   
 
•What is the key information you need for decision 
making (plan or scheme specific)? 

## Exercise Viability

- Looking back at the sample policies, does what 
you now understand about viability change your 
scores? 

## Councillors Are Leaders

Within the community Within the Council 
- Training/master classes - Cornwall - Part of the Development Team  - Test Valley - Visits and feedback - Derbyshire Dales 
 

## Exercise

 
- What do you think is the role of a councillor 
- In policy development 
- In scheme specific proposals 
 
- What would help you/your councillors fulfill their 
role 

## Key Points What Will You Do?

- On the post card write down an action that you 
will take as a result of this event 
 
- Put it somewhere safe ( but don't forget where) 
 
- Do it! 

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