HASTINGS AND ROTHER

JOINT HOUSING DELIVERY

ACTION PLAN

A Decent Home for Everyone

HASTINGS BOROUGH COUNCIL

ROTHER DISTRICT COUNCIL

HASTINGS & BEXHILL TASK FORCE

CONTENTS

Forward

Housing Market Issues

Housing Market Assessment

Urban Capacity Studies

Progress on Development Plans

Development Control Performance

Combined Housing Market Trajectory

Action Plans to Achieve Housing Completions

JOINT HOUSING DELIVERY

ACTION PLAN

Hastings Borough and Rother District Councils and the Hastings and Bexhill Task Force are committed to achieving a better balance between demand, need and supply within the housing market. The rate of housing provision, either by new build or conversion, has been substantially below Structure Plan targets across the Council areas for a number of years and the economics of the market place indicate serious problems of dysfunction, a reflection of the poor economic performance of the area and relative isolation.

This Action Plan demonstrates the determination of the Councils and the Task Force to jointly address the issues. It represents a considerable investment of resources to achieve a fuller understanding of the mechanics of the local market place and to take action to achieve a range and choice of sites that housebuilders will be able and want to develop, while ensuring that the housing needs of all sectors of the community are met.

HOUSING MARKET ISSUES

Existing Housing Stock

The housing characteristics of the two local authority areas differ substantially as illustrated in the table below. A key feature in Hastings is the high proportion of flats. This reflects an above average proportion of households in the private rented sector, many of whom live in converted flats with more than 50% of the tenants receiving some form of housing benefit. Nearly 40% of the town’s housing was built before 1919 and this is reflected in poor housing conditions with over 10% of the Borough’s housing stock classified as unfit.

By contrast, housing in Rother is dominated by detached dwellings, which even in Bexhill alone account for 38% of all housing stock.

Hastings / Rother / England & Wales
Detached / 19% / 43% / 23%
Semi-detached / 21% / 22% / 32%
Terraced / 25% / 13% / 26%
Flats / 35% / 21% / 19%
Total / 100% / 100% / 100%

The relative isolation and poor transport links mean that the housing market in Hastings is relatively self contained, whereas the housing market in the wider Rother area, particularly in the north of the district is strongly influenced by commuting links with Tunbridge Wells and the London area.

Residential Values

The value of housing in Hastings has lagged behind the national average although recent growth in prices has outstripped the national rate. The overall average price of £127,000 for a dwelling in Hastings (Q3 2003) which is 21.4% below the national average, is heavily influenced by the preponderance of flatted accommodation. Residential values in Bexhill are generally higher than Hastings and significantly higher for Rother as a whole.

Average residential values - Q3 2003
County/Local Authority / Detached / Semi-det / Terraced / Flat / All Property
Hastings LA / £212,083 / £138,954 / £130,318 / £74,552 / £127,008
Bexhill / £264,589 / £153,258 / £126,585 / £101,414 / £168,718
Rother LA / £286,431 / £169,402 / £140,814 / £102,285 / £193,269
East Sussex / £291,253 / £174,887 / £149,921 / £111,344 / £184,898
England & Wales / £250,715 / £145,576 / £120,685 / £152,446 / £161,665

Source: FPD Savills 2004

The price ceilings in the local market limit the values that can be achieved for new housing, even allowing for a premium on new build.

Supply and Demand Issues

The rate of construction of new residential units is producing an annual growth rate in the dwelling stock of 0.56% in both Hastings and Rother, which is below the national average of 0.7%. There are only a small number of active development sites.

Most demand for new housing comes from within the local area which reflects national patterns but also means that the local economy is the driver for housing demand. Both Hastings and Rother have a strong dependence on the public sector for employment.

Hastings / Rother
Indicator / Households / % / Households / % / %GB
ave
Income Indicator
Most affluent / 2,508 / 7% / 5,885 / 14% / 17%
Mid-high affluence / 10,274 / 27% / 13,559 / 33% / 27%
Mid-low affluence / 10,960 / 28% / 13,389 / 32% / 26%
Least affluent / 14,729 / 38% / 8,564 / 21% / 31%
Life stage Indicator
Young, no children / 14,093 / 37% / 5,267 / 13% / 30%
Families / 8,453 / 22% / 4,452 / 11% / 30%
Empty nesters / 7,800 / 20% / 9,713 / 23% / 21%
Retired seniors / 8,143 / 21% / 21,965 / 53% / 19%

Source: FPD Savills (2004)

Just 7% of the households in Hastings and 14% in Rother are judged to be within the most affluent category compared to 17% nationally.

Need and Affordability

The 2001 Housing Needs Survey for Hastings found an overwhelming requirement for social rented housing. Other forms of affordable housing were considered not able to address the need because of low incomes. Rother does not polarise affordable need as strongly. Both Hastings and Rother identify a need for smaller units, especially one and two bedroomed dwellings, Rother for 200 new affordable homes per year and Hastings 763 per year.

The newly adopted Hastings Local Plan seeks the provision of social rented housing in all suitable new residential developments of 15 or more dwellings or 0.5 hectares in size. A minimum of 25% social rented is sought on brownfield sites and 30% on greenfield. The Plan assumes no public subsidy on affordable housing secured through the planning system. The Revised Deposit Rother Local Plan is currently, in October 2004, to be subject to its Inquiry. It seeks 40% affordable provision on sites of 15 units/0.5 hectares or above within Battle, Bexhill and Rye and on village sites of 5 dwellings/0.2 hectares or above.

The ability to deliver the levels of affordable housing required against the background of values and other constraints in the local market place presents important challenges. The relationship between affordable housing requirements and viability is recognised as needing to be further explored.

HOUSING MARKET ASSESSMENT

The actions set out in the appendices will ensure that the Councils and the Task Force have a detailed understanding of the operation of the local housing market. The Task Force has made an important start with a review of the market place and its implications for the development of the Hastings Millennium Communities (FPD Savills 2004) and Rother Council with a similar review of the North Bexhill housing and employment site (FPD Savills 2004).

The studies demonstrate the complexities of the challenge and a significant variation in values that might be achieved (based on the examination of the four sites - Ore, Station Plaza, West Marina and North Bexhill).

The Councils are therefore proposing joint action to produce a detailed understanding of the profile of the housing market following Office of the Deputy Prime Minister (ODPM) guidance on Housing Market Assessment, detailed housing needs assessment for all market sectors and a site by site analysis of values. This will ensure that obstacles are not placed in the way of development while at the same time ensuring that each site contributes according to its ability to meeting the housing needs of all sectors of the community.

The Councils are also to build relationships with landowners, developers and the major players regionally and nationally within the house building industry to raise the profile of the area as a place for investment and growth and to ensure that the conditions with the local market place foster that environment.

The corrective actions in terms of policy and delivery will be based on a full understanding and a proactive relationship with players within the housing market place.

The actions in the appendices to this Plan are ambitious but commensurate to the scale of the problem and the determination of the Councils and the Task Force to regenerate the area and to achieve a fully functioning and balanced housing market as part of the drive for economic growth.

URBAN CAPACITY STUDIES

Hastings and Rother have undertaken separate urban housing capacity studies as an input to their respective local plans. The Hastings study undertaken in 2001 confirmed the relative scarcity of readily available housing opportunities within the built-up area. However, some scope was found for increasing the density of housing development on some allocated housing sites.

The Rother District urban capacity study was also undertaken in 2001, although by separate consultants. It assessed opportunities on sites with a potential for 6 or more dwellings within existing town and village development boundaries. A number of potential sites identified are allocated in the Revised Deposit Rother Local Plan.

Both authorities closely monitor progress of development against the outcomes of their Urban Capacity Studies.

PROGRESS ON DEVELOPMENT PLANS

Hastings Local Plan was adopted in April 2004 and makes provision for housing development up to 2011. The Plan seeks to meet Structure Plan housing requirements primarily on brownfield sites within the urban area, several of which form part of the Hastings Millennium Community proposals. One major greenfield opportunity is identified on the edge of the urban area and this is treated as ‘reserve land’ to be released after 2006 if insufficient development comes forward on sites elsewhere.

The Borough Council has now started work on the Local Development Framework (LDF) which will replace the Local Plan and look forward to 2016 and 2021. It is envisaged that the key planning documents within the LDF affecting housing supply (the Core Strategy and Development Sites DPD) will be adopted by 2008.

The Rother District Local Plan is still at the draft Revised Deposit stage. The Local Plan Inquiry is scheduled to commenced in October 2004 and is programmed to run until March 2005. Final adoption of the Plan is scheduled for the end of 2005/early 2006.

The draft Rother Local Plan covers the period to 2011. The Plan includes provision for the release of major development land at North Bexhill which will eventually provide for around 1,100 new homes, of which it is envisaged that 500 will come forward within the Plan period to 2011. Access to this land is however dependent on the construction of the proposed Bexhill-Hastings Link Road. The Plan also allocates some land for housing on the edge of both Battle and Rye, and identifies a number of smaller scale opportunities within Bexhill, Battle, Rye and several of the District’s villages.

Following the adoption of the Local Plan, Rother District Council will commence work on a Local Development Framework which will plan for housing through until 2016 and 2021.

DEVELOPMENT CONTROL PERFORMANCE

Both authorities have considerably improved their Development Control performance in 2003/04 as compared to the previous year.

Hastings / Rother / National Target
2002/03
% Major planning applications determined within 13 weeks (BVPI109a) / 55% / 45% / 60%
2003/04
% Major planning applications determined within 13 weeks (BVPI109a) / 67% / 61% / 60%

The delivery on major applications which includes proposals of more than 10 dwellings is welcome, helping to provide greater certainty in timescales for Housebuilders.

cb050221 – Housing Action Plan