Local Development
Framework
Annual
Monitoring
Report
for 2009-10
Harvey Emms
Director of Strategic Housing, Planning
and Transportation
LDF for Newcastle upon TyneAnnual Monitoring Report 2009-09
Contents
1Introduction
Need for an Annual Monitoring Report
Coverage and content of the Annual Monitoring Report for 2009-10
Changes in national regional and local policy context
Benwell Scotswood Area Action Plan DPD
2Population & housing
Population change
New housing development
Future housing supply and delivery
Housing mix
Affordable housing
Planning for Gypsies and Travellers
Purpose Built Student Accommodation
3The Economy
Development during 2009-10
Land availability
Take Up
Supply
Prospects for the future
4Shopping and other town centre uses
Retailing in the City Centre
Local shopping
5Leisure, culture and tourism
6Design, climate change and the environment
Climate change, sustainable construction and energy use
Quality in design and managing resources
Green Belt and countryside
Biodiversity
Minerals
Waste management
Flooding and integrated water management:
Air Quality
7Green infrastructure, sport and recreation
Provision and use
8Transport and access
9Monitoring of progress on the Local Development Framework
Need to review LDF programme
Walker Riverside Area Action Plan DPD
Core Strategy DPD
Benwell Scotswood Area Action Plan DPD
City Centre Area Action Plan DPD
Land Allocations and Development Control Policies DPDs
Saving of UDP policies
Supplementary Planning Documents
Local Development Scheme
10Contact details
Appendix 1: Report on CLG Core Output Indicators for 2009-10
Appendix 2: Schedule of housing completions by site during 2009-10
Appendix 3: Housing Trajectory 2004-30 - table version
Appendix 4: Maintaining a five year supply of land for housing
Appendix 5: Housing completions by type and size in last five years
Appendix 6: Current status of purpose built student housing schemes
Appendix 7: Progress on existing and proposed SPDs
1Introduction
Need for an Annual Monitoring Report
1.1The Planning and Compulsory Purchase Act 2004 requires each local planning authority to produce a Local Development Framework (LDF) and as part of that process to publish an Annual Monitoring Report (AMR) by the end of December each year. It must concentrate on the preceding financial year, but can include a degree of further updating, if appropriate. The Act says:
“The annual report must contain such information as is prescribed as to:
(a)the implementation of the local development scheme;
(b)the extent to which the policies set out in the local development documents are being achieved.”
Some aspects of AMRs are governed by other national guidance, but it is open to the Council to go beyond the basic requirements. Councils must report on a set of nationally prescribed Core Output Indicatorsat the very least.
Coverage and content of the Annual Monitoring Report for 2009-10
1.2This AMR looks first at a range of issues that are central to the land-use and transportation planning system. There is a focus on housing, given the current serious concerns about the housing market. The reporting in each section is built around the national Core Output Indicators. The section headings are based on those used in the LDF process so far, particularly in the previous draft Core Strategy. Recognising that the structure of the Core Strategy is likely to change, it is likely that the structure of the Annual Monitoring Report will also change in future, to reflect this.
1.3The second part of the AMR looks at progress on the LDF itself. The LDF will at its heart comprise a number of Local Development Documents - high level Development Plan Documents (DPDs) and supporting Supplementary Planning Documents (SPDs). Work on the LDF is progressing and two DPDs are in place - the Walker Riverside Area Action Plan, and the Benwell Scotswood Area Action Plan. 17 SPDs have also been adopted to-date (link:
1.4The second part of the AMR also reviews progress on the DPDs and SPDs within the LDF that have not yet been adopted. For reasons set out in this report, the need to review the Local Development Scheme has been identified (see Para 9.29).
Changes in national regional and local policy context
Circular 05/10: Changes to Planning Regulations for Dwelling Houses andHouses in Multiple Occupation
1.5From 06 April 2010 a specific definition was introduced for a new use class under the Town and Country Planning (Use Classes) Order. This meant that a material change of use from a dwelling house (Class C3) to an HMO (C4) now required planning permission. On the 17 June 2010, the Government announced proposals to amend the planning rules for houses in multiple occupation (HMOs) and confirmed they would seek the views of key partners on the proposed changes.
1.6 The Government announced their intention to proceed with the changes as announced. This will mean that changes of use from family houses to small HMOs will be able to happen freely without the need for planning applications. Where there is a local need to control the spread of HMOs local authorities will be able to use existing powers, in the form of Article 4 Directions, to require planning applications in their area.
PPS4 Planning for Sustainable Economic Growth
1.7The Government published Planning Policy Statement 4 on Planning for Sustainable Economic Growth (PPS4) in December 2009. The planning policy statement brings together the Government’s key planning policies relating to the economy and in its final form, will replace PPG4, PPG5, and PPS6. The aim of the new statement is to improve the effectiveness of these policies rather than fundamentally changing them.
1.7.1The Government’s overarching objective is sustainable economic growth; that is growth that can be sustained and is within environmental limits but enhances environmental and social welfare and avoids extremes in future economic cycles. PPS4 seeks to ensure planners:
- Build prosperous communities;
- Reduce the gap in economic growth rates between the regions, promoting regeneration and tackling deprivation;
- Deliver more sustainable patterns of development;
- Promote the vitality and viability of town and other centres; and
- Raise the quality of life and the environment in the rural area.
PPS5: Planning for the Historic Environment
1.7.2The Government published PPS5: Planning for the Historic Environment in March 2010. The PPS sets out the Government's planning policies on the conservation of the historic environment.
PPS: Development Management: Proactive Planning from Pre-Application to Delivery
1.8The Government has published a draft Planning Policy Statement on Development Management: Proactive Planning from Pre-Application to Delivery for consultation. The main purpose of this paper is to provide a clear national policy framework for development management, in response to recommendation 17(c) of the Killian Pretty Review, which was:
“As a part of the new national policy framework, there should be a clear statement by Communities and Local Government about the key principles underpinning a move from development control to a development management approach.”
PPS: Consultation paper on a new Planning Policy Statement: Planning for a Natural and Healthy Environment
1.9The Government has published a draft Planning Policy Statement on Planning for a Natural and Healthy Environment for consultation. The draft PPS contains policies to maintain, and enhance, restore or add to biodiversity and geodiversity through the planning system. It includes policies to promote opportunities for the incorporation of beneficial biodiversity and geological features within the design of development, and to maintain networks of natural habitats by avoiding their fragmentation and isolation. It suggests this may be done as part of a wider strategy for the protection and extension of open space and access routes such as canals and rivers.
Regional Spatial Strategy for the North East
1.10Regional Spatial Strategies have been revoked under s79(6) of the Local Democracy Economic Development and Construction Act 2009 and are no longer part of the development plan for the purposes of the development plan under s38(6) of the Planning and Compulsory Purchase Act 2004.
Joint Core Strategy
1.11In June 2009, Gateshead and Newcastle agreed to prepare a joint Core Strategy - One Core Strategy NewcastleGateshead 2030. This represents a continuation of our on going partnership working on culture led regeneration, housing market renewal, growth points and more recently our economic masterplan "the 1Plan".
1.12The Strategy will be the principal document of both Gateshead and Newcastle's Local Development Frameworks. It will set the vision for the future of NewcastleGateshead over the next twenty years and will provide a strategic policy framework that will shape development to achieve this vision. It will play a crucial role in continuing the renewal and delivery of our hopes by setting out our spatial ambitions in terms of where we should locate our new homes; how we support and provide new jobs; where we provide shopping; and leisure; and importantly how do we move people and goods around our cities to deliver our community's and partner's aspirations.
1.13The Strategy will eventually replace the saved policies contained in the Gateshead and Newcastle's Unitary Development Plans.
Sustainable Community Strategy
1.14In July 2010 the Newcastle Partnership published the second Sustainable Community Strategy (SCS). It sets a vision for the future of the city over the next 20 years. The Strategy is based around six big challenges, to help tackle the major challenges facing the City:
- Driving economic competitiveness and enabling all our communities to participate in the economy;
- Ensuring long-term population growth and improved health and wellbeing for our citizens
- Managing our environment, reducing the city’s contribution to climate change and creating economic opportunities from green industries
- Ensuring good quality housing and sustainable communities
- Addressing the causes and symptoms of child poverty and improving the lives and opportunities of all our children and young people
- Ensuring the city and all of its neighbourhoods are safe, inclusive and our communities are cohesive and empowered.
1.15In order to ensure better links between the joint Core Strategy and both Sustainable Community Strategies, a joint bridging document has been prepared in early 2010.
1Plan – Economic and Spatial Strategy for NewcastleGateshead, December 2009
1.16The 1Plan is the first economic and spatial strategy for NewcastleGateshead. It presents the challenges and opportunities facing the city and it maps out a strategy based on 3 key elements: 4 Big Moves which establish the key themes – economy, people, place and sustainability; 10 Key Steps – practical actions; a place making strategy to promote sustainable urbanism and transform the urban core. It includes a network of knowledge hubs where teaching, research, specialist services and businesses come together; focusing on the Central Business District through the regeneration of Gateshead Quays and East Pilgrim Street as mixed used quarters and; and utilising the north bank of the Tyne to lead a low carbon economy linked with marine and energy sectors.
2Population & Housing
Population change
2.1This section includes the latest available information as at 31 December2010, noting that there is a significant time-lag in the availability of some information. In recent years the long-term trend of population loss in Newcastle has been arrested and is now reversing. The Office for National Statistics [ONS] estimates that population increased to 284,300 in the year to mid-2009(having risen by 6,500 since 2008 and 15,000 since 2004) and bringing the population back to 1981 levels. Around 700 of this increase in population is the result of natural change (births minus deaths), however the majority of the increase is attributable to net in-migration, with net international in-migration of around 7,300 persons greatly outweighing net domestic out-migration of 1,800 persons, with continued net outflows to North Tyneside (800 persons), Gateshead (500 persons) and Northumberland (200 persons) largely reflecting a lack of an attractive mid-market housing offer in the City.
2.2The 2008-based Sub-National population projections issued by the ONS in May 2010 project that the population of the City will grow to around 314,000 by 2030. However, there has been very marked variation between recent ONS short-term trend-based population projections for the City. The period on which the latest projection was based reflected unprecedented and arguably overestimated levels of international in-migration which may not continue in future years. Consequently, the projection should be treated with caution in establishing the preferred population strategy for the City. A more modest increase of 16,000 to reach around 300,000 by 2030 is seen as a more realistic, but challenging, target.
New housing development
2.3The Regional Spatial Strategy (RSS) provides for a step-change in the rate of new housing development in the City: an annual net rate to 700 (2004-11), then to 940 (2011-16) and finally to 1,070 (2016-21). Housing provision for the period post-2021 is to be made at the average rate over the period 2004-21 as a whole, i.e. 880 per annum. Notably, these rates should not be seen as limiting housing development in the City. The Government has indicated that it will revoke RSS at the earliest opportunity (through the Localism and Decentralisation Bill). The emerging joint Core Strategy will thus establish an alternative housing target based on robust local evidence. At the time of writing this is proposed to be lower than RSS – but still ambitious at an average of around 800 net additions per annum over the period 2010-30
2.4In 2009/10 sales volumes remained at only around half of that at the peak of the market in 2006/07. Price levels were Average prices Lower quartile prices fell by 20% and new building activity stalled. Only 377 new plots were started in 2008-09, including 91 student apartments. Few of these new starts were of lower and mid-market homes for sale. The build rate in 2009-10 was just 411 gross completions, with just 16 additional dwellings after netting off losses through demolitions, conversions and changes of use. Appendix 2 is a schedule of completions site-by-site in 2009-10.Newcastle is by no means unique in struggling to meet its housing requirements in light of the severe market downturn, with building activity having slowed or stalled across the country
Future housing supply and delivery
2.5PPS12 ‘Local Spatial Planning’ requires that Annual Monitoring Reports contain a ‘housing trajectory’ as a forward planning tool designed to support the ‘plan, monitor and manage’ approach to housing delivery. The housing trajectory included in thisAnnual Monitoring Report shows the scale of the increase in the build rate required to meet the overall RSS target for Newcastle. Government requires us to show future housing completions not as a simple yearly average but as a meaningful reflection of how housing is expected to come forward.
2.6The trajectory (below in chart form and in Appendix 3 in detailed tabular form) shows that even a step change to a build rate of around 950 gross / 880 net completions per year would still not achieve the RSS housing requirement of 22,870 net additions 2004-30 by between 12% and 23% (depending upon how demolition of low-demand stock is off-set against the gross build rate). Nevertheless, this is significantly higher than the average annual gross build rates over the past twenty years and would entail a net build rate several times the long-term average. The expected fall, post-2012, in the rate of demolitions (front-loaded as part of regeneration programmes) will certainly assist in the delivery of a higher rate of net housing completions. In light of the Government’s intention to revoke RSS, consideration of whether the RSS housing target remainsjustified and achievable will need to be given in preparing the LDF Core Strategy in light of evidence from the Strategic Housing Market Assessment and Strategic Housing Land Availability Study [SHLAA].
Chart 1: Housing Trajectory for Newcastle
Note: see Appendix 3 for the figures behind this chart.
2.7PPS3 Housing requires that planning authorities be able to demonstrate at all times a five-year supply of 'deliverable' sites against the ‘housing requirement’ set out in RSS. To satisfy this requirement robust evidence is required to demonstrate that the sites are genuinely available, suitable and achievable, i.e. there is a reasonable prospect of delivery within five years. To this end the Council’s latest SHLAA estimates that there will be a shortfall in deliverable sitesin the short-term and, in the longer-term to 2030, for between 4,000 and 6,000 of the 18,000 or so new homes expected to be required. This is only partly a consequence of the impact of current market conditions on the viability of housing development, which is a difficulty for all councils in bringing forward development. This is something of a concern given that paragraph 71 of PPS3 indicates that if the local planning authority cannot demonstrate a five-year housing supply they should “consider favourably” planning applications for housing. The overwhelming contributor to the shortfall is an underlying lack of marketable opportunities for the delivery of family houses. Meanwhile there is ample capacity for the development of apartments on sites which are unsuited to the development of houses.
Housing mix
2.8PPS3 encourages local planning authorities to seek a better mix in the size and type of accommodation than is currently available and to create mixed and inclusive communities. Housing mix is particularly relevant to Newcastle, where net losses of population from the City to surrounding areas have been largely attributable to sizeable net outflows of families. One aspect of this appears to be associated with a lack of an attractive mid-market houses. Land Registry data for 2007 and 2008 shows that 500 fewer transactions of houses occurred in the price range £125k to £225k (8 per 1,000 population) in Newcastle compared with North Tyneside (14 per 1,000 population). At the upper end of the market (values over £225k) 500 more transactions occurred in Newcastle, accounting for almost a quarter of house sales (as compared with just 11% in the rest of Tyne & Wear.
2.9Over the year to 31 March 2010three (or more) bed houses accounted for 42% of total housing completions. This is a higher proportion than recorded over the period 2004-07 (24%) but is attributable to a significant decline in the development of apartments rather than an increase in completions. In fact the number of three or more bed houses completed was a third lower than the average in the preceding 5 years. Appendix 4 gives a more detailed breakdown of recent completions by type and size and the following charts illustrate the same information for 2009-10.