New Vision for a New York INTRODUCTION

New Vision for a New York

Friday, 28 June 2013

Mark Dixon INTRODUCTION

1 Topics for today's seminar:

Planning and Market Compulsory Update and The New Plan - Purchase Act Viability in Vision and 2004 Planning Strategy (Rollits) (DTZ) (Spawforths)

David Myers PLANNING AND COMPULSORY PURCHASE ACT 2004

2 Section 19(2) Planning and Compulsory Purchase Act 2004 In preparing a development plan document or any other local development document the local planning authority must have regard to: (a) national policies and advice contained in guidance issued by the Secretary of State; (b) the regional strategy for the region in which the area of the authority is situated, if the area is outside Greater London; (c) the spatial development strategy if the authority are a London borough or if any part of the authority's area adjoins Greater London; (d) the regional strategy for any region which adjoins the area of the authority;

Section 19(2) Planning and Compulsory Purchase Act 2004 (e) the Wales Spatial Plan if any part of the authority's area adjoins Wales; (f) the sustainable community strategy prepared by the authority; (g) the sustainable community strategy for any other authority whose area comprises any part of the area of the local planning authority; (h) any other local development document which has been adopted by the authority; (i) the resources likely to be available for implementing the proposals in the document; (j) such other matters as the Secretary of State prescribes

3 Localism Act 2011

. Neighbourhood Planning . Duty to Co-operate . Abolition of Regional Spatial Strategies

Yorkshire and Humber Regional Spatial Strategy Saved Policies POLICY YH9: Green belts . C The detailed inner boundaries of the Green Belt around York should be defined in order to establish long term development limits that safeguard the special character and setting of the historic city.

4 Yorkshire and Humber Regional Spatial Strategy Saved Policies POLICY Y1: York sub area policy . Plans, strategies, investment decisions and programmes for the York sub area should: . C Environment 1. In the City of York LDF, define the detailed boundaries of the outstanding sections of the outer boundary of the York Green Belt about 6 miles from York city centre and the inner boundary in line with policy YH9C. 2. Protect and enhance the nationally significant historical and environmental character of York, including its historic setting, views of the Minster and important open areas

National Planning Policy Framework

. The presumption in favour of sustainable development . For plan-making this means that: – local planning authorities should positively seek opportunities to meet the development needs of their area; – Local Plans should meet objectively assessed needs, with sufficient flexibility to adapt to rapid change, unless: i.) any adverse impacts of doing so would significantly and demonstrably outweigh the benefits, when assessed against the policies in this Framework taken as a whole; or ii.) specific policies in this Framework indicate development should be restricted

5 Housing supply requirement

(Paragraph 47) Local planning authorities should identify and update annually a supply of specific deliverable sites sufficient to provide five years’ worth of housing against their housing requirements with an additional buffer of 5% (moved forward from later in the plan period) to ensure choice and competition in the market for land. Where there has been a record of persistent under delivery of housing, local planning authorities should increase the buffer to 20% (moved forward from later in the plan period) to provide a realistic prospect of achieving the planned supply and to ensure choice and competition in the market for land

National Planning Policy Framework

(Paragraph 212) the policies contained in this Framework are material considerations which local planning authorities should take into account from the day of its publication. The Framework must also be taken into account in the preparation of plans

6 National Planning Policy Framework

(Paragraph 213) Plans may, therefore, need to be revised to take into account the policies in this Framework. This should be progressed as quickly as possible, either through a partial review or by preparing a new plan.

National Planning Policy Framework

(Paragraph 214) For 12 months from the day of publication, decision-takers may continue to give full weight to relevant policies adopted since 2004 even if there is a limited degree of conflict with this Framework.

7 National Planning Policy Framework

(Paragraph 215) In other cases and following this 12- month period, due weight should be given to relevant policies in existing plans according to their degree of consistency with this framework (the closer the policies in the plan to the policies in the Framework, the greater the weight that may be given).

Mark Dixon David Myers 01482 3372286 01482 337287 [email protected] [email protected]

8 A New Vision for A New York Market Update and Viability in Planning 28 October 2013

PRIVATE & CONFIDENTIAL www.dtz.comCOVER SLIDE: If you see this text, you must copy the ‘swish’ graphic from a pre-built COVER slide and onto this slide. This text will no longer be visible if done correctly.

Market Update and Viability in Planning

Stephen Miles MRICS MRTPI Jenny Purple MRICS Associate Director, DTZ Associate Director, DTZ Development Consulting Residential

Viability in Planning Market Update

9 Market Update– Key Drivers of Market Performance Jenny Purple – DTZ

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Key Drivers of Market Performance Demand: Household Projections By Region, 2006-2013.

Demand in York: • Arup March 2013 – between 650 and 1,250 net new household additions per annum.. • Ageing Population – Largest growth in 65+ age bracket • Student Population • Range of Household sizes • Connectivity • Tourism Source: DCLG- Household Projections to 2013, England • Traditional Housing Stock

10 Key Drivers of Market Performance Supply: Annual Housing Starts in Yorkshire and Humber

Supply in York: • Arup March 2013 • Average Completions (2002-2012) 653 units per annum • Average Completions (2008-2012) 448 units per annum • Completions have fallen steadily over last few years with 2011/12 – 321 units – lowest in 12 years • Supply of Land - Opportunity

Source: Communities and Local Government

Key Drivers of Market Performance Affordability

• House Prices • Viability • Incomes • Deliverability • Affordable Housing Policy • Community Infrastructure Levy

11 Key Drivers of Market Performance Mortgage Finance

Housing Delivery – The Impact of a Two Tier Market Jenny Purple – DTZ

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12 Leeds City Region Source: Leeds City Region

Ggg

Yorkshire and Humber Market

Nationwide House Price Index Yorkshire & Humber – March 2013: Average House Price: £119,071 (compared to £163,356 UK Average) Quarterly Change: +3% (compared to +1.2% UK Average) Annual Change: -2.1% (compared to +1.1% UK Average) House Price to Earnings ratio: 3.49 (compared to 4.15 UK Average)

• Variance Across Yorkshire & Humber – HM Land Registry

High Value Mid Value Low Value

Harrogate Leeds Barnsley Average Price: £277,478 Average Price: £161,156 Average Price: £114,371 Annual Change:+9% Annual Change:-5.3% Annual Change:+2.4%% Sales: circa 400 per quarter Sales: circa 1,700 per quarter Sales: circa 500 per quarter

York Ggg Average Price: £200,186 Annual Change:+0.1% Sales: circa 580 per quarter Source: Land Registry

13 Development – Upper Tier Adel, Leeds

Development – Upper Tier – What the Industry Wants

14 Development – Lower Tier – What the Industry Doesn’t Want

Viability in Planning Stephen Miles– DTZ

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15 Viability context – NPPF / CIL regulations

Paragraph 173: • “careful attention to viability and costs in plan making and decision taking” • “the sites and scale of development identified in the plan should not be subject to such a scale of obligations and policy burdens that their ability to be developed viably is threatened.” • “provide competitive returns to a willing land owner and willing developer to enable the development to be deliverable” CIL guidance • Charging authorities should set rates that “will not put the overall development of their area at serious risk”

Viability context - NPPF

On the five year housing supply:

“To be considered deliverable, sites should be available now, offer a suitable location for development now, and be achievable with a realistic prospect that housing will be delivered on the site within five years and in particular that development of the site is viable”

16 Definition of viability – RICS Financial Viability in Planning 2012

Paragraph 2.1:

“An objective financial viability test of the ability of a development project to meet its costs including the costs of planning obligations, while ensuring an appropriate site value for the land owner and market risk adjusted return to the developer in delivering the project”

Basis for assessing viability

17 Method of assessing viability

Application of viability in planning

1. Local plan making - has the plan been positively prepared? - is the cumulative impact of policies viable? - is land supply viable?

2. Planning applications - planning obligations - change of use - mix of use / enabling development case - relative deliverability / five year supply

3. Renegotiation of S106 obligations - effect of growth and infrastructure act

18 Key issues and practice – site value

• Residual site value must equate to benchmark land value for site to be released

• Considerable debate about correct approach • RICS guidance advocates “market value” – i.e. Operation of land market • Local Housing Delivery Group (Viability Testing of Local Plans, June 2012) – recommends existing use value plus uplift

• Practice: • Local market comparables • Min option prices • Existing/Alternative use values + uplift • Shinfield case – 50% of the uplift • 20-25% of Gross Development Value

• Case by case approach required

Key viability issues for York

• Viability of land supply – brownfield versus greenfield

• Five year supply

• Change of use cases

• Deliverability of infrastructure

• Cumulative impact of policy standards

• Emerging CIL tariff

19 Spawforths City of York Local Plan June 2013

Spawforths

• Planning and Design Consultancy in 25th Year of business • Dealing with over £3bn of development and with over 20,000 homes in the planning process

• David Rolinson, Chairman and Planning Director • Mike Ashworth, Principal Planner

20 York Local Plan – History

• No Local Plan since 1950s, history of abandoned draft Plans

• Existing unadopted Plan - Local Plan 4th set of changes (2005)

• LDF Core Strategy withdrawn in July 2012 due to Monks Cross and other deficiencies

• New composite Local Plan, rather than LDF

• Reliance on Core Strategy evidence base – outdated?

• Examination in Public in late 2014

• Adopt early 2015 – ambitious?

The New Plan - Vision and Strategy

– City of York Local Plan: Preferred Options – Consultation June/July 2013

• Key Driver is the economy, jobs and growth – aim to reduce in commuting

• Housing targets of 1,090 - 1,250 new homes per year by the year 2030,

• 22,000 dwellings during the plan period.

• Two potential new (eco) settlements,

– Whinthorpe 5,580 new homes; and

– Clifton Gate 4,020 new homes.

• York Central urban (eco) settlement

– 450 homes in plan period (1165 in total)

• Create a permanent Green Belt to last to 2040

• Safeguarded land

– 270ha for housing

– 71ha for employment

21 Vision and Strategy

Economic projections led strategy - 16,000 new jobs (by 2030) ; population growth of 2,300 people per year.

Over the 15-year period, York’s population is expected to grow by 40,000.

“Local Plans should be aspirational but realistic” (NPPF Paragraph 154)

Vision and Strategy

• Coun Ian Gillies, leader of City of York Council’s Conservative group

• "It is disappointing the proposals have been prepared in secrecy without input from councillors, particularly in rural areas.

• "We acknowledge York is a vibrant, growing city, with a need to provide adequate housing provision to underpin economic growth, but the proposals will have a big impact on some communities, particularly the significant intrusion into what is currently regarded as the Green Belt.

• Coun Anna Reid, planning and sustainability spokeswoman for City of York Council's Liberal Democrat group

• "Our administration focused sustainable growth on previously developed commercial sites such as the former British Sugar works, while protecting green belt land and ensuring adequate infrastructure was in place. Labour has today completely ripped up this approach."

• "We will continue to vigorously oppose a dramatic expansion of the urban area …We will oppose the building in village areas such as Haxby or Dunnington and are hugely concerned about the proposals for a completely new ‘Holme Hill’ settlement south of Heslington Village – an idea which Labour previously claimed was unsustainable.

22 Duty to Cooperate

• Need to demonstrate co-operation with adjoining authorities in cross boundary issues.

• Some Authorities have had to withdraw their Core Strategies:

– Coventry CC

– Kirklees Council

• Inspector, in suspending Core Strategy in 2012, indicated likely that York had complied with the legal test

• Current proposals aim to reduce impact on other Authorities – reducing in commuting to make York more sustainable.

23 Meeting Housing Needs

NPPF Paragraph 47 • Local Plans must meet the full objectively assessed needs for both market and affordable housing

• LPA’s must identify and annually update a supply of 5 years worth of specifically deliverable sites together with the additional buffer of 5% to 20%.

• Sites should be available now and should be viable with a realistic prospect that housing will be delivered on the site within five years.

• The importance of cross boundary Strategic Market Housing Assessments (SHMA’s)

“Councils which do not produce credible plans to meet local housing need will find that the presumption in favour of sustainable development will trump local decisions” (Nick Boles, Housing the Next Generation 2013)

Housing Growth and Distribution

• The Local Plan will make provision for at least 21,936 dwellings in the period 1st October 2012 to 31st March 2030.

• This will support the delivery of a minimum annual housing target of 1,090 dwellings per annum over the plan period to 2030 with an additional land supply buffer of 15%, taking the annual housing target to1250 per annum.

Key Evidence Base

– Housing Requirements in York: Assessment of the Evidence on Housing Requirements in York (ARUP 2013)

– 2011 Census

– 2010 based Sub National Population Projections (March 2012)

• It is acknowledged that a minimum target of 1090 dwellings per annum will be an ambitious target, particularly in the early years of the plan, based on historic delivery rates but the Council considers that if sufficient viable land is identified to achieve the target this will send a good signal to the market and a choice of sites to bring forward in the first five years.

24 Housing Options Housing Figures for York Annual Delivery / Requirement

Housing Completions (Net) 2011-2012 321

Average Completions 2007-2012 463

Average Completions 2002 – 2012 653

Regional Strategy 850 (from 2008)

Population Forecast (Option 1) 850

Population and Economic Growth (Option 2) 1090

Option 2 and new affordable requirement (Option 3) 1500

Option 3 and historic affordable requirement (Option 4) 2060

SHMA Housing Requirement (reflecting newly arising and historic affordable need) 2060

Key Housing Distribution Location Local Plan Allocation Site Name Estimated Yield (no. Estimated Phase Reference Dwellings)

Main Built-Up Area ST5 York Central 450 Lifetime of Plan (19% of housing need)

Extension to Urban ST7 Land to East of Metcalfe Lane 1800 Lifetime of Plan Area (42% of housing need) ST8 Land North of Monks Cross 1569 Lifetime of Plan

ST10 Land at Moor Lane, Woodthorpe 511 Lifetime of Plan

ST11 Land at New Lane, Huntington 411 Lifetime of Plan

ST14 Land to North of Clifton Moor (former 4020 Lifetime of Plan proposed Eco-town) Village / Rural ST9 Land North of Haxby 747 Lifetime of Plan (10% of housing need) ST12 Land at Manor Heath Road, 354 Short to Medium Term (Years 1-10) Copmanthorpe ST13 Land at Moor Lane, Copmanthorpe 115 Short to Medium Term (Years 1-10)

New Settlements ST15 Whinthorpe New Settlement 5580 Lifetime of the Plan (with remainder (29 % of housing need) built out post 2030)

25 Key Housing Questions

• The level of growth proposed – is this appropriate?

• Should there be a supportive approach from developers and landowners?

• Which sites have been discounted and why?

• Are there more suitable sites than the new settlement proposals identified?

Economy

• Within the York Economic Strategy 2011-15 (2011), ambitious targets are established for York to become a top five UK city and a top ten mid-sized European city. The Strategy sets the following vision for York:

Our economic vision is for the City of York to become an international and enterprising city, and in time, the most competitive city of its size, not only in the UK but globally, leading to increased growth in the overall economy and jobs.

Specific employment locations have been included as priority areas for development or redevelopment and infrastructure funding to support growth in key economic sectors. These include:

• York City Centre: the priority will be retail, office, tourism, hotel, recreation and leisure, and other commercial development which benefit from an accessible location.

• York Central: the priority will be high quality office.

• Monk Cross: the priority will be office.

• Terrys: the priority will be office and hotel.

• Clifton Moor: the priority will be the redevelopment of the existing office, light industrial, industrial and storage and distribution provision.

26 Economy

Floorspace Requirements

Preferred Strategy for lifetime of the Plan to reflect the Council’s ambitions as set out in the York Economic Strategy

Use Type DeA2scription Floorspace Requirement Commitments Target (Sq.m) (Sq.m)

B1a Office 44,626 -2,052 46,678

B1b, B1c, B2, B8 R&D, Light Industrial, 89,180 1,342 87,838 Storage and Distribution

Total 133,806 134,516

A1 Retail 69,504 28,725 40,779

D1/C2 Health and Social Care 67,285 7,141 60,144

D2 Leisure 27,007 - 27,007

C1 Hotel 4,500 23,000 -18,800

A2 Financial & Professional 22,035 - 22,035

A3-A5 Food & Drink 4,131 1,855 2,276

D1 Arts, Entertainment and 12,153 - 12,153 Recreation

Total 206,615 600,721 164,394 53

Retail The vitality and viability of the City Centre, district and local centres will be maintained and enhanced. The existing network will form the focal point for uses, services, and facilities serving the surrounding population. The scale, character and role of the centres defines their position within the hierarchy the network of centres within the district is as follows:

• York City Centre;

• district centres – Acomb and Haxby;

• local centres (inc. village centres) – as identified on the proposals map (including existing centres and proposed new local centres as part of the Strategic Allocations)

• Local Level Policy that restricts development of out of town centre retail to small scale expansion (less than 200sq m).

• The amount of retail floorspace in out of centre destinations will not be expanded significantly in order to maintain the role and market share of the City Centre. However, due to Monks Cross the Council is proposing to allocate a higher level of retail provision out of the city than within it. Hence the conflict with the previous Core Strategy approach.

27 York’s Green Belt

Protecting the Green Belt Land

• Pages of guidance previously contained within PPG2 have been reduced in the NPPF.

• Local Authorities with Green Belt land are having to undertake a Green Belt review in order to demonstrate they have robustly assessed whether the identified housing needs can be accommodated.

• Onus on developer to demonstrate development in the Green Belt is necessary.

• Sequential Assessment

"Suggestions that the lack of a plan will lead to a charge of concrete mixers rolling into the English countryside are completely unfounded“ (Eric Pickles March 2013)

28 History of the York Green Belt

• York’s Green Belt history stretches back to the 1950s, but an adopted detailed boundary has never been established within a statutory development plan

• The principle of York’s Green Belt has been established through a number of plans including the North Yorkshire County Structure Plan (1995-2006), and The Yorkshire and Humber Plan Regional Spatial Strategy to 2026.

• Although The Yorkshire and Humber Plan Regional Spatial Strategy (RSS) to 2026 was partially revoked on the 22 February 2013, the Green Belt policies within this document will be saved until the York Local Plan is in place.

Local Policy and Green Belt

• The overall purpose of York’s Green Belt is to preserve the setting and special character of York as the primary purpose of York’s Green Belt (New York Local Plan).

• Green Policy is one of the key areas in York and likely to prove emotive

• York Outer MP Julian Study’s petition has called for the plan to be amended so Green Belt sites are safeguarded, saying the new homes figure is too high and brownfield sites should be used first.

I feel the petition will resonate with a great many people as it highlights the plan’s unsustainable housing targets and the hugely negative effect it will have on some communities, particularly the significant intrusion into what is currently regarded as the Green Belt.

• Council’s approach informed by their Approach to the Green Belt Appraisal (2003) and the more recent Historic Character and Setting Technical Paper Update (2013) which sought to identify

58 specific land which the Council considered necessary to remain within the Green Belt

29 York’s Green Belt Character Areas

Promoting sites in the Green Belt

• Onus on Developer to demonstrate development in Green Belt is necessary

• Tool to demonstrate need for development within the Green Belt and that there are no alternative sites which are suitable for development (given the total amount required)

• Identification of potential alternative sites suitable for development

• Assessment of suitability, availability and deliverability of alternative sites

• Methodology for Assessment - Staged Approach (Example below)

– Stage 1 – Site Search (including existing identified sites and review of potential sites)

– Stage 2 – Site Sieve: Part 1 Size (identification of area required for development)

– Stage 3 – Site Sieve: part 2 Flood Risk and Location (key factors which would prevent development)

– Stage 4 – Short Listed Sites (detailed assessment of sites – availability, suitability and deliverability)

30 Education and Universities

• Facilitate the provision of sufficient modern education facilities for the delivery of preschool, primary and secondary school education to meet an identified need and address deficiencies in existing facilities. Including new provision, where required, to support strategic housing allocations.

• The continued success of all further and higher education institutions is supported, including any further expansion of their teaching and research operations, other facilities and student accommodation at their existing sites and campuses as shown on the Proposals Map, namely:

– York College - including land for future expansion. Sufficient land has been identified to facilitate anticipated growth at York College and continued delivery of its facilities at one location.

– University of York - including Heslington East and West campuses.

– York St. John University.

– College of Law.

– Askham Bryan College - including land for future expansion.

Higher Education Institutions must address the need for any additional student accommodation which arises because of their future expansion. Provision will be expected to be made on campus in the first instance or otherwise on allocated 61 sites managed by the institution in question or linked to purpose built dedicated private sector accommodation.

Meeting the Challenge of Climate Change

• Local Planning Authorities should not require applicants for energy development to demonstrate the overall need for renewable or low carbon energy and also recognise that even small-scale projects provide a valuable contribution to cutting greenhouse gas emissions; and applications should be approved if their impacts are, or can be made, acceptable ( NPPF Paragraph 98).

• The Renewable Energy Strategic Viability Study for York (2010) indicates that this could be achieved by the following diverse range of technologies and provides guidance on the spatial locations factoring in Yorks constraints.

• The city over the coming years, aims to undertake several research and feasibility projects to identify sites, partners and funding for:

– possible low carbon/zero carbon Combined Heat and Power (CHP) schemes with possible

opportunities for district heating networks across appropriate sites in York;

– other low carbon/renewable schemes such as large-scale and medium-scale wind generation;

– citywide/area based domestic energy efficiency and renewable energy installation

programmes; 62

31 Next Steps

• NOW is the time to get involved the plan process – deadline 31 July 2013

• Council are encouraging new sites to be put forward and acknowledge that they do not have the full picture in terms of sites available for development

• The Council is currently promoting an ambitious and visionary approach, which has been long in the making – BUT it is likely to face fierce opposition and political lobbying, so a strong voice in favour from the development industry is needed.

• Sites which do not come forward in the plan making process will have less potential for development than under the current system – establishment of a Local Plan for York is positive but only if you and your sites are in the plan!

32 Any Questions?