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Central Lancashire Strategic Housing Market Assessment (2017)

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Central Lancashire Strategic Housing Market Assessment (2017) Central Lancashire Strategic Housing Market Assessment Preston, South Ribble and Chorley Councils Final Report, September 2017 Prepared by GL Hearn 280 High Holborn London WC1V 7EE T +44 (0)20 7851 4900 glhearn.com Strategic Housing Market Assessment Preston, South Ribble and Chorley Councils GL Hearn Page 2 of 204 J: \Planning\Job Files\J036212 - Central Lancs SHMA\Reports\Central Lancs SHMA Report (Draft Final - Sept 2017) - V3 revised chapters.docx Strategic Housing Market Assessment Preston, South Ribble and Chorley Councils Contents Section Page 1 INTRODUCTION 5 2 DEFINING THE HOUSING MARKET AREA 15 3 CHARACTERISTICS OF THE HOUSING MARKET 41 4 DEMOGRAPHIC LED PROJECTIONS 49 5 ECONOMIC-LED HOUSING NEEDS 75 6 AFFORDABLE HOUSING NEED 106 7 MARKET SIGNALS 133 8 NEED FOR DIFFERENT SIZES AND TYPES (TENURES) OF HOMES 156 9 SPECIALIST HOUSING NEEDS 168 10 CONCLUSIONS AND RECOMMENDATIONS 184 Appendices APPENDIX A: DEMOGRAPHIC PROJECTIONS – BACKGROUND DATA 191 APPENDIX B: ECONOMIC-LED PROJECTIONS – ADDITIONAL BACKGROUND DATA 202 GL Hearn Page 3 of 204 J: \Planning\Job Files\J036212 - Central Lancs SHMA\Reports\Central Lancs SHMA Report (Draft Final - Sept 2017) - V3 revised chapters.docx Strategic Housing Market Assessment Preston, South Ribble and Chorley Councils Quality Standards Control The signatories below verify that this document has been prepared in accordance with our quality control requirements. These procedures do not affect the content and views expressed by the originator. This document must only be treated as a draft unless it is has been signed by the Originators and approved by a Business or Associate Director. DATE ORIGINATORS APPROVED Nena Pavlidou, Planner Paul McColgan, Associate Planning September 2017 Nick Ireland, Planning Director Director Limitations This document has been prepared for the stated objective and should not be used for any other purpose without the prior written authority of GL Hearn; we accept no responsibility or liability for the consequences of this document being used for a purpose other than for which it was commissioned. GL Hearn Page 4 of 204 J: \Planning\Job Files\J036212 - Central Lancs SHMA\Reports\Central Lancs SHMA Report (Draft Final - Sept 2017) - V3 revised chapters.docx Strategic Housing Market Assessment Preston, South Ribble and Chorley Councils 1 INTRODUCTION 1.1 GL Hearn (GLH) and Justin Gardner Consulting (JGC) have been commissioned by Preston City Council, Chorley Council and South Ribble Borough Council to develop a Strategic Housing Market Assessment (SHMA). The purpose of the SHMA is to develop a robust understanding of housing market dynamics, to provide an assessment of future needs for both market and affordable housing and the housing needs of different groups within the population. 1.2 The SHMA does not set housing targets. It provides an assessment of the need for housing across the functional Housing Market Area (HMA), making no judgements regarding future policy decisions which the Councils may take. Housing targets will be set in local plans. The SHMA provides forms part of an evidence base in considering whether housing targets should be reviewed, but any review of the housing targets set out in local plans, or in this case in the Central Lancashire Joint Core Strategy, if required would need to take into account factors such as the supply of land for new development, Green Belt and other nationally and internationally significant landscapes and environmental designations, local infrastructure capacity and environmental constraints as appropriate. These factors may limit the amount of development which can be sustainably accommodated and influence the distribution of development within the Housing Market Area. The SHMA’s principle role is to consider housing need across the HMA, and greater weight should be given to its findings at this level (rather than the individual local authority figures) given the range of influences on housing needs at a local level and functional links between areas within the functional HMA. 1.3 The SHMA responds to and is compliant with the requirements of the National Planning Policy Framework (the NPPF) 1 . It is informed by Planning Practice Guidance (PPG) 2 . It provides assessment of the future need for housing, with the intention that this will inform future development of planning policies. According to the PPG, housing need: “refers to the scale and mix of housing and the range of tenures that is likely to be needed in the housing market area over the plan period – and should cater for the housing demand of the area and identify the scale of housing supply necessary to meet that demand.” 1.4 This report, in discussing housing need, is thus referring to both the need for market and affordable housing across the housing market area, taking account of both local need and that associated with net migration. This is required by national policy. 1 CLG (March 2012) National Planning Policy Framework 2 CLG Planning Practice Guidance – Assessment of Housing and Economic Development Needs - http://planningguidance.planningportal.gov.uk/blog/guidance/housing-and-economic-development-needs-assessments/ GL Hearn Page 5 of 204 J: \Planning\Job Files\J036212 - Central Lancs SHMA\Reports\Central Lancs SHMA Report (Draft Final - Sept 2017) - V3 revised chapters.docx Strategic Housing Market Assessment Preston, South Ribble and Chorley Councils 1.5 The SHMA provides specific evidence and analysis of the need for different sizes of homes, to inform policies on the mix of homes (both market and affordable). The SHMA also analyses the needs of specific groups within the population, such as older people and students. National Planning Policy Framework and Guidance 1.6 The Coalition Government (2010-15) reformed the policy framework for planning for housing. Regional strategies were revoked and responsibility for planning on cross-boundary issues was returned to local authorities. 1.7 The primary legislation to support this was the 2011 Localism Act which now imposes a ‘duty to cooperate’ on local authorities, requiring them to “engage constructively, actively and on an on- going basis” with the other authorities and relevant bodies.’ The Duty to Cooperate is applied as both a legal and soundness test to which development plans must comply. Housing provision is an issue of cross-boundary relevance which local authorities both within and beyond the HMA will need to engage with each other on. The emphasis on Councils working jointly to assessing need across an HMA and then working together to meet that need is a theme which runs through national planning policies. 1.8 National policies for plan-making are set out within the National Planning Policy Framework. This sets out key policies against which development plans will be assessed at examination and to which they must comply. National Planning Policy Framework (NPPF) 1.9 The National Planning Policy Framework (NPPF) was published in March 2012. The Framework sets a presumption in favour of sustainable development whereby Local Plans should meet objectively assessed development needs, with sufficient flexibility to respond to rapid change, unless the adverse impacts of doing so would significantly or demonstrably outweigh the benefits or policies within the Framework (including policies relating to Green Belt and other nationally and internationally significant landscapes and environmental designations) indicate that development should be restricted. 1.10 Paragraph 47 sets out that to boost significantly the supply of homes, local planning authorities should use their evidence base to ensure that their local plan meets the full objectively-assessed needs for market and affordable housing in the housing market area, as far as is consistent with the policies set out in the Framework. 1.11 The NPPF highlights the Strategic Housing Market Assessment (SHMA) as a key piece of evidence in determining housing needs. Paragraph 159 in the Framework outlines that this should identify the GL Hearn Page 6 of 204 J: \Planning\Job Files\J036212 - Central Lancs SHMA\Reports\Central Lancs SHMA Report (Draft Final - Sept 2017) - V3 revised chapters.docx Strategic Housing Market Assessment Preston, South Ribble and Chorley Councils scale and mix of housing and the range of tenures which the local population is likely to need over the plan period which: Meets household and population projections, taking account of migration and demographic change; Addresses the need for all types of housing, including affordable housing and the needs of different groups in the community; and Caters for housing demand and the scale of housing supply necessary to meet this demand. 1.12 This is reaffirmed in the NPPF in Paragraph 50. The SHMA is intended to be prepared for the housing market area, and include work and dialogue with neighbouring authorities where the HMA crosses administrative boundaries. A number of local plan examinations have demonstrated the importance of properly identifying and addressing the housing market area as a whole 3 and collaborative working on issues related to housing need is expected. 1.13 Paragraph 181 sets out that Local Planning Authorities (LPAs) will be expected to demonstrate evidence of having effectively cooperated to plan for issues with cross-boundary impacts when their Local Plans are submitted for examining. This highlights the importance of collaborative working and engaging constructively with neighbouring authorities, as required by Section 33A of the 2004 Planning and Compulsory Purchase Act, and ensuring that there is a robust audit trail showing joint working to meet the requirements of paragraph 181 of the NPPF. 1.14 Paragraph 158 of the NPPF also emphasises the alignment of the housing and economic evidence base and policy. Paragraph 17 in the NPPF reaffirms this, and outlines that planning should also take account of market signals, such as land prices and housing affordability. 1.15 In regard to housing mix, the NPPF sets out that local authorities should plan for a mix of housing based on current and future demographic trends, market trends and the needs of different groups in the community.
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