Cheshire East Local Plan Housing Monitoring Update November 2018 Contents 1. Introduction 2. Planning policy context 3. Methodology 4. Completions 5. Housing supply 6. Calculation of the five year housing land supply requirement 7. Sites included within the assessment of five year housing land supply 8. Five year housing land supply position Appendices 1. Annual completions report 2. C2 & Communal accommodation: completions and losses 3. Commitments 4. Engagement with stakeholders 5. Forecasting assumptions 6. Forecasting schedule - Strategic allocations 7. Forecasting schedule - Non strategic sites 8. Indicative supply requirement – alternative ‘Sedgefield’ approach 9. Indicative Housing Delivery Test calculation 10. Evidence to support site forecasting OFFICIAL 1. Introduction 1.1 The Cheshire East Housing Monitoring Update (HMU) provides a comprehensive review of housing delivery and supply across Cheshire East to a base date of the 31 March 2018. The report has been produced having regard to the publication of the revised National Planning Policy Framework (July 2018) and Planning Practice Guidance (including September 2018 revisions) and includes information on: Gross and net completions of dwellings for the 2017/2018 monitoring year (01 April 2017 to 31 March 2018) and from the base date of the Cheshire East Local Plan Strategy; Details of demolitions and planned demolitions (losses) which impact upon gross completions; Sites with detailed planning permission, including details of the sites under construction Sites with outline planning permission; Strategic sites allocated in the Cheshire East Local Plan Strategy; Sites with a resolution to grant planning permission subject to the completion of a S106 legal agreement; C2 Uses (residential institutions) for older people: completions and losses; Windfall development (9 dwellings or less) by year and a comparison of how this compares to the small sites windfall allowance identified in the Cheshire East Plan Strategy; The five year supply calculation, identifying buffers and shortfalls and number of years of supply OFFICIAL Page 1 1.2 The HMU has been prepared in consultation with key stakeholders, both through Council led workshops and written consultation. Direct contact has also been made with site owners and developers in order to obtain the most up to date evidence available on site progress and delivery for allocated sites and sites with outline planning permission (10 or more dwellings)1. 1.3 The HMU provides an accurate, robust and up to date picture of housing delivery, current housing commitments and housing supply in the borough and identifies that a supply of specific deliverable sites sufficient to provide 7.2 years worth of housing can be demonstrated. 2. Planning Policy Context National Planning Policy Framework 2.1 The National Planning Policy Framework (NPPF) was published on the 24 July 2018. Alongside this document, the Housing Delivery Test Measurement Rule Book and a standard method for calculating local housing need was also published. 2.3 The NPPF has a number of implications in terms of the assessment of housing delivery and supply, including guidance on the meaning of ‘significant under-delivery’ and the relevant buffer to be applied to five year housing land supply assessments, a revised definition of deliverable sites, guidance on windfall allowances and the circumstances in which the presumption in favour of sustainable development at paragraph 11 is engaged. 2.4 The Revised NPPF of July 2018 and the accompanying guidance have been taken fully into account in producing this annual report. On 26 October 2018 the Government commenced six weeks consultation on “minor clarifications” to national planning policy on housing land supply. Should the outcome of this consultation necessitate any changes to the report, an update will be published in due course. 1 See Appendix 4 and 10 for further details OFFICIAL Page 2 Presumption in favour of sustainable development 2.5 At the heart of the NPPF is the presumption in favour of sustainable development. Paragraph 11 states that for decision taking this means: approving development proposals that accord with an up-to-date development plan without delay; or where there are no relevant development plan policies, or the policies which are most important for determining the application are out-of-date, granting permission unless: i. the application of policies in this Framework that protect areas or assets of particular importance provides a clear reason for refusing the development proposed; or ii. 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. 2.6 Footnote 7 confirms that relevant planning policies concerning the provision of housing should not be considered up to date in situations where the local planning authority cannot demonstrate a five year supply of deliverable housing sites (with the appropriate buffer, as set out in paragraph 73) or where the Housing Delivery Test indicates that the delivery of housing was substantially below (less than 25% of) the housing requirement over the previous three years2. Monitoring delivery 2.7 Paragraph 75 of the NPPF states that local planning authorities should monitor progress in building out sites which have permission. 2 Under transitional arrangements confirmed at Paragraph 215 of the NPPF. OFFICIAL Page 3 2.8 From November 2018, the delivery of housing will be measured through the Housing Delivery Test (HDT). The HDT result will have a number of implications for decision-taking, including the relevant buffer to be applied to five year housing land supply calculations and the circumstances in which the presumption in favour of sustainable development applies. 2.9 The Housing Delivery Test Measurement Rule Book provides the methodology for calculating the HDT result. The Housing Delivery Test is effectively a percentage measurement of the number of net homes delivered against the number of homes required, over a rolling three year period. 2.10 The number of net homes delivered is taken from the National Statistic for net additional dwellings over a rolling three year period, with adjustments credited for net student and net other communal accommodation. The national statistics are published annually in November. 2.11 The number of net homes required, will be the lower of the latest adopted housing requirement (excluding any previous shortfall) or the minimum annual local housing need figure. Under transitional arrangements, for the financial years 2015-16, 2016-17 and 2017-18, the calculation of the minimum annual local housing need figure will be replaced by household projections only. For Cheshire East, this results in a significantly lower housing figure of 3,100 dwellings for the years 2015-16, 2016-17 and 2017-18, equating to 1,033 dwellings per annum. Maintaining supply 2.12 Paragraph 73 requires local planning authorities to: ‘Identify and update annually a supply of specific deliverable sites sufficient to provide a minimum of five years’ worth of housing against their housing requirement set out in adopted strategic policies, or against their local housing need where the strategic policies are more than five years old. The supply of specific deliverable sites should in addition include a buffer (moved forward from later in the plan period) of: OFFICIAL Page 4 a) 5% to ensure choice and competition in the market for land; or b) 10% where the local planning authority wishes to demonstrate a five year supply of deliverable sites through an annual position statement or recently adopted plan, to account for any fluctuations in the market during that year; or c) c) 20% where there has been significant under delivery of housing over the previous three years, to improve the prospect of achieving the planned supply’ 2.13 Footnote 39 confirms that for the purposes of the buffer, that from November 2018, significant under-delivery will be measured against the Housing Delivery Test, where this indicates that delivery was below 85% of the housing requirement. 2.14 Paragraph 74 also states that: A five year supply of deliverable housing sites, with the appropriate buffer, can be demonstrated where it has been established in a recently adopted plan, or in a subsequent annual position statement which: a) has been produced through engagement with developers and others who have an impact on delivery, and been considered by the Secretary of State; and b) incorporates the recommendation of the Secretary of State, where the position on specific sites could not be agreed during the engagement process. 2.15 Footnote 38 explains that a plan adopted between 1 May and 31 October will be considered ‘recently adopted’ until 31 October of the following year; and a plan adopted between 1 November and 30 April will be considered recently adopted until 31 October in the same year. Definition of ‘deliverable’ OFFICIAL Page 5 2.16 Only those sites which are considered to be deliverable should be included within an assessment of five year housing land supply. Annexe 2 of the NPPF defines deliverable sites as follows: ‘To be considered deliverable, sites for housing 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. Sites that are not major development, and sites with detailed planning permission, should be considered deliverable until permission expires, unless there is clear evidence that homes will not be delivered within five years (e.g. they are no longer viable, there is no longer a demand for the type of units or sites have long term phasing plans). Sites with outline planning permission, permission in principle, allocated in the development plan or identified on a brownfield register should only be considered deliverable where there is clear evidence that housing completions will begin on site within five years.’ 2.17 Annex 2 defines sites that are major development as developments of 10 or more houses or a site area of 0.5 hectares or more.