NEWCASTLE-UNDER-LYME AND STOKE-ON-TRENT CORE SPATIAL STRATEGY EXAMINATION DOCUMENT CCD4 Response to Planning Inspector’s Question (ICD4) (a) Clarification as to the relationship between demolitions and the housing targets in the CS. What do the ‘net’ and ‘gross’ figures include? 1. Strategic housing development targets (net additional dwellings 2006 – 2026) are currently set out in the seventh row of the table at paragraph 5.25 of the Core Spatial Strategy. These are derived from the West Midlands Regional Spatial Strategy Preferred Option (RSS/002 – Policy CF3, Table 1). They are ‘net’ figures and represent the increase in housing stock over the plan period excluding allowance for demolition replacements and changes as a result of conversions / changes of use. ‘Gross’ figures comprise the ‘net’ figure plus a notional allowance for replacement of demolished dwellings over the plan period. (b) Do the Councils’ figures for completions include or exclude demolition replacements? 2. In respect of Stoke-on-Trent, the completion figure for 2006/07, shown in the first row of the published table at paragraph 5.25 of the Core Spatial Strategy is a ‘net’ figure. Thus allowance is made for demolitions, conversions and changes of use within that year. In Stoke-on-Trent this means 850 completions (gross) less 219 demolitions less 15 changes of use out of housing. 3. In respect of Newcastle-under-Lyme the completion figure for 2006/07, shown in the first row of the published table at paragraph 5.25 of the Core Spatial Strategy is a ‘gross’ figure. The net additional dwellings are calculated by deducting the number of demolitions from the gross completion figures. The completions 2006/07 are gross figures, the latter includes conversions and change of use. 4. A revised table has been prepared, as requested for in ICD4(d) and is shown below in response to that point. (c) The current RSS assumes a replacement rate of 0.6 for Stoke-on-Trent but the Phase 2 Revision does not appear to give such a figure (although accepting that it might be necessary) and it is not clear at what point a reduced replacement rate is to be taken into account. It would assist if an illustration were given e.g. if 100 dwellings were demolished and 60 replacements built on the same site, is there a requirement to provide land elsewhere for the 40 dwellings not replaced in addition to the net additional dwellings from the RSS? (Supplementary Question 4a) With respect to ICD 4 questions (b), (c) and (d), the Inspector directs the Councils’ attention to a technical document underpinning the West Midlands Regional Spatial Strategy Phase Two Revision – Preferred Option. This is Communities for the Future Housing Background Paper Final version (Amended) January 2008 which can be viewed at http://www.wmra.gov.uk/documents/RSS%20Phase%202%20Preferred%20 Option%20%20Housing%20Background%20Paper%20-Final%20- %20%20Amended%20version%20Jan%2007.pdf Before preparing the response to ICD 4, the Inspector requests the Councils to consult with the West Midlands Regional Assembly to clarify the position regarding the gross and net housing figures in the Phase Two Revision when dealing with demolition replacements at a rate of less than 1:1. If this does not accord with the assumptions made in the Core Strategy then a revised ‘Strategic Housing Targets’ section (pages 42-45) should be prepared. 5. The justification for a replacement rate of less than 1 for 1 in Stoke-on-Trent in the adopted RSS was because there is an imbalance in housing demand and supply in the city. North Staffordshire was chosen as a Housing Market Renewal Pathfinder because, amongst other considerations, having regard to high vacancies, low house prices and poor stock conditions it had the weakest housing market in the West Midlands by a considerable margin. There was a crude numerical surplus of residential properties over demand in the conurbation. 6. Adopted RSS (RSS/001, paragraph 6.10) states; “Whilst a similar approach will be necessary in North Staffordshire the failure of the housing market is more pronounced than in the metropolitan area and the level of anticipated economic activity substantially lower. Renewal strategies will need to take account of the extent to which out-migration can be stemmed and avoid over-provision. In this case high overall replacement rates may not be appropriate. This issue will evolve as the pathfinders are developed and will need to be kept under review by the RPB”. 7. Adopted RSS (RSS/001 – Policy CF3, paragraph 6.15) provides for the removal of 4,000 surplus properties from the housing stock to address the housing supply/demand imbalance in the city’s housing stock. This is the basis of the 0.6 figure, calculated as follows; Adopted RSS requirements are 2,000 net /12,000 gross / 10,000 demolitions Of the 12,000 gross: 6,000 are for demographic change, and 6,000 are for demolition replacements (10,000 x 0.6 = 6,000) 8. The imbalance of housing market supply and demand continues. This is recognised in the RENEW North Staffordshire Business Plan 2008-11 (EB/037, page 4, third paragraph and page 6, fifth paragraph) and in RSS Preferred Option (RSS/002, paragraph 6.9) which states: “The North Staffordshire conurbation, particularly the inner core, has experienced a decline in population and economic activity which has led to a weak housing market in this inner core. The concerted actions being put in place with the support of government and in conjunction with the local authorities have a good prospect for success if these are sustained and economic development is renewed to underpin other aspects of regeneration”. It continues (RSS/002, paragraph 6.27): Actual land requirements for housing provision will vary with the level of demolitions and the replacement rates which can be achieved on housing redevelopment sites. The proposals in Table 1 assume that there can be a 1:1 replacement. If the average ratio of new housing to demolitions in a local planning authority is less than 1:1, the authority will need to identify further land as part of the LDD. If the average ratio achieved is greater than 1:1, fewer additional housing sites will need to be identified through the LDD. The amount of land required will also be dependent on the densities achieved. Because of weak housing demand within the North Staffordshire conurbation, a replacement rate of 1:1 may not be appropriate in this area. 9. Housing market imbalance is evidenced by Stoke-on-Trent having a vacancy rate nearly twice the regional average in 2008 at 6.0% locally compared to 3.1% regionally (Ref EB/087 Housing Strategy Statistical Appendix, November 2008). 10. In the case of Stoke-on-Trent a replacement rate of 0.66 replacement dwellings for each dwelling demolished is assumed in published tables 5.25 and 5.28 of the Core Spatial Strategy. This is a mathematical error. In common with adopted RSS a figure of 0.6 should have been used. We wish to correct this mathematical error. The following text and replacement tables use the correct figure of 0.6. Since adoption of RSS, projected demolitions in Stoke-on-Trent over the plan period have been substantially reduced (from 10,000 to 3,500). There remains a need to reduce the number of surplus properties in the city as shown in the trajectory at paragraph 5.28. Thus the revised calculation would be: RSS Revision requirements are 11,400 net with 3,500 demolitions (RSS/002 Policy CF3, table 1 and table 2). 11,400 are for demographic change; and 2,100 are for demolition replacements (3,500 x 0.6 = 2,100) Giving a gross total of 13,500 (this replaces the 13,710 figure in published tables 5.25 and 5.28) 11. In common with adopted RSS the replacement rate is taken into account across the whole of the plan period. 12. As explained at paragraph 8, in numerical terms in 2008, 6,677 properties are recorded as vacant in Stoke-on-Trent. The reduction of this vacancy rate to a rate closer to the regional average is clearly a desirable policy aim. The result of the reduction in the housing stock by 1,400 dwellings (3,500 minus 2,100) will be to reduce the void rate from 6.0% to 4.7% over the plan period. 13. It must be stressed that the replacement rate of 0.6 referred to in the supplemental question relates to projections of housing targets and not to the physical capacity of a clearance site. The physical capacity of clearance sites is clearly important and is taken into account in land supply calculations and at the point of monitoring. But for the purposes of better understanding if, for example, 100 dwellings were demolished (and assuming each dwelling was occupied prior to demolition) 60 dwellings would be replaced (although not necessarily on the same site and for the displaced households) and the remaining 40 households would ultimately be accommodated within the city’s void housing stock. If the dwellings were replaced on a 1:1 basis then this would perpetuate the continued high vacancies within the city’s housing stock. 14. In the case of Newcastle-under-Lyme a replacement rate of 1 replacement dwelling for each dwelling demolished is assumed. Thus 5,700 net dwellings, plus 557 predicted demolitions, equals a gross requirement of 6,257 dwellings. 15. Following receipt of supplementary question ICD4a we have discussed the issue of replacement rates with the West Midlands Regional Assembly.