Pegasus Planning for the Future Group White Paper and Changes to the Current Planning System Consultations – A North East Perspective The Standard Method and Transitional Arrangements for Local Plan Preparation OCTOBER 2020 Introduction This Briefing Note has been prepared by Pegasus Group and focuses on the implications of the Government consultations on Changes to the Current Planning System and the White Paper in the North East region. Since the publication of the White Paper and the accompanying consultation on more immediate changes to the planning system, the key matters of interest for those engaged in the planning system have been the implications of the proposed revised standard methodology for determining local housing need and the timescales for local authorities to have new plans in place. This note examines the implications of issues. DESIGN ENVIRONMENT PLANNING ECONOMICS HERITAGE 2 Pegasus Group - Planning White Paper - Regional Notes - North East The New Standard Methodology - What it Means for the North East The Pegasus Briefing Note provides a commentary on the proposed changes to the standard methodology for the calculation of local housing need for the North East. It shows that a lot could change as a result of the current consultation. Indeed, Pegasus Group alongside other companies and stakeholders with a presence within the north of England are actively calling for the Standard Method to be revised to ensure the northern regions of England are afforded a target in line with recent completion rates at the very least. To demonstrate the impact this note considers the likely housing figures from the new methodology and compares them with current and/ or emerging local plan housing figures to look at how the proposed housing need relate to what local authorities are currently planning for. Overall, the revised standard method would identify a housing need for the North East of just under 900 additional homes per annum when compared to the current Standard Methodology. However, the current Standard Methodology omits any reasonable growth from a number of authorities in the region, despite the fact there is clearly a need for new, diversified housing stock in many authorities as expressed in adopted Local Plans. In fact, the combined consultation figure for the North East represents a decrease of just over 150 homes per annum when considered against adopted Local Plan targets. This indicates the proposed Standard Method offers no real increase in housing delivery targets across the region as a whole. County Durham and Tees Valley County Durham & Tees Valley The combined standard method consultation figure for all of the local authority areas 1,400 in County Durham and Tees Valley represents a decrease from their Local Plan figures 1,200 1,000 of 16.8%. The new standard method requirement for County Durham would result 800 in a decrease of 12.9% (just under 170 dwellings per annum) from the total housing 600 targets set out it the existing/emerging (Durham) Local Plans. Middlesbrough also sees 400 a decrease on its Local Plan figure of 13.6% (56 dwellings per annum). Redcar and 200 Cleveland sees a 67.7% increase on its Local Plan figure, equating to just under 160 0 additional dwellings per annum. The combined standard method consultation figure for County Durham and Tees Valley Darlington Hartlepool authorities is 13.0% higher than the current combined standard method figure. Stockton- Middlesbrough County Durham* on-Tees sees a decrease as a result of the current consultation figure of 11.0%, Stockton-on-Tees Redcar and Cleveland while Darlington and Hartlepool see increases of 47.7% and 31.5% respectively. The consultation figure for Middlesbrough is 38.2% higher than the current standard method. SM accoriding to consultation Local Plan Annual Requirement For Redcar and Cleveland, the consultation figure is almost four times higher than the current standard method, representing an increase of almost 300 dwellings per annum * As no annual requirement is established through an adopted Local Plan for County Durham yet, the emerging annual Local Plan requirement has been presented. (288.4%). Pegasus Group - Planning White Paper - Regional Notes - North East 3 Tyne and Wear Tyne and Wear Including Northumberland The new standard method requirement would result in an increase of 4.2% on the 1,400 existing plans for the Tyne and Wear local authorities. Both Newcastle upon Tyne and 1,200 1,000 Sunderland see a decrease on their Local Plan figures of 12.0% and 6.5% respectively. 800 The other Tyne and Wear authorities see increases from their Local Plan figures with 600 South Tyneside seeing the highest increase in both relative and absolute terms of 65.5% 400 (over 172 additional dwellings per annum). Northumberland sees an increase of 32.5% 200 (almost 290 dwellings per annum) on its emerging Local Plan figure. 0 The consultation figure for the Tyne and Wear authorities in combination is also above that of the current standard method by 2.0% (64 dwellings). Newcastle upon Tyne is the Gateshead Sunderland only local authority area in Tyne and Wear that sees a decrease on its current standard North Tyneside South T ynes ide method figure of over a quarter (25.2%). Northumberland sees a notable increase on its Northumberland* Newcastle upon Tyne current standard method figure of just under 500 dwellings per annum (73.5%). SM according to consultation Local Plan Annual Requirement * As no annual requirement is established through an adopted Local Plan for Northumberland, the emerging annual Local Plan requirement has been presented. 4 Pegasus Group - Planning White Paper - Regional Notes - North East Timescales and Transitional Provisions The current consultations relate to two documents. Changes to the Current Planning Authorities with plans in place in the last three years are set out in Table 1 below. They System contains proposals that could be introduced through changes to the NPPF and will have to bring in plans in line with the new system, including the new standard Planning Practice Guidance quite quickly, but the more fundamental changes outlined method for housing requirements, but will have three and a half years to bring the in the White Paper will require new primary and secondary legislation. The Government plan forward. advises that they expect new Local Plans prepared in accordance with the proposals of the White Paper to be in place by the end of this Parliament – May 2024. LOCAL AUTHORITY LOCAL PLAN POSITION WHAT DOES THIS MEAN… The documents set out transitional provisions and expected timescales for preparing new Hartlepool Hartlepool Local Plan Local Plans. In terms of transitional provisions, the consultation document on Changes (Adopted May 2018) to the Current Planning System advises that local authorities can proceed with plans based on the current standard method rather than the new standard method where they Stockton-on-Tees Stockton-on-Tees Borough Council Local 42 months to adopt a will be at or close to the Regulation 19 Pre-Submission consultation stage by the time Plan (Jan 2019) new Local Plan from the new guidance is introduced; when the legislation is Redcar and Cleveland Redcar & Cleveland Local brought into force • LPAs at Reg 19 will have 6 months to submit their plan to the Secretary of State; Plan (May 2018) • LPAs close to Reg 19 will need to publish their plan in 3 months and submit it to the Sunderland Core Strategy and Secretary of State in 6 months. Development Plan 2015- 2033 (Jan 2020) Thereafter, Local Plans will be subject to the proposed revised standard method until the legislative reforms of the White Paper are enacted and national policy revised TABLE 1 – LOCAL AUTHORITIES WITH RECENTLY ADOPTED PLANS accordingly. The White Paper sets out expectations for the timescales for preparing new Local Plans. There will be a statutory requirement for local authority to have a new style plan in place two and a half years after the relevant legislation is in place. The exception will be those local authorities with plans adopted in the last three years or with plans submitted for examination. They will have three and a half years to get a new plan in place. For the North East, Darlington Borough Council and Northumberland County Council have both published their Regulation 19 plans, so should also be able to progress on their current figures. Durham’s Plan has recently been found sound, although not yet adopted, which will afford the authority some protection. Pegasus Group - Planning White Paper - Regional Notes - North East 5 Appendix 1 - New Standard Method for North East LPAs - LPA COUNTY DWELLING TOTAL 2019 STOCK 0.5% OF CURRENT STOCk DWELLING 2018 HOUSEHOLD 2020- PROJECTIONS 2030 STEP 1 MEDIAN WORKPLACE BASED HOUSE PRI INCOME RATIO CETO 2009 MEDIAN WORKPLACE BASED HOUSE PRICE INCOME RATIO TO 2019 STEP 2 TO SM ACCORDING CONSULTATION CURRENT SM PLAN ANNUAL LCOAL REQUIREMENT DIFFERENCE BETWEEN LP AND NEW SM % CHANGE County Durham* County Durham 243,474 1,217 1,143 1,217 4.93 4.54 0.94 1,140 1,289 1,308 -168 -12.9% Darlington Tees Valley 51,322 257 148 257 5.30 5.00 0.99 253 172 367 -114 -31.0% Hartlepool Tees Valley 44,250 221 130 221 4.70 4.92 1.11 246 187 410 -164 -40.0% Stockton-on-Tees Tees Valley 86,979 435 330 435 5.19 5.03 1.02 445 500 675 -230 -34.0% Middlesbrough Tees Valley 63,261 316 25 316 4.87 5.08 1.12 354 256 410 -56 -13.6% Redcar and Cleve- Tees Valley 64,652 323 284 323 4.52 5.10 1.21 392 101 234 158 67.7% land Gateshead Tyne and Wear 94,302 472 174