Agenda item

To consider the report of the Director of City Development on a specific element of the Core Strategy Selective Review (CSSR) which is currently underway. One of the key actions for the Review is to update the City Council’s housing target and the report provides opportunity for Members to comment on the evidence and implications for Leeds.

(Report attached)

The Panel considered the report of the Director of City Development on one specific element of the Core Strategy Selective Review (CSSR) which was currently underway - to update the Council’s housing requirement target which was currently set at 70,000 (net) homes between 2012 and 2028. The report set out the options for Leeds’ housing requirement over the plan period 2017 – 2033 and provided the Panel with an opportunity to comment on the evidence and implications for Leeds prior to the drafting of specific housing policies for consultation. The Panel’s comments were sought on the recommended approach to the housing requirement in the Publication Draft of the CSSR.

The Group Manager, Policy & Plans, presented the report, referencing the need to review the housing requirement target in the light of the latest evidence and performance of the housing industry; the evidence of the Strategic Housing Market Assessment 2017 (SHMA) and the recent consultation by the Department of Communities and Local Government (DCLG).

Based on the DCLG consultation and the SHMA 2017; three housing requirement option figures were identified for consideration:

The Group Manager further explained that the DCLG plan period figure of 42,384 should be regarded as a baseline figure, and he introduced the option for a fourth figure taking into account evidence from headship rates from the 2014 household projection model and adjustments in the context of 2008-based rates:

The Panel discussed the following issues:

·  Recognition for the need to adopt a realistic and deliverable target and the impact of build-out rates on the ability to deliver the target

·  One Member expressed support for the DCLG consultation figure of 42,384 reasoning that this figure was supported by the Government and would support Leeds’ case for a 5 Year Land Supply.

·  A formal response from the DCLG to the Leeds consultation submission was not anticipated, rather that all submissions would be considered and reflected in the forthcoming updated National Planning Policy Framework (anticipated in spring 2018) and through new Guidance documents.

·  Acknowledgement that the Authority needed to ensure robust evidence to support the adoption of a figure above the DCLG Consultation figure of 42,384.

·  One Member commented that adopting a figure higher than the DCLG Consultation figure could lead to land-banking by developers; falling build out rates and the development of the wrong type of houses in the wrong locations for the wrong price. Discussion on the East Leeds Extension scheme, granted permission in 2010, provided an example of a scheme where no development had yet begun on site

·  The need to reflect the desire to encourage the economy, investment and job creation in the Leeds housing requirement target and also to recognise a ‘contingency approach’ – allowing for variables across different HMCAs; demolitions etc.

·  Whether it would be better to adopt a lower target; and whether having done so, over-delivery could incur any penalties

·  The need to ensure that clear explanations of the methodology, reasoning and evidence behind the housing requirement target are provided to the public

In response, the Chief Planning Officer clarified that through the use of the standardised methodology, the DCLG target did not take into account Leeds specific demographic, objectively assessed housing needs or adjustments.

The Group Manager, Policy & Plans, provided the Panel with further information on the evidence available to support the higher target figure options – through the work of the SHMA which included extensive consultation including a household survey and engagement with local groups; the modelling undertaken which accounted for additional factors (such as consideration of affordable housing provision) and by incorporating flexibility in each HMCA dependant on the accompanying land to be released.

Members were also reminded that currently, the SAP process continues with the Core Strategy 70,000 target included. Once the CSSR was adopted with a new housing target; then the Authority would move immediately to review the adopted SAP.

The Panel further considered the issue of Affordable Housing:

·  The definition of “affordable” – 80% of market value in real terms was not attainable to many buyers

·  How affordability can be factored into the revised housing requirement target figure

·  The view that the DCLG Consultation figure of 42,384 would not address Leeds affordable housing needs but the SHMA ADJUSTMENT Plan period figure of 51,952 could

·  The approach to affordable housing delivery taken by some house builders.

·  The need to consider delivery of housing mix, noting the Government had expressed a wish to look at how to deliver housing mix to better meet local demands

·  A comment about under-delivery of 2 bed homes against the existing Core Strategy target was also noted.

The Panel noted that a motion proposed by Councillor Leadley and seconded by Councillor J McKenna in support of the SHMA ADJUSTMENT figure of 3,247 (annual) / 51,952 (Plan period figure) was supported for the Core Strategy Selective Review plan period of 2017 to 2033.  Another motion proposed by Councillor J Procter to support the DCLG figure of 42,384 was defeated.

Therefore; having considered the revised housing requirement options for the drafting of Publication Draft Policies for the Core Strategy Selective Review put forward in the submitted report, the Panel

RESOLVED –

a)  To note the comments and discussions on the revised housing requirement options which will inform a further report to be presented to the December 2017 Development Plan Panel seeking endorsement of Publication Draft Policies for the Core Strategy Selective Review to the Council’s Executive Board

b)  That the SHMA ADJUSTMENT housing requirement target figure of 3,247 (annual) / 51,952 (Plan period figure) be supported as the recommended approach, being progressed through the Core Strategy Selective Review.

(Under the provisions of Council Procedure Rule 16.5 Councillors B Anderson and J Procter required it to be recorded that they voted against the matter in (b) above).

(Under the provisions of Council Procedure Rule 16.5 Councillor C Campbell required it to be recorded that he abstained from voting on the matter in (b) above).