Calderdale Local Plan Stage 1 Hearings - Hearing Statement Matter 4 - Housing Supply

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Calderdale Local Plan Stage 1 Hearings - Hearing Statement Matter 4 - Housing Supply
Calderdale Local Plan Stage
                 1 Hearings
                Hearing Statement
          Matter 4 – Housing Supply
                              In respect of:
                  Land at Exley Lane, Elland

                             On behalf of:
                      Avant Homes Limited

                                 May 2019
Calderdale Local Plan Stage 1 Hearings - Hearing Statement Matter 4 - Housing Supply
Contents Page
1.0   Introduction ............................................................................................................................2
2.0   Matter 4 – Housing supply ................................................................................................1
Calderdale Local Plan Stage 1 Hearings - Hearing Statement Matter 4 - Housing Supply
Calderdale Local Plan Stage 1 Hearings – Matter 4
Land at Exley Road, Elland
0475

1.0 Introduction
1.1.     McLoughlin Planning has been instructed by Avant Homes (Avant) to prepare
         representations on the Calderdale Local Plan, which has been submitted to the
         Secretary of State for Examination. This document seeks to make a series of
         representations on the Local Plan and the evidence base that underpins it; specifically,
         in response to the Inspectors Matters, Issues and Questions (MIQs). It also seeks to
         further promote Avant’s land interests within the Borough.

1.2.     Avant’s interest relates to the development of land adjacent to Exley Lane, North of
         Elland. The site was previously allocated for residential development in the Draft Local
         Plan for circa 690 dwellings and went by the reference number LP1567.

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2.0 Matter 4 – Housing supply
          Issue – Does the Plan identify sufficient land to enable the housing
          requirement of 12,600 dwellings to be delivered over the Plan period? [Policy
          SD7]
          Questions
          a) Is the Council’s approach to estimating supply from extant planning
          permissions, as set out in the housing trajectory, justified and robust? In
          particular:

          i.   Why are extant outline permissions excluded, and how are these dealt
               with in terms of supply?

2.1.      It is not clear why extant outline permissions are excluded from the supply, although
          it is of note that the current NPPF (February 2019) states that sites with outline
          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. Avant consider
          that extant outline permissions should only be included in the Council’s housing land
          supply where all the reserved matters have been approved.

          ii. Is the application of a 10% lapse rate to outstanding planning
               permissions on small sites justified and supported by evidence?

2.2.      Without detailed information of how planning permissions within the Borough have
          translated to completions over the years, it is difficult to determine whether the
          application of a 10% lapse rate is justified and supported by evidence. DCLG analysis
          suggested that 10-20% of permissions do not materialise into a start on site at all.

          iii. Is the application of bespoke lapse rates on larger sites justified and
               supported by the evidence? What overall proportional reduction has
               been applied to this category of sites?

2.3.      No comment.

          b) Is the estimated windfall supply over the Plan period justified and
          supported by local evidence?

2.4.      Whilst Avant accept that windfall sites will form part of the housing land supply, Avant
          are concerned that the Plan is overly reliant on windfalls, particularly during the latter
          stages of the Plan. Furthermore, Avant are concerned that the estimated supply from
          this source is not robustly justified.

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2.5.      The figure of 162 dwellings per annum reflects the average windfall units completed
          on non-exceptional sites between 2008/90 and 2016/17. However, other than historical
          analysis, there does not appear to be any other evidence to justify that this historical
          rate will continue. There is no evidence of any urban capacity studies to determine the
          potential land availability going forward or any consideration of the implications an
          adopted Plan with allocations would have on future windfalls.

2.6.      The windfall allowance does not appear to take into account losses due to conversions
          and demolitions. The Council’s Annual Monitoring Report 2017/18 shows that 1,152
          dwellings have been lost since 2001/02, which is an average of approximately 68
          dwellings per year. Whilst not a significant amount, over the Plan period, this could
          amount to a loss of around 1,020 homes if historical trends continued. Since the
          average annual windfall delivery figure is based on a percentage of gross completions,
          a more realistic approach would be to base it on a percentage of net completions.

2.7.      c) The soundness of individual site allocations will be considered at Stage 2
          of the Examination. However, is the Council’s general approach to
          estimating supply and phasing rates on housing allocations soundly based?
          In particular:

          i.   Has the Council undertaken a comprehensive assessment of potential
               housing capacity within the urban areas, and allocated all sites of 0.25
               hectares or more which are suitable, available and achievable?

2.8.      No comment.

          ii. Are the density multipliers applied to the allocations justified and
               indicative capacities robust (as set out in Policy SD7)?

2.9.      It is not clear from the Plan as to how the density multipliers have been justified.

          iii. Which of the allocated sites have not been confirmed as being available?

2.10.     Appendix 3 of the Council’s Housing Technical Paper (Positioning of Local Plan New
          Housing Sites and Mixed Use Sites with residential element), it is not clear as to which
          allocated sites are confirmed as available. However, based on the commentary, there
          are serious concerns regarding the availability of a number of allocated sites, which
          should be deleted until such a time as their availability can be confirmed. The following
          examples highlight this point:

          •     Allocation LP0065 (Elland) is not fully available until the current equestrian use
                ceases. Until this is known, part of the site cannot be considered to be available.

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          •     Allocation LP0146 (Elland) is currently not available as it is currently owned and
                occupied by a Traveller family. The Council’s Gypsy and Traveller Technical Paper
                indicates that work to identify a suitable Gypsy and Traveller site within the
                Borough has been suspended and will re-commence after the adoption of the Plan.
                Consequently, until this work has been completed, it is not known whether site
                LP0146 is required to be retained as a Gypsy or Traveller site rather than a housing
                allocation. It should therefore be removed from the Plan.

          •     Allocation LP0253 (Mytholmroyd) states that the availability of the site is unknown.
                It should therefore be removed from the Plan.

          •     Allocation LP0264 (Halifax) states that the availability of the site is unknown. It
                should therefore be removed from the Plan.

          •     Allocation LP0565 (Brighouse) is reliant on third party land for its deliverability.
                Without confirmation that this additional land is available, the allocation cannot be
                considered to be available and should be deleted from the Plan.

          •     Allocation LP0659 (Todmordon) states that the availability of the site is unknown.
                It should therefore be removed from the Plan.

          •     Allocation LP0749 (Halifax) states that the availability of the site is unknown. It
                should therefore be removed from the Plan.

          •     Allocation LP0846 (Brighouse) states that the availability of the site is unknown. It
                should therefore be removed from the Plan.

          •     Allocation LP0914 (Todmordon) states that the majority of the site is confirmed as
                available. However, the capacity should be reduced to reflect the fact that the
                entire site is not confirmed as being available.

          •     Allocation LP1000 (Brighouse) is currently subject to a restrictive covenant to be
                used as open space. Until such a time as the covenant is removed, the site should
                not be considered to be available and should be removed from the Plan.

          •     Allocation LP1194 (Halifax) states the site has three owners although one part of
                the site remains unknown. The capacity should be reduced to reflect the fact that
                the entire site is not confirmed as being available.

          •     Allocation LP1197 (Halifax) states that the availability of the site is unknown. It
                should therefore be removed from the Plan.

          •     Allocation LP1283 (Elland) is a centre for audio and visually impaired people. Whilst
                it is stated that this site is likely to be available during the Plan period, it is
                dependent on the existing service relocating to a more fit for purpose facility. Until
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                such an alternative facility be identified, the site should not be considered to be
                available and should be deleted from the Plan.

2.11.     Of the examples listed above, if the allocations where the availability is not known are
          deleted from the Plan, this would represent a loss of 244 dwellings from the Council’s
          anticipated supply. This further reduces if reduction is made to account for sites where
          part of the allocation is not confirmed as being available. This would lead to a shortfall
          in housing delivery and highlights the inherent inflexibility of Plan.

          iv. Do the standard build-out rate and lead-in time assumptions, as set out
               on pages 19 and 20 in the Council’s Housing Technical Paper, provide a
               robust starting point for estimating allocation site delivery rates? What
               other factors have been taken into account? Are the additional times
               listed in the bullets in paragraph 10.6 cumulatively applied?

2.12.     Avant raises concerns regarding some of the proposed build-out rate assumptions,
          particularly in respect of the larger allocations and specifically, the proposed Garden
          Suburbs at Brighouse. As discussed in detail below, there are concerns that the
          anticipated combined delivery of the Garden Suburbs (359 per annum) is unrealistic
          and not supported by evidence.

2.13.     A further area of concern is that, notwithstanding Avant’s objection to the use of the
          Standardised Methodology, the delivery of 840 units per annum represents a significant
          step-up in housing delivery and one that has never been seen before in the Borough.
          This needs to be taken into account when determining build-out rates and lead-in times,
          which may also be affected by overall market absorption rates.

2.14.     Given that the Garden Suburbs are anticipated to contribute to almost half the annual
          housing requirement from the mid stage of the Plan period, there is limited evidence
          to demonstrate that the Council can deliver this with the sites that have been allocated,
          especially where there are concerns over the availability and deliverability of some
          allocations. The allocation of further available and deliverable sites is therefore required
          in order to provide a degree of flexibility and to ensure that the Council meets its
          minimum housing requirement over the Plan period.

          v. Does the baseline estimate of year 4 (2021/22) allow sufficient time for
               the submission of an application and delivery in the post-adoption
               period?

2.15.     No – Plan already a year behind schedule. Assumes an immediate start on site.

          vi. Does the housing trajectory allow for a step-up in delivery rates on large
               sites as development progresses?
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2.16.     The housing trajectory does appear to allow for a step-up in delivery rates in large sites
          as development progresses. This is evident at the two Garden Suburbs where the
          anticipated trajectory is shown as being constant at 140 and 222 units per annum
          respectively. As set out further in this statement, the housing trajectory for the Garden
          Suburbs is unjustified and unrealistic. Furthermore, if the trajectory was adjusted to
          allow for a step-up in delivery rates on large sites as development progresses, it would
          realistically result in a reduction in the housing delivery in the earlier stages of the
          development. Given that there would be an upper limit on what could be delivered in
          the latter stages (i.e. potentially fewer than 200 per annum), the upshot would be that
          the Plan would not deliver the minimum housing requirement over the Plan period,
          assuming that the Standard Methodology is used.

          vii. Are the estimated delivery rates in the housing trajectory realistic and
               consistent            with           national   guidance   relating       to      the
               deliverability/developability of sites?

2.17.     The Council’s Housing Technical Paper assumes that on sites of 150 units and above,
          55 units would be delivered per annum. However, the Council’s housing trajectory
          currently suggests that after year 7 allocation LP1451 would deliver 140 units per year
          and allocation LP1463 would deliver 222 units per year. No justification has been
          provided for this build-out rate, which would amount to a combined 362 units per year
          over the two allocations. Moreover, this does not reflect the research in the NLP
          publication ‘Start to Finish – How Quickly do Large-Scale Housing Sites Deliver?’
          (November 2016). Research here suggests that it will not always be possible to increase
          the number of outlets in direct proportion to the size of the site. The analysis identifies
          that, on average, a site of 2,000 or more dwellings does not deliver four times more
          than a site delivering between 100 and 499 homes, despite being at least four times
          the size. In fact, it only delivers on average 2.5 times more houses. Moreover, the
          analysis suggests that even with the biggest schemes within capacity for 2,000 units,
          on average, these will deliver fewer than 200 dwellings per annum.

2.18.     Based on this evidence, Avant is of the view that the rate of delivery of the Garden
          Suburbs anticipated in the Council’s housing trajectory is unrealistic within the Plan
          period and leaves no room for slippage. In this context, given the base year of the Plan
          (2018/19) and an anticipated adoption date (early 2020), the housing trajectory should
          be updated and adjusted accordingly. Given the late adoption of the Plan, it would be
          prudent to move the delivery start date of the Garden Suburbs to year 8 instead of
          year 7. This would result in 359 dwellings being lost from the Council’s anticipated
          housing supply.

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2.19.     As touched upon earlier, Avant is also concerned about potential market absorption
          rates. The delivery of 840 units per annum represents a significant step-up in housing
          delivery and one that has never been seen before in the Borough. Almost half the
          annual housing requirement is proposed to be delivered at the Garden Suburbs, which
          are concentrated at Brighouse. This is potentially further compounded by the significant
          residential development of 1,460 dwellings planned at Bradley Golf Course to the south
          of Brighouse allocated through the neighbouring Kirklees Local Plan.

          viii.Are the lead-in times and phasing rates for the two Garden Suburb sites
               justified and soundly based? [please note, this question relates to broad
               delivery estimates only. The suitability and overall soundness of these
               sites will be covered in detail at the Stage 2 hearing sessions]

2.20.     Whilst Garden Suburb sites offer the potential to deliver much needed infrastructure
          that infrastructure will take time to deliver. Moreover, a significant amount of
          infrastructure will be required before any meaningful delivery of housing can be
          achieved, e.g. highways infrastructure. The Housing Technical Paper sets out that likely
          lead-in times and build-out rates have been based on research contained in the NLP
          publication ‘Start to Finish – How Quickly do Large-Scale Housing Sites Deliver?’
          (November 2016). Based on this research, an anticipated start date in year 7 is
          considered to be reasonable. However, given the anticipated adoption date of the Plan,
          a minimum of 359 dwellings should be removed from the Council’s anticipated housing
          supply. Moreover, a reduction in the annual delivery rates in line with the NLP research
          would further increase the level of shortfall by the end of the Plan period.

          ix. Should an overall lapse rate be applied to allocations, within the supply
               calculations?

2.21.     Avant considers that an overall lapse rate should be applied to allocations. It is clear
          from the Council’s commentary within the Housing Technical Paper at Appendix 3 that
          many allocations do not have a housebuilder on board and a significant number have
          not been confirmed as being available. Again, DCLG analysis suggested that 10-20%
          of permissions do not materialise into a start on site at all. As a minimum, Avant
          considered that a 10% lapse rate be applied to allocations within the supply calculations.

          d) Does the Plan allow sufficient flexibility to respond to changing
          circumstances? Should an additional buffer be applied to ensure that the
          overall housing requirement is met and exceeded?

2.22.     The Plan does not allow sufficient flexibility to respond to changing circumstances. It
          is imperative that additional flexibility is built into the Plan.

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          e) Is the Council’s approach to calculating five year land supply, as set out
          in Table 6.4 in the Plan, robust and in line with national policy and guidance?
          In particular:

          i.   Why is a stepped requirement not incorporated, in line with the housing
               trajectory (Picture 6.1 and Table 6.3)?

2.23.     It is noted that the Council consider that a 5-year supply of housing can be identified
          on adoption of the Plan, which is based on an average requirement of 840 dwellings
          per annum. It is suggested that whilst some of the large allocations will take some time
          to come on stream, the Council can identify a sufficient supply of homes in the
          intervening period by bringing forward sites from later in the Plan period.

2.24.     Avant do not consider that the Council can demonstrate a 5-year supply of housing on
          adoption of the Plan based on the Council’s housing trajectory. Consequently, given
          that the Plan is heavily reliant on the delivery of the Garden Suburbs, consideration
          should be given to a stepped requirement with a lower requirement in the early stages
          of the Plan period to ensure that a 5-year supply of housing can be delivered. However,
          this would require a higher requirement later on in the Plan period where there is
          already question marks surrounding the suggested build-out rates of the Garden
          Suburbs. This further demonstrates the need to allocate additional deliverable sites to
          ensure that the Plan’s housing requirement can be achieved within the Plan period.

          ii. Is the application of a 20% buffer supported by the evidence?

2.25.     The application of a 20% buffer is supported by the evidence. The Council’s Housing
          Technical Paper shows that the Council has consistently under delivered since 2010/11,
          When measured against the housing requirement of the earlier Core Strategy Preferred
          Options (800 dwelling per annum) and the Local Plan Initial Draft (1,038 dwelling per
          annum), this shortfall is substantial.

          iii. Why are the extant permissions and site allocation totals different from
               those in the housing trajectory? Is a dual approach effective?

2.26.     No comment.

          f) What is the Council’s latest position regarding five year housing land
          supply? Will there be a five-year supply on adoption of the Plan?

2.27.     It is not clear as to whether a stepped housing trajectory or an average annual housing
          requirement is being proposed. This was a question posed by the Inspector in his pre-
          hearing note to the Council (13th February 2019). However, the Council’s response did
          not necessarily answer the question and raised further confusion by setting out that
          the Local Plan Trajectory (Figure 6.1) and the 5 Year Housing Land Supply Position
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          (Table 6.4) represent two separate assessments and are not comparable. However,
          given that the Council states that the row entitled “Annual Five Year Supply
          Requirement” in Table 6.3 and the line in Figure 6.1 will be deleted, it is assumed that
          an average housing requirement of 840 dwellings per annum will be adopted. In any
          event, the Council asserts that it can demonstrate a 5-year supply based on this
          average requirement.

2.28.     Notwithstanding the above, whilst a five year supply calculation is set out in the
          Publication Draft of the Local Plan (Table 6.4), it is difficult to establish how the Council
          has calculated the ‘deliverable land allocations’ in years 1-5 (3,228 dwellings), since
          this does not chime with the housing trajectory set out in Table 6.3 or Appendix 3 of
          the Housing Technical Paper (For reference, these indicate a supply of 2,331 and 2,311
          respectively between 2018/19 and 2020/21). It is noted that the Council asserts that
          the Local Plan Trajectory (Figure 6.1) and the 5 Year Housing Land Supply Position
          (Table 6.4) represent two separate assessments and are not comparable, however, it
          is not clear which sites have been brought forward from later on in the Plan period in
          order to boost the deliverable land allocations figure, if indeed this is the case.
          Moreover, if this is the case, what is the justification for doing so given that the ‘Local
          Plan Trajectory takes into account a number of factors such as the lead in times and
          delivery rate assumptions as well as the significant step change in delivery rates
          required to meet the housing requirement figure in the Local Plan’ (Council’s response
          to Pre-Hearing Note 1).

2.29.     In light of the above, if the Local Plan Trajectory was used to determine land allocations
          deliverable in years 1-5 (i.e. 2,331 dwellings), it is clear that the Council cannot
          demonstrate a 5-year supply of housing with a 20% buffer. This is further compounded
          by the fact that the 5-year supply position set out in Table 6.4 is based on a 2018 base
          year. Given that the Plan is unlikely to be adopted until late 2019 at the very earliest,
          Local Plan Allocations will not be able to deliver as early as anticipated in the housing
          trajectory. Based on this, it would be reasonable to discount 797 dwellings from the
          deliverable supply (the figure currently identified for year 2023/24 in Table 6.3). Again,
          if the Local Plan Trajectory was used to determine land allocations deliverable between
          2019/20 and 2023/24 (minus the 797 dwellings noted above), the Council would still
          not be able to demonstrate a 5-year supply of housing on adoption of the Plan. In fact,
          even if 797 dwellings were not discounted, the Council could still not demonstrate a 5-
          year supply.

2.30.     A further area of concern is the Council’s approach to commitments in its sources of
          supply and the figure of 1,888 dwellings up to 2022/23 is questionable. This figure is
          derived from the table set out in Appendix 4 of the Council’s Housing Technical Paper,
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          which indicates sites with planning permission not yet implemented. However, this
          represents the Council’s position as of 30th September 2017 and is clearly now dated.

2.31.     Appendix 4 identified a considerable number of permissions that had yet to be
          implemented as of the 30th September 2017. The deadline for implementation of many
          of those permissions has now passed and it is not clear whether or not development
          commenced. Whilst the Council’s application of a 10% lapse rate is acknowledged,
          without up-to-date data, the anticipated supply of 1,888 cannot be confirmed.

2.32.     Further to the matter of out-of-date evidence, it is clear that the Council’s annual
          monitoring has been sporadic over the last few years with no Annual Monitoring Report
          (AMR) published for the years 2014/15 and 2015/16. The latest available AMR is the
          for the 2017/18 period, which was published in January 2019. The 2017/18 AMR shows
          289 net completions after housing loses were accounted for, which has followed a
          steady downward trend since 2007/08.

2.33.     The Council have not published their AMR for 2018/19, which is normally scheduled to
          be published at the end of the year in December. It is noted that the Council do not
          intend to deviate from this timetable and will be released when it is available. The data
          will therefore not be available for the Stage 1 Hearing. Consequently, the net
          completions are not known, and it is not possible to determine whether the anticipated
          532 commitments in 2018/19 (Table 6.3 Calderdale Housing Trajectory 2018/19-
          2032/33), have been realised. However, if net completions for 2018/19 are similar to
          2016/17 and 2017/18, this shortfall will need to be met in the following 5 years, thus
          further increasing the pressure to identify deliverable sites.

2.34.     In addition, to the above, this is all predicated to a large degree on the Inspector’s
          acceptance of the Standard Methodology to determine the housing requirement.
          Should this be rejected, as advocated by Avant and significant others, the annual
          housing requirement will be inevitably higher thus requiring more allocations to ensure
          a minimum supply of housing.

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