Written Statement in response to the Environment, Planning and Countryside Committee’s Report into the ‘Planning aspects associated with the provision of affordable housing and sustainable communities in the countryside

Purpose: To present the Welsh Assembly Government’s response to the Environment, Planning and Countryside Committee’s Report into the ‘Planning aspects associated with the provision of affordable housing and sustainable communities in the countryside’.

Responses to the Report’s recommendations are set out below. The recommendations follow the Report’s headings and numbering.


Roles and responsibilities

Recommendation 4.5 - The Committee recommends that:

The Welsh Assembly Government develop an all-Wales framework for defining ‘affordability’, to include a suite of options that Local Planning Authorities can select from to define ‘affordability’ within their development plans and section 106 agreements.


1. Accept. The issue of ‘affordability’ will be examined as part of the scheduled revision of Technical Advice Note 2, Planning and Affordable Housing (TAN 2), which forms part of the ‘Planning: delivering for Wales’ programme. A Technical Advisory Group (TAG) made up of stakeholders from the public, private and voluntary sectors with housing and planning interests will be set up in June 2004 to advise on the revision of the TAN. The TAG will be tasked with providing an improved suite of options and indicators for local planning authorities to draw upon in devising their local development plan policies for affordable housing. The aim will be to produce a revised draft TAN for public consultation in March 2005.

2. In addition, research aimed at producing local housing market assessment guidance for local authorities has recently been jointly commissioned with the Office of the Deputy Prime Minister (ODPM) and will cover the Welsh context. The results of this research can also be taken into account in the revision of TAN 2. (Both the Housing Directorate and the Planning Division will be represented on the Steering Group for ODPM’s research.)

3. Financial implications: None. Both the revision of TAN 2 and the contribution to ODPM’s research are covered by existing expenditure lines.


Recommendation 4.6 - The Committee recommends that:

The Welsh Assembly Government supports planning authorities in encouraging flexibility for different affordable housing planning policies to be developed for different parts of Local Planning Authority areas, to respond to local need.  That Local Planning Authorities define ‘local area’ within their development plans, and evidence ‘need’ through Local Housing Needs Assessments and other mechanisms undertaken at local level.


4. Accept. This flexibility is already possible as long as the evidence robustly supports the policy put forward. This is set out in paragraph 9.2.15 of Planning Policy Wales and the scheduled revision of TAN 2 will provide the opportunity to reinforce this point. Any strengthening of the policy in Planning Policy Wales which is deemed necessary can be achieved by means of a draft Ministerial Interim Planning Statement. This would be issued for public consultation at the same time as the draft revised TAN 2 and would probably set out replacement paragraphs for Chapter 9 of Planning Policy Wales.

5. In addition, an underlying aspect of the new Local Development Plan (LDP) system is to make them more directly geographically related. (LDPs will replace the current Unitary Development Plan system in the Autumn of 2005 when the new development plan regulations commence.)

6. Financial implications: None. The revision of TAN 2 is covered by an existing expenditure line.


Recommendation 4.7 - The Committee recommends that:

Local Planning Authorities involve local communities and other stakeholders in identifying local need and developing policies to meet those needs. Local communities should also have a key role in helping to identify potential landowners and sites for the development of affordable housing in their areas.


7. Accept. Local planning authorities are statutorily required to advertise their proposed development plan policies and proposals, to consult various bodies at two stages in drawing them up and to prepare a statement of consultation.

8. Under the current proposals for planning reform in the Planning and Compulsory Purchase Bill, which set out a revised development plan system, local planning authorities will be required to prepare a ‘Community Involvement Scheme’ (CIS) and submit it to the Assembly Government for agreement prior to starting their consultation process.  The process includes an analysis of the impact and effectiveness of the CIS on the emerging development plan and a requirement to submit the analysis before any development plan inquiry. This requirement will be put in place at the same time as the new development plan regulations commence (in the Autumn of 2005).

9. Planning Policy Wales encourages a proactive role for housing and planning authorities to work together to identify locations for the development of housing. The further identification of sites most suitable for affordable housing could be investigated by using the existing Joint Housing Land Availability Studies which are co-ordinated by the Welsh Development Agency in conjunction with local planning authorities, Registered Social Landlords (RSLs) and the House Builders Federation. This will be taken forward via the revision of TAN 1 (Joint Housing Land Availability Studies). A TAG will be set up in June 2004 to inform the revision of the TAN, with the aim of producing a revised draft for public consultation in March 2005. Any amendment of the policy set out in Planning Policy Wales which is deemed necessary can be achieved by means of a draft Ministerial Interim Planning Statement which would be issued for public consultation at the same time as the draft revised TAN.

10. The Assembly Government’s guidance on Understanding Local Housing Needs and Demands also advocates that in producing local housing strategies local authorities should collaborate with RSLs, private developers and voluntary organisations. Wide-ranging consultation should also be undertaken to ensure that all sections of the local community have an opportunity to comment. It is important for planning and housing departments to work closely together to ensure that their local housing strategies integrate with the relevant provisions of their development plans. They need to determine local housing needs and demands across the whole housing system to inform their plans.

11. Financial implications: None.


Planning mechanisms

Recommendation 4.9 - The Committee recommends that:

The Welsh Assembly Government allow flexibility for Local Planning Authorities to innovate within a national planning framework and support them in introducing experimental policies within the framework, and clarify the options, and powers, available to Local Planning Authorities to develop those policies.  Specifically this should include:

I. the use of ‘locals only’ policies;
II. the use of Section 106 agreements;
III. the use of exceptions sites for affordable housing, which should be permitted, where need is evidenced in surveys such as Local Housing Needs Assessment;
IV. the use of targets or quotas for affordable housing, which the Welsh Assembly Government should enable Local Planning Authorities to impose  on developers.  Use of targets and quotas should be included in development plans.

The Welsh Assembly Government revise Technical Advice Note 2 (Planning and Affordable Housing) to take account of the recommendation above.


12. Reject. Local planning authorities already have the flexibility to innovate within the national planning policy framework, provided they can demonstrate evidence-based justification for diverging from national policy. Also, local planning authorities should not introduce “experimental” policies in their area without first justifying them by supporting evidence of particular local circumstances and following the normal policy scrutiny process of the local development plan system. The Assembly Government’s role is to develop new national policy in an inclusive manner and consider all innovative ideas put forward to improve the planning system to further our policy objectives.

13. TAN 2 is already scheduled to be revised under the ‘Planning: delivering for Wales’ programme. This is due to start in June 2004 with the establishment of a Technical Advisory Group (TAG) of key stakeholders (as set out above in response to recommendation 4.5).

14. Regarding the specific issues listed:

i) The position on ‘locals only’ policies was clarified in the then Minister for Environment’s letter of 30 January 2003 to all local planning authorities in Wales. This advice will be set out in the revised TAN 2.
ii) The operation of the planning obligations system (Section 106 agreements) is currently under review, with public consultation on proposed revisions due to take place shortly. This is likely to result in the issuing of revised guidance.
iii) Guidance on the use of rural exception sites is set out in Planning Policy Wales (paragraph 9.2.19). This makes clear that such sites may be considered to help ensure the viability of the local community and local planning authorities should refer to up to date local housing needs assessment or other recent, reliable and robust evidence to support such policies. The revision of TAN 2 will provide the opportunity for further clarity.
iv) Planning Policy Wales (paragraph 9.2.15) states that targets can be set for specific sites if based on evidence of need and site suitability. Development plan policies must indicate that an authority will seek to negotiate with developers where it is intended to include an element of affordable housing in proposed developments. Targets or quotas for affordable housing will be looked at as part of the revision of TAN 2 and, if deemed necessary, could be the subject of a Ministerial Interim Planning Statement, following public consultation.

15. Financial implications: None. Both the production of revised guidance on Section 106 agreements and the revision of TAN 2 will be covered by existing expenditure lines.


Recommendation 4.10 - The Committee recommends that:

The Welsh Assembly Government clarifies the use of ‘locals only’ policies for new housing that is not necessarily classed as affordable and, where there is acute pressure on the housing market, supports local planning authorities in developing such policies, clearly linked to local need as evidence in Local Housing Assessments and other surveys and data as evidence of need.  Such policies would need to be subject to legal scrutiny, on a case by case basis, to ensure that they were not in conflict with Human Rights or other anti-discrimination legislation.


16. Accept. But, as referred to above in response to recommendation 4.9, the Assembly Government’s position on such policies was clarified in the Ministerial letter of 30 January 2003 which was sent to all local planning and housing authorities in Wales. As set out in that letter, and recognised in paragraph 4.10 of the EPC Committee’s report, local planning authorities can already diverge from national policy provided that they can provide evidence-based justification. This advice will be clearly set out in the draft revised TAN 2 for public consultation.

17. The Assembly Government already encourages local authorities to thoroughly analyse their local housing markets and to frame their housing and planning policies accordingly.

18. Financial implications: None.


Recommendation 4.11 - The Committee recommends that:

The Welsh Assembly Government and Local Planning Authorities, regularly monitor the effectiveness of planning mechanisms in supporting the provision of affordable housing and revise policies and guidance in the light of the results.


19. Accept. Monitoring the planning system in order to revise policy in the light of the results is accepted good practice. This will be investigated via the mechanism of the existing Joint Housing Land Availability Studies and the revision of TAN 1 (Joint Housing Land Availability Studies). A Technical Advisory Group will be set up in June 2004 to inform the revision of the TAN, with the aim of producing a revised draft for public consultation in March 2005.

20. Financial implications: None. The revision of TAN 1 will be covered by an existing expenditure line.


Recommendation 4.12 - The Committee recommends that:

 Mechanisms for the sharing of good practice amongst local planning authorities in England and Wales should be established.

 The Welsh Assembly Government consider making funding available for the evaluation of planning mechanisms and sharing of best practice.


21. Accept. The Assembly Government already encourages local planning authorities to share good practice. For example, Planning Policy Wales refers local authorities to the Royal Town Planning Institute publication Working Together: a guide for planners and housing providers. The issuing of further good practice guidance will be examined as part of the revision of TAN 2.

22. Additional resources are being made available to local planning authorities to support the implementation of measures to improve the delivery of the planning service under the ‘Planning: delivering for Wales’ programme. This includes funding for ‘best practice’ work, which could include the evaluation of policy initiatives and the sharing of such information.

23. Financial implications: The revision of TAN 2 will be covered by an existing expenditure line. The additional ‘Planning: delivering for Wales’ funding has already been agreed for 2004/05 and 2005/06 (£2m each financial year), with a provisional allocation of £2m per annum thereafter.


Information and data

Recommendation 4.14 - The Committee recommends that:

 Whilst recognising that this recommendation falls partly within the Social Justice and Regeneration portfolio, the Committee recommends that Local Housing Needs Assessments should be undertaken by all Local Authorities, using a consistent methodology and updated regularly. Local Housing Needs Assessments should be undertaken at ‘local’ level, as defined within the development plan.  Local Housing Needs Assessments and development plans should identify suitable sites for affordable housing provision.

 Additional surveys and research data (based on accepted methodologies) should be accepted alongside Housing Needs Assessments as proof of local need.

 Completed Local Housing Needs Assessments or additional surveys and research data (based on accepted methodologies) should be a pre-requisite of preparing any amendments to housing policies in existing Unitary Development Plans and new Local Development Plans (which will replace Unitary Development Plans under the provisions of the Planning and Compulsory Purchase Bill.)


24. Accept. The information provided by local housing needs assessments is a vital element in local authorities’ understanding of their local housing market and in contributing to the evidence base for developing their housing and planning policies. Detailed guidance has been issued by the Assembly Government on local housing needs assessments and on the broader assessment of local housing markets [Local Housing Needs Assessments: A Good Practice Guide (1999) and Local Housing Market Assessment – An Advice Note to Welsh Local Authorities (2002)]. Grant aid was available to Local Authorities until recently to enable them to undertake needs assessments.

25. Other survey and research data can already provide acceptable proof of local housing need. Planning Policy Wales makes clear (at paragraph 9.2.15) that “the use of other reliable and robust data sources” can be acceptable as evidence of the need for affordable housing.

26. Financial implications: None.


The Welsh Language

Recommendation 4.15 - The Committee recommends that:

The Welsh Assembly Government clarify, by reference to TAN 20 (The Welsh Language – Unitary Development Plans and Planning Control):

I. How the linguistic impact of developments should be assessed, along the lines of environmental impact assessments.

II. How planning policy in relation to the Welsh language should be put into practice.


27. Accept. The Assembly Government is already working with a consortium including local planning authorities and the Welsh Language Board on research that involves investigating and testing the possible use of language impact assessments for planning purposes. The implications of this research for current policy and for guidance on implementation will be considered when the final report is received (currently expected in May 2004).

28. Financial implications: None.


Sustainable development

Recommendation 4.16 - The Committee recommends that:

 The Welsh Assembly Government seek primary legislative changes (if required) to make sustainable building techniques a material consideration for planning purposes.

 The Welsh Assembly Government develop a policy on low impact development and issue guidelines to planning authorities indicating how this type of development can be accommodated by the planning system.


29. Accept. The Assembly Government is promoting sustainable construction through 'Rethinking Construction' and other initiatives. However, it is not appropriate for primary legislation to be used to make “sustainable building techniques” a material consideration, as these relate more to the construction process and the building fabric. We will therefore not be seeking primary legislative changes. The Building Regulations provide a more appropriate means of achieving improved standards of environmental performance and energy efficiency. The Sustainable and Secure Buildings Bill has recently been introduced to allow the Building Regulations to better deal with sustainable construction issues.

30. In relation to planning, material considerations can include the planning policies of the Assembly Government. TAN 12 (Design) promotes sustainable design solutions which make “prudent use of natural resources, incorporate sustainable energy use, waste control measures and provide the means for effective long-term maintenance, efficient operation and management.”

31. Also, the Assembly Government is currently collaborating in research into Low Impact Development (LID) and the planning system. Any recommendations from this research regarding developing policy will be considered.

32. Financial implications: None.







Availability of land

Recommendation 4.18 - The Committee recommends that:

 The Welsh Assembly Government examine the scope for supporting the purchase of private land for affordable housing.

 The Welsh Assembly Government encourage public authorities to allocate publicly owned land for affordable housing and clarify the position regarding ‘best price’ for the sale of publicly owned land for affordable housing.

33. Accept. The availability of both private and publicly-owned land is an important issue in the provision of affordable housing. However, the majority of affordable housing provided by RSLs already takes place on land purchased from the private sector and detailed guidance is provided in the Assembly Government’s Social Housing Grant procedures.

34. In introducing a new General Disposal Consent under the Local Government Act 1972 (which came into effect on 31st December 2003), the Assembly Government has already clarified the position regarding achieving ‘best price’ for the sale of publicly-owned land and provided much greater freedom for an authority to dispose of land where this is in the interests of the economic, social or environmental well being of the whole or any part of its area.

35. The Assembly Government has also recently consulted upon proposals to issue two general consents which will provide authorities with considerable scope to provide financial assistance towards the provision of affordable housing using their own land or vacant council dwellings. The proposals were welcomed by consultees and the Minister for Social Justice and Regeneration has recently resolved to issue the consents following the completion of relevant procedures. The accompanying circular and explanatory note will help clarify the position on the disposal of land for the provision of affordable housing and should encourage authorities to identify land for this purpose.

36. Financial implications: None. The cost of implementing the proposals is covered by existing expenditure lines.


Resources

Recommendation 4.19 - The Committee recommends that:

The Welsh Assembly Government discuss with the UK Government the use of receipts from fiscal and funding policies, e.g. VAT, Council Tax and Capital Gains Tax, to support the provision of affordable housing.


37. Accept. The Assembly Government meets with the Treasury and discusses financial matters on a regular basis and will raise these issues as part of those discussions.  However, fiscal policy is a matter reserved to the Treasury, as is the hypothecation of Exchequer income to particular policy areas.   As such, it would be for the UK Government to implement new rules as regards the use of taxation income.  The use of Council Tax proceeds is for local authorities to determine based on their assessment of local needs.

38. In February this year the Assembly Government introduced new Council Tax regulations that will permit local authorities to vary or end the discount they currently give to owners of long term empty homes. The aim of these regulations being to bring more long-term empty properties back in to use.

39. Financial implications: None.