North Norfolk Housing Strategy 2012-2015 (Housing and Infrastructure) Foreword The Council has set itself a challenge to ensure that “everyone in North Norfolk should have the opportunity to buy or rent a decent home at a price they can afford, in a community where they want to live or work”. This will be difficult in the current economic climate when both nationally and locally we have seen the number of new homes built reduce to their lowest levels for many years whilst the need for new homes continues to increase. We need to ensure that we are taking every opportunity to increase the supply of homes in the District and in particular to address the need for more affordable dwellings. Despite the difficulties there are some exciting opportunities. The publication of the Localism Act and the revised National Planning Policy Framework will allow us to work more closely with communities and develop new and flexible approaches to housing development and to ensure that more of these address local needs and are matched by the provision of facilities, jobs and services. For the first time in many years the Council has identified large scale development sites which will deliver homes, jobs, open spaces and other facilities and we will work closely with communities to ensure that these are attractive places to live. The actions outlined in this document are ambitious but realistic. We have brought together a range of possible interventions that will allow us to be more proactive in supporting housing growth. Our role as an enabler is even more critical at a time when land allocations, planning policies and obligations, public and private finance, infrastructure and community expectations all play a part in determining the viability of future development. We will undertake a review of our processes, develop new partnerships, and seek to be flexible and innovative in our approach to housing developments. Where communities wish to support additional development we will enable this. Introduction Purpose of document This document is the first in a suite of three that will be developed and which together will outline the Council‟s strategic approach to housing to meet our vision that: „everyone in North Norfolk should have the opportunity to buy or rent a decent home at a price they can afford, in a community where they want to live or work‟ 1 This document focuses on delivery against the Council‟s Housing and Infrastructure priorities as outlined in the Corporate Plan and is supported by an adopted Core Strategy, a Site Allocations Plan and a Local Investment Plan. „ The second outlines the Council‟s strategic approach to making best use of the existing housing stock including reducing the number of empty homes in the District and is supported by a Housing Enforcement Policy, Housing Renewal Policy, Housing Register Policy and allocations policies. The third document outlines the Council‟s strategic approach to supporting residents to live independently and is supported by a Housing Enforcement Policy, Housing Renewal Policy, Housing Register Policy and allocations policies as well as the Homelessness Strategy. Housing Supply Where we are now and what are the issues to be addressed? There were 52,598 dwellings on the district‟s valuation list as of 1 October 2011 (CTB1 return). Of these the vast majority are privately owned (75%), 6041 (12%) are social housing, an equivalent number are privately rented (12%) and approximately 1% are in public ownership. The number of homes in the District is expected to increase by around 10% in the next decade. A Strategic Housing Market Assessment and Housing Need Survey prepared jointly with adjacent authorities in 2007 identified that the District had high levels of both demand, and need, for new homes, that much of the demand for housing was the result of inward migration (those seeking to retire to North Norfolk), and that the existing housing stock in terms of size and affordability was not aligned with demand. The Council‟s Core Strategy was adopted in September 2008 and provides the overarching approach for development in North Norfolk, setting out a long term spatial vision, objectives and policies to guide public and private investment up to 2021. It provides a clear vision for how new development can address the challenges faced in North Norfolk identifying where, when, how much and how new development will take place in the area. It also provides a detailed framework for the control of development and land use that guides planning decisions in North Norfolk with policies covering specific topics such as affordable housing, housing density, provision of infrastructure, flood risk, coastal erosion, redundant defence establishments and protecting the natural and built environment. The Core Strategy was updated in February 2011 to reflect the adoption of a new policy on the Conversion and Re-use of Rural Buildings as Dwellings. The Core Strategy directs the majority of new residential development (approximately 50%) to the Principal Settlements of Cromer, Fakenham, Holt and North Walsham with more limited development opportunities (20% of new homes) in the Secondary Settlements of Hoveton, Sheringham, Stalham and Wells-next-the-Sea. A small amount of new development is focussed on a number of designated Service Villages in order to support rural sustainability. In the rest of the District known as the Countryside Area development is limited to particular types of development including affordable housing. This settlement hierarchy is designed to ensure that the type and quantity of development planned reflects the role and character of each settlement with particular consideration being given to the role each can play in providing additional housing and in supporting the wider economy of the District. The allocation 2 of larger sites for new residential development in the towns and larger villages seeks to maximise the provision of affordable housing and improvements to infrastructure in addition to boosting local employment opportunities. The Site Allocations Development Plan adopted in February 2011 identifies which sites should be developed in order to achieve the broad aims of the Core Strategy. It includes allocations for new housing, employment, retail and other development together with other uses of land such as parks and open space. The Core Strategy acknowledges that the level of development proposed on some allocated sites will not be possible without improvements in infrastructure, particularly utility provision which may result in development of the sites being delayed and the need to phase residential development. The Core Strategy acknowledges that there is an imbalance between the existing housing in the area and the needs of those requiring housing. There is a preponderance of larger detached dwellings and a shortage of smaller cheaper properties which has exacerbated the difficulties faced by households on low average incomes in being able to afford to meet their housing needs in the housing market. The Core Strategy seeks to address this imbalance by requiring that the new housing built meets the needs of a wide range of households and that the needs of specific groups are met including older people and those with disabilities. In addition it requires developers to provide a proportion of affordable housing dependent on site size / the number of dwellings to be built and location and for this to be provided without public subsidy subject to market conditions and economic viability. Wherever possible affordable housing should be provided on the site triggering the provision and integrated within the market housing however it may be reasonable in some circumstances for a financial contribution in lieu of on-site provision to be made, particularly for smaller sites, sites being developed for a specific purpose which could not easily accommodate the type of housing to meet identified needs for affordable housing e.g. retirement housing complexes and sites being developed under the Conversion and Re-use of Rural Buildings as Dwellings policy. The provision of more housing supported by appropriate infrastructure is a key priority for the Council and this is reflected in the Council‟s Corporate Plan 2012-2015 which includes the following strategic objectives: To increase the number of new homes built within the District To increase the number of affordable homes with a range of tenure types To secure investment in new infrastructure This strategy has been produced at a time when housing delivery in three of the last five years has fallen below required targets. The legal and planning framework within which the Council operates has changed through the passing of the Localism Act 2011 and the publication of the new National Planning Policy Framework which together provide an opportunity for the Council to review it‟s approach to housing provision. The Council will take a progressive and flexible approach which supports the achievement of the Council‟s vision and which will ensure that the Corporate Plan strategic objectives are met. The Action Plan for this strategy sets out the actions that the Council will take to deliver the vision over the next 3 years. For example, we will consider the 3 opportunities to provide more housing through our policy on the re-use of rural buildings, support and encourage communities to prepare Neighbourhood Plans and ensure that we target our own resources to maximise housing provision. 4 Housing and Infrastructure Action Plan Increasing the supply of new homes Each year the Council is required to publish a document1 which identifies the quantity of land in the District which is likely to be available for housing development over the next five years. The amount of land available is then compared with the housing land requirements for the District in the adopted Core Strategy. The Council aims to retain a rolling five year supply of land, plus a contingency of between 5% and 20%, which is available and suitable for development so that housing targets can be met. In North Norfolk the East of England Plan and the adopted Core Strategy require that a minimum of 8,000 dwellings are built over the 20 year period from 2001 to 2021. The Authority therefore plans, on average, to ensure that at least 400 dwellings can be built in each year. In the first ten years of the plan period the rate of new dwelling completions has fallen behind this annual average mainly as a result of there being few larger development sites available over this period and as a consequence of the recent slowdown in the local housing market. In the remaining years of the plan period the Council will plan to make up the deficit. As of April 2011 the annual average requirement had risen from 400 to 477 dwellings (inclusive of a 5% buffer) resulting in a five year land supply requirement of sites suitable for 2,385 dwellings (477 dwellings x 5 years = 2,385 dwellings). The Council is not a direct provider of housing and is therefore dependant on the actions of others to deliver the required homes. Nevertheless by taking such measures as exercising regulatory powers positively (planning controls),developing effective partnerships, seeking funding opportunities, and deploying resources effectively the Council can encourage the delivery of more homes in the District. The Council will take the following actions to help increase the quantity, and speed up the delivery, of new homes in the District. Actions Outcome We will ensure that sufficient land is available in the District at all times to accommodate the next 5 years of planned growth A five year supply of available and suitable land for housing development Annual review We will establish better engagement with developers, land owners and Earlier development of sites Commenced/ Planning Policy continuous and on- Manager going 1 Timescale Housing Land Supply Statement. Published annually. NNDC 5 Lead Officer Planning Policy Manager infrastructure providers and seek to positively bring forward development proposals We will prioritise the completion of Development Briefs on large allocated sites The production and approval of Development Briefs on the four large mixed use development allocations at Fakenham,North Walsham, Holt and Stalham Complete by Spring of 2013 Planning Policy Manager We will undertake a review of sites with planning permission to establish why development is not progressing Establish mechanisms for bringing forward development that already has planning permission Complete by December 2012 Planning Policy Manager Completion of review and actions agreed Complete by Spring 2013 Planning Policy Manager Production of Neighbourhood Plans for those communities that wish to prepare one Commenced (Holt) and on-going Planning Policy Manager We will seek to maximise funding to deliver more homes Applications to funding bodies (eg LEP, HCA, Government) On-going Planning Policy manager/ Housing Services Manager We will give pre application advice and prepare Site Development Speed up the process of dealing with planning applications On-going Planning Policy Manager We will undertake a review of the Council‟s approach to the re-use of rural buildings as dwellings We will positively support local communities that have an aspiration to deliver additional homes through Neighbourhood Plans 6 Guides to inform the preparation of planning applications We will undertake a review of the impacts of planning policies and obligations on the viability of development Complete review and agree further actions as required Complete December 2012 Planning Policy Manager We will undertake a review of our Local Lettings Agreement Complete Review Complete by September 2012 TBA Extend opportunities for Local Lettings. Increasing the number of affordable homes with a range of tenure types In recent years most of the affordable housing delivered has been delivered with public subsidy either from central government through the Homes and Communities Agency or with funding from the Council. The funding available to the Homes and Communities Agency for its 2011-15 investment programme has been significantly reduced and Registered Providers now have to generate investment income and capital receipts to contribute to the funding of the development of new homes under a much more stringent contractual arrangement. In addition some Registered Providers are struggling to find lenders who will provide development finance at attractive rates. There is a risk that Registered Providers will lack the necessary financial capacity to deliver against the aspirations of the Council. At the same time the Council cannot continue to provide funding in the form of grant and is looking to provide more sustainable means of supporting Registered Providers in the delivery of affordable housing through the provision of loans. The Council is concerned that the requirement to deliver high levels of affordable housing might affect the delivery of housing in the District and is prepared to be flexible in its negotiation of affordable housing to support the delivery of viable schemes. The Council will consider accepting a wider range of affordable and intermediate products to support viability and assist residents into home ownership. The Council is considering how such an approach can also be supported through the provision of mortgages or through mortgage indemnity schemes. A significant proportion of the affordable housing delivered in recent years has been on exception housing schemes. The Council will continue to support the development of such schemes and in the absence of public funding will consider whether such schemes can be funded in part by the inclusion of an element of market housing. Action We will produce guidance on our Outcome Timescale Guidance produced 7 Autumn 2012 Lead Officer tba approach to assessing viability on residential developments We will take a flexible approach when determining the size and type of affordable housing products to be delivered on sites to maximise delivery and support viability Delivery of a range of affordable housing products On-going tba We will actively work with town and parish councils and Registered Providers to identify suitable sites for the delivery of affordable housing Forward programme and pipeline of affordable housing schemes On-going tba We will seek to maximise investment in the delivery of affordable housing in the District by Registered Providers and the Homes and Communities Agency by informing and supporting contract negotiation and supporting delivery against agreed contracts Delivery of affordable housing as part of contracts between Registered Providers and the Homes and Communities Agency 2011-2015 tba We will seek to maximise reinvestment in the delivery of affordable housing in the District by Registered Providers using Use of investment income and capital receipts by Registered Providers to deliver affordable housing On-going tba 8 investment income and capital receipts e.g. from the use of Affordable Rent tenancies, disposals, Right to Buy receipts We will explore opportunities to invest in the delivery of affordable housing in the District e.g. through the provision of loan finance to Registered Providers Consideration of legal and financial implications and risks of investing in the provision of affordable housing March 2013 tba We will establish a framework for the inclusion of elements of market housing within rural exception schemes. Agreed approach for the inclusion of market housing within rural exceptions development. Complete Dec 2012 Planning Policy Manager We will support communities, Registered Providers and developers to bid for funding to support the delivery of new homes e.g. First Buy, Get Britain Building Funding opportunities identified and support given to bids On-going tba We will uphold Section 157 restrictions on former Right to Buy properties ensuring that such properties remain available for local people and contribute to the range of affordable housing tenures Refusal of requests to lift Section 157 restrictions On-going tba 9 We will explore the relative merits of schemes to support residents in buying their own home e.g. mortgage loan schemes, mortgage indemnity schemes Report to Cabinet to consider the legal and financial implications and risks of providing schemes to support residents in buying their own home March 2013 tba Securing investment in new infrastructure A key factor in the successful implementation of Core Strategy policies is the infrastructure required to bring forward development. There is widespread acknowledgement that past public under-investment has led to pressure on a range of public utilities across the country. In North Norfolk key infrastructure constraints include poor public transport, limited sewage treatment works capacity, energy supply, education and health provision. These issues were taken into account in the development of the Core Strategy, however there remain outstanding issues that may lead to a requirement to delay or phase new development in order to ensure that it is not built / occupied until the infrastructure is available to support it. Actions Outcome Timescale We will review our processes for the preparation of Section 106 Agreements Published negotiation protocol We will review our processes for ensuring Section 106 obligations are complied with. We will consult and then obtain agreement on a charging schedule to achieve investment in new infrastructure Lead Officer Complete April 2013 Planning Policy Manager Timely provision of supporting infrastructure Complete 2013 Planning Policy Manager Introduction of the Community Infrastructure Levy Complete by September 2013 Planning Policy Manager Development of standardised clauses, Monitoring and review The delivery of the strategy (Housing and Infrastructure) and progress against the action plan will be monitored on a regular basis by the Head of Economic and Community Development. The actions will be reflected in the relevant Service Business Plans and appraisals of individual officers and formally reviewed on an 10 annual basis. In addition progress against the actions which are also included in the Corporate Plan Action Plan 2012/13 will be reported to Cabinet through the Performance and Risk Management Board. Any issues affecting the delivery of the strategy which could result in the need to review the Core Strategy will be considered by the Planning Policy and Built Heritage Working Party. The Council will publish annual performance monitoring reports to include a statement of the supply of land available for housing development, a housing trajectory to provide information on the quantities and types of homes built and expected to be built in coming years. 11