OFFICERS’ REPORTS TO PLANNING POLICY & BUILT HERITAGE WORKING PARTY – 12 NOVEMBER 2012 PUBLIC BUSINESS – ITEM FOR INFORMATION 1. Local Development Framework Progress Report This report provides a general update in relation to the Local Development Framework and related policy documents and the work of the Major Development Team in relation to allocated Development Sites. 1. Introduction This report provides a general update on the work of the Planning Policy and Major Development Team. 2. Development Briefs The four large scale mixed use sites allocated in the Site Allocations Development Plan at North Walsham (HL Foods), Fakenham (land north of Rudham Stile Lane), Holt (South of the A148) and Stalham (Church Farm) are subject to a policy requirement that development should not proceed until such time as Development Briefs have been prepared and approved. All four sites are being actively promoted for development by the land owners and in the case of North Walsham, Stalham and Holt are either entirely or partly under option/owned by regional house builders. In all four cases there have been various levels of engagement with land owners, developers, agents and local communities in relation to the preparation of Development Briefs. The current position is as follows: North Walsham – Working with ATLAS an overall Vision for the development has been agreed. Based on this vision Hopkins Homes are understood to be preparing a Brief for the site with the intention that this will be subject to public consultation. The draft brief will be reported to the Working Party to seek authority to consult. An application has been approved under the New Anglia LEP Growing Places Fund for a loan of 2.3 million to assist with infrastructure provision. Fakenham – A Draft Development Brief has been subject to public consultation, the Working Party has considered representations made and has declined to approve the brief pending further consideration in relation to the vehicular access proposals and the distribution of public open space. Stalham - A draft brief has been subject to public consultation and following consideration of representations made has been approved subject to further consultation and no objection from the highway authority in relation to access proposals and related conclusions of a draft Traffic Impact Assessment. Stalham Town Council has also been re-consulted and at the time of writing a response is awaited. Any up-dates will be reported at the meeting. Holt – Work is underway on an overall vision and an initial meeting with representatives of the Town Council was held in February this year. Agents acting for the majority landowner are preparing a draft development brief which is anticipated shortly. In due course the draft brief will be presented to the Working Party for Planning Policy & Built Heritage Working Party 1 12 November 2012 agreement as a basis for public consultation. Any up-dates will be reported at the meeting. 3. Site Development Guides In addition to preparing Development Briefs the team is preparing Site Development Guides for some of the smaller housing allocations. These have been produced for the housing allocations at Blakeney, Briston, Corpusty, Horning, Little Snoring, Overstrand and Wells. These Guides are intended to provide the basis for pre application advice to prospective developers and do not have the same status as formal development briefs or adopted Development Plan policies. Each Guide provides an overview of the policy requirements applicable to the site and an indication in relation to how the site might be developed. Preparation of each guide has included consultation with the relevant Parish Council and input from internal and external consultees. 4. Planning Applications and pre application discussions Attached in Appendix 1 is a ‘Site Allocations Progress Tracker’ which lists all the sites included in the Site Allocations DPD and their current varying stages of progress. In Cromer a full planning permission for 50 dwellings on land at Norwich Road (C17) was granted in March this year following completion of a S.106 Agreement. The S.106 includes the requirement for 16 (32%) of the dwellings to be affordable. Development has commenced on site. At Hoveton (HV03) – full planning permission has been granted for 120 dwellings including 45% affordable housing. The Council has not been advised of a formal start date but it is highly likely that commencement on site will be before Christmas. At Holt (HO1) – outline planning permission has been granted for up to 85 dwellings subject to a requirement to deliver 45% affordable housing provided it is viable to do so at the point of reserved matters consent being applied for. There have been no indications in relation to the timing of a further application. It is understood that the site is to be marketed. At Blakeney a full planning application for 26 dwellings (50% affordable) has been approved by Development Committee subject to completion of a S.106 Obligation. The developer has indicated a wish to commence development as soon as possible. An outline application is currently being considered for 26 dwellings in Horning (50% affordable housing proposed). There is an outstanding issue relating to sewerage disposal from the site which it is hoped can be resolved in order to issue an approval. In the coming few months full planning applications are expected to be submitted for land at Roughton Road, Cromer (approximately 150 dwellings), land off Ingham Road, Stalham (approximately 160 dwellings), land at Market Lane, Wells (approximately 120 dwellings) and land off Mundesley Road, Overstrand (approximately 35 dwellings). Recent enquiries have also been received regarding sites at Corpusty (approximately 18 dwellings), Little Snoring (15-20 dwellings), Bacton (approx 20 dwellings) and Weybourne (approximately 6 dwellings). In these cases no clear indication has been given as to the likely submission of a planning application. Planning Policy & Built Heritage Working Party 2 12 November 2012 Collectively, these sites are likely to accommodate in the region of 800 dwellings of which some 300-350 would comprise affordable housing. Proposals have also been submitted, or are likely, on a number of unallocated sites including the former Cherryridge Poultry site at Northrepps, the former court house at Cromer, the former Hilbre School, Sheringham and affordable housing schemes at Aylmerton and the Wells field study centre adding a further 80 dwellings collectively. 5. Community Infrastructure Levy Consultants were appointed earlier in the year to undertake work in relation to Infrastructure Planning and testing the viability of introducing a Levy. Draft reports are due shortly and will be reported to the Working Party. RECOMMENDATION: The Working Party is asked to note the contents of this report. (Source. Mark Ashwell. Extn 6325) PUBLIC BUSINESS – ITEM FOR DECISION 2. RESPONSE TO NATIONAL PLANNING POLICY FRAMEWORK – CORE STRATEGY POLICY HO9 and EC2 This report discusses the potential impacts of the publication of the National Planning Policy Framework in relation to the Councils adopted policy on the re-use of rural buildings and recommends a new approach to the re-use of buildings in the Countryside as dwellings. 1. Introduction The National Planning Policy Framework (NPPF) consolidates and replaces most of the national planning policy advice published by Government in the last decade including Planning Policy Statements (PPSs) and Circular 05/2005 in relation to Planning Obligations. The new framework is applicable to both plan making (policy formulation) and the determination of individual planning applications. A new single framework document was published on 27 March and the previous advice was formally cancelled. The Government expects that as a result of the new framework those Councils with adopted policies may wish, or need, to review their policies and the framework includes a 12 month transitional period to allow for this following which the provisions of the framework will attract greater weight in the decision making process. 2. Background - The NPPF and Policy approach to the re-use of rural buildings Currently, adopted Core Strategy policies are broadly supportive of the re-use of good quality buildings particularly for economic uses including the provision of holiday accommodation. However, in relation to residential re-use the Core Planning Policy & Built Heritage Working Party 3 12 November 2012 Strategy limits the opportunity for residential conversion to the better quality buildings and to the more ‘sustainable’ locations in the district as defined on the Proposals Map (referred to as the H09 zones). (The relevant extract from the Core Strategy is attached at Appendix 2). Outside of these defined zones residential conversions are not usually permitted other than for listed buildings where a residential use may be acceptable if it is shown to be the optimum way of re-using or saving the building. This approach does not appear to be aligned fully with the NPPF which indicates that isolated dwellings may be acceptable in the countryside ‘where such development would re-use redundant or disused buildings and lead to an enhancement to the immediate setting’ (Para 47-55). This issue was considered by the Working Party at both the May and August meetings and an approach was recommended to Cabinet which if adopted would result in a district wide presumption in favour of the residential re-use of good quality buildings. Whilst Cabinet indicated broad support for a more permissive approach to residential use two issues have been referred back to the Working Party for further consideration, namely The extent to which a permissive approach to residential use might impact on the local economy due to the risk of residential proposals displacing/replacing existing economic uses. Should there be policy protection for existing economic uses or should any more permissive approach to residential uses be limited solely to redundant or disused buildings as envisaged in the NPPF? The practicalities and appropriateness of securing a contribution towards affordable housing provision when permission is granted for residential conversions. 3. Economic Impacts One of the successes of the existing policy approach has been to retain a preference for economic, including holiday, uses in many locations in the District. This has resulted in the provision of high numbers of holiday units (over 600 have been granted planning permission in the last decade), either in use as holiday homes or holiday lets, with varying degrees of spin off benefits to the tourism economy. In addition there are also a number of fairly significant commercial uses in former barns such as Bayfield Becks, Wroxham Barns, Roughton Fruit Farm and numerous smaller businesses and visitor attractions. Had the option of a residential use been available for these buildings it is possible/likely that a greater proportion would have been converted into dwellings. The option of a residential use has been available within the designated H09 zones since adoption of the policy in February of 2011 since which time 82 units of holiday accommodation have been subject to applications seeking the removal of holiday occupancy conditions. The potential loss of these businesses and the source of rural employment they provide would be an undesirable consequence of a more permissive approach to residential conversion which needs to be balanced against the benefits of providing additional housing. Indeed, a policy approach which failed to recognise the benefits of both employment and residential development in supporting rural communities would not be ‘sustainable’ in the context of either the Core Strategy or the NPPF. Para 55 of the NPPF is clear, that it is redundant or disused buildings that are being identified as a resource for Planning Policy & Built Heritage Working Party 4 12 November 2012 housing and elsewhere in the Framework it is emphasised that planning policies should support economic growth in rural areas (para 28). It could be argued that any change in the implementation of Policy HO9 should be restricted solely to buildings that fall into the vacant and under used category. However, it would also seem inequitable to exclude good quality buildings currently in commercial uses that are shown no longer to be viable, from the possibly of converting to residential uses in the future. The approach set out below (Table 1) recognises the value of commercial and employment generating uses and the economic benefits of retaining these brings to the rural area and tourism sector. Where these businesses remain viable it is recommended that the presumption should be to retain these uses. However, where there is evidence that a commercial use of the building is no longer viable, or a proposal relates to small scale holiday uses, and the buildings are of merit and suitable for residential conversion, then that opportunity would be available. 4. Affordable Housing The approach set out below will considerably widen the scope for residential conversion in the countryside. It is an accepted approach in the Core Strategy that new residential development should, where it is viable to do so, contribute to the delivery of affordable housing. Policy HO9 already includes an affordable housing requirement which is set at the same level as new housing development in service/coastal service villages, ie. 50% of units provided on schemes of two dwellings or more should be affordable or an equivalent contribution made. However, since the adoption of HO9 in Feb 2011 only one application has generated a S106 Obligation payment (106 currently being drafted), most applications have either: Not triggered the requirement – consisting of single buildings (mostly involving the lifting of holiday restriction on single barns in single ownership), or Demonstrated that it is not viable for a contribution to be made. Despite this policy requirement being subject to a viability caveat, it is argued by some applicants/planning agents that the policy is excessively onerous and fails to take full account of the complexity and costs of high quality conversion schemes. This type of development is currently being considered in the context of the Community Infrastructure Levy and whether it is likely to be viable for such schemes to be subject to future CIL payment. Consultants are expected to report on this in November this year and the findings are likely to offer a better understanding of this issue. However, on face value residential conversions are no different to new build development, in that such development would not be untaken if it were not viable or produce a profit. It is accepted that development costs are high, but balanced against this development value also tends to be high. Therefore the argument for excluding this form of development from the principle of contributing towards affordable housing is not accepted. Introducing a revised affordable housing requirement, that is not evidence based and has not been subject to consultation is likely to be subject to challenge and there would be a risk that this Council would be criticised for not following proper policy making procedure. It is therefore recommended at this stage that buildings that fall within the widened scope of HO9 be subject to the same affordable housing requirements set out in currently adopted policy, namely that Planning Policy & Built Heritage Working Party 5 12 November 2012 an affordable housing contribution will be negotiated on schemes of two or more converted units where it is viable to do so. 5. Recommended Approach The following table suggests a revised approach to the residential re-use of buildings in the Countryside Policy Area. It recommends no change to current adopted policy in relation to those buildings located within the H09 zones but would introduce a more permissive approach to residential re-use in the remainder of the Countryside Policy Area to reflect the NPPF. The suggested approach would be subject to quality tests for all buildings and viability tests for those in beneficial economic uses, and retention of the current affordable housing requirements (negotiated contribution on schemes of two or more) pending further consideration of this issue through the preparation of the Community Infrastructure Levy. Table 1 Re-use of rural buildings as dwellings (post NPPF publication) Good quality* buildings within HO9 zones – No change to adopted policy Conversion of vacant Allow conversion/re-use for No change to HO9 – residential and buildings in residential purposes conversion only allowed for good existing uses to quality buildings, where the economic dwelling(s) value of existing uses has been considered (adequacy of provision test) and a contribution is made towards affordable housing where viable. Good quality* buildings of merit outside HO9 zones – amended position in light of NPPF Conversion of a Allow conversion to Apply HO9 criteria 3-5 (scale of vacant building to residential development, building quality, and dwelling(s) affordable housing requirements) Seeking lifting of Allow lifting of restriction – Apply HO9 criteria 4 and 5 (scale of holiday restrictions to where in non-commercial development and affordable housing allow full residential holiday use/second home requirements) occupancy. use. Conversion of Allow residential use where Viability test applied to existing buildings in, or last it is demonstrated that an businesses including larger holiday in, use as an economic use is no longer complexes of five or more units + HO9 employment viable. This test to be criteria 3-5 (scale of development, generating use, applied to existing building quality and affordable housing including commercial commercial uses, requirements). holiday (EC8 groups excluding small numbers of of 5 +) holiday units and second/holiday homes. All Listed Buildings irrespective of location Allow residential where it Apply HO9 criteria 3-5 (scale of constitutes optimum viable development, building quality and use (Optimum viable use affordable housing requirements). being the optimum use for the building rather than a financial viability test) *the building is worthy of retention due to its appearance, historic, architectural or landscape value (HO9 criterion 2) Planning Policy & Built Heritage Working Party 6 12 November 2012 The approach set out in Table 1 constitutes a sustainable approach to the conversion and re-use of rural buildings as dwellings and would: Widen the scope of Policy H09 and allow additional new homes to be created through the conversion of good quality rural buildings. Whilst extending the opportunities for residential re-use the Council would nevertheless retain a building quality test to ensure that only good quality buildings which were worthy of retention would qualify. Provide a viable future use for redundant buildings that are worthy of long term retention, protecting the rural built heritage of North Norfolk. Allow good quality conversions that have been used as second homes to be used on a permanent residential basis. Increase the supply of new homes in rural communities Where it is viable to do so contribute to the provision of affordable housing in the district Provide the opportunity for residential conversion of good quality buildings where existing economic uses cease to be viable. Provide policy protection for viable economic uses except for small groups of holiday units (5 or less). RECOMMENDATION To Cabinet that in response to the NPPF the Council applies the approach outlined in Table 1 to the re-use Re-use of Rural Buildings in the Countryside as Dwellings. (Source: Tracy Armitage, ext 6304) Planning Policy & Built Heritage Working Party 7 12 November 2012