OFFICERS’ REPORTS TO PLANNING POLICY & BUILT HERITAGE WORKING PARTY – 24 JUNE 2013 PUBLIC BUSINESS – ITEM FOR DECISION 1. NORTH NORFOLK BUILDINGS AT RISK REGISTER This report considers the adoption of the Council’s own Buildings at Risk Register and explains the process by which Listed Buildings and Scheduled Ancient Monuments come to be identified on the register. It provides a brief list of the proposed entries in appendix form and advises that a full copy of the draft register has been placed in the Members room. 1. INTRODUCTION Among its many functions, North Norfolk District Council has a responsibility to manage its important stock of 2250 listed buildings and 83 scheduled ancient monuments (collectively known as heritage assets). This it does principally through the normal planning process and by using the enforcement powers available. In addition, it also has the option to maintain a register of heritage assets which are considered to be „at risk‟. Until a couple of years ago, such a register was compiled by the County Council on behalf of the districts and was extremely successful at drawing attention to problem buildings within the County. Occasionally, simply identifying a building would bring forward repair and reuse proposals from owners. For this reason, and because it offers a useful monitoring tool of the health of the District‟s protected buildings, it is now proposed that this Council adopts its own register. 2. WHAT CONSTITUTES A BUILDING AT RISK? Building are added to the register where they are considered to be „at risk‟ through neglect and decay. They are assessed on the basis of condition and where applicable occupancy (or use). They range from buildings which are virtually on the point of collapse to those that are just a bit ragged around the edges. This is reflected in the A-F risk categories outlined below. Entries are confined to Listed Buildings of all grades and to above ground monuments. In compiling the register, it is worth mentioning that inclusion does not necessarily imply criticism of the owners of the sites listed, some of whom will be actively seeking ways to secure their future. It should also be noted that the register is not a comprehensive or exhaustive list due to the sheer logistics of visiting all heritage assets. It has therefore been compiled using the base information contained in the County Council‟s last register which has then been revised and updated through recent officer inspections and experience. 3. THE STRUCTURE OF THE REGISTER As Members can see from the copy lodged in the Members Room, the register is arranged alphabetically by Parish. Under each entry, the individual building is then identified along with its designation reference(s) and the date it was listed or scheduled (where known). The sub-headings of “Condition” and “Occupancy” then follow under which entries are graded according to their current state (Very Bad, Poor and Fair) and their use Planning Policy & Built Heritage Working Party 1 24 June 2013 (Occupied, Part Occupied, Vacant and Not Applicable). These are then jointly assessed, along with the likelihood of finding a solution, to arrive at an appropriate risk category. These categories correspond to those used by English Heritage who currently compile their own Heritage At Risk Register for Grade I and Grade II* Listed Buildings and Scheduled Ancient Monuments. The categories can be summarised as follow: A. Immediate risk of further rapid deterioration or loss of fabric; no solution agreed. B. Immediate risk of further rapid deterioration or loss of fabric; solution agreed but not yet implemented. C. Slow decay; no solution agreed. D. Slow decay; solution agreed but not yet implemented. E. Under repair or in fair to good repair, but no user identified; or under threat of vacancy with no obvious new user (applicable only to buildings capable of beneficial use). F. Repair scheme in progress and (where applicable) end use or user identified; functionally redundant buildings with new use agreed but not yet implemented. ……with „A‟ being the highest priority for action. 4. USING THE REGISTER Once adopted, the register will become a dynamic tool in which entries can be constantly updated, removed and added – the ongoing maintenance to be carried out by the Conservation, Design & Landscape service as part of their wider management role. Although the register does not offer any additional legislative powers, it can be used as part of identifying possible enforcement action (e.g. Repairs or Urgent Works Notices), and in support of any grant aid opportunities. It will also help in highlighting reoccurring problems across the District. The Register will be held principally in hard copy form (a full draft of which can be viewed in the Members Room). For the purposes of this report, an abridged list of the proposed entries is attached at Appendix 1 for convenience. In due course, an option also exists for the register to be publicised on the Council‟s website to raise wider awareness - the owner‟s contact details would need to be removed in this event. Regular liaison would also need to take place with English Heritage to ensure there is some consistency across the two respective registers. 5. THE REGISTER IN SUMMARY Members will note that 52 buildings have currently been identified as being „at risk‟. Of these, 18 are ruins and structures which are incapable of beneficial reuse. They are therefore likely to remain on the register for some considerable time. Of the remainder, the main use categories involve 8 residential entries, 7 commercial entries, 6 agricultural entries and 3 ecclesiastic entries. Each of these will have their own particular problems which may stem from their form, location or ownership and which undoubtedly require bespoke solutions. Where progress is being made, this is briefly outlined under the “Comments/Action sub-heading. RECOMMENDATION That Members note the contents of the North Norfolk Buildings at Risk Register and authorise its adoption by the Council. (Source: Chris Young, Senior Conservation & Design Officer, ext 6138) Planning Policy & Built Heritage Working Party 2 24 June 2013 2. HOLT DEVELOPMENT BRIEF This report provides a summary of the representations made in relation to the draft Development Brief for Land at Heath Farm, Hempstead Road, Holt following the recent public consultation. INTRODUCTION The adopted Site Allocations Development Plan (Policy HO9) allocates approximately 18.5 hectares of land for a mixed use development comprising residential development, employment uses, open space and community facilities. Adopted Development Plan policy requires the prior preparation of a development brief to inform detailed proposals for the site. Details of a draft brief were reported to the Working Party at the meeting on 14 January 2013 when it was agreed that this should be the subject of public consultation. The consultation took place from between 22 April and 20 May. This included a permanent exhibition at Holt library and a „drop-in‟ event held at St Andrews Church Hall on 30 April when Council officers were present to discuss the draft brief with members of the public. Details of the brief have also been available on the Council‟s website. A copy of the „Illustrative Masterplan‟ which forms an integral part of the draft brief is attached as Appendix 2. This report provides a summary of the representations that have been made and indicates where changes to the brief are considered necessary prior to it being formally approved by the Council. THE PURPOSE OF THE BRIEF AND WHAT SHOULD BE CONSIDERED AT THIS STAGE. A Development Brief comprises an intermediate step between the formal allocation of a site for development and the grant of planning permission. A brief can include varying degrees of detail but its main purpose is to lay down a set of standards against which future development proposals can be considered. They are particularly beneficial on large mixed use sites where it is expected that development will progress over a number of years or be undertaken by a number of separate developers. The preparation of a brief provides an important opportunity for key consultees and the wider public to influence the final form of development. Policy HO9 of the Site Allocations Development Plan requires that the brief for Holt should address the following: Access from the A148 and sustainable transport Layout Phasing (including the phased provision of serviced employment land Conceptual appearance Consideration of the brief is not an opportunity to amend adopted policies which in the case of the site allocations already approve the principal of the land being developed and the mix of uses. Neither should the brief attempt to predetermine Planning Policy & Built Heritage Working Party 3 24 June 2013 issues of detail that can be considered at planning application stage when specific proposals will be made. SUMMARY OF THE DRAFT BRIEF The brief is divided into five main sections: Planning Policy Context - refers to both local and national planning policies which are relevant to the site. Site Analysis - describes the site and its surroundings, ownership details and relevant elements of its physical environment, including the constraints which will influence development of the site. Vision Statement - a vision identifying key components in relation to development of the site as previously agreed in consultation with the Town Council. Development Framework - this forms the main part of the brief. It identifies the distribution of land uses, details of access, open space provision and design related principles. Also includes the illustrative masterplan. Implementation - this describes the likely phasing of development and in particular what infrastructure and amenity provision is required at each development phase. SUMMARY OF REPRESENTATIONS A total of 13 representations were made from members of the public. These can be viewed in full, together with the responses from Holt Town Council and consultees in the „Responses to Public Consultation‟ attached as Appendix 3. As reflected in the relatively low response received to the public consultation the principle of developing the site as outlined in the brief has not proved to be locally controversial, Comments received have concentrated more upon certain details of the overall development and its implementation, notably in relation to the provision of road and pedestrian access. Under the following headings the key elements of the brief are discussed together with an officer response under each heading, in the light of the responses received. AMOUNT OF DEVELOPMENT Policy HO9 refers to the site accommodating approximately 200 dwellings. However the development brief recognises that the site is actually larger than referred to in the Site Allocations DPD (approximately 18.5 ha. as opposed to 15.0 ha.) As a consequence the brief refers to the site accommodating between 275 – 290 dwellings. Only one objection has been received citing too much housing development and this is made in connection with the absence of sufficient car parking provision in the town centre. With regard to the amount of employment land provided, the brief exceeds the amount referred to in Policy HO1 (approximately 5.5 ha. as opposed to 5.0 ha). The remainder of the site would comprise approximately 3.5 ha. of public open space and peripheral landscaping. Officer Response: That no changes are made to the amount of development proposed in the brief. Planning Policy & Built Heritage Working Party 4 24 June 2013 DISTRIBUTION OF LAND USES The Illustrative Masterplan which forms an integral part of the development brief (attached as Appendix 2) shows where the respective housing, employment and open space is to be distributed across the site. As can be seen from the masterplan, housing development which would represent the single largest take up of land is shown to occupy the central and south-western parts of the site; employment uses on the southern and eastern parts of the site; and open space (a single connecting area) extending from within the housing development towards the north-western part of the site. Once again this aspect of the brief has generated very little comment other than one suggestion that housing development should front onto Hempstead Road. Officer Response: That no changes are made to the distribution of the various land uses as illustrated on the masterplan accompanying the development brief. TRAFFIC MANAGEMENT AND PEDESTRIAN LINKAGES A pre-requisite of any new development is that it provides effective and safe access both for vehicles and pedestrians / cyclists. In the public responses received, traffic and access issues constitute the single topic most referred to. The development brief confirms that a new roundabout access road would serve the development from the Holt bypass (A148). This access would provide a link through the existing industrial estate onto Hempstead Road. Hempstead Rd connects with the A148 and the brief states that measures should be implemented to deter heavy goods vehicles from using Hempstead Road once the link road is completed (it is unspecific as to what precisely these measures would be). All the new development plus the adjoining industrial / commercial premises on Hempstead Road would have access onto the new link road, with the possible exception of a smaller element of the housing development (70-75 dwellings) on the western part of the site, which could potentially be served from Hempstead Road („subject to detailed discussion with the Highway Authority‟). In terms of pedestrian / cycle access the brief refers to two routes, one (preferred primary route) leading from the housing development, through the open space towards the junction of Hempstead Road and the A148 (where there is a pedestrian underpass to the town centre); the other (secondary route) from the housing development through the employment land to Hempstead Road. The main messages arising from public responses are as follows: The restriction of heavy goods vehicles using Hempstead Road is supported. The link road needs to be completed as soon as possible. Public transport needs to be catered for as part of the development. Safe, well lit, direct footpaths / cycleways required early on as part of the development. Planning Policy & Built Heritage Working Party 5 24 June 2013 Officer Response: The main principles of the access arrangements as defined in the brief (i.e. the route of the link road and pedestrian / cycle linkages) would appear to represent the best options available for development of the site. However at the time of preparing this report a formal response to the brief from the Highway Authority was still awaited. Clearly this has an important bearing on whether any changes need to be made to the brief to reflect the Highway Authority‟s position. Members will be updated at the meeting. PHASING OF DEVELOPMENT The brief illustrates how the majority of the residential development could be provided in three sequential phases together with the access infrastructure, open space and employment land which will be required to be provided with each of these phases. Similar requirements apply to other parts of the site which the brief recognises could potentially be developed out of any particular sequence with the rest of the site. Public responses regarding the phasing of development relate primarily to the early completion of the link road and consequent removal of HGV‟s from Hempstead Road as well as the importance of providing good quality open space facilities for the new residents. In terms of completion of the link road the brief states that it would need to be completed during the second phase of residential development. The exact timing of this would need to be secured by a S.106 Obligation linked to a planning permission, but on this basis the road would only be completed after anything up to a maximum of 200 dwellings had been completed. In terms of pedestrian / cycle access the brief states that such link(s) towards the town centre should be provided with the first phase of residential development. Officer Response: The phased development of the site as illustrated the brief follows a logical sequence beginning with a phase of housing which would deliver the road access onto the A148. There is clearly a preference to deliver the whole of the link road as soon as possible, but this will be influenced by development viability issues. It is important that pedestrian links are provided as part of the first phase of housing, as the brief requires, although the challenge to developers will be secure agreement with adjoining landowners to achieve this. Subject to the response from the Highway Authority it is not suggested that any changes are made to the phasing details as proposed in the brief. CONCLUSIONS The consultation undertaken has not raised any fundamental issues with the content of the draft development brief. Certain changes to the text will be made to reflect comments received from consultees. Access arrangements to serve the site have clearly been highlighted as an issue of public concern and the response from the Highway Authority will have a bearing on any further changes which may need to be made. It is anticipated that this response will be reported at the meeting. Planning Policy & Built Heritage Working Party 6 24 June 2013 RECOMMENDATION: To be reported following the receipt of comments from the Highway Authority. (Source: John Williams – Team Leader Major Developments. Ext 6163) PUBLIC BUSINESS – ITEM FOR INFORMATION 3. LEGISLATION UPDATE – PUBLICATION OF GROWTH AND INFRASTRUCTURE ACT This report provides an overview of the provisions of the Growth and Infrastructure Act in relation to land use planning and explains new allowances for undertaking development without the need to apply to the Council for planning permission. 1. Introduction The new Growth and Infrastructure Act 2013 has gained Royal Assent and is now law. A raft of measures are included which are aimed at kick starting economic growth. This report outlines the main provisions which variously aim to assist economic recovery by removing the need for planning permission for some types of development, streamlining planning application processes, and introducing „special measures‟ for those Council‟s which do not meet national performance standards. 2. Key Provisions In relation to planning the key provisions are: Section 106 Agreements - The Act allows the modification or discharge of the affordable housing elements of section 106 planning gain agreements in order to make developments more viable. Modification of legal agreements has always been possible but these provisions are intended to streamline the process and remove previous restrictions on time periods within which amendments were allowed (previously five years). New Permitted Development Allowances - The Act enables measures to extend permitted development rights to allow single-storey rear extensions of up to eight metres (six for attached dwellings) together with some other extensive alterations (relaxations) to the rules governing what requires planning permission. (Summary attached as Appendix 4). A late amendment to the legislation requires neighbours to be consulted on home extensions that do not require planning permission. This will be the responsibility of the planning authority which will retain the option to refuse permission only if neighbour objections are made. These provisions came into force on the 30th of May as an amendment to the current General Permitted Development Order. Many of the new permitted development allowances, including those for residential house extensions, can only be exercised following a process of prior notification or, in some cases, prior approval by the planning authority. These processes inform the authority of intended development and in the case of prior approval allow for consideration of some limited issues, for example flood risk, but not the principle of development. Currently these types of process do not attract the payment of an application fee notwithstanding that they introduce significant additional complexity and cost to the development management process. Government is considering the introduction of fees for some prior approval processes but not those relating to house extensions. Planning Policy & Built Heritage Working Party 7 24 June 2013 The planning legislation now defines four categories of development proposal: Proposals which are minor and not development as defined in the Planning Act - Planning permission is not required. Proposals that are development as defined in the Act but are a type of development that is permitted by the General Permitted Development Order (GPDO). Planning permission is not required. Proposals that are development, are permitted development in the GPDO but the permitted development allowance can only be exercised after a process of prior notification and no objections - Planning permission is not required. Proposal that are development and are not permitted development in the GPDO - Planning permission is required. In addition to removing the need for planning permission for some types of development it is likely that these new allowances will impact on the way that some planning policies will be applied to those developments that do need permission. For example, the Councils adopted policy of retaining a high percentage of Class A1 shops in town centres is now arguably „null and void‟ as the change of use of shops up to 150 square metres to another commercial use, such as an estate agents or a hot food take-away, no longer requires planning permission. Speed of decision - the Act introduces measures to allow developers the option to take planning applications to the Planning Inspectorate where a council has "consistently failed to meet statutory requirements to consider applications on time". The performance standards that are expected to avoid „special measures‟ have not been published with the Act but are promised soon and will be linked to the % of decisions made within the 8 week and 13 week national performance targets. Other procedural matters -The Act removes the need for the Secretary of State to approve local development orders (LDOs), which relax planning rules in specific areas, after they have been drawn up by council‟s. It also includes measures to speed up the planning application process by ensuring that authorities only seek „reasonable additional information‟ which is likely to be material to the determination of applications, allows footpath diversion orders to be made as a parallel process to securing planning permission, and tightens the rules on the making of applications to register new village greens. Collectively the Act represents substantial change to the planning system towards a less regulatory streamlined process. However some of the changes to the rules governing what requires planning permission introduce new administrative complexity, additional cost to the authority and a need to invest in back office processes and systems. RECOMMENDATION This report is for information only. (Source: Mark Ashwell, Planning Policy Manager ext. 6325) Background Documents. Growth and Infrastructure Act 2013. General Permitted Development Order 1995 (as amended 2013). Planning Policy & Built Heritage Working Party 8 24 June 2013 PUBLIC BUSINESS – ITEM FOR DECISION 4. ANNUAL MONITORING REPORTS AND HOUSING LAND SUPPLY – PUBLICATION OF AMR AND STATEMENT OF FIVE YEAR SUPPLY OF RESIDENTIAL DEVELOPMENT LAND This report provides an overview of the main development trends in the district in the period 2011-2013 and measures performance against adopted Core Strategy policy and corporate objectives and seeks authority to publish Annual Monitoring reports and Five Year Land Supply Statements. 1. INTRODUCTION Each year the Council is required to prepare and publish an Annual Monitoring Report. The report has two key purposes: a. To report on the progress made in preparing Development Plan documents as measured against the Council‟s published timetable in the Local Development Scheme. b. To report on key indicators in relation to the rates and types of development so that trends can be monitored and the effectiveness of policies reviewed. Reports are usually published in December and cover the period running from March in the preceding year through to April of the monitoring year. This means that when published the reports are almost a year out of date. This paper covers two separate monitoring periods commencing from March 2010 through to April 2013. It has been practice in previous years to produce reports which include a wide range of monitoring indicators and contextual information relating to Housing, Sustainable Development, Environment, Economy, Community and Plan Making progress in the District. This format has been adopted for the 2010/12 joint report but for the 2012/13 period a more targeted approach is suggested with a focus on those indicators which are related to Corporate Plan growth objectives, including: Dwellings granted planning permission (market and affordable). Dwellings built (market and affordable). Housing trajectory and land supply. Greenfield/brownfield development proportions. Residential development density. House sizes (number of bedrooms). Development rates for designated employment land. In most cases indicators are presented at a district wide level but where available, figures for parishes/wards are included. Each year‟s report includes previous year‟s performance to allow for annual comparison. 2. HEADLINE RESULTS The number of dwelling completions in the last two monitoring years was below the annual average target of 400 dwellings per year that will be required to achieve overall plan targets (337 in 2011/12, and 242 in 2012/13). The figure of 242 in 2012/13 was just short of the 250 predicted completions identified in the previous year‟s housing trajectory and identified as a Corporate Plan target. A high proportion of new dwellings (45%) are either barn conversions or other changes of use and the new build sector has performed particularly poorly in the last two years. Planning Policy & Built Heritage Working Party 9 24 June 2013 Although there is a large supply of allocated residential development sites and a growing number of sites with planning permissions the completion rates remain below target and consequently the deliverable land supply is judged to be slightly below the five year NPPF requirement at 4.68 years (inclusive of a 20% buffer). The Authority continues to grant high numbers of planning permissions with nearly 1,000 houses being granted planning permission in the last two years excluding the large allocated site at Wells (120 dwellings), which secured planning permission in the next monitoring period. On the larger allocated sites there is good reason to be optimistic in relation to future completion rates with commencement of development on sites at Cromer, Hoveton and Blakeney and developer interest on most of the larger allocated sites. However it remains the case that delivery rates will need to improve markedly to address the cumulative shortfall in dwellings which has been built up in the last few years. Reported house prices have started to increase across all types of housing in the district with growth of between 5% and 9% in the last quarter of 2012. Values for all house types other than flats are now above those of 2008. New build house builders, however, report no noticeable improvement. The take up of designated employment land is a blunt indicator of economic performance. It is limited to those sites which are formally designated as employment land in the Core Strategy or Site Allocations Development Plans and consequently does not reflect wider economic trends in rural employment and town centres. The District‟s retail sector has performed comparatively well and compared to national trends shop vacancy rates remain at low levels, although up slightly on previous years. There continues to be significant interest and investment in large format food retail stores with permissions/developments at Wells, North Walsham (Waitrose), Holt, and commencement of development on the Sheringham Tesco and Cromer Lidl stores. Designated employment land has been developed at Fakenham adjacent to the Morrisons store and the Scira operations base at Egmere is complete. Over the two year period Cromer Hospital and Fakenham Medical Centre were completed and these have substantially enhanced health care facilities in these two towns and the wider district. Table A – Summary of key indicators Indicator Total dwellings granted planning permission (includes affordable units) Affordable units granted planning permission Total dwellings provided (net additions) Affordable dwellings provided. Years deliverable land supply % development on previously developed land Hectares of employment land developed (net) Planning Policy & Built Heritage Working Party Result 2011/12 438 Result 2012/13 536 110 134 337 242 64 4.93 84% 13 4.68 78% 0.85 hectares 0.56 hectares 10 24 June 2013 In relation to plan making, whilst the Authority is not actively preparing new development plan documents, there have been policy changes to respond to the NPPF, progress in the preparation of development briefs, commencement of work on an LDO at Egmere, and the Council is shortly to consider consultation on proposals to introduce the Community Infrastructure Levy. 3. WHAT IS A FIVE YEAR SUPPLY OF HOUSING LAND IN NORTH NORFOLK? Housing land supply is expressed as the number of dwellings likely to be built rather than the quantity of land that is available and is a comparison of the number of dwellings likely to be built with the annual target for dwellings which will need to be built if overall Development Plan targets are to be met. In North Norfolk the adopted Core Strategy requires that a minimum of 8,000 dwellings are built over the 20 year period from 2001 to 2021. The Authority should therefore plan, on average, to ensure that at least 400 dwellings can be built in each year. In the first eleven years of the plan period the rate of new dwelling completions fell behind this annual average mainly as a result of there being few larger development sites available and the recent slowdown in the local housing market. Consequently, in the remaining years of the plan period the Council should plan to make up the deficit. As of April 2013 the annual average target for new dwellings in the District had risen from 400 to 495 (inclusive of a 20% buffer) resulting in a five year land supply requirement of sites suitable for 2,475 dwellings (495 dwellings x 5 years = 2,475 dwellings). This annual requirement has shown a steady increase in recent years and is a consequence of cumulative annual deficits in provision compounded by a shortening plan period within which to make up the shortfall. 4. CURRENT HOUSING LAND SUPPLY IN NORTH NORFOLK Each year the Council produces a Statement of Housing Land Supply. This presents information on the various anticipated sites for housing development in the District. This is compiled from a number of sources of information including rates of development over previous years, planning permission records, dwellings under construction, and allocated sites in the Site Allocations Development Plan. Identification of sites that can deliver housing is relatively straightforward, but estimating how much of this capacity might actually be delivered over a five year period is much more difficult and inevitably requires some assumptions to be made. Guidance requires that to „count‟ towards the five year land supply sites must comply with a number of criteria: a. In the main they must be specific identifiable sites although some allowance can be made for „windfall‟ developments (sites which are not identifiable until such time as planning applications are made) - provided there is a strong likelihood that such sites will actually be developed within the period. b. the identified sites must be available for development now, and c. they must be suitable for development, and d. development must be achievable; there should be a reasonable prospect of the site actually being developed within the applicable five year period. It is not sufficient to include sites merely because they have planning permission. Hence, whilst the Council is currently able to point to a large land supply in the adopted Site Allocations Development Plan which includes land for around 3,400 Planning Policy & Built Heritage Working Party 11 24 June 2013 dwellings it is not able to demonstrate that all of these sites are immediately available or have a reasonable prospect of being developed within the next five years. Indeed the Core Strategy is a 15-20 year plan which anticipates that some sites will be slower to deliver housing than others. The latest statement covering the five year period commencing next April (2014) concludes that through a combination of sites with planning permission, sites that are under construction, and those that are likely to provide dwellings over the next five years, the District can provide approximately 2,319 dwellings which equates to 4.68 years supply inclusive of a 20% buffer. Table 1 – Five Year Land Supply Requirement and Supply. TOTAL 5 YEAR SUPPLY TOTAL EXPECTED FROM ALL SOURCES (large sites, pending applications, other potential sources, site allocations and small sites) REQUIRED FIVE YEAR SUPPLY INCLUDING 5% BUFFER NUMBER OF YEARS SUPPLY 2,319 Total number of dwellings expected to be built within the next 5 years from all sources. 2,475 Total number of dwellings required in the next 5 years including 20% buffer 4.68 Supply divided by the annual average requirement (495). 5. LAND SUPPLY AND TRAJECTORY At 31st March 2013 there were a total of 1,584 dwellings in the District which had planning permission that were not yet built. Of these 1,435 had a full or reserved matters planning approval. The remaining 149 only had outline planning permission and consequently development is unable to commence until such time as reserved matters approval is granted. This supply comprises all sources of new dwellings with planning permission and includes new build, sub divisions, and rural building conversions. The permitted supply figure can vary widely both within a year and between years and is influenced by both new permissions granted and dwellings completed. Over the last decade there has typically been between 800 and 1,200 dwellings with planning permission where development has not been completed or started. Of the 1,435 dwellings with full planning permission which could be built some 442 (30%) are recorded as commencements, that is, sufficient works have taken place on the site to constitute a legal start of the development. They are on a mixture of sites (262 different sites) where development can either be described as continuous (Cromer - Railway Triangle), intermittent, or dormant. Approximately 33% of the recorded commencements started more than five years ago, and 10% of the total more than 10 years ago. Of the 1,435 dwellings which could be built some 993 homes (69%) on 218 different sites have not yet started. Around half of the permitted supply is on small sites with consent for less than 10 dwellings. Planning Policy & Built Heritage Working Party 12 24 June 2013 6. ACTIONS/REVIEW Given the current situation the position in relation to land supply will need to be kept under regular review. Although there is a deficiency in the five year supply, this is relatively modest. There remains a large supply of sites with planning permission which in the event of an upturn in the housing market could, at least theoretically, deliver the annual average dwelling requirement for the next few years. Furthermore, the Council is in a strong position in terms of allocated sites, a significant proportion of which are anticipated to secure planning permissions over the next 12-18 months. The single greatest impact on delivery figures is the slowdown in the housing market, which both nationally and locally has seen a 40-50% reduction in completion rates, and until this recovers it should be expected that development rates will be below both historical rates and required averages. Given this, the Council will need to carefully consider any planning applications which do not comprise part of the existing housing land supply, including those where the grant of planning permission would represent a departure from adopted policies and consider carefully the deliverability of such proposals. Any proposals should continue to be considered on their individual merits having regard to the land supply situation at the time of application and other material considerations. Additionally, the Council will need to carefully consider its position on the possible introduction of the Community Infrastructure Levy in relation to impacts on development viability (item X) and may wish to consider the introduction of targeted measures to incentivise the commencement and delivery of development (Item Y) Recommendation to Cabinet That the Annual Monitoring Reports and Statements of five year Land Supply covering the period 2010/13 are published. (Source: Mark Ashwell, Planning Policy Manager ext. 6325) Background documents Annual Monitoring Report 2010/12 Annual Monitoring Report 2012/13 Statement of Five Year Land Supply 2013 PUBLIC BUSINESS – ITEM FOR DECISION 5. COMMUNITY INFRASTRUCTURE LEVY This report provides an update in relation to the potential introduction of the Community Infrastructure Levy in the District and seeks a decision on whether to proceed to consultation. 1. Introduction It is an established part of the planning system that those who secure planning permission for the development of land should contribute towards meeting the need for new or improved infrastructure which is required in connection with their development. Local Authorities are able to secure such contributions either through the direct provision of infrastructure by the developer or the payment of monies to Planning Policy & Built Heritage Working Party 13 24 June 2013 deliver that infrastructure. Typically these contributions are made in relation to larger scale developments and might include both physical and social infrastructure such as affordable housing, local road improvements, provision for public open space and its on-going maintenance, funding for additional school places, library facilities and other public services. These contributions have mainly been secured through a process of legal agreements under Section 106 of the Town and Country Planning Act 1990 where the Planning Authority agrees to the grant of planning permission subject to the prior completion of a legally binding agreement to provide the required infrastructure. Highway improvements can be secured through Section 106 Agreements but are more often covered by separate agreements with the County Council under Section 278 of the Highways Act. Adopted Core Strategy Policy (CT2) and site specific policies in the Allocations Development Plan recognise that in many instances development will only be able to proceed if local infrastructure, services and community facilities are improved. Policy CT2 indicates that such improvements may be required in relation to development proposals for 10 or more dwellings and larger commercial developments and that the mechanism for making contributions (either as direct provision or through a financial contribution) will be published in a Planning Obligations Supplementary Planning Document (SPD). This SPD has not yet been produced, pending consideration of the Community Infrastructure Levy, and contributions are currently negotiated in accordance with agreed protocols and interim policy guidance on a case by case basis. In 2012 the Council resolved to investigate the merits of introducing the Community Infrastructure Levy (CIL) in North Norfolk. 2. What is CIL The Community Infrastructure Levy (CIL) is a way for communities to benefit from built development taking place in their area. The levy is a fixed rate charge, based on square metres of net additional floor area payable by the owners of land that secures planning permission. Different development types can be subject to different levy rates, and these are set in a Charging Schedule. The landowner is liable to pay the levy to the charging authority (North Norfolk District Council) once construction commences or in accordance with a staged payments policy. The Council must then use this money for infrastructure provision across the District, such as highways improvements, open spaces or education provision. Part of the levy is given to local Town and Parish Councils to spend on local infrastructure priorities. Once a levy is set payment is mandatory and the Council cannot decide on an individual case-by-case basis whether the charge should be levied, or what contributions should be required. This means that when a developer applies for planning permission, they will be able to calculate their financial liability up front, thus removing uncertainties about costs. The charge is levied on most types of developments of more than 100m 2 of floor area or those creating 1 or more dwellings (even if the dwelling floor area is less than 100m2). Affordable housing and charitable developments are exempt from payment. CIL is intended to be directly related to the delivery of the growth proposed in Development Plans and would operate as a contribution towards, rather than a Planning Policy & Built Heritage Working Party 14 24 June 2013 replacement of other infrastructure funding. The levy is intended to „unlock‟ the growth that is proposed in Development Plans by raising funds that can be spent on the infrastructure which is necessary to allow this growth to occur. Government advice states that CIL contributions should not be set at a level that risks the delivery of the Development Plan by making development unviable. Regulations have been passed which allow, but do not require, a local authority to charge a CIL levy. 3. Current Position The Council has commissioned two evidence documents to inform the decision on whether CIL should be introduced, firstly an Infrastructure Study to identifying the total Infrastructure requirement arising from proposed growth in the area, likely funding available, and the size of any funding gap, and secondly, a District wide Development Viability Assessment to establish how the introduction of new tariffs might impact on the financial viability of development. Both these studies are nearing completion and the Council now needs to consider how to proceed. 4. Summary Evidence The Infrastructure Study concludes that there is a need for infrastructure investment to support growth in the district. Unlike some other areas, however, there is no single large scale infrastructure project which will be necessary to „unlock‟ growth. There are bigger scale regionally significant projects, such as the NDR and rail improvements, which although arguably beneficial to north Norfolk are not essential pre-requisites to development in the district. Elsewhere in the district there are a range of physical and social infrastructure improvements that are necessary, and a relatively small number that are essential, if sustainable development is to be achieved, eg primary school provision to support the expansion of Fakenham, enhanced public open space, or upgrades to the local sewage treatment works. There is currently a funding gap, both in relation to regional and local infrastructure and there is a strong case for developer contributions towards filling this gap either through Section 106, CIL, or a combination of both mechanisms. The viability of development is very variable across the district. If CIL were to be introduced it could only be justified in relation to residential, retail and some specialist commercial developments such as hotels. Other types of development are not sufficiently viable to allow for the introduction of CIL tariffs. However, based on adopted planning policy requirements (particularly the 45% affordable housing target and Code for Sustainable Homes requirements) residential viability is marginal across some parts of the district, and it is only in the higher value areas of the district that residential development shows sufficient viability to support the introduction of meaningful tariffs. Elsewhere only modest tariffs could be supported and in some areas any tariff is likely to put development at risk. This conclusion goes to the heart of the question – would the introduction, or lack of, CIL tariffs threaten the delivery of the adopted development strategy? This requires consideration of a number of factors: What is the development strategy for the district? What are the key constituent parts of the strategy in relation to housing and jobs growth and matching physical, social, economic and environmental infrastructure? To what extent is the delivery of this strategy dependent upon infrastructure provision? Planning Policy & Built Heritage Working Party 15 24 June 2013 What mechanisms, and funding, are likely to be available to deliver this infrastructure? What is the preferred overall approach to dealing with developer obligations – fixed rate non-negotiable tariffs via CIL, negotiated Section 106 obligations, or a combination of both? What are the current market conditions? Will development viability allow for tariffs to be collected without compromising delivery of development? 5. What are the choices? The key components of the development strategy for the district are housing growth (8,000 dwellings), jobs growth (4,000 net additional jobs), provision of social and physical infrastructure to support growth, and environmental protection. There is no single large scale, or significant infrastructure requirements in the district that must be addressed to deliver growth. That is not to say that there is no requirement for infrastructure investment and that at a local level there is not a need for infrastructure. However, growth in the District is not contingent on major infrastructure projects as is the case elsewhere (eg Northern Distributor Road). There is nevertheless a long list of locally significant infrastructure deficiencies which will need to be addressed to deliver sustainable growth. Many of these are identified in the adopted Core Strategy and the Council has sought to address these needs through the Site Allocations Development Plan. For example, the mixed use development sites in the larger towns are intended to address identified needs for housing, jobs and address local deficiencies in public open space and other community facilities. In large part these schemes will be developer funded through the planning process and the Council may choose to secure infrastructure via the Section 106 or the CIL mechanism. The relative merits of the two approaches are outlined below. Comparison of Section 106 and CIL. Section 106 Community Infrastructure Levy Payments are negotiable on a Payments are non-negotiable and fixed at a set case by case basis but must level and are only waived in very exceptional comply with legal tests circumstances. Some developments are likely to (necessary to make the be unviable even with tariffs set at low levels. development proposal Lack of viability on a particular site is not in itself acceptable, proportionate and a reason for granting exceptional circumstances directly related to the relief. Setting the tariff level is subject to viability development proposed). This testing but this does not need to show that all means that there is substantial sites are viable. The test applied is - would the flexibility as the Council retains tariff prejudice the delivery of the development the ability to waive contributions strategy as a whole rather than the viability of on grounds of development specific sites. viability on a case by case basis. CIL payments have „first call‟ on the uplift in value and if set at the wrong level (too high) are likely to compromise the delivery of negotiated 106 contributions including affordable housing. Section 106 contributions are CIL is payable on most development over a rarely justified in relation to small defined size (100sqm of net floor space) and all scale developments as it is new housing other than affordable dwellings. difficult to demonstrate that legal Where no building works are proposed (eg. tests are met but unlike CIL can change of use of land) no tariff is payable. be secured even where no new Planning Policy & Built Heritage Working Party 16 24 June 2013 floor space is proposed. Eg wind farm developments or change of use of land. Monies collected must be spent for the specific purposes for which they were collected and usually within a prescribed period and with a payback clause. The developer, the Council, and local communities have the certainty that the specific impacts of development will be mitigated locally. The commissioning of works required by 106 is primarily undertaken directly by the developer as part of the development process. The regulations do not allow the pooling of contributions from more than five separate developments to a single item of infrastructure. This is only likely to be an issue in relation to „big ticket‟ items of infrastructure where pooled contributions would be necessary to secure sufficient funding. For example, a new school. Can be used to secure Affordable Housing contributions. Monies collected can be spent on any infrastructure and anywhere in the district, or in some circumstances beyond the district, with the Council accounting for this expenditure through investment programmes, monitoring and regular reporting. A reasonable proportion (15-25%) of CIL is passed directly to parish and town councils to be spent as they wish on local infrastructure. The Council may need to take on the role of project commissioning and managing. Contributions from multiple schemes can be pooled together towards a single item of infrastructure. Cannot currently be used as a way of collecting contributions for affordable housing. The overriding consideration relates to the potential impacts of planning obligations, whether secured via CIL or 106, on the viability and delivery of development. CIL is both attractive and inherently risky. Because tariffs, once set, are none negotiable they will almost inevitably impact on delivery of marginal schemes. Many of the bigger sites have already been granted planning permission and most of the others are likely secure permissions before CIL could be introduced and they will consequently be exempt from payment. Whilst potential tariff receipts might be low, particularly in the next few years as most of the development that will be built is already consented, they could still yield a reasonable infrastructure fund some of which could be targeted to local priorities which have little prospect of being funded under the Section 106 process because they are not sufficiently related to a specific development proposal. Furthermore 15% of CIL would go to Parishes to fund local priorities and contribute towards the localism agenda. CIL is not essential in North Norfolk to facilitate sustainable growth. Most of the Infrastructure which is required is relatively small scale and site specific, and subject Planning Policy & Built Heritage Working Party 17 24 June 2013 to economic considerations there is a reasonable prospect that the Council can deliver this infrastructure via the Section 106 process. 6. Conclusions The evidence indicates that infrastructure is required, that there is unlikely to be sufficient funding available, and that a system which requires developer contributions towards funding is justified. The growth which is planned in the district can be delivered with or without CIL. Market conditions remain uncertain and delivery rates of development are already below required targets. Many large scale proposals are unable to deliver fully policy compliant development and remain commercially viable. On balance it is considered that the introduction of CIL at this time represents a risk to the development strategy and it is recommended that consideration of CIL should be suspended and reconsidered at a future date when there are clearer signs of economic recovery. Recommendation That the Working Party recommends to Cabinet that consideration of the potential introduction of CIL is suspended. (Source: Mark Ashwell, Planning Policy Manager ext. 6325) Background documents Draft Infrastructure Study Draft District wide Viability Assessment Planning Policy & Built Heritage Working Party 18 24 June 2013