Planning Policy & Built Heritage Working Party Please Contact: Linda Yarham Please email: linda.yarham@north-norfolk.gov.uk Please Direct Dial on: 01263 516019 16 July 2015 A meeting of Planning Policy & Built Heritage Working Party will be held in the Council Chamber at the Council Offices, Holt Road, Cromer on Monday 27 July 2015 at 10.00am. At the discretion of the Chairman, a short break will be taken after the meeting has been running for approximately one and a half hours. Members of the public who wish to ask a question or speak on an agenda item are requested to arrive at least 15 minutes before the start of the meeting. It will not always be possible to accommodate requests after that time. This is to allow time for the Committee Chair to rearrange the order of items on the agenda for the convenience of members of the public. Further information on the procedure for public speaking can be obtained from Democratic Services, Tel: 01263 516010, Email: democraticservices@north-norfolk.gov.uk Anyone attending this meeting may take photographs, film or audio-record the proceedings and report on the meeting. Anyone wishing to do so must inform the Chairman. If you are a member of the public and you wish to speak on an item on the agenda, please be aware that you may be filmed or photographed. Sheila Oxtoby Chief Executive To: Mrs S Arnold, Mrs A Claussen-Reynolds, Mrs J English, Mrs A Green, Mrs P Grove-Jones, Mr P High, Mr N Pearce, Mr J Punchard, Mr R Reynolds, Mr S Shaw, Mrs V Uprichard All other Members of the Council for information. Members of the Management Team, appropriate Officers, Press and Public If you have any special requirements in order to attend this meeting, please let us know in advance If you would like any document in large print, audio, Braille, alternative format or in a different language please contact us Chief Executive: Sheila Oxtoby Corporate Directors: Nick Baker and Steve Blatch Tel 01263 513811 Fax 01263 515042 Minicom 01263 516005 Email districtcouncil@north-norfolk.gov.uk Web site northnorfolk.org AGENDA 1. APOLOGIES FOR ABSENCE To receive apologies for absence, if any. 2. PUBLIC QUESTIONS 3. MINUTES (attached – page 1) To approve as a correct record the Minutes of a meeting of the Working Party held on 15 June 2015. 4. ITEMS OF URGENT BUSINESS To determine any other items of business which the Chairman decides should be considered as a matter of urgency pursuant to Section 100B(4)(b) of the Local Government Act 1972. 5. DECLARATIONS OF INTEREST Members are asked at this stage to declare any interests that they may have in any of the following items on the agenda. The Code of Conduct for Members requires that declarations include the nature of the interest and whether it is a disclosable pecuniary interest. 6. UPDATE ON MATTERS FROM THE PREVIOUS MEETING 7. PLANNING POLICY UPDATES 8. (page 5) (Appendix A – page 8) Summary: This report provides a general update on planning policy matters including the progress made in preparing a new Local Plan, the latest position in relation to the Duty to Co-operate, and a summary of likely further changes to the planning system announced as part of the budget. Conclusions: This report is for information only. Recommendations: This report is for information only. Cabinet Member(s) Ward(s) affected All members Contact Officer, telephone number and email: Mark Ashwell, Planning Policy Manager ext. 6325 All wards STRATEGIC HOUSING MARKET ASSESSMENT (SHMA) UPDATE Summary: This report provides an update on the Central Norfolk Strategic Housing Market Assessment (SHMA). It explains how such assessments are prepared and how they are used to inform housing targets when preparing Local Plans. Conclusions: This report is for information only. (page 14) Recommendations: This report is for information only. Cabinet Member(s) Ward(s) affected All Members All wards Contact Officer, telephone number and email: Mark Ashwell, Planning Policy Manager ext. 6325 9. EXCLUSION OF PRESS AND PUBLIC To pass the following resolution (if necessary):“That under Section 100A(4) of the Local Government Act 1972 the press and public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in Part I of Schedule 12A (as amended) to the Act.” 10. TO CONSIDER ANY EXEMPT MATTERS ARISING FROM CONSIDERATION OF THE PUBLIC BUSINESS OF THE AGENDA 15 JUNE 2015 Minutes of a meeting of the PLANNING POLICY & BUILT HERITAGE WORKING PARTY held in the Council Chamber, Council Offices, Holt Road, Cromer at 10.00 am when there were present: Councillors Mrs A Arnold (Chairman) R Reynolds (Vice-Chairman) Mrs A Claussen-Reynolds Mrs J English Mrs A Green Mrs P Grove-Jones J Punchard Mrs V Uprichard N Dixon - observing Officers Mr M Ashwell – Planning Policy Manager Mrs S Ashurst – Planning Policy Team Leader 1. APOLOGIES FOR ABSENCE An apology for absence was received from Councillor P W High. 2. MINUTES The Minutes of the meeting held on 23 March 2015 were approved as a correct record and signed by the Chairman. The Planning Policy Manager updated the Working Party on the two workstreams which had been identified at the meeting relating to public open space and the Government’s starter homes incentive for first time buyers. These workstreams would be considered by the Working Party in due course. 3. ITEMS OF URGENT BUSINESS The Chairman stated that there were no items of urgent business which he wished to bring before the Working Party. 4. DECLARATIONS OF INTEREST No interests were declared. 5. AN INTRODUCTION TO LOCAL PLANS AND THE REVIEW PROCESS The Planning Policy Manager gave an introduction to the process and likely timetable for a review of the Local Development Framework and the preparation of a new Local Plan for North Norfolk. He outlined some of the main areas of work which would be considered by the Working Party over the coming months. The Planning Policy Manager answered Members’ questions. Growth was aligned with infrastructure provision. The Plan also allowed for provision by others with contributions being made by developers. Planning Policy & Built Heritage Working Party 1 27 July 2015 There was no over-arching evidence of land banking in the area. If building rates were low, local authorities were expected to maximise the possibility of its target being met, possibly by making additional land available. The Strategic Housing Market Assessment (SHMA) and Strategic Housing Land Availability Assessment (SHLAA) provided evidence of how much need and demand there was for housing, and how it could be accommodated. Consideration would then be given to sustainability issues. Sustainability was not only about location and proximity to facilities, but also included issues such as environment, drainage and wildlife. Brownfield sites had natural priority in terms of sustainability. There would be discussions as to which sites were held for employment and which could be available for housing, Plans could be rejected by the Inspector if the Duty to Co-operate was not discharged. There was a legal obligation to co-operate. The Northern Distributor Road (NDR) had now been agreed and might alter the Council’s view regarding distribution but this was not a certainty. There may be discussion as to the future growth of Norwich and whether North Norfolk could accommodate some of the additional housing. Councillor N D Dixon commented that there could be an opportunity to rebalance some of the imbalances which had occurred with regard to jobs and infrastructure. It would become more apparent as the process evolved as to the challenges the Council would face. Councillor R Reynolds referred to the former airbases at West Raynham and Sculthorpe which needed to be borne in mind. The Working Party noted the report. 6. THE LOCAL DEVELOPMENT SCHEME (LDS), REGULATION 18 NOTIFICATION AND STATEMENT OF COMMUNITY INVOLVEMENT (SCI) The Planning Policy Manager presented a report which summarised the contents of the following documents: 1. Local Development Scheme (LDS) which sets out the likely timetable for adoption of a new Local plan for the district, highlighting the main regulatory requirements the emerging Local Plan must meet in order to be found ‘sound’ and legally compliant; 2. The Regulation 18 notification document which sets out what the Council considers to be the required scope of the new Local plan, and; 3. The Statement of Community Involvement (SCI) which sets out how the Council will consult people throughout the Local Plan preparation process and when planning applications are made. Town and Parish Councils would be aware of the LDS timetable and could attend the examination. Consultation methods had not yet been decided upon. Councillor R Reynolds stated that plans would last for at least 15 years, and possibly for up to 20 years. Referring to site allocations, and in particular to Fakenham, he stated that development could take many years, or proceed quickly. He proposed the recommendation as set out in the report, which was seconded by Councillor Mrs V Uprichard. Planning Policy & Built Heritage Working Party 2 27 July 2015 Councillor J Punchard expressed concern that the consultation period had been set for August when most Town and Parish Councils did not meet. The Planning Policy Team Leader explained that this issue had been recognised and the planned consultation period had been extended by two weeks to allow for it. Three was a need to get the documents out as soon as possible. Councillor Mrs P Grove-Jones referred to concerns raised by Stalham Town Council in relation to the site allocations made under the current plan, and considered that there should more information as to why particular sites were chosen. In response to a question by Councillor Mrs A R Green, the Planning Policy Manager explained that the Inspector was impartial and should not have any connection with the area. The Inspector would take time to understand the plan before the examination in public. The process from submission to issue of the decision would take approximately one year. RECOMMENDED to Cabinet unanimously 7. 1. The publication of the Local Development Scheme (LDS) as the timetable for production of a new Local Plan for the District as soon as reasonably practicable following authorisation by Cabinet, but in any case having effect from the 3 August 2015. 2. The publication of the Regulation 18 Notification document as the scope of the emerging Local Plan for North Norfolk and to authorise the formal notification of all those specified in the regulations, and to invite representations on the scope of the new local plan for a period of not less than 8 weeks commencing on the 17 August 2015. 3. The publication of the Statement of Community Involvement (SCI), and to authorise a period of consultation of not less than 8 weeks commencing on 17 August 2015. HOUSING LAND SUPPLY – PUBLICATION OF STATEMENT OF FIVE YEAR SUPPLY OF RESIDENTIAL DEVELOPMENT LAND . The Planning Policy Manager presented a report which gave an overview of the amount of land available for housing development in the District, identified how much of this land might reasonably be expected to be developed over the next five years and sought authority to publish a statement of the Council’s position. In response to Members’ questions, the Planning Policy Manager explained the demographics which drove the need for development in the District. The SHMA would provide an objective assessment of numbers. Vacant dwellings and second homes had to be accounted for. Specialist consultants would be commissioned to produce the SHMA as the Authority did not have the necessary expertise. It was proposed by Councillor R Reynolds, seconded by Councillor J Punchard and RECOMMENDED 1. That the publication of the Land Supply Statement be recommended to Cabinet. Planning Policy & Built Heritage Working Party 3 27 July 2015 2. 8. That the report be presented to the Development Committee as an item for information. UPDATE ON GENERAL ISSUES The Planning Policy Manager considered that more changes to the planning process could be expected, and that there could be changes to the plan making process. The meeting closed at 11.45 am. Planning Policy & Built Heritage Working Party 4 27 July 2015 Agenda Item No______7_____ PLANNING POLICY UPDATES Summary: This report provides a general update on planning policy matters including the progress made in preparing a new Local Plan, the latest position in relation to the Duty to Co-operate, and a summary of likely further changes to the planning system announced as part of the budget. Conclusions: This report is for information only. Recommendations: This report is for information only. Cabinet Member(s) Ward(s) affected All members All wards Contact Officer, telephone number and email: Mark Ashwell, Planning Policy Manager ext. 6325 1. Introduction 1.1 The purpose of this report is to provide members with an update on the progress of the Local Plan to date, decisions made under the Duty to Cooperate, and following publication of the Government’s Productivity Plan, the likely changes to the planning system which will be introduced. 2. Local Plan Update 2.1 At the last meeting the Working Party recommended to Cabinet: 1) the publication of the Local Development Scheme (LDS) as the timetable for production of a new Local Plan for the district as soon as reasonably practicable following authorisation by Cabinet, but in any case having effect from the 3rd August 2015. 2) the publication of the Regulation 18 Notification document as the scope of the emerging Local Plan for North Norfolk and to authorise the formal notification of all those specified in the regulations, and to invite representations on the scope of the new local plan for a period of not less than 8 weeks commencing on the 17th August 2015. 3) the publication of the Statement of Community Involvement (SCI), and to authorise a period of consultation of not less than 8 weeks commencing on the 17th August 2015. 2.2 Cabinet agreed all three recommendations at their meeting on the 6th of July. The Regulation 18 notice (describing the intended scope of the new Local Plan) and the statement of how the authority intends to involve others in the planning process (the Statement of Community Involvement) will be published on the 17th of August for an eight week consultation period. As part of the consultation process Local Plan ‘launch’ events will be held on the 1st, 2nd and Planning Policy & Built Heritage Working Party 5 27 July 2015 3rd of September for Town and Parish Councils, the main statutory consultees, and planning agents. These events will provide an opportunity to explain the process of plan-making, introduce a new web site which is being developed for the emerging Local Plan and answer any questions. Further details will be circulated closer to the date. 3. Duty to Cooperate 3.1 The Duty to Co-operate Members Forum met on the 9th of July to consider progress in relation to duty matters. Papers are attached as Appendix A. 3.2 In summary, all District Council’s in North Norfolk and the County Council have agreed to proceed with the preparation of a non-statutory Strategic Framework document to be called the ‘Norfolk Strategic Framework’. This will document co-operation in relation to cross boundary strategic planning issues and will seek to reach agreement on a set of common objectives which should be followed by individual authorities when preparing their Local Plans. 3.3 Each Authority has agreed to provide funding to support the work including the appointment of a Project Manager and Support Assistant. These staff will be employed and hosted by Norwich City Council on behalf of the forum. Project groups will now be formed primarily from the existing staff of the member authorities and the detailed technical work, including the commissioning of evidence, will progress shortly 4. The Productivity Plan - ‘Fixing the foundations’ 4.1 The Productivity Plan – ‘Fixing the Foundations’ was published alongside the Budget. It includes announcements of further significant changes to the planning system which can be expected over the coming months. These include: Government to introduce a deadline by which to adopt a new local plan (deadline to be set before the summer recess). Failure to meet the deadline will mean DCLG will step in and write your local plan for you (in consultation with local communities). There is no indication of what the deadline date will be but it is assumed that government will set a short timetable supported by a stream-lining of the plan preparation process (see below). Significant streamlining of the length and process of plan-making to be introduced. No details of specific measures have been published but streamlining of the process, consistent with ensuring plans are properly evidenced and subject to public engagement would be welcomed. There is also a suggestion that modification of an adopted plan is to be simplified. Strengthening of guidance to improve the operation of the Duty to Cooperate. Again no further details have been published at this stage but additional guidance in this area would be welcomed. A wide range of approaches are Planning Policy & Built Heritage Working Party 6 27 July 2015 being taken to the Duty to Co-operate and it remains one of the main points of failure at Local Plan Examinations. Legislation to be introduced for statutory registers for brownfield land, and further legislation to grant planning permission in principle on brownfield sites kept on the register. There is already strong policy support for the development of brownfield land in adopted planning policies. This measure is likely to go further and will require the identification of qualifying sites. Once identified in a register such sites would be deemed to have the equivalent of outline planning permission for a specified density of development (permission in principle). A further planning application would be required to develop the site assumed to be similar to a Reserved Matters Planning application. It is not yet clear how, or if, the Section 106 or CIL processes would apply to such sites as these are matters which are usual addressed at Outline Planning Application stage. It is assumed that to be included on a register such sites will need to fulfil some sort of qualifying criteria perhaps in relation to size and location and safeguards will be included in relation to issues such as flood risk, wildlife, traffic and contaminated land which are currently addressed through the planning system. Further reforms to the planning process: a. Major infrastructure projects with an element of housing can be applied for through NSIP b. Tightening of planning performance regime c. Extension of the planning performance regime to minor applications d. Fast track certificate process and tighten ‘planning guarantee’ for minor applications e. Dispute resolution system for S106 agreements Starter Homes: a. LPAs must plan for starter homes (assume this means allocate sites) b. Extension of current ‘exception sites’ policy c. Communities can plan for starter homes in neighbourhood plans d. New proposals to ensure all ‘reasonably sized’ housing developments include a proportion of starter homes e. Exempt starter homes from CIL and S106 contributions f. 4.2 New arrangements for monitoring starter homes delivery The full document can be found here: https://www.gov.uk/government/publications/fixing-the-foundations-creatinga-more-prosperous-nation Planning Policy & Built Heritage Working Party 7 27 July 2015 APPENDIX A Norfolk Duty to Cooperate Member Forum Non Statutory Strategic Framework – Update 1. Purpose of report 1.1 At the meeting on the 16th of March the Forum considered a detailed report on the recommended scope and content of the proposed Non Statutory Strategic Framework and the suggested practical arrangements for its preparation. There was discussion about the scope of the document and a limited number of amendments were suggested. The Forum resolved to: 1) Endorse that the Strategic Framework should in the first instance focus on those areas identified in Table 1(see below) and be produced using a structure outlined in Table 2 and the timetable outlined in paras 3.8-11; 2) Recommend that each authority formally agrees to participate in the preparation of the framework and agree to contribute up to a maximum of £15,000 in 2015/16 and £10,000 in 16/17 to cover the anticipated costs; 3) Write formally to the LEP and the all Suffolk authorities to request confirmation of whether or not they wish to participate in preparation of the framework and whether they are prepared to share costs. 1.2 This report provides an update on progress since the 16th of March. 1.3 Since the meeting in March, all of the Norfolk district councils, along with the Broads Authority and Norfolk County Council, have agreed the principle of progressing a non-statutory strategic framework, along with the funding to progress that work. 1.4 Broadland, Norwich and South Norfolk may need to take further reports to their councils to agree the detail of their in principle decisions, whilst the remaining councils are not expected to need to consider any further reports at this point. 1.5 In considering whether to endorse the preparation of a framework some Council’s raised additional issues for further consideration: North Norfolk requested that a mechanism should be established to enable cross boundary shared settlement planning, particularly in relation to Hoveton and Wroxham; Planning Policy & Built Heritage Working Party 8 27 July 2015 The Broads Authority requested that some changes be made to anticipated work on the evidence base for the framework to ensure that climate change, water quality, landscape, tourism and conservation issues are adequately covered; Great Yarmouth requested that Waveney should be included in strategic considerations. 1.6 In the interests of simplification, and in recognition of the very limited likelihood that neighbouring authorities outside Norfolk being directly involved in the production of the framework, officers recommend that the non-statutory strategic framework should be known as the Norfolk Strategic Framework from now on. 1.7 Subject to final clarification from all partners, it is proposed that Norwich City Council will be the employing and hosting authority for the two employees to be appointed, the project manager (0.5 part time) and the project assistant (full time). Both will be employed on a fixed term basis for 18 months by the hosting authority. 1.8 Norwich is proposed by officers for this role firstly due to its highly accessible location both for the partner authorities and the employees and secondly because the City Council is not proposing to chair the group, thus sharing responsibilities. For the same reasons, whilst less accessible, Breckland’s offices in Dereham are also considered to be a suitable alternative should members not favour Norwich as the host. 1.9 Acting as the employer and host authority will require the chosen Council to take on responsibilities for the employees such as line management, pay and pensions. 1.10 In order to progress matters as quickly as possible, draft person specifications and job descriptions are being drawn up using the city’s templates to enable grading of the positions to be done and adverts to be produced. It would be possible to amend these specifications if necessary, with a slight delay to the employment process. 1.11 Discussions are on –going with both the LEP and the Suffolk Authorities. The Suffolk Authorities have welcomed the engagement to date and will continue to be involved as appropriate but do not currently anticipate joining the Forum. Planning Policy & Built Heritage Working Party 9 27 July 2015 2. Budget and timetable . 2.1 Each district has agreed to contribute up to £25,000 over an 18 month period to the project. Costs should be a maximum of c£15,000 in the next financial year (2015/16) with no more than, £10,000 in the following financial year. It is anticipated that the framework will be complete during the 2016/17 financial year. 3. Revised Scope and Content 3.1 Table 1 below is an amended content description of the Framework incorporating those changes suggested at the March meeting and the subsequent further suggestions made by each Council. For ease of references suggested changes are highlighted in italics and under-lined. As previously stated the final content of the Framework is likely to evolve as it is prepared but initially the work will focus on the workstreams identified in the table. As previously agreed the work will be progressed by four task groups reporting via a steering group to the Forum. Table 1. Potential Content of Framework Document Topic Area Spatial Vision Framework to address What is the overall spatial vision for Norfolk taking account of cross boundary issues with Waveney and adjoining Counties (Suffolk, Cambs , Lincs) and the wider region as necessary) and to identify and describe the key drivers and constraints in relation to growth. To include a spatial portrait and overall direction of travel addressing: Quality of life; response to challenge Planning Policy & Built Heritage Working Party Evidence needed to support Mainly drawn from review of local and national policy documents and further evidence sources referred to below plus census and ONS/CLG projections of population and households. Climate change and coastal changes. May be a need to commission some further work to fill any gaps or interpret evidence. 10 Preparation process Initially prepared by existing Strategic Planning Officer Group to identify any information gaps and revised as Framework preparation progresses and additional evidence becomes available. 27 July 2015 Homes of climate change; key headlines in terms of what is being aimed for in relation to role of settlements and key growth locations. Summary of impacts of broad population, economic, environmental, social trends and implications of known national and local policies to include water quality, landscape, tourism and conservation. To have a longer term vision – will need to look beyond 2036, and will need to ensure that full account is taken of economic, environmental and social aspects of sustainable development. What is the overall quantity of SHMA – assessment of homes to be provided between 2016 objectively assessed housing and 2036? need and demand factors. What is the proposed distribution of housing growth between LPA administrative Areas? If there are constraints to growth how could these be addressed? Housing Growth Strategy. SHMAs and other evidence to be drawn together to derive an agreed Housing Growth Strategy. Information on types and tenures including possible shared approaches to meeting affordable needs and other forms of housing. The potential need for gypsy and traveller accommodation would be considered outside of the SHLAAs – Assessment of ‘unconstrained’ housing capacity. Planning Policy & Built Heritage Working Party Constrained Capacity–Need to consider and address other capacity/constraint 11 Five District SHMA nearing completion. Possible reconciliation/consistency checking if others’ SHMAs are within area of Framework. SHLAAs to be completed to a consistent methodology and open to mutual scrutiny and challenge across the entire area covered by the Framework. Work to be undertaken by relevant LPA 27 July 2015 preparation of the framework in the first instance. considerations not covered in SHLAAs. Review of GTAAs and existing planned provision. Jobs Economic Development and Growth Demonstrate understanding of the strengths and weaknesses of the local economy, likely growth areas, patterns of distribution and interrelationships. Reference to the SEP and investment/economic strategies. Employment Growth Study. Further runs of EEFM. Identification of indicative jobs employment growth targets and land supply implications/spatial implications for planning policy. Infrastructure Are there any key infrastructure constraints or opportunities (physical, social and/or environmental) which are likely to impede growth or influence its distribution at a strategic scale? Analysis of current evidence base to identify possible constraints and opportunities, and whether further work is necessary to inform high level strategy. staff to an agreed timeframe (with consultant support if necessary/appropriate?). Consideration of whether further joint work to assess needs of Gypsies and Traveller is required to plan for appropriate provision Externally commission via consultancy to a brief produced involving County Council(s) and LEP. County Council to arrange EEFM runs (possibly to inform above study). To be produced by officers working with staff from key agencies such as EA and NE. To address transport infrastructure (road, rail and other sustainable modes), green infrastructure, water Planning Policy & Built Heritage Working Party 12 27 July 2015 issues (both supply and disposal), and flooding. Potential to include high level statement in relation to other physical and social infrastructure approach – health, education, broadband etc if significant and cross boundary. Delivery Is the development market in the area likely to be sufficiently strong to support delivery of the growth needs identified in a sustainable manner? Is any further stimulus necessary to deliver? High level market forces/viability assessment focussing on issues associated with strategic scale growth proposals as opposed to more dispersed/smaller scale development. Externally commissioned 4. Recommendation 4.1 It is recommended that the forum agrees to: 1. Amend the title of the proposed document to Norfolk Strategic Framework 2. Agree that Norwich City Council acts as host and employing authority 3. Amend the scope of the framework document as outline in Table 1 Report prepared by Mark Ashwell (NNDC) and Mike Burrell (Norwich City) June 2015 Planning Policy & Built Heritage Working Party 13 27 July 2015 Agenda Item No______8_____ STRATEGIC HOUSING MARKET ASSESSMENT (SHMA) UPDATE Summary: This report provides an update on the Central Norfolk Strategic Housing Market Assessment (SHMA). It explains how such assessments are prepared and how they are used to inform housing targets when preparing Local Plans. Conclusions: This report is for information only. Recommendations: This report is for information only. Cabinet Member(s) Ward(s) affected All Members All wards Contact Officer, telephone number and email: Mark Ashwell, Planning Policy Manager ext. 6325 1. Introduction 1.1 The purpose of producing a SHMA is to establish a housing number which is called the Objectively Assessed Need (OAN) for housing. This is not a Local Plan housing target, rather it is the evidence of demand and need for dwellings across the full range of tenures (market and affordable). 1.2 Once the OAN number is established it should then be subject to further consideration to derive the final housing target for inclusion in the Local Plan. Amongst these further considerations would be: 1. What is the capacity of the District to accommodate the required amount of growth? 2. Is there a requirement to accommodate growth from elsewhere under the duty to co-operate? 2. What is a Housing Market Area (HMA)? 2.1 Local Planning Authorities are required to work together to establish the need and demand for housing across a defined Housing Market Area (HMA). This area will rarely correspond to District Council boundaries and will often cover several districts. Once an HMA has been defined it is generally accepted practice that the outputs from the SHMA are ‘snapped’ to District boundaries in order that each Council within the area has a sound basis from which to determine Local Plan housing targets. 2.2 North Norfolk sits within an HMA covering five separate District Councils which includes as well as North Norfolk, Broadland District Council, Breckland Planning Policy & Built Heritage Working Party 14 27 July 2015 District Council, Norwich City Council and South Norfolk District Council. These five authorities, alongside Norfolk County Council and the Broads Authority have jointly commissioned a SHMA. 3. Objectively Assessed Need (OAN) and how it is established 3.1 Guidance requires that the starting point for establishing OAN is the national population projections which are based on Census data and published at regular intervals by DCLG (Office for National Statistics (ONS)). 3.2 The population projection is then converted to a household projection which is in turn modelled to produce the required number of dwellings. Within this apparently straightforward exercise there are a wide range of variables which need to be considered. 4. The Central Norfolk SHMA 4.1 The Central Norfolk SHMA covers the five central District Council areas of Norfolk and shares common boundaries with similar studies that have been prepared, or are being prepared, for the Yarmouth and Kings Lynn areas. It relates to the twenty four year period between 2012 and 2036 and takes as its starting point the published mid 2012 household projections which are derived from the 2011 Census based population. These are the latest available figures published by DCLG. 4.2 These 2012 household projections are then re-modelled using a longer trend period for the assessment of inward migration. This is an important adjustment because the mid 2012 DCLG figures are based on a five year migration trend which is widely regarded as too short a period to be reliable. The Central Norfolk SHMA uses a ten year migration trend which has the effect of pushing the expected population over the study period (2012-2036) slightly upwards across the study area, with the exception of North Norfolk where the figure falls compared to the five year trend. The rate of migration is a key determining factor in North Norfolk as without migration the population in the District is forecast to fall. 4.3 Once the overall population growth figure has been established it is then converted to the need for households by applying headship rates (number of people living in each household). The household figure is then converted to a dwelling requirement (For example, not all households live in a single dwelling). 4.4 At this stage the figure for new dwellings represents the need for all types of housing, both market and affordable, which are required solely as a consequence of population growth. The figure then requires further adjustment to take account of the need for new dwellings which arises from the existing population and other factors. This includes making allowance for empty dwellings and second homes, over or under occupancy of the housing stock, and taking account of all those that are currently in unsuitable accommodation. The resulting number represents what would be required if every housing need and demand was to be addressed. 4.5 Having established what the overall dwelling requirement might be for all types of housing the study then separately quantifies the need for affordable Planning Policy & Built Heritage Working Party 15 27 July 2015 housing. This exercise is designed to answer the question ‘Is it realistic to deliver the required quantum of affordable housing as a reasonable proportion of the overall dwelling requirement or should the overall housing target be increased to improve the prospects of sufficient affordable housing being provided?’ 4.6 The study suggests that because the need for affordable housing is around 31% of the total housing target it is reasonable to conclude that this could viably be delivered. If however it was concluded that the Authority was unlikely to be able to deliver 31% of its housing growth as affordable housing one possible policy response would be to increase the overall housing target. 4.7 The figure is then subject to one further set of adjustments which might be described as ‘reality checks’. These include comparing the housing targets with jobs growth predictions to make sure that adequate housing is proposed to house the projected workers and similarly that the housing growth will provide sufficient workers to fill the forecast jobs. The position in the Central Norfolk area is then compared to similar locations to see if there are any significant variations in a range of local factors (called Market Signals) such as house price, rents, affordability and the rate of development which effectively ground the number to the real world and check there is nothing unusual in the local market which might justify further adjustment. 5. Next Steps 5.1 As outlined above the OAN figure is not the Housing Target for Local Plan purposes and the Authority will need to carefully consider the final report and other evidence before deciding its housing target for the next Local Plan. At the time of writing the commissioning Authorities are awaiting a final draft of the study the results of which will be presented at a future meeting. Planning Policy & Built Heritage Working Party 16 27 July 2015