North East Fife Area Committee Date: 26th January 2011 Agenda Item No. 7 Draft Supplementary Planning Guidance: Houses in Multiple Occupation ( St Andrews Central Conservation Area) Report by: Keith Winter Head of Development Services Wards Affected: Ward 19 Purpose This report seeks approval to publish for consultation draft supplementary planning guidance (SPG) on houses in multiple occupation (attached as Appendix A). The SPG relates specifically to the St Andrews Central Conservation Area and the formal consultation process on the draft guidance will involve external key stakeholders in addition to internal Fife Council Services. Recommendations It is recommended that Committee: 1. Approve the draft Supplementary Planning Guidance (SPG) for consultation 2. Remit the Head of Development Services to consult on the draft guidance and report back to North East Fife Area Committee in May 2011 with a finalised version of the document. Resource Implications There are no significant resource implications in preparing the SPG. Development Services will be required to resource the implementation of the guidance and the estimated cost of producing the published paper version of the document is £100. The costs will be met from existing Development Services’ revenue budget. Legal & Risk Implications In terms of Section 22(1) of the Town and Country Planning (Scotland) Act 1997, being part of the new Part 2, of the 2006 Planning etc. (Scotland) Act, a planning authority may adopt and issue guidance in connection with a local development plan. Although the new style local development plan for Fife has not yet been prepared in terms of the 2006 Act, it is proposed that the Council comply with the publicity and consultation requirements imposed by Section 22(3). The proposed supplementary guidance will be submitted to Scottish Ministers who have 28 days to decide whether to require the authority to make specified modifications prior to its adoption and being issued. The Fife Development Plan provides the statutory policy framework for land use planning in Fife and at present planning applications for HMOs are determined on the basis of Policy H3 of the Council’s three current area local plans, which provides Fife-wide policy coverage on houses in multiple occupation. This supplementary guidance relates specifically to the St Andrews Central Conservation Area. The proposed policy, if approved, may lead to the refusal of some planning applications for HMOs and it is likely that some applicants will submit an appeal against such decisions to the Directorate of Planning and Environmental Appeals. Policy & Impact Assessment Scottish Planning Policy 2010 requires development plans to consider the need for houses in multiple occupation. Planning authorities should also consider the need for HMO accommodation as part of the housing requirement for the area. Fife Council also has a statutory requirement to undertake Strategic Environmental Assessment (SEA) on local plans under the Environmental Assessment (Scotland) Act 2005. The current Fife- wide Local Plan policy H3 was assessed under this process, and a further Strategic Environmental Assessment screening process has been undertaken, on the draft SPG. The impacts of the proposed policy are as yet uncertain, however an initial assessment would suggest that a restrictive planning policy will not necessarily mean that properties prevented from becoming an HMO will become available for local people or first time buyers. Planning permission is only required where there are more than five unrelated people live in a house and three or more unrelated people live in a flat and they may therefore continue to be occupied by two to four people sharing. Alternatively, the properties may be occupied without the necessary planning permission (although they may be subject to enforcement action). Demand for HMOs may also move to the outskirts of the town and rural areas, including other settlements outwith St Andrews. In these areas it is likely that the properties under pressure for HMO use will be those which are otherwise suitable for owner occupation and family use. Such proposals will be assessed against the current Local Plan policy H3 and provided they meet the tests set out in the policy will be considered appropriate for HMO use. It is proposed therefore, that the operation of the SPG will be reviewed after 24 months to assess the effectiveness of the approach. The proposed SPG has also been subject to a formal screening under the terms of the Environmental Assessment (Scotland) Act 2005. The Scottish Government SEA Gateway in their formal response advise that the consultation authorities (SEPA, SNH and Historic Scotland) agree that there are likely to be no significant environmental effects arising from the SPG. Consultation The Executive Director, Performance and Organisational Support and Executive Director, Finance and Resources have been consulted and are in agreement with the content of this report. Initial consultations with Fife Council Housing and Neighbourhood Services and Environmental Services on the draft SPG has been undertaken and consultation with external bodies such as the University of St Andrews, landlord and residents associations will also be undertaken as part of the formal consultation process on the draft SPG. St Andrews Members have also been briefed on the contents of the proposed SPG and comments received have been incorporated in the draft document. A report on the consultation responses and the final draft of the document will be brought back for the consideration of the North East Fife Area Committee in May 2011 following a 4 week consultation period in February 2011. 1.0 Background 1.1 Introduction 1.1.1 This report seeks approval to consult on Fife Council’s proposed draft supplementary planning guidance on houses in multiple occupation in the central St Andrews Conservation Area. The SPG has been prepared to address issues of community sustainability in central St Andrews in relation to the concentration of HMOs in this area and the resultant impacts on the community and for this reason, Fife Council’s Planning Committee at its meeting on 7th September 2010 agreed that a policy restricting any further HMOs in the central St Andrews Conservation Area be prepared as Supplementary Planning Guidance. 1.1.2 The guidance will complement the Council’s existing Fife-wide Local Plan policy H3 on HMOs, and given the complex issues surrounding HMOs it is recommended that the operation of this SPG for St Andrews will be reviewed after 24 months to assess the effectiveness of the approach and to establish whether any amendments are required in the event of a change in Scottish Government legislation or other challenges to the policy. 2.0 Issues and Options 2..1 Demand for houses in multiple occupation has come typically from students but there is growing demand from other groups including young professionals and migrant workers. While some concerns relating to HMOs can be addressed through the licensing regime there are a number of land use issues that HMOs can raise. These fall into two categories:Wider community issues: the demands for community services and facilities can change if the proportion of HMOs increase; established communities can be eroded by the more transient nature of occupants who do not have a long term commitment to an area. Property specific issues: increase pressure on traffic movement and parking; the more independent lifestyles of occupants can increase demand for parking facilities, drying areas, gardens etc; pedestrian movement and noise and resultant impact on residential amenity. 2.1.2 As members will be aware the issue of HMOs has been the subject of at least 16 separate meetings since 2004 and as a result, the Fife-wide Policy H3 is the approved Local Plan policy which applies to all current planning applications for HMOs in Fife 2.1.3 The issues of HMOs however, and their impact on communities and neighbourhood amenity has concentrated on St Andrews, specifically, the centre of the town where the housing stock is predominately comprised of flats and has proved attractive to university students. As a result, part of the character of central St Andrews is that of a student community rather than a mixed and sustainable community. 2.1.4 In recent years, a number of new developments, particularly flats, within St Andrews have also been purchased for use as HMOs. In some cases, mainstream housing has became exclusively HMO accommodation and this could add to the difficulties for others that may wish to enter the housing market and also prevents potentially affordable housing being available for owner occupation. The Council’s affordable housing policy is therefore an important part of the suite of planning policies. 2.1.5 In addition, the Fife Housing Need and Demand Assessment 2010, which informs the Local Housing Strategy (LHS) 2010-2015 indicates that 10.6% of households within the St Andrews LHS area are in need of affordable homes compared to 6.2% across Fife. This represents the highest level of affordable housing need out of ten LHS areas. During this period the St Andrews LHS area also experienced a 10.3% increase in the proportion of private rented accommodation from 5.9% of housing in the area to 16.2%. 2.1.6 The LHS also outlines a key housing priority to ‘raise standards in private rented housing’. The current strategy is to focus on incorporating all HMOs within the licensing system. It notes however that, of the 1,120 licensed HMOs, 93% of these are located within the St Andrews LHS area. 2.1.7 It is also important to note however that purpose built student and HMO accommodation provided by the University in line with planning policy will be supported as the Council wishes to encourage the future development of accommodation which can specifically serve the needs of students and others in Fife who may benefit from this type of accommodation. At the same time the Council wants to protect new development from being priced out of the general needs market by competition from HMO property demand. 2.1.8 The Council recognises that the private rented housing market, which includes HMOs is an important element of the housing stock in St Andrews. It provides affordable accommodation for those working and studying in the town and unable to buy their own property due to personal circumstances and the high price of property in the town. The Council also recognises that this form of housing is helping to support the St Andrews economy and that it is important that the supply of such accommodation is available to meet their needs. 2.1.9 The SPG document itself also includes the current Fife-wide HMO Local Plan policy and provides information on the relevant planning and licensing legislation applying to HMOs. It also sets out the latest government guidance contained in Circular 8/2009 Houses in Multiple Occupation: Guidance on Planning Control and Licensing. The proposed policy for St Andrews is set out on page 6 of the SPG and effectively prevents any further HMOs in the central St Andrews Conservation Area. 2.1.10 The policy will apply only to applications considered after consultation on, and approval of the final version of the SPG and will not affect the availability and operation of HMOs already with the benefit of planning permission. The policy will also only apply to new applications/proposals for change of use of existing properties only. 3.0 Next Steps 3.1 Following approval by Committee, the draft SPG will be taken through a period of consultation with key stakeholders, including community groups, University of St Andrews, landlord and residents associations. It is anticipated that a 4 week consultation using the Councils’ online consultation facility will be undertaken in February 2011 and a report on the consultation and the final draft of the document will be brought back for the consideration of the North East Fife Area Committee following the consultation period, in May 2011. 3.1.2 The SPG will be also be reviewed as part of the preparation of a new local development plan, to assess the effectiveness of the policy and to establish whether any amendments are required in the event of a change in Scottish Government legislation or other challenges to the policy. 4.0 Conclusions 4.1 The Council is of the view that intensification of HMO use, particularly in the centre of St Andrews, has led to an unbalanced community and prevents potentially affordable housing being available for owner occupation. The proposed policy aims to address some of those issues, however it is acknowledged that whilst there may be concerns expressed by some community organisations and members of the public in relation to the proposed guidance it is also appropriate to consider the impact of HMO use on permanent residents who reside in the centre of St Andrews. The impact of implementing such a strict land use policy however, remains unclear and for this reason it is also recommended that the operation of the policy will be reviewed in due course. In the meantime, it is proposed to consult on the draft SPG and report back to Committee in May 2011 with a finalised version of the document. List of Appendices Appendix A: Draft Supplementary Planning Guidance: Houses in Multiple Occupation (St Andrews Central Conservation Area) Background Papers Under Section 50(d) of the Local Government (Scotland) Act 1973 the following background papers were relied upon in the preparation of this report: Planning etc. (Scotland) Act 2006 http://www.legislation.gov.uk/asp/2006/17/pdfs/asp_20060017_en.pdf Town & Country Planning (Scotland) Act 1997 http://www.legislation.gov.uk/ukpga/1997/8/contents Town and Country Planning (Development Planning) (Scotland) Regulations 2008 http://www.oqps.gov.uk/legislation/ssi/ssi2008/ssi_20080426_en_1 Circular 1/2009 Development Planning, The Scottish Government (February 2009) http://www.scotland.gov.uk/Resource/Doc/261030/0077887.pdf Circular 8/2009 Houses in Multiple Occupation: Guidance on Planning Control and Licensing. http://www.scotland.gov.uk/Resource/Doc/280245/0084426.pdf Strategic Environmental Assessment (Scotland) Act 2005 http://www.legislation.gov.uk/asp/2005/15/contents Finalised St Andrews & East Fife Local Plan (October 2009) http://www.fifedirect.org.uk/topics/index.cfm?fuseaction=advicetopic.display&subject id=F0F739ED-508B-DE79-47D3A6D0F83A12CD&objectid=2D4025A1-AC534BB8-BA2332A54ABFDF6C Draft Dunfermline & West Fife Local Plan (February 2010) http://www.fifedirect.org.uk/topics/index.cfm?fuseaction=advicetopic.display&subject id=F0F739ED-508B-DE79-47D3A6D0F83A12CD&objectid=2D41ACD7-C1D64F27-8A6497DC81D0E658 Mid Fife Local Plan (pre-examination modifications Oct 2009) http://www.fifedirect.org.uk/topics/index.cfm?fuseaction=advicetopic.display&subject id=F0F739ED-508B-DE79-47D3A6D0F83A12CD&objectid=2D40F6D8-AA487E7E-9FCFAD1A55B5820F Report Contact Author Name: Karen Black Author’s Job Title: Lead Officer (Local and Community Policy) Workplace: Town House, Kirkcaldy Telephone: 08451 55 55 55 + 471679 Email – karen.black@fife.gov.uk Report agreed and signed off by __________________ Manager __________________ Team Leader