NPPF Dec 24 - Housing Numbers Webinar PAS FINAL Version.pptx

NPPF Dec 24 - Housing Numbers Webinar PAS FINAL Version.pptx

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  PAS NPPF HousingNumbers Webinar Online: Thursday 23rd January 2025 We start at 1pm Please login to Slido to ask questions / answer polls through the session.
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  Webinar Agenda • Rememberto ask questions via Slido (either logged in via QR code or via the “PAS Slido: NPPF Overview” button in the Teams meeting) and vote up others for ones you like • Presentation on NPPF Housing Numbers from MHCLG • Question and Answer Session • Slido Poll – reflections • Thanks and close
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  OFFICIAL OFFICIAL OFFICIAL The New NationalPlanning Policy Framework Planning for Housing January 2025
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  OFFICIAL OFFICIAL OFFICIAL • Local HousingNeed • 5 Year Housing Land Supply • Housing Delivery Test
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  OFFICIAL OFFICIAL 5 Local HousingNeed Overview and drivers for change • Local housing need is an unconstrained assessment of the minimum number of homes needed in an area (policy off) • Gives councils a 'starting point' for how many homes they should plan for through their local plan (the housing requirement – policy on) • LHN is usually calculated through the ‘standard method’ • 1.5 million new homes – Manifesto commitment ‘Plan for Change’ • A more balanced distribution of homes – with a strong emphasis on affordability • Certainty and stability – more predictable, consistent outcomes, avoid complexity What is local housing need and the standard method? Drivers for change – why a new method / approach?
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  OFFICIAL OFFICIAL 6 Local HousingNeed The Key Changes • A new standard method – based on housing stock (0.8%) and housing affordability (0.95% multiplier using 5 year average affordability, multiplier kicks in where affordability ratio is 5+) • Removal of urban uplift, cap • Increase in national figure – c300k to c370k • Policy changes - removal of exceptional circumstances for use of an alternative approach - strong expectation the standard method is used (NPPF para 62) • Revised NPPF and Housing Needs PPG • Proposed method revised to respond further to local affordability pressures • the final method incorporates a higher affordability adjustment (from 0.6 to 0.95) + other changes • increases LHN in areas with strongest affordability pressures, reducing in more affordable areas • While remaining c370k nationally December 2024 changes – key changes What we changed as a result of the consultation
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  OFFICIAL OFFICIAL 7 Local HousingNeed Consultation – key themes • General comments on need for certainty and clarity – in policy and the standard method formula • Further guidance on implementing local housing need and on how constraints should be considered • Local authority call for more discretion on planning for housing, concerns over top down targets • Urban uplift – urban areas should continue to be a focus for housing but uplift not effective • Broad range of views on use of housing stock v household projections • Support for continued use of affordability in method but some concerns over spatial distribution • Support for consideration of rental affordability as well as house price affordability • Range of views on the outcomes and deliverability Key themes from consultation
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  OFFICIAL OFFICIAL 8 Local HousingNeed The formula and calculation • Housing stock – 62,500 • 0.8% of stock = 500 • 5 year average workplace-based affordability ratio = 9 • Affordability adjustment (9-5)/5)*0.95+1 = 1.76 • local housing need = 500 x 1.76 = 880 The standard method formula – work through See PPG - Housing and economic needs assessment - GOV.UK
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  OFFICIAL OFFICIAL 9 Local HousingNeed The outcome of the new method xxx Previous Standard Method (Mar 2024) Method consulted on (July 2024) New Standard Method (Dec 2024) East Midlands 20,793 27,382 25,764 East of England 35,101 44,858 45,429 London 98,822 80,693 87,992 North East 6,123 12,202 10,976 North West 21,497 37,817 34,678 South East 51,251 69,060 70,681 South West 28,203 40,343 39,992 West Midlands 24,734 31,754 29,940 Yorkshire and The Humber 18,699 27,433 24,957 England 305,223 371,541 370,408
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  OFFICIAL OFFICIAL 10 Housing Needand Requirement Establishing a housing requirement • The housing requirement is the minimum number of homes that a plan seeks to provide during the plan period • Once local housing need has been assessed authorities should make an assessment of the amount of new homes that can be provided in their area • Justified by evidence on land availability, constraints on development and any other relevant matters. (Housing Needs PPG) • NPPF Para 11b) – Nationally important constraints – footnote 7 • Not exhaustive – Could be other relevant factors/considerations that may constrain land and delivery – LPA to identify, evidence and justify • Local authorities should explore all options to deliver the homes their communities need – maximising brownfield land, working with neighbouring authorities, and, where necessary, reviewing Green Belt •NPPF para 61 – ‘The overall aim should be to meet an area’s identified housing need’ What is the housing requirement?
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  OFFICIAL OFFICIAL • 5% bufferreinstated in all cases. • New 20% buffer – applying from July 2026 where an LPA has a plan with a housing number <80% of LHN. 11 5 Year Housing Land Supply The Key Changes • We have re-instated the requirement for all LPAs to continually demonstrate a 5YHLS, regardless of whether there is an “up-to-date” local plan. • If the plan is less than 5 years old, this 5YHLS should be demonstrated against the housing requirement in the plan. • If the plan is more than 5 years old, this 5YHLS should be demonstrated against LHN. • We have removed the ability to produce new APSs • Extant APSs (only one!) will continue to apply for this year. Reinstating 5YHLS Buffers APSs
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  OFFICIAL OFFICIAL • We areexploring options to return to a more regular HDT publication. We will share more details in due course. 12 Housing Delivery Test The Key Changes • We published the 2023 HDT results alongside the updated NPPF in December 2023. We made no policy changes to how the HDT operates in December. 2023 HDT 2024 HDT and beyond
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  OFFICIAL OFFICIAL OFFICIAL Q and A
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  Thank you • Pleasecomplete the Slido polls for event input/feedback • We are delivering other PAS topic focused NPPF Webinars – places are still available:  Green Belt: 1-2pm, 18 Feb  Golden Rules: 1-2pm, 19 Feb • Slides of this session will be posted shortly on the PAS website