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The Committee considered a report by the Head of Commercial Services giving details of the Strategic Housing Market Survey (SHMA) update to be added to the Council’s Local Plan evidence base.
Laura Chase, Planning Policy Manager, presented the report, responded to questions and assisted the members in their discussions.
It was explained that the SHMA update had been prepared for Braintree, Chelmsford, Colchester and Tendring Councils by consultants HDH Planning and Development Ltd following guidance in the latest published National Planning Practice Guidance (NPPG) to calculate the level of affordable housing need and the size and tenure of all dwellings required within the Objectively Assessed Housing Needs (OAHN) Study. Previous SHMA work reflected earlier Government guidance and had a different geographical scope. The Update report, together with the OAHN Study, therefore provided the Council with Government guidance compliant evidence on housing requirements. The National Planning Policy Framework (NPPF) set out the role of a SHMA, which was to demonstrate that local planning authorities have a clear understanding of the housing requirement of their area and that local planning authorities should work with neighbouring authorities where housing market areas cross administrative boundaries, to identify the scale and mix of housing, and the range of tenures that the local population is likely to require over the plan period.
The SHMA set out variations between authorities and provided information for each authority to provide specific local evidence. In addition the report focused principally on the size and tenure of all dwellings required within the OAHN Study, the calculation of the level of affordable housing need and provided information on the accommodation requirements of certain household groups which had an appreciable impact on the housing market within the HMA. It was important to note that the affordable housing need figure was not derived directly from the housing target OAHN. The housing target provided an overall number of units required, but did not dictate their level of affordability. The affordable housing need figure was an unconstrained figure that reflected the current housing market situation. It was not a component of the OAHN but was calculated using a completely different approach and different data sources. In Colchester, the report concluded that the affordable housing requirement of 30.2% could be met by the OAHN identified and no adjustment would be required to this figure. However, other evidence such as the Council’s viability assessment would also need to be considered and allowance taken of the fact that some sites may not deliver affordable housing, for example, due to government policy thresholds.
The report used a Long Term Balancing Housing Market (LTBHM) model in accordance with the NPPG to break down the OAHN to identify the tenure and size of housing required for each authority within the SHMA.
Chapter 6 of the report considered the impact of subgroups of the population on the housing target. In terms of specialist accommodation for older persons, in the overall HMA there is a requirement for 7,746 additional specialist units, of which 7,157 should be sheltered housing and 319 should be extracare housing. The requirement for 7,746 additional specialist units for older people represents 10.4% of the total Objectively Assessed Need for the period to 2037. Further information would be gathered on the specific housing requirements generated by the University of Essex and the Colchester Garrison and by those wishing to build their own homes and this would be used to update the evidence base once available. It had recently been confirmed there were currently 11,657 students registered at the University of Essex and the largest accommodation categories were 4,000 housed by the University, 4,000 living in privately rented accommodation and 1,300 living with their families. The University planned to grow to 15,000 students by 2019 with corresponding plans to increase its accommodation. Further information was needed from Colchester Garrison on its plans for growth.
The private rented sector is becoming increasingly important in the HMA, increasing by 93.9% between 2001 and 2011 to 19.5% of the population. 17,877 private rented households were estimated to live currently in Colchester (para 6.34 and 6.35, p. 77 of main report Background Paper).
The Update report seeks to establish the potential demand for discounted market housing (including Starter Homes) and shared ownership. It concludes that there is a potential annual demand from all age groups for 48 discounted home ownership dwellings and 224 shared ownership dwellings in Colchester (Table 3.7 and 3.8, p. 44 of main report Background Paper). (The shared ownership figures include households able to afford discounted home ownership). The low level of demand for discounted new home ownership reflects the fact that it is more expensive than entry-level home ownership (which includes both new and existing houses), with the exception of three bedroom homes in Colchester, and accordingly cannot be considered to address local affordable housing needs. It is important to note that numbers also represent just the potential demand and not the tenure preferences of these households.
It is proposed that the Committee note the findings of the Strategic Housing Market Assessment Update.
In discussion members of the Committee referred to:
• The definition of extra care housing and what type of accommodation this included;
• The impact of the increase in buy to let investments and the associated increases in house prices and greater reliance on private sector housing as a consequence;
• The future of Development Briefs in identifying design requirements for potential sites
In response to questions from the Committee members the Planning Policy Manager, together with the Place Strategy Manager, explained that:
• The timescale for the production of the new Local Plan would remain as previously envisaged;
• Whilst Development Briefs were still [possible the intention was to move to a more criteria based approach to development which would set out in detail what would be expected to be delivered for individual sites.
RESOLVED that Strategic Housing Market Survey update be noted and added to the Council’s Local Plan evidence base.