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The Committee considered a report by the Head of Commercial Services giving details of the national changes to planning policy regarding the use of planning obligations on small sites and inviting the Committee to consider an interim policy position in advance of the local plan review.
Karen Syrett, Place Strategy Manager, attended to assist the Committee in its discussions. She explained that a written ministerial statement had recently been issued from Brandon Lewis on support for small-scale developers, custom and self-builders and she proposed an interim position for the Council in response.
In March 2014 the Government had consulted on measures intended to tackle the ‘disproportionate burden of developer contributions on small-scale developers, custom and self-builders’ which included introducing into a threshold beneath which affordable housing contributions should not be sought. The suggested threshold was for developments of ten units or less with rural exception sites being exempted. The consultation also asked if the threshold should be extended to include tariff style contributions which were an approach that this Council had used for a number of years in order to secure funding from new development towards Community Facilities and Open Space, Sport and Recreation. Over 300 responses had been submitted, including one from this Council, which objected to the proposals whilst developers, development representative bodies, and some members of the public generally supported the proposed changes.
The following changes had subsequently been made to national policy and to the Planning Practice Guidance (PPG):
- For sites of 10-units or less, and which have a maximum combined gross floor space of 1,000 square metres, affordable housing and tariff style contributions should not be sought.
- For Housing Act 1985 designated rural areas, including areas of outstanding natural beauty, authorities may implement a lower threshold of 5 units or less, beneath which affordable housing and tariff style contributions should not be sought and on developments of between six to ten units contributions should also be as a cash payment only and be commuted until after completion of units within the development.
- The changes will not apply to rural exception sites.
There was general consistency between the Council’s Affordable Housing Policy and the new guidance but further clarity could be added to confirm the affordable housing policy would be applied to new development above 10 units and above 5 units in designated rural areas. It would, however, be inappropriate to seek tariff style contributions on sites of ten or fewer units as there is no evidence to support this approach and no distinction in the local policy. There was also inconsistency in two Supplementary Planning Documents relating to the provision of Community Facilities and Open Space, Sport and Recreation Facilities both of which incorporated an approach in which all new development that created new units of accommodation contributed towards the provision and maintenance of facilities. These documents would need to be revised to clarify that only those developments above the thresholds (5 and 10 units) would be expected to make a contribution towards community facilities and sport, recreation and open space.
The Place Strategy Manager proposed that the following interim resolution to clarify the Council’s position in relation to planning obligations from small sites:
“The Use of Planning Obligations on Small sites
In November 2014 the Government published a ministerial statement and updated the Planning Policy Guidance (PPG) in respect of the use of planning obligations on small sites. In light of this updated guidance, the Council recognises that it needs to clarify its own policy and approach in relation to the use of planning obligations on small sites. In the intervening period, until the Local Plan is reviewed, the following statement sets out the Council’s interim policy position in relation to the use of planning obligations on small sites, which should be read alongside the Council’s adopted policies H4, SD2 and DP3, as well as the National Planning Policy Framework and Planning Policy Guidance.
Affordable Housing
The Council will seek to secure 20% of new dwellings to be provided as affordable housing, as follows:
- In Colchester Town, Myland, Stanway, Tiptree, Wivenhoe, West Mersea, West Bergholt and Marks Tey affordable housing will be sought on developments of more than 10 dwellings. (The affordable housing will normally be required on site)
- In the other villages, an affordable housing contribution will be sought on housing developments for more than 5 dwellings. Where a contribution is sought from a development of between 6 and 10 units it will be in the form of a cash payment which will be commuted until after completion of the units within the development.
Other Contributions
Standard charges will not be applied to developments of 10 units or less, and which have a maximum combined gross floorspace of no more than 1000sqm. Site specific contributions will still be sought where necessary to make the development acceptable but they must be directly related to the development and fairly and reasonably related in scale and kind to the development.”
Members of the Committee were concerned at the potential implications of the new guidance in terms of loss of contributions, particularly in relation to smaller sites, just below the 10 unit threshold but welcomed the interim resolution set out in the report.
In response to the discussion, the Place Strategy Manager confirmed that the guidance was unlikely to impact on the allocation of open space but it may lead to restrictions in relation to maintenance and replacement of play equipment. In the longer term, it was anticipated that the Community Infrastructure Levy would be in place by the end of the year which would mean that all developments would be subject to assessment for contributions. In terms of contributions from smaller sites, she reiterated that planning case officers would continue to consider each application on its merits and ward councillors continued to have the opportunity to submit their views.
RESOLVED that the national changes to planning policy regarding the use of planning obligations on small sites be noted and the proposed interim policy position as set out in Paragraph 5 of the report by the Head of Commercial services be agreed for implementation with immediate effect in advance of the local plan review.