Tag Archives: regeneration

New NPPF ends Government summer policy drought

by Daniel Fryd, Senior Consultant, Chelgate Local.
This article was also published on Pub Affairs.

In a day for burying Government announcements, Communities Secretary James Brokenshire revealed the new ‘National Planning Policy Framework’ (NPPF) on 24th July, providing good news for build-to-rent developers and bad news for councils dragging their feet. Read Chelgate’s analysis of the key announcements below:

On a swelteringly hot final day before summer Parliamentary recess, housing and planning professionals across the country sat with ‘bated’ breath and awaited the various MHCLG announcements they had been promised.

The Social Housing Green Paper, the revised National Planning Policy Framework (NPPF), and the Rough Sleeping Strategy were all pledged for publication ahead of the summer recess at various points over the last few months. While we will have to wait until September for the other two, Communities Secretary James Brokenshire finally published the long-awaited NPPF2  on the day before recess, before promptly sprinting out of the MHCLG door on his summer holidays.

But while NPPF2 could be seen as a rather underwhelming compilation of minor changes which have been seen before, it does introduce important new policy on areas including the housing delivery test, small sites, housing design, and build to rent:

Build to Rent

For the very first time, Build to Rent (BtR) has been officially recognised by the government as its own specific asset class. Furthering the Government’s drive towards a greater tenure mix, local authorities will need to reflect the demand for purpose-built rented homes alongside social rent and private ownership in their policies and local plans.

Significantly, changes in NPPF2 now allow Build to Rent developments to count towards the total affordable housing allocation for an area, meaning BtR sites can provide new affordable private rent homes for an area, and ease the pressure on registered housing associations to build homes.

The change should allow councils to plan more effectively for provision of affordable housing, and allows them to draw on the typically more high-quality rental homes that BtR provide to meet their housing obligations.

This will be come as some small consolation for councils left with an increasing deficit in their housing stock thanks to Right to Buy, as purpose built BtR developments can be used to provide “affordable private rent” while councils concentrate on replenishing their stock.

Housing Delivery test

One of the key new policies to enforce the Housing Need methodology, and ensure performance against local plans, is the Housing Delivery Test. From November 2018 councils will be assessed against the numbers of homes that are built in their area, rather than how many homes they planned for but have not yet delivered. To ensure councils can no longer agree local plans which set
wildly unachievable housing figures, the test penalises councils under-delivering over a three-year period.

While the policy will help MHCLG crack down on non-compliant councils failing to meet their land supply targets, councils have seen it as allowing developers to run riot. An outraged Lord Porter, Chairman of the LGA, pointed out that the test “punishes communities for homes not built by private developers”, and that national targets could see agreed local plans bypassed. If developers build less than 75% of the council’s target OAN target for new homes over three years, they will now benefit from a “presumption in favour of sustainable development.

Councils have long argued the slow build-out rate of developers has held back their delivery while they approve “nine out of 10 applications”. Developers have repeatedly contested this assertion, and while MHCLG has not committed itself either way, the findings of the Letwin Review at Autumn Budget should finally force the Government to take a policy stance on the issue.

January 2019 local plan deadline

Councils have been told for the first time they have until 24 January 2019 to submit their local plans if they want to be examined against the previous NPPF, using the old housing need figures.

Plans submitted after 24 January – exactly six months from NPPF2’s publication – will be examined under the new rules and will be held to the new housing need assessment.

Good design

Showing he practices what he preaches, the Communities Secretary has also made guidance around good design significantly more robust, in a move which could help bring an end to the days of faceless cheap developments. Recognising its importance for creating places which people want to live in and enjoy, NPPF2 places the creation of high quality buildings as ‘fundamental’ to the planning process.

Warning about how the “quality of approved development [can] materially diminish between permission and completion”, the new guidance sets out how local authorities should work with developers to ensure changes are not made to areas like materials on permitted schemes. While the viability and cost of materials is a perennial issue post-approval, the new guidance could see councils cracking down on changes.

Adopted neighbourhood plans should “demonstrate clear local leadership in design quality, with the framework allowing groups seeking such plans to truly reflect the community’s expectations on how new development will visually contribute to their area”.

Small sites

While the draft NPPF, and Oliver Letwin’s initial findings, have promoted small sites as one of the answer to England’s housing woes, the new NPPF moves away from this. Previously the document stated that “small sites can make an important contribution to meeting the housing requirement of an area, and are often built out relatively quickly”.

Under the revisions to the plan, councils must accommodate 10 per cent of their housing requirement on small sites, as opposed to 20 per cent of sites which they would have had to deliver under the draft version. While the development of small sites is clearly still part of the solution for MHCLG, this move, and the reinstatement of the previously dropped Garden City principles, could signal a move back to larger strategic sites to deliver new homes.

To find out more, and to see how we can help you, get in touch at mhardware@chelgate.com or 020 7939 7989.

Kit Malthouse becomes eighth Housing Minister in eight years

In a day of turmoil for the Government, Kit Malthouse, the little known former Department of Work and Pensions Minister, has been appointed as the new Housing Minister.

Elected as MP for North West Hampshire in 2015 Malthouse has maintained a low but fairly well-respected profile, serving as a Parliamentary Under-Secretary at the DWP, Deputy London Mayor for Business and Enterprise, and Deputy Leader of Westminster Council.

With a range of experience under his belt, Malthouse’s arrival will be met with muted enthusiasm from across the board as a sensible appointment given the circumstances and the need for stability.

But as a supporter of localism and a strong plan-led system to increase housing supply it is just possible Malthouse could emerge as the Housing Minister to provide the planning reforms we need.

Malthouse on Housing
Malthouse has previously spoken out in the House of Commons in support of a plan-led system and strongly supported the introduction of Neighbourhood Plans to maintain local input during the strong growth in housing.

He also welcomed the standardisation of the calculation of housing supply for local authorities, which will be vital to drive through the new NPPF in the coming months.

Interestingly he has criticised the role of the Planning Inspectorate for its involvement in planning in the past, saying that it is often used as an excuse to slow things down as a “complicated game of chicken is played between developer, local authority and local community”.

Elsewhere he has written for the Times, arguing that local authorities should let flats to rough sleepers for free as a basis for providing support to the homeless.

Shaky Foundations
Theresa May’s promise that housing is “at the top of the Government’s agenda” rings somewhat hollow now, given she in on her fourth Housing Minister since her appointment as Prime Minister two years ago.

Malthouse replaces Dominic Raab, the ardent Vote Leave campaigner and former lawyer who has been confirmed as the man to lead Theresa May’s Cabinet as the new Brexit Secretary.

Raab managed a grand total of six months as Housing Minister following his appointment to Theresa May’s cabinet reshuffle in January, replacing Alok Sharma who spent just seven months in the role. His credibility took something of a hit this year over accusations of ‘dog whistle’ politics as he used discredited statistics to link the housing crisis to immigration.

In a year that has also seen MHCLG lose Sajid Javid as Communities Secretary and Marcus Jones as Local Government Minister, Malthouse will be tasked with bringing stability to a Housing agenda undermined by constant change.

A Tall Order
Malthouse will immediately take over the mantle of delivering a housing agenda to build on million new homes by 2020. And he will have his work cut out for him.

July will be an incredibly busy month with both the Social Housing Green Paper and revised NPPF due for publication. Alongside this, work will continue on reforms to the rental sector while allocation of funds such as the £3billion Home Building Fund will need to be addressed.

MHCLG have committed to delivering the revised NPPF, which has already been delayed and tinkered with over the last year, this month. Given Raab’s departure today and the need to bring Malthouse up to speed with complex regulations, it is looking increasingly unlikely they will be able to deliver to this timescale before Parliament breaks for Summer Recess next Friday 20th July.

If he gets up to speed quickly and heals the hurt left by yet another departing Housing Minister, Malthouse has every opportunity to stamp his mark on the portfolio at a time when bold and stable leadership is desperately needed.

Chelgate Local
Chelgate Local has been providing strategic communications advice to residential and commercial developers for 30 years. We are working on 30 projects across London, Home Counties, East Anglia and the East Midlands which could provide 92,000 new homes.

To discuss how we could help your business navigate the planning system get in touch with Mike Hardware on 020 7939 7949 or mhardware@chelgate.com.

RIP UKIP: More politicians flee the sinking ship

Already it’s not shaping up to be a good year for UKIP.

In yet another blow to the beleaguered party, all 17 of the UKIP councillors in Thurrock, Essex, have now resigned from their membership.

Saying they have “had enough of the aggressive and bitter reality of party politics”, the fleeing UKIP councillors have formed their own group, the Thurrock Independents, which will contest every ward seat in the upcoming local elections in May 2018.

The mass defection, which includes MEP Tim Aker, means the Thurrock Independents have become the official opposition party to the Conservative administration in the Borough and are free of UKIP’s central governance.

It’s a shrewd move for the Thurrock councillors who are reported to have impressed locals with their hard work but are unlikely to be voted in under the increasingly toxic UKIP banner.

The collapse of the central pillar

Thurrock has been one of the few UKIP outposts to consistently perform well over the years, with the party launching its manifesto there in 2015 and receiving a 20% share of the vote for Tim Aker in the 2017 elections.

The loss will come as a huge blow to the UKIP faithful as party leader Henry Bolton continues to cling on despite receiving a vote of no confidence, on top of public embarrassment over his relationship with a young woman who has been branded a racist.

A number of senior UKIP figures have now quit their roles, including Mr Bolton’s deputy and assistant deputy, and it looks like there will be more losses to follow.

Tim Aker MEP, who intends to stay on as UKIP, said: “UKIP has a job to do in the European Parliament in seeing we get the Brexit we voted for. I will stay as a UKIP MEP. But to better represent my constituents in Aveley, I had no choice but to follow my colleagues and represent the Thurrock Independents. We are one seat away from taking control of the council and bringing real change to our borough.”

Thurrock Independents

Somewhat bizarrely, the new Thurrock Independents group has adopted a worker bee as its new logo, with group leader Cllr Graham Snell saying it represents “hard graft, working together towards common goals, sacrifice and the importance of the protection of our environment.”

He went on to say: “Thurrock Independents have the only councillors in Thurrock whose prime concern will be Thurrock residents. They are not compromised by a slavish attachment to a national party.

“Our entire group joined Thurrock Independents as we have had enough of the aggressive and bitter reality of party politics.”

With just over 14 weeks until the local elections, the loss of one of the most influential local government UKIP groups is a substantial blow to the ailing party. Given the party’s extensive problems, there are likely to be further casualties.