The Conservative Government made significant changes to the National Planning Policy Framework (NPPF) in England in December 2023. However, not long after entering Parliament, the Labour Government has begun consultation on their own proposed changes to the NPPF. The 8-week consultation opened on 30 July 2024, following-on from the Chancellor's earlier speech which announced that immediate changes to the NPPF will be made to support their manifesto aims of achieving economic growth and delivering 1.5 million homes over 5 years.
Comments on the consultation draft of the NPPF can be submitted until Tuesday 24 September 2024.
In this blog we've selected some of the housing-related highlights and takeaways from the proposed amendments to the NPPF.
Approaches to housing need
To determine the minimum number of homes needed in an area, councils are to conduct local housing need assessments using the "standard method" set out in national planning guidance.
The Government is proposing a new approach to the standard method of calculating housing need. It will set a baseline at a percentage (0.8%) of existing housing stocks, apply stronger affordability multipliers to relieve price pressures and remove certain caps/additions. The aim is to support the Government's objective of 1.5 million homes within 5 years, focusing on supporting growth outside London and maximising delivery in urban areas.
The amendments to the NPPF in December 2023 revised the NPPF such that the outcome of the standard method assessment was only an "advisory starting point" for determining housing need and there could be exceptional circumstances in which an alternative approach could be used.
The proposed new NPPF seeks to reverse these amendments to ensure that the new standard method is used for consistency and certainty for both councils and developers and to ensure that land is allocated to meet the need. The new Government feels that the previous flexibility given to local authorities could provide too much leeway and mean that housing needs are not met.
5-year housing land supply
Previously NPPF required authorities to annually update the land supply to ensure that a 5-year supply was maintained, and if that supply was not demonstrated, the presumption in favour of sustainable development would apply.
The December 2023 amendments removed that requirement on local authorities while their local plan was up to date (where certain criteria are met).
The Government now proposes to reverse those amendments and reinstate the requirement on authorities to maintain a 5-year housing land supply. But it has also gone further; proposing to remove the ability of councils to set off over-supply in previous years against the upcoming supply. The logic being that while over-supply is to be celebrated, the need to deliver houses necessitates that a 5-year supply should always be maintained, irrespective of past successes.
The proposals also include reinstating the requirement for authorities to include a 5% buffer on their 5-year housing land supply which was removed in December 2023.
Presumption in favour of sustainable development
The presumption in favour of sustainable development (also known as the tilted balance) applies in England where a local plan is not up to date.
The existing presumption applies where the "most important" policies for a planning application are out of date or there are no relevant policies. The Government considers the term "most important" policies is open to uncertainty.
The proposed amendments therefore seek to clarify that the presumption in favour of sustainable development is to play an important role in addressing inadequate land supply and therefore the only policies that need to be out of date for the presumption to apply are those "for the supply of land". The proposed footnote clarifies that such policies are any that set an overall requirement, make allocations and/or make allowances for windfall sites.
To prevent the presumption being used to get permission for poor developments on poor quality sites, there are also amendments proposed to emphasise the role of design, location and affordable housing policies in assessing the tilted balance.
Brownfield First
To strengthen the emphasis on development of brownfield sites, there are proposed amendments so that proposals for housing or other identified needs on brownfield land should be regarded as acceptable in principle. This extends the existing position which only required "substantial weight" be given to the value of such development.
Grey Belt
A lot was said in the various party manifestos about enabling development of the "grey belt". The problem was that this new buzzword was not defined anywhere. The Government therefore proposes inserting a definition into NPPF for "grey belt" principally as previously developed land in the Green Belt "and any other parcels and/or areas…that make a limited contribution" to the Green Belt purposes. Protected/designated sites would be excluded. The Consultation specifically requests for feedback on whether further guidance would be necessary for determining whether land makes a "limited contribution" to the Green Belt purposes. Some wording is proposed in the consultation draft of NPPF for comment.
Green Belt
There are further proposed amendments which would mean that in certain circumstances, development in the Green Belt will not be considered inappropriate when it is on "sustainable" Grey Belt. Those circumstances are where a local authority cannot demonstrate a 5-year land supply or is delivering less than 75% against the housing delivery test (or there is unmet commercial or other need). So, there is greater scope for developers in areas where housing need is not being met.
Coupled with this is an amendment which seeks to require authorities to undertake a review of its Green Belt where they cannot meet the identified housing, commercial or other land supply need without altering Green Belt boundaries. In doing so authorities would be required to apply a sequential test for land to be released: previously developed land, grey belt and then greenfield sites.
The proposal is seen by the Government as another necessary tool to ensure that housing land supply is maintained, while reflecting the need to protect the most valued Green Belt Land.
Affordable Housing
Currently the NPPF does not require authorities to include those who require social rented housing when assessing affordable housing need in their area. The consultation draft NPPF therefore expressly requires housing needs assessments to consider those needing social rented accommodation and for social rent delivery to be specified in affordable housing policies.
Similarly, it is proposed to remove both the requirement to deliver at least 10% of homes on major sites as affordable home ownership and the requirement that at least 25% of affordable housing units secured through developer contributions should be first homes. Therefore, although the Government wants to enable increased home ownership, they aim for greater flexibility to cater for the needs of specific areas.
Scotland
The proposed changes to the NPPF would on the face of it, go a long way towards helping the UK Government achieve its aim of delivering 1.5 million homes in 5 years.
While the Scottish Government has declared a housing emergency, there has as yet been no suggestion that NPF4 will be amended to help address the shortage of homes. Perhaps it is time that the requirement to maintain a 5-year effective housing land supply and the presumption in favour of sustainable development is reintroduced north of the border as well?
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