19 Housing

19 Housing

National policy

19.1 Section 5 of the NPPF sets out the Government’s objective to ‘significantly boost the supply of homes’, with a local housing need and subsequent housing requirement that is determined using the standard method. Within the context of the housing requirement and establishing need, NPPF paragraph 63 states that “the size, type and tenure of housing need for different groups in the community should be assessed and reflected in planning policies”, and further lists the range of groups that should be includedThese groups should include (but are not limited to) those who require affordable housing (including Social Rent); families with children; looked after children; older people (including those who require retirement housing, housing with-care and care homes); students; people with disabilities; service families; travellers; people who rent their homes and people wishing to commission or build their own homes.

19.2 Where there is a need for affordable housing, planning policies should set out the type of affordable housing required, ‘and expect it be met on site’ (NPPF, paragraph 64). Policies should set out the (minimum) proportion of Social Rent homes required; and meet identified local needs across all sectors including Social Rent, other affordable housing for rent, and affordable home ownership tenures (NPPF, paragraph 66).

19.3 Development proposals involving the provision of new homes, that are in the Green Belt will be subject to the ‘Golden Rules’NPPF, paragraphs 156-157 that require a higher level of affordable housing than would apply to non-Green Belt proposals; and this level is required to be at least 50% of the total housing proposed.

19.4 Provision of affordable housing should not be sought for residential developments that are not major developments, other than in designated rural areas where policies may set out a lower threshold of 5 units or fewer.

19.5 Planning policies and decisions should avoid the development of isolated homes in the countryside unless there is an essential need for a rural worker, including those taking majority control of a farm business, to live permanently at or near their place of work in the countryside (NPPF paragraph 84).

19.6 National policy enables the Council to bring in higher optional technical standards for accessible and adaptable dwellings and wheelchair user dwellings. Councils can also require through the nationally described space standards to be followed that set internal space requirements.

19.7 Paragraph 76 of the NPPF states “Local planning authorities should support the development of exception sites for community-led development on sites that would not otherwise be suitable as rural exception sites.” These sites should comprise affordable housing, but the local planning authority may allow a proportion of market homes. Sites should be adjacent to settlements, proportionate in size to them (not larger than one hectare in size or exceed 5% of the size of the existing settlement unless the development plan makes specific provision to exceed these limits. Sites should not compromise the protection to assets of importance such as local green space, Green Belt and nationally important designations.  

19.8 Community-led is defined as taken forward by, or with, a not-for-profit organisation and be managed and democratically controlled by its members.

19.9 NPPF sets out that local planning authorities should support opportunities to bring forward rural exception sites that will provide affordable housing to meet identified local needs and consider whether allowing some market housing would help to facilitate schemes. In the Green Belt limited affordable housing for community needs under policies in the development plan, including rural exception sites, are not considered inappropriate development.

19.10 Annex 2 of NPPF defines a rural exception site as: “Small sites used for affordable housing in perpetuity where sites would not normally be used for housing. Rural exception sites seek to address the needs of the local community by accommodating households who are either current residents or have an existing family or employment connection. A proportion of market homes may be allowed on the site at the local planning authority’s discretion, for example where essential to enable the delivery of affordable units without grant funding.”

Evidence base

• Housing Needs Assessment (to be prepared)
• Self-build and Custom Housebuilding Register
• First Homes (National Planning Guidance)
• National Space Standards Evidence (to be prepared)
• Housing: optional technical standards (National Planning Guidance)
• Higher Education enrolment data (Higher Education Statistics Agency)
• Local Plan Annual Monitoring Reports
• Rural Worker Dwellings - Advice Note (2022)

Key issues

• Housing Need Assessment (to be prepared) will provide the basis for delivering the mix of homes required and requirement for affordable housing.
• Ensuring development meets the needs identified in the Housing Needs Assessment (to be prepared).
• Threshold for provision of affordable housing especially in rural areas.
• New national policy that replaced entry level exception sites and can apply to sites adjacent to existing settlements whether large urban areas or rural settlements.  
• Local Plan monitoring information identified that rural exception sites were often driven by a site being promoted before the identification of a local need.
• Evidence of local need for rural exceptions sites being overstated and first occupation not local residents.
• Most rural exception sites delivered since the start of the current plan have been in the smaller settlements in the north of the borough and relatively close to larger urban areas

Current adopted policy

Suggested policy approach

19.11 The Housing Needs Assessment (to be prepared) will provide the basis for new Local Plan policies that will set out how new residential developments will be expected to provide a suitable mix of housing to meet residents needs. Unlike the current Local Plan the intention will be to have a much clearer approach to residential mix e.g. split by size (bedrooms) for both market and affordable housing. In line with NPPF the Council is committed to ensuring that future housing provision meets the needs of residents with disabilities which will include learning difficulties. Detailed requirements will be provided for adaptable and accessible dwellings. If justified, larger developments will also be required to make provision for self-build and custom housebuilding plots. Local Plan (Part One) policy SOC 3 and Local Plan (Part Two) policy DM 20 will be replaced by a single policy approach in relation to development requirements on residential sites to ensure clear guidance is given on expected mix of residential schemes. 

19.12 If justified, Local Plan (Part One) policy SOC 1 will be amended based on the Housing Needs Assessment (to be prepared) recommendations in relation to identifying the level (%) affordable housing requirement by borough or sub-area and tenure types. This can include provision for First Homes. The current Local Plan policy approach requires developments in urban areas of 10 or more dwellings (or 0.3 hectares) and in rural areas of three of more dwellings (or 0.1 hectares) to provide affordable housing as part of the development. The current policy sets out that the urban areas are: Chester, Ellesmere Port, Winsford and Northwich. Planning Practice Guidance now states the threshold for all areas should be 10 dwellings or more unless in a designated rural areaAreas designated as ‘rural’ under Section 157 of the Housing Act 1985: The Housing (Right to Buy) (Designated Rural Areas and Designated Regions) (England) (No.2) Order 2004 where a lower threshold of 5 units of fewer can be set. As per the map below the following areas of the borough are designated under Section 157. The Local Plan (Part One) policy SOC 1 will be updated to reflect the NPPF but for the rural areas it is proposed to require sites for 3 or more dwellings to provide affordable housing. It is appreciated that Neighbourhood Plans may set different requirements and that many rural areas of the borough are not designated, and views are welcome on this.

Map 19.1 Section 157 areas (View full image)

19.13 Local Plan (Part One) policy SOC 1 in relation to dispersing affordable housing throughout the site and ensuring market and affordable homes being indistinguishable will be retained. The requirements of Local Plan (Part Two) policy DM 23 in relation to on-site provision will continue as this is the best guarantee of delivering affordable housing. Spatial area references in relation to off-site provision will be amended to reflect the chosen spatial strategy and Housing Needs Assessment (to be prepared) recommendations.

19.14 Local Plan (Part Two) policy DM 26 for specialist accommodation will be amended as specific requirements are likely to be incorporated into the policy approach on overall housing mix and type, but other provisions of the current policy will still apply. This will include the requirement for market led specialist housing to provide affordable housing in line with existing policy requirements.

19.15 The Housing Needs Assessment (to be prepared) will also investigate future need for student accommodation and this will be incorporated into an update of Local Plan (Part Two) policy DM 27, as will support for purpose-built accommodation under Local Plan (Part One) policy SOC 3. Other aspects of the current policy approach will be retained and views will be sought if an additional policy is required for the University of Liverpool, Leahurst campus.

19.16 The suggested policy approach will need to reflect the chosen spatial strategy as to what settlements are identified and the extent of the countryside designation. The basic principles of Local Plan (Part Two) policy DM 19 setting out the criteria for residential development in the countryside, especially for replacement of buildings on previously developed land, are considered important to retain in the plan. 

19.17 Local Plan (Part Two) policies DM 21 and DM 22 are currently applied to many planning applications in the borough, and  already defer to NPPF in relation to Green Belt. Local Plan (Part Two) policy DM 21 sets out in the supporting text more restrictive approaches to replacement dwellings and extensions in the Green Belt. 

19.18 In the absence of detailed national guidance, Local Plan (Part Two) policy DM 25 provides essential guidance for planning applications for permanent and temporary rural workers dwellings.  There have been issues where the size of a dwelling has made it difficult for other rural workers to subsequently afford the dwelling. The Council has prepared an advice note that provides detailed guidance on the financial information to support an application and the use of planning obligations to tie the land to the dwelling. To ensure the dwelling is commensurate with the established functional requirement and remains as affordable housing that dwellings should not exceed 106 m2 (internal floorspace).

Community-led housing

19.19 In relation to community-led housing the consultation will seek views on whether a policy is required and if so, what this should contain. If a policy is considered necessary, the approach at this stage would not be to exceed the size limits set out in national policy. The Local Plan will promote an approach to accommodating new development in sustainable locations and therefore community-led housing will not be suitable in all settlements.

Rural Exception Sites

19.20 The suggested approach would be to combine Local Plan (Part One) policy SOC 2 and Local Plan (Part Two) policy DM 24 but seek views on whether rural exceptions should only apply to those settlements that are more remote from large urban areas given the wide opportunities to access housing in these urban areas.  The outcome of the consultation on the spatial strategy options will determine which settlements would be suitable as locations for accommodating development. Given the Government’s local housing need requirement is significantly higher than the current planned requirement, the amount of affordable housing across the borough will significantly increase, which may limit the need for rural exception sites. 

19.21 The Council has implemented three Article 4 directions relating to proposed Houses in Multiple Occupation (HMOs) in areas of Chester. An imbalance in communities can sometimes have a detrimental impact on neighbourhoods, therefore we propose to retain the content of Local Plan (Part Two) policy DM 28.