‘Planning policy change will mean less homes being built’
FEWER homes will be built after a shift in planning policy by the Welsh Government in a move that will damage the ecnomy, according to leading figures in the sector.
Major housebuilders, the Home Builders Federation Wales and planning consultancy Lichfields have all expressed concerns at the changes.
Lichfields estimates it will reduce annual housebuilding in Wales – already well short of its target – by almost one-third, and could result in the loss of £150m from the Welsh economy each year and threaten job losses.
A longstanding planning policy in Wales requires all planning authorities demonstrate a rolling five-year supply of housing land.
This policy also stated that “considerable weight” should be given to the need to increase housing supply, when dealing with planning applications for residential development, where a five-year supply cannot be demonstrated.
However, following a six week consultation period the Welsh Governmen has decided to remove the ‘considerable weight’ phrasing.
The Welsh Government says the change will ease the pressure on local planning authorities, but industry figures warn this is likely to see a greater proportion of people in Wales being unable to access the housing market.
Stewart Baseley, executive chairman, Home Builders Federation, said: “Wales is already facing a huge undersupply of new homes and the decision to make this amendment threatens to reduce output further.
“Local authorities in Wales are not abiding by their responsibilities and allocating enough land in the right or viable locations for the homes their communities need.
“The ‘considerable weight’ stipulation helped ensure that development would still come forward in areas where local authorities were not performing.
“However, its removal has serious social and economic consequences and will exacerbate the acute housing crisis we already face in Wales.”
Steve Williams, managing director of Barratt and David Wilson Homes south Wales, said: “We are very concerned regarding the recent changes and believe this will have a serious negative effect on housing numbers in Wales, both private for sale and social housing.
“Due to the change the majority of local authorities who have not got a five year land supply will now not be challenged to bring forward deliverable sites. This stipulation had previously acted as a mechanism to breach the gap, where not enough housing land was available.
“Housing delivery is already at a low ebb in Wales, while every commentator and stakeholder within the industry has agreed that numbers need to increase.”
Although almost all Welsh councils have local development plans (LDP) in place, only three planning authoritie have an established five year supply of land for new housing.
According to Litchfield, ass a result housebuilders have been bringing forward alternative ‘unallocated’, new sites where local planning authorities cannot demonstrate a five year supply. And its research shows such sites accounted for 41% of completions in 2016/17 – with around one-quarter of these being ‘affordable homes’.
Gareth Williams, senior director an head of Lichfields’ Cardiff office, said: “There is already a major problem with housing delivery in Wales but the Welsh Government’s new approach will simply make matters worse. Existing policy guidance requires all new residential development to meet sustainability tests even where there isn’t a five year land supply. Reducing the weight afforded to a lack of land supply simply means that there is now no incentive for council’s to meet their own housing targets.
“This new approach will act as a further barrier to the delivery of essential new housing undermining the government’s own social and economic wellbeing objectives.”
Lichfields research shows the number of annual completions has followed a long term downward trend, from an average of 13,750 per annum between 1974 and 1979 to an average of 6,050 per annum since 2010. Just over 6,000 dwellings were completed in 2017/18, compared to a government target of between 9,000 and 12,000.
Mr Williams said that wlie almost all councils will correctly argue they have up to date development plans, many have been accused of allocating the ‘wrong’ sites – ones that housebuilders cannot reasonably deliver.
Mr Williams added: “The fact that all local development plans are reliant on unallocated sites coming forward proves that the development of these sites is supporting, rather than undermining, the previous plan-led approach.
“It is a matter of concern that the Welsh Government should now expect short-term housing delivery to be dependent upon the LDP allocations it acknowledges are unlikely to be delivered. Unfortunately, however, the new policy will send a message from Welsh Government that a failure to deliver housing in accordance with LDP requirements is acceptable even where windfall housing proposals otherwise comply with development and national planning policies.
“The Welsh Government’s ambition of boosting housebuilding in Wales is essential to the economic and social well-being of communities across the country.”
A Welsh Government spokesperson said: “Due to the current housing land supply position across Wales, some authorities are receiving ‘speculative’ applications from organisations and developers on sites not allocated for developments in LDPs.
“This is providing uncertainty for communities and is to the detriment of the plan-led system. Therefore, to alleviate some of the pressure on authorities, we have decided to dis-apply paragraph 6.2 of Technical Advice Note 1.
“We are undertaking a wide-ranging review into the delivery of housing through the planning system. This is in response to the current housing supply position and the under delivery of local development plan housing requirements.”