Planning Policy and delivery challenges….lessons learnt from different parts of the country

Grant ButterworthHead of Planning

Leicester City Council

Structure

• An assessment of where we are

• 3 City Comparison……– Nottingham

– Liverpool

– Leicester

• Lessons learnt and thoughts for the future?

Current position? (1)

• Planning Policy is delivering well in challenging circumstances

– Massive ongoing changes in the rules over the last 5 years

– Made to focus on delivery at the expense of quality

• Delivery has been mostly compromised by landowners/bankers- not Planners

• Land value expectations remain too high 7 years after 2008

• Developer and investor confidence is the key delivery driver- Policy making helps with gives that certainty (but very slowly)

• The mortgage market is still fragile (despite 1% mortgage availability)

• Even Planning Minister has conceded the system is delivering….

Current Position (2)

• Planning Policy can’t fix everything…

• Massive public funding cuts since 2008 have compounded viability problems and hammered staffing

• Recovery has led to consultant market poaching LA staff

• RDA programmes were much more housing focussed than (current) LLEP’s and RGF, GPF, LGF programmes

• Infrastructure provision is not being fully funded via s.106/CIL-resulting in big and growing issues for education and affordable housing provision

• HCA activity has massively downshifted:– Loans not grants– Brownfield intervention reduced– (Almost) Exclusive focus on Affordable Rent programmes

• And now £250k starter homes for sale arguably more important than affordable housing for rent?

• Environmental ambitions massively reduced

• This Government believes in a massive reduction in the role of the state, and has ultimate faith in the market (eg Education)

Liverpool Leicester Nottingham

Population 466,415 329,000 310,837

Conurbation(Eurostat) 1,365,900 772,400 825,600

Students c. 50,000 c. 50,000 c. 60,000

Political control Labour Elected Mayor Labour Elected Mayor Labour Leader

Retail Spend (Co-star) 6th 10th 7th

3 City Comparison……

Strategic Planning Policy Position

LA Core Strategy/LocalPlan/Neighbourhood Plans

AffordableHousing?

CIL?

Nottingham Core Strategy: adopted Sept 2014Local Plan: Publication Draft just approved Neighbourhood Plans: 1 Forum established None under discussion

20% Viability assessment

Liverpool Core Strategy: Suspended in favour of a Local PlanLocal Plan: Reg. 18 completed April 2014Neighbourhood Plans: 3 Forums established 3 under discussion

No Policy at present

No current plans

Leicester Core Strategy: adopted 2010Local Plan: Issues and Options completed Feb 2015Options consultation Draft Feb 16Neighbourhood Plans: 1 at early stage

15% in Strategic Regeneration Area

30% at Ashton Green SUE and in South East of city

20% elsewhere

Examination October 2015- decision Dec 4th

Current co-Operation Mechanisms?

LA Position

Nottingham Joint Advisory Planning Cttee oversaw alignment of Core Strategies (Greater Nottingham only)Chaired by Broxtowe, Officer Steering Group Chaired by Notts CC, Executive function in NottmCity

Liverpool Combined Authority established 2014- housingexplicitly included (but not planning)

Leicester Members Advisory Group

Strategic planning Group Chaired by NWLDC

Combined Authority Position?

LA Position

Nottingham Combined Authority being explored as part of D2N2 LEP area

Liverpool Devolution Deal agreed November 2015-Merseyside authorities

Leicester Combined Authority being explored as part of Leicester and Leicestershire LEP/HMA area:

Cities are delivering: 10 year Comparison

LA (April 2004-April 2014)

Residential(dwellings)

Underconstruction

% StudentAccommodation

% Affordable

Pipeline

Liverpool 18,500 gross (but c. 9,000 demolitions)

5,174 c. 10% 13% 22,088

Leicester 9,102 gross 1,330 23% 16.5% 6,990

Nottingham 11,902 gross 530 27% 10% 3,881

Delivery= c. 1,000 p.a. in Nottingham and Leicester

Higher in Liverpool:- Liverpool has no affordable housing policy - plus big increase in City centre living

Student proportions high in Leicester and Nottingham

National trends…..

Stall in delivery aligns with markets crash

All 3 Cities have delivered

high levels of planning permissions

throughout

And substantial progress on strategic allocations in Leicester and Nottingham as a result of successful Policy efforts

So……would you back the market, or planning?

Nottingham approach: Strategic planning and transport integration

• Strategic planning alignment work has recently come to fruition in approved Aligned Core Strategies

• Pro-active ALMO

• Substantial University/academic led development

• Substantial infrastructure investment over the last 10 years– Nottingham Express Transit- lines 2 and

3 to open this year– A453 dualling opened this year – Nottingham Station upgraded last year– Supported by Workplace Parking Levy

• Substantial Urban extensions now approved (in green belt)

Hucknallallocations

1,300Gedling SUE

600

Gamston SUE2,500 to 2028 and

1,500 after

Clifton SUE3,000

Extensive green belt release…..

Field Farm 450

Liverpool approach- regeneration led

• Regeneration key priority-substantial regeneration capacity in City centre

• Legacies of HMRI, NWDC and European programmes

• City centre tourism and leisure expansion- international draw

• Huge potential of Waterside and Docks (dependant on Peel)

• Innovative and entrepreneurial approaches to regeneration– New Housing Partnership with

Redrow/LMH– Homes for £1– HMRI objectives still being

pursued

Leicester approach: re-positioned city profile and strong environmental credentials

• City Mayor has set a clear programme for delivery and repositioning the City– Richard III, heritage, tourism

– city centre transformation programmes

– Housing delivery- but with emphasis on quality

• upturn in inquiries and recent Inward Investment successes

• Environmental policy has high political priority- at the expense of some pace in delivery

• Big pressure for employment land- need to reconcile with housing demands

• Pro-active waterside regeneration activity

• Substantial progress in strategic delivery (Urban extensions progressing at Ashton Green, Lubbesthorpe, Thurmaston)

1,330 units currently on site in Leicester…

Pipeline of 6,990

4,500 NE Leicester SUE4,250

LubbsesthorpeSUE

2,750 Ashton Green

Delivery detail: Leicester

Excluding Students Including Students

YearGross completions

exc student% affordable exc

studentGross

completions% affordable

Annual Housing Target

2004/05 1044 20 1484 14

2005/06 1147 13 1188 13

2006/07 1,296 19 1,360 18 1280

2007/08 1,039 21 1,048 21 1280

2008/09 1,214 11 1,260 10 1280

2009/10 836 20 873 19 1280

2010/11 1,033 42 1,215 35 1280

2011/12 828 20 1,011 16 1280

2012/13 564 11 1,179 5 1280

2013/14 490 30 1,156 13 1280

2014/15 440

Total 7,740 9,102 Shortfall= 1,138

Leicester: Residential approvals and Completions last 10 years

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14

Approvals

Completions

Planning contribution

Average 3,750 approvals per annum- but delivery only averages 1,090 per annum

The market’s contribution

Planners have a central role to play…..

Planners

Communities want

• Protected amenity

• Quality dev’t

• good neighbours

Local Politicians want:

•Happy voters

•Quality dev’t

•Growth and protected amenity

Developers want

• Decent return

• Quality dev’t

• Fast, responsive and consistent planning

Government want:

• Housing numbers

• Mimimised public expenditure

• Market defined quality of provision

Lessons learnt: Planning delivers

• 3 different, but successful approaches

• Strong local political leadership instils investor confidence and ambition

• Responsive and innovative short term projects and approaches raise City profile and encourage developer interest…

• But also long term efforts in ambitious strategic planning of infrastructure and city region will unlock delivery as market returns

• Securing stable and improved neighbourhoods is about quality of place, community and design, not housing numbers

In conclusion…..

• Continual change is wearing but we are resilient!

• Huge market and policy uncertainties-renting/buying/starter homes

• But Housing and brownfield will remain high on Gov’t agenda

• Cities will be at the heart of sustainable growth….

• And proactive, ambitious, long term Strategic City Region planning will be essential

• Skilful, diligent and resilient planners with a good sense of humour will prevail!

grant.butterworth@leicester.gov.uk

Thank you