Agenda item

The Portfolio Holder for Growth and Prosperity (and Deputy Leader) to submit a report providing information in relation to the current housing delivery and housing supply situation in the Borough.

Cabinet:

1)    APPROVED the ‘Five-years’ housing land supply and housing trajectory’ report;

2)    NOTED that a moderate detrimental impact in housing delivery was expected in 2020/21, 2021/22 and 2022/23, due to the impacts of Covid-19.

Pranali Parikh, Director for Growth and Regeneration introduced the report, the purpose of which was to provide information in relation to the current housing delivery and housing supply situation in the Borough.

Ms. Parikh highlighted that the report was positive, showing a significant change in the Council’s housing land supply position.  It was important to maintain the 5 year supply to demonstrate the delivery of the local plan to avoid unwanted developments in inappropriate locations.  The Council had achieved an exceptional position to evidence over 11 years’ supply, which was almost double that stated in the local plan for this year.  This followed the upward trend since approval of the local pan and was a demonstration that the local plan had created confidence in the market and for developers, providing certainty of delivery and therefore reducing the risk for the private sector to step in.

Ms. Parikh advised that the Council would not be complacent or underestimate the task of the delivery of the local plan and village infrastructure.  Work on delivery of the 2 sustainable urban neighbourhoods (northern and southern), including the sites in rural areas was crucial and needed to continue.

Sarah Legge, Local Plans Manager advised that the Council had attempted to relate the impact of Covid-19 on housing delivery to that which was experienced in the 2007/08 credit crunch as it was the only recent evidence of a recession.  The largest single year impact was identified in year 3 post Covid-19.  However, the reduction in delivery which may occur based on this evidence would not undermine the Council’s plan.  Assuming an economic impact associated with Covid-19, restricted to the next 3 years, the Council had sufficient room in terms of housing supply to face any short term challenges.

Mrs. Legge confirmed that the information within Appendix A of the report was complete, although the page numbering was incorrect and would be amended.

During discussion the following points were noted:

·         Members thanked officers for their work on this, noting that delivery of 334 housing completions (including 73 affordable homes) was the largest in year for over 20 years and delivery of 73 affordable.

·         Members also thanked parish councils and rural organisations for their commitment and hard work, particularly the Harby Village Hall Committee and Clawson, Hose and Harby Parish Council for working with officers to obtain funding from developers for a new village hall.

·         Members noted the scenarios detailed at paragraphs 4.7 to 4.10, noting that even as a worse case scenario (8.2 years housing supply), the Council was in a comfortable position.

·         There was a wide range of affordable housing options (not just shared ownership and social rent) and the Council was aiming to be more flexible in its delivery of affordable housing.

·         Over 1 in 5 housing deliveries was affordable housing.  This was good for the people of Melton and its economy.

·         Members noted that delivery had not performed as well in some areas as others but improvement was anticipated within the next 3 - 5 years.

·         Development of sites within the northern and southern sustainable extension was key to delivery of the much needed bypass for Melton.

Cabinet:

1)    APPROVED the ‘Five-years’ housing land supply and housing trajectory’ report;

2)    NOTED that a moderate detrimental impact in housing delivery was expected in 2020/21, 2021/22 and 2022/23, due to the impacts of Covid-19.

Reason for the decision

Approval of the final 2019/20 ‘Five-years’ housing land supply and housing trajectory’ report is sought in order to meet the national requirement as identified in paragraph 73 of the NPPF, which states: ‘Local planning authorities should identify and update annually a supply of specific deliverable sites sufficient to provide a minimum of five years’ worth of housing against their housing requirement set out in adopted strategic policies.

The acknowledgement of the positive position of the Council regarding housing delivery is given by a range of indicators explored in the main body of this document, illustrating that the Council can demonstrate 11.6 years’ worth of housing supply against the housing requirement. This is an increase of 51% in comparison to last year’s identified supply (7.7 years) and 132% above the minimum target (5 years).

The impact of the Covid-19 pandemic has been considered in the report, assessing the impact in a similar way to the impact created by the 2007/8 ‘credit crunch’ recession.   Data from 2007/8 suggests a 13% reduction in housing delivery in the first three years, taking into consideration the delays associated with lockdown (and any potential additional lockdowns in the next five years). The impact of the pandemic is expected to be moderate with a reduction of approximately 250 net completions of dwellings  in the next five years; however the Council will be able to deliver above the requirement for that period.