Agenda item

1.     That the contents of the report be approved.

 

2.     That the additional workload arising from new responsibilities which impact on planning and development control be considered within the 2017/18 budget process be approved.

 

3.     That, in accordance with current policy, planning applications proposing Starter Homes in advance of formal government guidance being issued and enacted be resisted and for current policy to apply with regard to affordable homes. 

Decision

 

1.     That the contents of the report be approved.

 

2.     That the additional workload arising from new responsibilities which impact on planning and development control be considered within the 2017/18 budget process be approved.

 

3.     That, in accordance with current policy, planning applications proposing Starter Homes in advance of formal government guidance being issued and enacted be resisted and for current policy to apply with regard to affordable homes. 

 

Reason for Decision

 

To set out the implications for the Council and the Borough of the Housing and Planning Act 2016 and the Welfare Reform and Work Act 2016.

 

Financial

 

Housing and Planning Act

 

The impact on planning arises from the new and increased responsibilities that the Act brings in, specifically the creation and maintenance of the Brownfield Register and the technical requirements of assessing Permission in Principle.  There may also be an impact if there is an increased demand for Neighbourhood Plans which will require direct support.

 

There is a possible impact arising from the Act, and the associated Welfare Reform and Work Act, in reducing the amount of affordable accommodation that is available and increasing homelessness and possible bed and breakfast costs.

 

The sale of higher value council properties will require the HRA to pay an amount, as yet not known, to the Treasury each year.  It is estimated that this may be in the order of £5M per year which will require either actual sales to provide the funds or reductions in expenditure elsewhere in the HRA.

 

The administration of Pay to Stay may require top up funding within the Housing Revenue Account should the actual costs exceed the allowance from the government.

 

Welfare Reform and Work Act

 

The most significant impact arises from the 1% reduction in the rent of all Council homes that must apply each year for four years.  The impact of this compared to the previous rent policy is £30M over this period. This will be reflected in the Housing Revenue Account Business Plan but has already had the effect of restricting the new build programme beyond 2020.

 

The freezing of the Local Housing Allowance and other benefits, together with the reduction of the Benefit Cap, will directly lead to an increase in homelessness as tenants on Housing Benefit find their rents unaffordable.

 

Whilst all efforts will be made to cope with the additional workloads through existing resources it seems likely that some burden will fall to the Council.   

Risk Implications

 

The main risks identified are the potential increase in homelessness and reduction in the supply of genuinely affordable homes.

 

Health & Safety Implications

N/A

Equality Impact Assessments

The government has carried out the appropriate Equality Impact Assessments

Corporate Objectives

Ensuring economic growth.

Providing good quality affordable homes, in particular for those in most need.

A clean safe and enjoyable environment.

Monitoring Officer/S.151 Officer Comments

 

Monitoring Officer:  

 

The report identifies a number of legislative changes which will have a significant impact on the Council and the borough as a whole.  The detail of many of the changes will be introduced by further subordinate legislation and guidance in due course and therefore the full impact will need to be continually monitored as the detail and timetable for implementation becomes clear.

 

Deputy S.151 Officer

 

The full impact of the proposals will be factored into the HRA business plan as and when the government confirms the details. Any resulting amendments and impacts will be reported to councillors. Any amendments to the HRA budget will be submitted through the usual process to comply with Financial Regulations.

 

The impact of the creation and maintenance of the brownfield register will be considered through the 2017/18 budget cycle.

 

Advice

 

Councillor Sutton explained that there was still work to be done.

M Gaynor noted that the report was originally due in September however the government did not issue the regulations in time, but now more detail was emerging. He explained that the Housing & Planning Act also covered the Welfare Reform & Work Act and there were some significant changes being made which members needed to be made aware of to help the future of the development plan and the HRA business plan.

He added that the Housing Minister had confirmed that starter homes would be implemented, but at present, the council were unsure of the detail of the process. He explained the four main areas:

 

• The requirement to establish and maintain a brownfield register of previously developed sites capable of delivering five or more homes.  Associated with this is the introduction of Planning Permission in Principle.
• The impact on the delivery and availability affordable homes together with a likely rise in the incidence of homelessness.  The impact of the lowering of the benefit cap and the freezing of Local Housing Allowance leading to a reduction in the supply of affordable private rented accommodation will have a greater and direct impact on homelessness which will exert direct pressure on the Council.
• The massive financial impact on the Housing Revenue Account

·        The very wide extent of these two Acts and the degree to which detail has yet to be issued as both Acts allow much to be introduced by way of regulation set by the relative Secretaries of State.

 

Councillor Griffiths referred to the brownfield register and asked if the process would remain the same for the normal planning permission or would you have to own the land and therefore have permission of the site.

M Gaynor replied that there would be no change to the current process.

 

Councillor Williams felt that the only certainty was around the brownfield regulations.

He explained that the council would not be in a position to accept any starter home applications until they knew all of the new details.

 

M Gaynor said that the number of planning changes would all go through and the Welfare Reform and Work act would come into force. He felt that members would need further ongoing updates on this.

 

Councillor Williams said that there were not many sites in Dacorum which could build 2 bed properties for less than £250k.

M Gaynor agreed and said this observation has previously been made and that not all starter homes were affordable.

Councillor Williams asked if affordable starter homes could not be built, would there be the need to revert to affordable rent?

M Gaynor confirmed this would be the case and felt that shared ownership would increase too.

 

Councillor Marshall sought clarification that the council would not be permitting starter home applications.

M Gaynor confirmed the applications would only be accepted once the regulations have been issued and the council knows what they are.

 

Councillor Marshall asked where the council would stand if a developer did not want to pay the CIL if providing a starter home.

M Gaynor said that the application could be made as affordable housing as they were unsure of the details required for starter homes.

 

Councillor Sutton felt that the act was large and complex and said that there must be regular member briefings.

M Gaynor confirmed he was happy to carry out all member briefings in January 2017.

He noted that there was a white paper on Housing due before Christmas and a Planning one would follow in a few months.

 

Voting

 

None.