Agenda item

Cabinet:

1          Approved the planning guidance note (as set out in Appendix 1 to the report) for public consultation purposes;

2          Approved the use of the note on an interim basis as ‘good practice’ guidance to show the circumstances in which commuted sum payments to the Council might be appropriate in lieu of on-site / off-site provision pending formal adoption by Full Council;

3          Approved publication of the guidance note on the Council’s website as an interim guide pending formal adoption by Full Council; and

4          Noted that recommendations 1 and 2 notwithstanding, the current national planning legislation would continue to afford the policies in the Havering Local Development Framework (as part of the statutory Development Plan) greater weight than the guidance note in the formal planning decision-making process.

Councillor Osman Dervish, Cabinet member for Regulatory Services and Community Safety, introduced the report

Cabinet was reminded that the provision of affordable housing remained a key part of the overall delivery of housing and the Council remained committed to providing more affordable homes in the borough.

The report sought Member approval for a non-statutory planning guidance note (detailed in Appendix 1 to the report) which set out the circumstances in which the Council might accept commuted sum payments to it in lieu of affordable housing being provided on-site or on an alternative site agreed by the Council.  Such an approach would be in line with the flexibility provided by planning policies from the Government and the London Mayor.

Cabinet was informed that the guidance note would set out the Council’s approach to securing affordable housing and made clear that it would be the Council that determined whether a commuted sum payment to the Council was appropriate.

The note emphasised that the Council’s starting point would continue to be for affordable housing to be provided on site.

Members’ attention was drawn to the guidance where commuted sum payments to the Council which might be appropriate were listed and this included situations where on-site affordable housing would prejudice other planning and regeneration objectives being achieved, would work against the development of a ‘mixed and balanced’ community, and/or would be poorly located relative to transport and jobs.  Additionally, the report suggested that affordable housing on-site might be inappropriate where it would result in a modest number of new homes that could be difficult to manage and maintain.

In addition, the note set out a financial formula to enable the Council and the developer to calculate a commuted sum payment to the Council in lieu of provision on-site or at an alternative site agreed by the Council.

The note also confirmed that the proposed approach was being followed by many other authorities.  It highlighted some of the benefits that might follow from its adoption.

The report made clear that the policies of the Havering Local Development Framework would continue to provide the formal policy context for the consideration of such proposals and would retain the statutory pre-eminence afforded by Section 38(6) of the Planning and Compulsory Purchase Act 2004.

Cabinet was informed that the report and the recommended draft guidance note dealt only with commuted sums to be paid to the Council for affordable housing.  It did not encompass developer contributions for other purposes such as site specific mitigation measures linked to a proposed development which would remain outside of the scope of the report.

In order for the process to proceed, Members were asked to note that the guidance note was being adopted on an interim basis and was concurrently the subject of public consultation and that at the conclusion of this a further report with recommendations for Council would be brought back to Cabinet.

Reasons for the decision:

To provide the Council with a robust, transparent and practical methodology for establishing how much commuted sum payments should be in cases where it is not appropriate for affordable housing to be provided on site or on an alternative site. The guidance note identifies the circumstances where such an approach may be appropriate.

Other options considered:

The absence of explicit criteria setting out where commuted sum payment may be appropriate and a financial formula model for calculating such payments is unhelpful for both the Council and prospective developers and may adversely affect the successful delivery of more affordable homes.

Alternative approaches to calculating a commuted sum provision have been considered and rejected as they are not considered to be financially neutral and would incentivise the developer to provide a commuted sum in lieu of on-site provision, fail to achieve the maximum viable levels of affordable housing contribution or alternatively fail to sufficiently recognise the importance of assessing viability at a scheme by scheme level.

Cabinet:

1          Approved the planning guidance note (as set out in Appendix 1 to the report) for public consultation purposes;

2          Approved the use of the note on an interim basis as ‘good practice’ guidance to show the circumstances in which commuted sum payments to the Council might be appropriate in lieu of on-site / off-site provision pending formal adoption by Full Council;

3          Approved publication of the guidance note on the Council’s website as an interim guide pending formal adoption by Full Council; and

4          Noted that recommendations 1 and 2 notwithstanding, the current national planning legislation would continue to afford the policies in the Havering Local Development Framework (as part of the statutory Development Plan) greater weight than the guidance note in the formal planning decision-making process.