PAS Developer Contributions Deep Dive Online Slides

Slides from the NPPF Policy Workshop: Developer Contributions which took place online on 18 September 2024.

1. NPPF Policy Workshop: Developer Contributions 18 September 2024 – Online 10:00 am Please login to Slido to ask questions a nd respond to polls through the session. Slido link: https://app.sli.do/event/r2VT7K7kU7xGbTnkoXwuhL Use code: 3253774

2. Welcome Meet the team This is the part of a series of policy workshops Help you to frame a response And understand the wider context Been to a PAS event before? Frank, friendly Honest – we won’t have all the answers Interactive – please ask questions / share thoughts in the comments – log into Slido Adobe Stock

3. Agenda Welcome and Introduction NPPF consultation on the “Golden rules” Summary and Close

4. PAS Who are we & what do we do? Grant funded – MHCLG (Ministry of Housing, Communities and Local Government) Part of the local government association (LGA) Our grant £ = supporting Local Planning Authorities (LPAs) to: Interpret national planning system & respond to change Improve and innovate plan making and decision taking Share ideas and examples of what works best

5. Housekeeping Opportunity to provide constructive feedback in collaborative way There will be some interactive polls It is impossible to cover everything today - remember this is a consultation We will capture, share and reflect on all of your questions and encourage you to respond using Citizen Space on MHCLG’s website We will also send you an evaluation form afterwards – please complete this

6. Context Pre-election: Labour Manifesto Labour Government – Five Missions Planning Reform – Written Ministerial Statement July 2024 Housing delivery – 1.5 million homes Shutterstock

7. Developer contributions The 1.5 million homes target depends on strong infrastructure to ensure accessibility and essential services. Primary mechanism for securing affordable housing in the country Developer contributions are an important sources of funding infrastructure but limited – need to balance delivery without stalling development. Effective infrastructure planning is key to delivering projects at both local and national levels.

8. Getting to know you Poll 1 Slido link: https://app.sli.do/event/r2VT7K7kU7xGbTnkoXwuhL Use code: 3253774

9. MHCLG Presentation

10. September 2024 Developer Contributions team Proposed reforms to the NPPF and strengthening planning obligations

11. 11 Strengths and weaknesses of planning obligations Possible areas for reform Strengthening Planning Obligations Part 2 The ‘Golden Rules’ Benchmark Land Values Viability Assessments Benefits for nature NPPF Reforms on Green Belt release land Part 1 Introduction

12. 12 On 30 July, the Government launched a consultation to reform the existing National Planning Policy Framework . The Government has committed to introducing ‘ Golden Rules ’ to ensure that major development on Green Belt release land benefits communities and nature. Our proposed ‘ Golden Rules ’ requires the following when Green Belt land is released through plan-making or decision-making: NPPF proposals 1. In the case of schemes involving the provision of housing, at least 50% affordable housing , with an appropriate proportion being Social Rent , subject to viability; 2. Necessary improvements to local or national infrastructure , and 3. The provision of new, or improvements to existing, local green spaces that are accessible to the public. The ‘Golden Rules’

13. Aim: To ensure Green Belt release land fully contributes to infrastructure, environmental improvements and affordable housing need, while enabling negotiation to allow less viable sites to come forward only in circumstances where it is absolutely necessary to enable development The viability of development on land released from the Green Belt may vary by location, and by the infrastructure needed to unlock the site In the consultation: We are testing whether the 50% target for affordable housing should apply in all areas, or whether the Government or LPAs should be able to set lower targets in lower value areas We propose that LPAs should be able to set policy on the appropriate tenure split of affordable housing Where viability assessment occurs on a site-by-site basis, we are proposing stronger rules 13 NPPF proposals The ‘Golden Rules’ – Objectives

14. 14 For viability assessments, it is recognised that a landowner premium above EUV is needed to incentivise a landowner to bring land forward for development Guidance states that p lan-makers should establish a reasonable premium using professional judgement and best available evidence Landowner Premium T he value of the land in its existing use It is not the price paid and should disregard hope value Existing Use Value This is comprised of a site’s Existing Use Value (EUV) plus a landowner premium (EUV+) Benchmark Land Value Definition of Key Terms NPPF proposals

15. Government sets Benchmark Land Values 15 Late-stage review mechanisms will be undertaken to test actual costs and revenues against assumptions made in the viability assessment This will help secure any potential additional contributions Where development can deliver the ‘Golden Rules’, we don’t mind what value the land transacts at. LPAs shouldn’t be seeking more than the ‘Golden Rules’ set out However, if land transacts at a higher price than the BLV, then viability assessment should not generally be undertaken . Contributions below affordable housing policy should be negotiated only if the land is transacting at or below BLV We are proposing that Government should set BLVs , to inform local policy making We are interested in feedback on where and how BLVs should be set Key details of proposed approach NPPF proposals It will be harder to access viability assessments Late-stage reviews should be used if contributions are negotiated downwards

16. 16 We will set out requirements including an objective for new residents to able to access good quality green spaces within a short walk of their homes. Walkable Distance We are clear that release of ‘grey belt’ land must benefit communities and nature. We know that accessible green space is an integral part of making quality places so the golden rules will include delivering access to good quality green spaces and nature. Accessible Nature We expect LPAs to specify clear policies on green space requirements in plans, drawing upon the Green Infrastructure Framework and the National Model Design Code. Where LPAs do not have specific policies in place, we propose that they provide quality green space, which is of nationally-recognised standards . Green Spaces The ' Golden Rules ' - Benefits for Nature NPPF Proposals

17. Questions and discussion

18. Summary and Close NPPF Consultation Closes 24 September 2024 Thank you! 