Five Year Housing Land Supply Statement 2022

1. Background

1.1. The National Planning Policy Framework (NPPF) states that local planning authorities must identify a deliverable five year supply of housing sites as revised in July 2018, updated on 19 February 2019 and revised on 20 July 2021. Guidance is contained in both the NPPF and the National Planning Practice Guidance (NPPG) for housing and economic land availability assessments last updated in July 2019. 

1.2. The preparation of a Strategic Housing Land Availability Assessment (SHLAA) is a requirement of the NPPF with guidance provided in the NPPG. The SHLAA is a technical study that assists in the monitoring of whether there is an adequate supply of deliverable housing land at any point in time.

1.3. The council was adjudged by the Secretary of State in his decisions at Breary Lane, Bramhope, Leeds Road, Collingham and Bradford Road, East Ardsley on 23rd December 2016 not to have a five year housing land supply. That was based on the 2015 update to the SHLAA.

1.4. In moving forward, the council significantly improved the approach to the SHLAA process in the 2017 update. At the same time the council continued to increase the stock of extant planning permissions whilst progressing the Site Allocations Plan to adoption alongside a range of housing growth initiatives and the adoption of the Aire Valley Leeds Area Action Plan. These actions strengthened the five year housing land supply position.

1.5. The 2017 Update to the SHLAA was tested as part of two public inquiries at land south of Pool Road, Pool in Wharfedale and The Ridge, Linton decided by the Planning Inspectorate and two Secretary of State decisions at Tingley Station and Thorp Arch Trading Estate, both recovered appeals were dismissed on 12 July 2018.

1.6. The Secretary of States conclusions set out in Thorp Arch noted the confidence in the council's "...thorough and proactive approach to land availability”. The SHLAA site information was presented to support the allocation of sites in the Site Allocations Plan at Examination between 24 October 2017 and 3 August 2018. The Inspectors Report released on the 7 June 2019 noting that “It is considered that the assumed build-out rates contained in the SHLAA are realistic and robust”. The Site Allocations Plan was adopted on 10 July 2019.

1.7. Post adoption, the Site Allocations Plan was the subject of a Legal Challenge submitted to the High Court on 20 August 2019. The case was heard at the High Court in February 2020, with Judgment being handed down on 8 June 2020. The High Court ordered relief that allocated sites that immediately before the adoption of the SAP were in the Green Belt be remitted back to the Secretary of State and the Planning Inspectorate for further examination, which are no longer included as part of the five year housing land supply.

1.8. Following the examination hearings which concluded on the 17th September 2021, the Inspector recommended proposed Main Modifications to the remitted part of the SAP. On behalf of the Inspector, the council invited comments on the proposed Main Modifications. The consultation period ran until the 28th January 2022. In December 2022, on behalf of the Inspector, the council is now inviting comments on whether the Inspector's proposed Further Main Modifications are considered to be sound. The Inspector will take these representations into account before finally concluding whether the council's proposals are sound and legally compliant and can be recommended for adoption. The consultation period for comments is until the 27 January 2023.

1.9. The council has reflected and updated this position to a base date of 1st April 2022. This statement reflects to up-to-date assessment of sites as part of the 2022 Update of the SHLAA. The 2022 Update takes account of new planning permissions and construction activity to a base date of 1st April 2022. The council has been keen to fully reflect the challenges or opportunities to delivery as a result of the Covid-19 pandemic and recent cost of living crisis. 

1.10. The council has approved record levels of planning permissions in recent years. In the last five years, planning permissions have been granted for 35,884 new homes, which is over double the amount required to be delivered.

2. National Policy

National Planning Policy Framework

2.1. The NPPF states that the purpose of the planning system is to contribute to the achievement of sustainable development. For housing, this means providing the supply of housing required to meet the needs of present and future generations.

2.2. Local planning authorities are required to prepare a SHLAA in order to establish realistic assumptions about the availability, suitability and achievability of land to meet the identified need for housing over the plan period.

2.3. The NPPF states that local planning authorities must identify a deliverable five year supply of housing sites. The NPPF states that to be considered deliverable, sites should be available now, offer a suitable location for development now and be achievable with a realistic prospect that housing will be delivered on the site within five years and in particular that development of the site is viable.

2.4.. The NPPF identifies the need to consider:

• A supply buffer – dependent upon performance against the Housing Delivery Test, local planning authorities are required to include an additional allowance or 'buffer' of five percent (moved forward from later in the plan period) in terms of supply to ensure choice and competition in the market for land. Local planning authorities with a record of persistent under delivery of housing should apply a 20 percent buffer (Paragraph 74).
• Windfall sites - local planning authorities may make an allowance for windfall sites in their five year supply if they have compelling evidence such sites have consistently become available in the local area and will continue to provide a reliable source of supply (Paragraph 71).

2.5. Footnote 8 to Paragraph 11 of the NPPF states that relevant policies for the supply of housing should not be considered up to date if the local planning authority cannot demonstrate a five year supply of deliverable housing sites.

National Planning Practice Framework and Guidance

2.6. The National Planning Policy Framework was published on 27 March 2012 and sets out the government’s planning policies for England and how these are expected to be applied. A new version of the National Planning Policy Framework was published on 24 July 2018, updated on 19 February 2019 and revised on 20 July 2021. In September 2018, the government published planning practice guidance to accompany the NPPF. Guidance on preparing SHLAA documents is contained in both the NPPF and the NPPG for housing and economic land availability assessments. This has been used to determine the approach taken in this document.

2.7. The NPPG provides clarity on what constitutes a deliverable site. Annex 2 (updated on 19 February 2019) of the NPPF defines a deliverable site in terms of an assessment of the timescale for delivery and the planning status of the site and adds further detail as to the evidential requirement needed on sites without a detailed planning permission…“To be considered deliverable, sites for housing should be available now, offer a suitable location for development now, and be achievable with a realistic prospect that housing will be delivered on the site within five years. In particular:

• sites which do not involve major development and have planning permission, and all sites with detailed planning permission, should be considered deliverable until permission expires, unless there is clear evidence that homes will not be delivered within five years for example because they are no longer viable, there is no longer a demand for the type of units or sites have long term phasing plans).
• where a site has outline planning permission for major development, has been allocated in a development plan, has a grant of permission in principle, or is identified on a brownfield register, it should only be considered deliverable where there is clear evidence that housing completions will begin on site within five years.”

2.8. Case law has determined how to interpret that definition and confirms that:

• "The proper interpretation of the definition is that any site which can be shown to be 'available now, offer a suitable location for development now, and be achievable with a realistic prospect that housing will be delivered on the site within five years' will meet the definition; and that the examples given in [the NPPF] are not exhaustive of all the categories of site which are capable of meeting that definition. Whether a site does or does not meet the definition is a matter of planning judgment on the evidence available."

2.9. The council has produced clear evidence across all sites as part of the SHLAA process, thereby satisfying the NPPF approach. It has always been important to confirm an accurate position of housing land supply by identifying any factors leading to either delay or acceleration of house building on sites. This includes confirmation of any availability or ownership issues that would impact on the delivery of a site. The council has contacted landowners, developers and agents involved in the delivery of sites in order to collate new evidence and establish a dialogue on delivery in order to make informed decisions as to how sites contribute to the future supply of housing in Leeds.

2.10. Paragraph 26 of the NPPG directs authorities to use evidence set out in the SHLAA to identify sites which may be suitable, available and achievable for housing development and also provide some evidence as to their deliverability. This SHLAA update accords with both the revised NPPF and the NPPG.

3. The requirement

3.1. The starting point for establishing a five year supply requirement is the housing target identified in strategic policies for the first five years of the plan. Paragraph 74 of the NPPF states that “Local planning authorities should identify and update annually a supply of specific deliverable sites sufficient to provide a minimum of 5 years’ worth of housing against their housing requirement set out in adopted strategic policies, or against their local housing need where the strategic policies are more than 5 years old”.

3.2. The council recognises the local housing need figures as part of the standard methodology to which a 35% uplift for urban centres applies in Leeds. In line with NPPG, the housing requirement figures in adopted Local Plans should continue to be used for the purposes of calculating five-year housing land supply until such time as the plan is reviewed or the five-year review period has passed.

3.3. The Core Strategy was amended in September 2019 by the adoption of the Core Strategy Selective Review which included a new housing requirement of 51,952 (net) between 2017 and 2033. This is the amount of housing Leeds needs to build.

3.4. The adopted Core Strategy (as amended) sets the base requirement for housing provision in the District. Policy SP6 informs of a plan requirement of 51,952 dwellings between 2017 and 2033. For the purposes of monitoring and reporting, the base dates for each year is 1st April.

3.5. The adopted annual housing target from 2017 is 3,247 dwellings per annum. The Core Strategy plan period ends in 2033.

3.6. The five-year period that should be used for calculating both the requirement and supply is the 1st April 2022 to the 31st March 2027. The baseline requirement for this period = 5 x 3,247 = 16,235 dwellings.

3.7. The five-year housing land requirement is calculated by considering the average annual Local Plan requirement and rolling over any previous shortfall since the base date of the Local Plan. Any accrued shortfall is to be made up within five years, which is often referred to as the ‘Sedgefield’ approach. An appropriate buffer is added and then the annual residual requirement is multiplied by five to generate the five-year housing land requirement.

3.8. The delivery and associated undersupply for the first five years of the plan (1st April 2017 to 31st March 2022) are:

• Net Delivery: 1st April 2017 to 31st March 2022 = 15,538
• Requirement: 1st April 2017 to 31st March 2022 = 16,235
• Undersupply: 1st April 2017 to 31st March 2022 = 697

3.9. The mechanics of the Housing Delivery Test determine the buffer to be applied to the requirement figure and the transitional arrangements are set out in NPPG. The government has confirmed to authorities that the previous three years delivery is set against the lower of the latest adopted housing requirement or the minimum annual local housing need figure. These are to be updated by authorities using the most up-to-date published information on household projections and affordability ratios.

3.10. The council’s delivery far exceeds this requirement and in line with paragraph 74 of the NPPF a 5% buffer has been applied to ensure choice and competition in the market (where there delivery of housing over the previous 3 years, has not fallen below 85% of the requirement). This buffer is applied to the Core Strategy housing requirement and the shortfall since the start of the Plan.

3.11. For the 5 year period 1st April 2022 to 31st March 2027, the calculation is as follows:

• Baseline Requirement: 2022 to 2027 = 5 x 3,247 = 16,235
• Undersupply: 2017 to 2022 = 697
• Base Requirement + Undersupply = 16,932
• 5% Buffer = 847
• Base Requirement + Undersupply + 5% Buffer = 17,779

3.12. The total adjusted five year requirement for the period 1st April 2022 to 31st March 2027 stands at 17,779 dwellings, a requirement of 3,556 dwellings per annum.

4. The SHLAA 2022 Update

4.1. The NPPG provides information to help local authorities fulfil their responsibilities under paragraph 67 of the NPPF. As well as establishing a five-year supply position to support the preparation and examination of Local Plans, the NPPG confirms that the supply position should be updated annually.

4.2. The preparation of the 2022 SHLAA reflects the most up to date guidance available, including the NPPG. In particular, the NPPG provides more detailed advice for carrying out a SHLAA, noting that it should:

• identify sites and broad locations with potential for development;
• assess their development potential; and
• assess their suitability for development and the likelihood of development coming forward (the availability and achievability).

4.3. The council have finalised the 2022 Update to the SHLAA and have contacted agents, landowners, developers and promoters of sites to comment upon the availability and achievability of each site to update the SHLAA according to the most up-to-date information available on a site-by-site basis. The council has obtained detailed site-specific information that informs assessments of deliverability as advocated by Inspectors and the Secretary of State in recent appeal decisions.

4.4. The sites included in the five-year supply satisfy the requirements of paragraph 68 of the NPPF and NPPG. The council uses the information it has on suitability, availability, achievability and constraints to assess the timescale within which each site is capable of development.

4.5. The council has contacted landowners as part of considering the availability of sites adopted under the Aire Valley Area Action Plan, and allocated under the Site Allocation Plan and as part of informing overall ‘deliverability’, including the “realistic prospect that housing will be delivered within five years”.

4.6. The council confirms that no site included within its supply discloses any legal or ownership constraint, militating against the realistic prospect of delivery or overall deliverability.

4.7. The council has properly taken into current housing market conditions. The council consulted with the Home Builders Federation, landowners, agents and developers recognising that the changes posed to the housing market by the pandemic has created both challenges and opportunities for different types of sites. It was important that landowners confirmed whether the assessment reflected an accurate picture of delivery. Updated construction programmes were received and accurately recorded in the update and observations were welcomed on the capacity of the industry to deliver in the short, medium and long term.

4.8. The housing market in Leeds has seen continued and marked improvement in the last few years. National and international developer interest is continuing to grow and that the planning pipeline is strong with numerous high-rise developments both under construction and in planning. The outstanding stock of planning permissions is at the greatest ever level and Leeds remains firmly in ‘growth mode’ and is committed to additionality, and to accelerating delivery of the housing requirement in line with the Core Strategy and growth strategies.

5. The Five Year Housing Land Supply

5.1. The 2022 SHLAA update shows 24,246 units in the short term across 275 sites. The overwhelming majority are on sites currently under construction or with detailed planning permission. The short term supply also includes sites with outline planning permission and those allocated as deliverable in the recent Aire Valley Leeds Area Action Plan and Site Allocations Plan. 

5.2. Policy compliant deliverable supply of 24,256 is comprised of:

5.3. The SHLAA identified sites provide 6.8 years of supply. With the inclusion of windfall at 500 per annum (adopted Core Strategy), and the discount of demolitions the total overall supply is 3 years:

5.4. The overwhelming majority of the 24,246 dwellings in the SHLAA supply are either under construction or have detailed planning permission. A further 1,926 with outline permission means some 97% (23,631 units) are either under construction or have planning permission. Sites under construction and with detailed planning permission equate to 6.1 years of supply alone. The 615 dwellings yet to obtain planning permission at 1 April 2022 are allocated sites determined to be deliverable by the Inspectors of the Aire Valley Leeds Area Action Plan and Site Allocations Plan and now progressing as strategic sites and/or where planning applications have been submitted.

6. Conclusion

6.1. The council has undertaken an NPPF compliant update to the SHLAA reflective of realistic build out rates, the capacity of the industry to run a maximum number of outlets, reflections on previously disputed sites and the discount of sites subject to expired planning permissions with no current planning activity. The update accurately reflects the submissions made through the HBF consultation and on-going dialogue with landowners, agents and developers.

6.2. The level of housing land supply in Leeds is 7.3 years.