Housing

Vision

The Best City Ambition is our overall vision for the future of Leeds focussed on improving outcomes across the 3 Pillars of health and wellbeing, inclusive growth and zero carbon. The Leeds Housing Strategy (2022) vision is to meet affordable and social housing need, promoting independence and creating sustainable communities to make Leeds the best place to live.

The Council is committed to address challenges of meeting the needs for new homes, improving housing standards and affordability against the trends of rising costs and the concentration of poor quality housing in some communities, combined with the significant expansion of the private rented sector in inner city areas.

To realise this ambition LLP 2040 will focus on:

1. Health and wellbeing: working with housing developers, agents and applicants to improve poor quality housing, so everyone can have a home which supports good health, wellbeing and educational outcomes.
2. Inclusive growth: break the link between poverty and inequality, and poor health and wellbeing outcomes, exacerbated by the pandemic by tackling wider determinants such as housing to improve access to health and care by providing the right homes in the right places.
3. Zero carbon: addressing the challenges of housing quality and affordability, tackling fuel poverty by creating vibrant places where residents have close access to services and amenities.

The updated NPPF (2021) specifies that within the context of the overall housing requirement, the size, type and tenure of housing needed for various groups should be assessed and reflected in planning policy, including those requiring affordable housing, older people, students and those wishing to build their own homes.

The Levelling Up and Regeneration Bill (2022) contains provisions which are relevant to the setting of affordable housing policy.

Current issues

The requirement figure for housing is 3,247 homes per annum and is set in the adopted Core Strategy (September 2019). LLP 2040 will need to grapple with issues that have impacted upon the supply and delivery of housing in Leeds in recent years such as demographic changes to households (such as the aging population, divorce and birth rates, as well as international migration), Brexit, Covid-19, and the cost of living crisis. Leeds has a diverse housing market stretching from a compact city centre with fringe city centre areas to regeneration priority inner areas, extensive city suburbs, major stand-alone settlements and dispersed smaller rural villages within green belt and open countryside.

The Council has made significant increases in the overall housing land supply in recent years with record numbers of approvals been granted. This has meant that a five-year housing land supply has been demonstrated. The pipeline of supply is heavily focussed on the city centre and inner areas with a large amount of student accommodation contributing to overall numbers. Some major settlement extensions are also progressing, such as at East of Wetherby, East Leeds Extension, Skelton Gate, East of Otley and south of Morley.

However, not all parts of Leeds benefit from the delivery of new homes to meet local needs and this can be a particular issue where new market housing is being relied on to deliver new affordable homes. This focus on the City Centre and Inner Area where affordable housing requirements are 7% of market housing means that the Council is not meeting identified needs for affordable housing for the District as a whole.

The current Core Strategy and Site Allocations Plan focusses on overall housing needs and seeks to allocate land to meet indicative targets by housing market characteristic areas. This may be too broad a geography to establish specific local needs and LLP 2040 intends to have a greater focus on assessing the size, type and tenure of housing needed for different groups in different localities across Leeds.

What might new policy do to address this?

LLP 2040 will need to have a policy focus that as a starting point meets the full requirements of the NPPF, supporting the vision set in the Best City Ambition Leeds Housing Strategy and consistent with the policy basis set by the Local Plan Update.

At the present time overall numbers will need to be based on the Government's methodology for Local Housing Need (LHN). LLP 2040 will confirm the LHN figure for Leeds using the Government's 'Standard Method' and take into account the Government's 35% Urban Uplift so as to illustrate what this means for the District.

The 35% uplift is expected to be met in the existing urban area. LLP 2040 will need to evidence that the capacity of land in the existing urban area can achieve this and what repercussions there are for the spatial strategy as a result.

New LLP 2040 policy could be focussed on:

1. Overall housing requirement: The current LHN figures suggest an increase of around 900 units per annum on the current Core Strategy target i.e. over 4,000 new homes per annum. This would necessitate land allocations for new sites over a new plan period.
2. Affordable Housing needs: requires an updated understanding of the need and requirements for affordable housing by location, relating to the settlement hierarchy and evidenced by 2021 Census. Setting appropriate plan targets, maximising delivery through planning obligations and supporting other methods of delivery through the planning system, in light of overall need whilst considering issues that influence delivery such as viability.
3. First Homes: Local authorities are required to deliver First Homes as a proportion (25%) of their usual affordable housing delivery through their local plan policies. LLP 2040 is to provide the basis for the Council approach to set different criteria, if appropriate. This will include consideration of market value discount percentage, first sale price cap, household income and local connections test.
4. Housing needs for different household types at a local level: setting the need for units according to their size (number of bedrooms), type (houses, bungalows, apartments) and tenure (for affordable housing only) for both market and affordable homes by location.
5. City Centre: recognising the different type and scale of housing development and that this area is the focus for Build for Rent. Reviewing delivery methods especially in terms of affordable housing needs, successful delivery on site, registered providers interest and affordability of units.

This includes consideration of the following sub-topics:

Housing mix

Context: Developments should include an appropriate mix of dwelling types and sizes to address needs measured over the long term taking into account the nature of the development and character of the location. Monitoring of current Core Strategy policy reveals an over provision of 1 and 4+ bedroom properties and an under provision of 2- and 3-bedroom homes. This is reflection of the current land supply which is heavily skewed to 1 bed flats in the city centre and any sites in the outer areas providing large homes of 4+ bedrooms.

LLP 2040: Proposals for housing must aim to provide a mix of housing suitable for different household types which reflect changes in household composition in Leeds in the types of dwelling they provide in those locations. This must consider the latest evidence of the need for different types of housing through latest demographic data.

Affordable housing

Context: The Strategic Housing Market Assessment (2017) identifies an annual need of 1,230 affordable dwellings across Leeds (on year requirements + backlog) which is not being met. There is very limited scope to increase the % targets for delivery through planning obligations (S106) therefore other methods (which currently deliver about 75% of affordable homes) need to be maximised. The size, type, tenure and location of affordable homes does not necessarily meet need. The City Centre is the focus of much development (including Build for Rent) but the nature, scale, size, type, tenure and affordability does not necessarily meet need.

LLP 2040: Consider need as set out in the updated SHMA in terms of numbers, type, size, tenure, location and review affordable housing policy to maximise delivery that meets need. Look beyond S106 delivery at ways to support and facilitate other delivery mechanisms e.g. RPs, the Council. Embed the national First Homes policy at a local level and consider how specifically the City Centre can meet need within the wider development context.

Self-build opportunities

Context: Part of the Housing and Planning Act 2016, local authorities are required to help find land for those who have an interest in building their own home. The Bacon Review commissioned by the Prime Minister in April 2021.

Richard Bacon published his report in August 2021 'Independent review into scaling up self-build and custom housebuilding: report'. Relative importance to Leeds is the number of individual entries on our self-build register. Out of 328 authorities, Leeds is placed 7th in total with 847 registrations

LLP 2040: Consider options to provide plots to meet the demand for self-build opportunities. This could include the requirement to provide a proportion of plots on larger sites to be made available for self-build schemes. To be led by forthcoming planning reforms.

Older persons accommodation

Context: Aging population requires the Council to understand need for older persons accommodation through the provision of extra care housing, supported living and care homes.

LLP 2040: Design accessible neighbourhoods with quality services nearby to enable our aging population to thrive. Address challenges of housing quality and affordability against the trends of rising housing costs and the concentration of older poor quality housing in low income communities.

Student accommodation

Context: Demand and supply of student accommodation in Leeds has changed significantly over the last 20 years. Rapid increase in the supply and delivery of purpose-built student accommodation (PBSA) schemes in recent years moving from a model of co-living in the outer areas to the occupation of self-contained studio units in the city centre. PBSA is becoming more expensive as developers seek to maximise returns by offering top-end products.

LLP 2040: Understand capacity and forecast future demand for PBSA. Take a strategic approach to student housing in Leeds in the first half of 2022, that reviews the size and quality of the market and how it interacts with other sectors.

Co-living

Context: Recent planning activity suggests that this type of accommodation is going to become more popular. Co-living is an undefined type of development in the NPPF does not fall within a particular use class and therefore does not have to conform to nationally prescribed space standards for housing. Need evidence of the need/demand for this accommodation and whether there is a need for affordable co-living accommodation.

LLP 2040: Consider approach to co-living accommodation and the provision of on-site affordable units as part of schemes. Also investigate options for co-living to be supported in a limited number of identified locations with controls on the level of supply.

Housing in Multiple Occupation (HMOs)

Context: Current Core Strategy policy provides no definition of 'high concentrations' in policy in terms of a trigger point for new proposals. The interpretation is that the defined areas of 'high concentration' are the areas that fall within the HMO Article 4 directive area. The Article 4 Directive area focuses on removing powers for properties to convert to HMOs. In addition, present policy does not cover HMOs applications that are outside the Article 4 Directive Area.

LLP 2040: Consider approach to HMO schemes including HMOs that are not within the Article 4 Directive area which do require planning permission. Explore expanding scope for the Article 4 Directive area.

Accessible housing and bespoke needs

Context: Monitoring of approvals for planning permission reveals that Policy H10 targets for both M4(2) 'accessible and adaptable dwellings' and M4(3) 'wheelchair user dwellings' are currently being met. This relates to recording of liable schemes for the development of new dwellings of 2 or more dwellings (new build developments only - excludes conversions, change of use, care homes and student accommodation).

LLP 2040: Consider whether there is a need to expand beyond requirements for accessible homes to include other bespoke needs such as provision and requirement of homes build to meet the requirements of those with mental impairments. Seek to identify land which would be particularly appropriate for sheltered or other housing aimed at disabled people.

Gypsy and Travellers and Travelling Showpeople

Context: Like most other parts of the country, Leeds has a shortage of authorised Gypsy and Traveller (G&T) sites. There are also some concerns over the deliverability of previously identified sites. In addition, there is a requirement to update needs assessment for pitches and plots, as set out within the adopted Site Allocations Plan (2019), policy HGR2.

LLP 2040: Be responsive to changes in need arising. The Council are in early discussions with the Gypsy and Traveller Exchange (GATE) regarding a new needs assessment. Depending on the results of that assessment, there may be a need to allocate additional G&T pitches. Similar discussions are required for showperson plots. There is also an opportunity to review the implementation of Leeds' negotiated stopping strategy and whether any permanent transit sites are required.

What do we need to get there?

The Council is seeking to commission a Strategic Housing Market Assessment (SHMA) . The 2022 SHMA will be a key piece of evidence to support preparation of LLP 2040.

The SHMA will be completed in stages to support plan preparation. A baseline report on the current position and issues relating to each of the agreed topics to allow the Council to undertake consultation on the early stages of LLP 2040.

A SHMA is not a point in time assessment and should provide the strategic evidence to enable the Council to understand how the housing market will change over the next 16 years, including the cyclical nature of the housing market and implications for projections.

The SHMA will be used by the Council to inform the scope of LLP 2040 and provide the evidential basis for detailed policies on each of the housing topics to support the Council's housing strategies.

HMO evidence to show where high levels of concentration of HMOs in and beyond the Article 4 Directive area.

For an updated position on the need for G&T and showperson pitches, a needs assessment is required. Previously, the Council has worked with Leeds GATE to calculate local needs, and discussions have already started on what is required to undertake the assessment for LLP 2040.

Have your say

The consultation runs for 6 weeks from Friday 10 February until Friday 24 March 2023.