National guidance requires Local Authorities to meet the full, objectively assessed needs in the market and affordable housing in their housing market area, as far is consistent with policies set out in the Framework. The objective is to boost significantly the supply of housing.

We have already commented in respect of our responses to Questions 1 and 2 that the SHMA needs to be reviewed and this could lead to an increase in the overall requirement for the Black Country Authorities.

As a starting point, we are concerned with the approach the SHMA has undertaken towards the HMA. It is advised that the SHMA does not seek to visit the HMA but build upon the work undertaken in establishing the Greater Birmingham HMA part of the preparation of the Birmingham Development Plan. HMAs overlap. The HMA for Birmingham will not be exactly the same as that for the Black Country. The emerging SHMA should have at least tested whether the HMA boundary remains valid for the purposes of its assessment. This approach is, however, entirely missing.

It should also be noted that the SHMA does not fully address affordable housing requirements. It is confirmed in paragraphs 7.26 to 7.29 of the SHMA that the National Planning Practice Guide requires a "policy on" calculation of the housing needs for certain groups of people. Affordable housing need is not a direct component of the demographic part of the objectively assessed needs assessment. As such, an updated calculation of this nature is not included in the SHMA. It is for the client Authorities to consider whether more new homes over and above the objectively assessed housing needs figure identified in the SHMA should be provided in the plan area to address more affordable housing need through policy adjustments.

The Framework advises that paragraph 159 that Local Authorities should develop SHMAs to inform their local plans. The SHMA should, amongst other things, "address the need for all types of housing, including affordable housing and the need for different groups in the community". This process has not been completed by the SHMA. It does not, therefore, provide a complete picture of housing need within the subject Authority areas.

The SHMA is not, therefore, in accordance with national guidance in this regard. The SHMA needs to be supplemented with additional information that factor in affordable housing requirements to establish a true objectively assessed housing needs figure.

Furthermore, there is a difference between the objectively assessed housing needs figure and the quantum of housing which should be allocated for development by the plan. Not all housing sites deliver as expected. This is clearly evidenced by the existing Core Strategy where there has been significant under delivery in the Growth Network. As referred to in our response to Question 1, there is clear uncertainty regarding for delivery of a significant number of the housing sites identified on the existing employment land by the current development plan documents. It is necessary for the emerging Core Strategy to identify housing requirement notably above the objectively assessed housing needs figure take account of non-delivery of proposed housing allocations. At the present time the Black Country Core Strategy has undelivered its housing requirement by approximately 11.6% (Appendix C - Black Country Monitoring Summary). It is, therefore, our view that the finalised objectively assessed housing needs figure should be increased by a minimum of 11.6% of flexibility to supply and to take account of the delivery in delivering the urban regeneration sites.

The current completion rates are significantly below what is required for even the current local plan figure and are significantly below the figure of 3,690 units per annum identified above. Even at 78,190 units over the plan period, this produces an annual requirement of 3,554 units per annum which is also far in excess of what has ever been achieved annually in the BCCS. We consider that this is a challenging figure in terms of the current supply, over half of which is dependent upon existing housing supply in the urban area and is largely made up of brownfield windfalls.

In this context we believe that it is going to be important to significantly change the balance of the current supply with a far greater reliance on greenfield/Green Belt sites than the 25,000 units identified.

We note that the overall supply from the urban area depends upon some 42,507 units from existing sites in the urban area and a further 8,335 units from the urban area, much of which appears to come from former employment sites.

Given the problems in releasing employment sites in the current strategy (see paragraph 3.16 and paragraph 2.5, the latter identifying the problems in releasing employment sites), we consider that the local plan strategy which relies on some 65% of provision on urban brownfield/windfall sites (using the draft figure of 78,190) is wholly unrealistic given that, to date, the current local plan has failed to meet existing requirements.

The components of the supply in the urban area (completions plus existing housing supply plus estimated further housing supply) total some 56,520 units which equates to a requirement of 2,569 units per annum over the new plan period. However, that required completion figure is in excess of what has been achieved to date through the current local plan, which relies entirely upon brownfield windfalls in the urban area, that figure being 2,325 units per annum.

It is apparent, therefore, that the current supply of brownfield/windfall sites is unlikely to produce sufficient units to meet its share of the housing requirement and, therefore, the contribution which this makes to the overall requirement should be reduced (this will be consistent with our argument about adopting a non completion rate) and the contribution from greenfield/Green Belt sites outside the existing urban boundary should be increased. This will require contributions to be made from greenfield/Green Belt sites within the BCCS administrative area and also from sites in sustainable locations which are well related to the Black Country in neighbouring authorities.

Although we reserve our position on this point, we would expect that the contribution from the existing brownfield windfalls to be reduced by some 25%, to reflect the problems of market attractiveness, viability, delivery etc and with a consequent increase in the greenfield/Green Belt allocations.

In summary, the SHMA does not properly identify the housing requirement for the HMA. In addition, the reliance upon brownfield urban sites is not supported by evidence. There is, therefore, a requirement for a fundamental shift in the plan strategy with greater reliance placed upon Green Belt/greenfield land release in and around the wider HMA area of sustainable locations in order to ensure delivery.