Object

Representation ID: 44812

Received: 11/10/2021

Respondent: Consortium of Developers

Number of people: 4

Agent: Turley Associates

Proposed allocations on occupied employment land – discounted by 15%

5.45 The Councils rely on 3,091 homes in the plan period from this source. When considered against the NPPF tests, which emphasises ‘availability’ as a key tenet of being both developable and deliverable, these sites are unavailable as they are presently occupied by existing uses. There are particular risks with bringing forward occupied employment sites, in that they:
• have existing commercial value

• require business relocation

• are often in multiple ownerships without any form of collaboration agreement or equalisation

• have other commercial considerations (such as lease status)

• require land assembly

• will most likely require complex phases of remediation and new infrastructure

5.46 Whilst the Councils do highlight that investment may be forthcoming to assist land assembly and viability, specific evidence should be submitted for what sites this may affect. The allocation of occupied employment land for housing, in the context of the Councils’ own evidence base concluding that there is a gap (shortfall) of 140.3 ha against the demand requirement for employment sites in the Black Country area, casts doubt over whether there is a reasonable prospect that any of this source of supply is developable at all.

5.47 The Councils report, in the Urban Capacity Review, the following historic rates on occupied employment sites.

See attachment for Table 5.6: Homes Allocated and Delivered on Occupied Employment Land

5.48 The above demonstrates that of the occupied employment land allocated in the previous round of development plan documents associated to the BCCS, just 4.2% of the homes have been delivered.

5.49 It is acknowledged that there are additional permissions which have been granted (193 homes on 4.5ha of land in Dudley, and 510 homes on 23ha of land in Sandwell) but these do not substantially change the conclusion, and these sites remain undelivered.

5.50 The NPPF states that Local Plans must be aspirational but deliverable. We suggest that a precautionary approach to occupied employment sites as a source of supply must apply given the local track record of delivery, and due to the known constraints to delivery of these sites.
5.51 The precautionary principle should apply even more so, given the findings of the Councils’ evidence base and conclusions on employment land over the Draft BCP plan period.

5.52 The Councils apply a 15% discount rate to account for non-implementation, but it is considered that this does not go nearly far enough. The Councils state that the 15% non-implementation rate is supported by the GL Hearn Greater Birmingham HMA Strategic Growth Study (2018) which endorsed application of a 15% discount in the Black Country to:

“…take account of the significant proportion of the land supply which comprises employment sites where there are challenges associated with delivery related to assembling land, relocating existing occupiers, and development viability.”

5.53 Paragraph 4.123 of that report acknowledges that the discount is:

“…judgement-based and applied for the purposes of this report only and should not be considered to prejudge what allowance should be made for non-implementation in individual local plans or authorities’ land supply assessments, which can take account of locally-specific circumstances and evidence.”

5.54 It is clear then that the 15% discount was not intended to be relied on in Local Plan preparation, and does not assist in endorsing the Black Country authorities’ approach on this matter. It is still necessary for the Councils to prepare their own, authority specific, evidence to support their approach.

5.55 Dudley have undertaken a landowner engagement exercise in relation to assessing the availability of existing employment sites. The Dudley Employment Landowner Engagement Technical Report (August 2021) Appendix B sets out the responses to a direct land owner approach survey. There appears to be only two sites out of circa 45 sites documented where the owners have confirmed availability for the proposed use and the site has also been submitted into the SHLAA for housing availability.

5.56 For the significant majority of sites proposed in the Landowner Engagement Exercise Technical Report his document to be re-allocated for housing, the evidence suggests that no response was received from the landowner.

5.57 Evidence from only one of the four authorities covered by the BCP is insufficient to justify an approach with such strategic implications.

5.58 Given the Councils’ track record of delivery and the findings of their evidence base, the BCP should only include sites on occupied employment land that is known to be available, suitable and where some evidence is available of likely economic viability.

5.59 In reality this involves removal of all sites where there is any ambiguity around leases/current employment occupation etc.

5.60 This results in a reduction of the full 3,091 homes relied on from this source in the plan period, based on the Councils’ current limited and insufficient evidence base. However, it is suggested that some of this number could be offset through appropriate re-allocation, or identification as specific developable existing allocations where up to date evidence provided to confirm there is a reasonable prospect that they will be available and could be viably developed at the point envisaged.