CHARNWOOD BOROUGH COUNCIL MARCH 2015 Implications of 2012-based household projections for Charnwood and the Leicester & Leicestershire HMA 1. This note sets out Charnwood Borough Council’s response to the Inspector’s request for comments on the 2012 Household Projections and their relationship with the objectively assessed need for housing in Charnwood and the Leicester & Leicestershire Housing Market Area (HMA). 2012-based CLG household projections 2. The table below shows the housing need arising from the 2012-based CLG projections alongside the lower and upper end of the OAN range suggested in the Joint SHMA 2014. Annual housing need in 2012-based CLG projections compared with Lower and Upper ends of the suggested objectively assessed housing need range in the SHMA 2014 Difference Upper end Difference Lower end 2012-based from upper of SHMA from lower of SHMA CLG end OAN range end OAN range projections Leicester 1,189 1,250 61 1,350 161 Blaby 262 360 98 420 158 Charnwood 825 810 -15 820 -5 Harborough 395 415 20 475 80 Hinckley & Bosworth 364 375 11 450 86 Melton 171 200 29 250 79 NW Leicestershire 262 285 23 350 88 Oadby & Wigston 64 80 16 100 36 Leicester & L’shire 3,532 3,775 243 4,215 683 Relationship with HMA & Charnwood 3. The table shows that the lower end of the SHMA 2014 range was some 243 dwellings per annum above the new 2012 Household Projection (6.9% higher). For individual authorities, many of the lower range figures are broadly comparable with the 2012 Household Projections with only Blaby showing a significant difference between the two sources. Charnwood is the only authority which has a higher figure in the 2012 Household Projection than the lower range of the SHMA 2014 although the difference at 15 dwellings a year is not significant (1.8%). Overall, the 2012 Household Projections give significant support to the demographic work in the SHMA 2014. 4. In accordance with guidance, the SHMA 2014 considered whether adjustments were needed to the 2011 based population projections that were the starting point for the assessment of need. The SHMA 2014 analysed market signals, affordable housing CHARNWOOD BOROUGH COUNCIL MARCH 2015 and forecast job growth which led to an uplifted figure, presented as the upper end of the SHMA OAN range (as presented in the table above). The higher end of the SHMA 2014 range for the HMA is some 683 dwellings per year above the 2012 Household Projections (19% higher). 5. In Charnwood, none of the factors were considered as significant enough to warrant an uplift to the housing number, hence the suggested OAN for Charnwood was driven by demographic projections. Charnwood was the only area where no uplift to the baseline demographics was needed (on the basis of the evidence). The resulting SHMA 2014 upper range figure for Charnwood is the only authority figure which is lower than the 2012 Household Projection although the difference at 5 dwellings a year is insignificant (0.6%). 6. The CLG published a revised paragraph 016 of the Planning Practice Guidance [ID: 2a-016-20150227] on the 27th February 2015 (the same day as the release of the 2012 Household Projections). The guidance updates the previous starting point for assessments of need from the 2011 projections to the 2012 projections the subject of this consultation. The guidance confirms that projections are the starting point and that Local Plans should be kept up to date and meaningful changes in the housing situation considered in this context but that housing assessments are not automatically rendered out of date every time new projections are issued. 7. The upper end of the SHMA 2014 range is some 19% higher and the lower end is 6.9% higher than is now suggested by the CLG projections. However, it is important to note that the 2012 Household Projections do not in themselves form a SHMA and that for the HMA the level of provision set out in the Leicester and Leicestershire MOU (PSD/16) is quite a positive position to be taking. 8. In Charnwood, the new household projections show only a very slightly higher figure than in the SHMA 2014 (825 dwellings per annum compared with 820). This is not a significant difference and would provide support for the figure in the emerging Local Plan. Conclusion 9. Whilst the overall position for the HMA is higher than the 2012 Household Projections the figure for Charnwood is virtually the same as the housing requirement of 820 per year being examined. If the 2012 Household Projections are taken at face value in their unaltered state the relationship with the Leicester and Leicestershire capacity figures put forward by the HMA partners through the examination (PSD/48) show that the individual need can be met by each individual authority and that there is no evidence of unmet needs in the HMA. CHARNWOOD BOROUGH COUNCIL MARCH 2015 10. The objectively assessed need of 820 homes set out in the SHMA 2014 is robust and up to date evidence and capable of providing the basis for a sound Charnwood Core Strategy. THE END COMMENT FROM BABTAG ON THE IMPLICATIONS FOR THE CORE STRATEGY OF THE 2012 HOUSEHOLD PROJECTIONS The 2012 Household Projections published by the government are roughly in line with Charnwood’s own projections of growth and requirement for housing. That said it should be underlined that the figures from the borough and the government are only predictions and may not reflect future reality in terms of the numbers and sizes of new households and hence the need for new dwellings. Whether or not the predictions are accurate does not alter the BABTAG case for reducing the house numbers of the north east of Leicester SUE and advocating a more manageable and acceptable development. The size is the issue. It is the biggest development ever proposed for Leicestershire and is proving unwieldy and very difficult to manage. The SUE continues to be beset by delays and land ownership issues and is unlikely to deliver the much vaunted 4500 houses within the given time frame. Much more likely is that its construction period and its completion will exacerbate the transport problems of the area and bring traffic misery to Thurmaston, Syston, Barkby and Barkby Thorpe. The likely failure of the SUE to meet the housing trajectory will mean that in order to meet the housing need confirmed in the 2012 Household Projections Charnwood will need to look elsewhere in the borough for housing sites. The BABTAG case remains that the Core Strategy is flawed by its “all the eggs in one basket” dependence on a “New Town” SUE and that the housing need should be addressed by a more modest and deliverable development in the range of 2000 to 3000 houses on the north east of Leicester site and dispersed development elsewhere in Charnwood that would allow communities to grow organically and revitalise existing settlements. Owen Bentley Chairman BABTAG Charnwood Local Plan Examination Submissions In Respect of 2012 Household Projections Hathern Parish Council, Shepshed Town Council and Garendon Park and Countryside Protection Group would thank the inspector for the opportunity to comment upon the implications of the 2012 Household Projections in respect of the Local Plan Examination. The 2012 Household Projections are an important component to considering the objectively assessed need for housing in the Borough, a matter confirmed within the Planning Practice Guidance. Having reviewed the 2012 Household Projections, it is our position that the submissions made at Matter 12, of the examination notably that there is no justification for a sustainable urban extension at Garendon in light of the updated housing trajectory, remain entirely valid and that proceeding with a Plan which seeks to deliver 2,400 houses at Garendon is not the most appropriate strategy when considered against the alternatives and is thus not sound. The inspector is again respectively invited to reconsider the entire plan strategy in light of the rapid change in circumstances in the newly updated housing trajectory. The NPPF is clear that Plans should be able to adapt to rapid change, and this applies equally prior to adoption as it does after the plan making process has concluded. Michael Robson BA(Hons) DipTP MRTPI Director Cerda Planning Ltd 18th March 2015 CHARNWOOD LOCAL PLAN CORE STRATEGY EXAMINATION FURTHER STATEMENT ON BEHALF OF JELSON LIMITED AND DAVIDSONS DEVELOPMENTS LIMITED (REF 2812) IMPLICATIONS OF 2012 BASED HOUSEHOLD PROJECTIONS Pegasus Group 4 The Courtyard Church Street Lockington Derbyshire DE74 2SL Telephone: (01509) 670806 Facsimile: (01509) 672247 PPG Ref: EMS.2299 Date: March 2015 COPYRIGHT The contents of this document must not be copied or reproduced in whole or in part without the written consent of Pegasus Group Jelson Limited and Davidsons Developments Limited: ID 2812 Implications of 2012 Based Household Projections 1.1 This response has been made on behalf of Jelson Limited and Davidsons Developments Limited following the invitation from the Inspector to comment on the implications for the Core Strategy of the recent release of the 2012 based Household Projections. 1.2 The 2012 based Household Projections were released on the 27 th February 2015. Following their release, the Planning Practice Guidance (PPG) has been amended to confirm that the projections represent the most up-todate estimate of future household growth and that, wherever possible, local needs assessments should be informed by the latest available information (Paragraph: 016Reference ID: 2a-016-20150227). 1.3 Charnwood Borough Council has produced a note setting out the data from the 2012 based projections and providing a comparison with the Leicester and Leicestershire SHMA, 2014. authorities having jointly There is no evidence of the HMA considered the implications of the recent projections for the Leicester and Leicestershire HMA and the extent to which each authority can meet its objectively assessed housing needs on the basis of this new evidence. 1.4 It is considered that Charnwood Borough Council’s assessment fails to take proper account of the implications of the latest estimates of future household growth for the Leicester and Leicestershire HMA. 1.5 A fundamental issued raised at the Inquiry sessions was the extent to which Leicester City could accommodate its full objectively assessed housing needs. We submitted detailed evidence demonstrating that the assumptions underpinning the Memorandum of Understanding (PSD16) in terms of the delivery of housing in Leicester were seriously flawed. At the hearing sessions, Leicester City Council failed to present any robust evidence to support their clearly unrealistic assumptions on delivery. 1.6 This critical issue of delivery in Leicester City is further exacerbated by the 2012 based Household Projections which predict event higher levels of household growth for the City when compared with the assumptions underpinning the 2014 SHMA. 1.7 Tables 1 and 2 below set out the relevant comparison between the evidence underpinning the 2014 SHMA (the 2011 based Interim Household Page 1 EMS.2299: Charnwood Local Plan Core Strategy Examination – 2012 Based Household Projections Jelson Limited and Davidsons Developments Limited: ID 2812 Projections) and the most up-to-date evidence available from the 2012 based projections. The relevant table in the SHMA for comparison is Table 16. Table 1 presents the figures contained in the SHMA, with Table 2 updating the SHMA Table 16 to reflect the 2012 based projections. Table 1: Table 16, 2014 SHMA 2011 SNHPP Hseholds 2011 Hseholds 2031 Change % 123,105 144,380 21,275 17.3% 38,777 45,259 6,482 16.7% 66,567 81,149 14,582 21.9% 35,021 42,576 7,555 21.6% Leicester Blaby Charnwood Harborough Hinckley and Bosworth Melton NW Leicestershire Oadby and Wigston Leicester and Leics Source: Table 16 2014 SHMA 45,464 21,533 39,189 21,307 390,963 52,297 25,252 44,064 22,428 457,405 6,833 3,719 4,875 1,121 66,442 15.0% 17.3% 12.4% 5.3% 17.0% Table 2: Updated Table 16 Using 2012 Based Household Projections 2012 SNHPP Leicester Blaby Charnwood Harborough Hinckley and Bosworth Melton NW Leicestershire Oadby and Wigston Leicester and Leics Hseholds 2011 Hseholds 2031 Change % 122,996 145,975 22,979 18.7% 38,777 43,891 5,114 13.2% 66,432 82,268 15,836 23.8% 35,073 42,701 7,628 21.7% 45,505 21,564 39,230 21,288 390,865 52,553 24,873 44,297 22,497 459,055 7,048 3,309 5,067 1,209 68,190 15.5% 15.3% 12.9% 5.7% 17.4% Page 2 EMS.2299: Charnwood Local Plan Core Strategy Examination – 2012 Based Household Projections Jelson Limited and Davidsons Developments Limited: ID 2812 1.8 This comparison shows an increase of 1,254 households for Charnwood when the latest 2012 based Household Projections are used. For Leicester, there is an increase of some 1,700 households. 1.9 The increased household growth for Leicester reinforces the concerns we raised at the Examination sessions over the ability of the City to meet its full objectively assessed housing needs. It is our submission that, even on the lower levels of household growth contained in the 2014 SHMA, a realistic assessment of deliverability would indicate a shortall of at least 2,000 dwellings that would need to be met in adjoining districts. The latest 2012 based Household Projections exacerbate this problem by identifying a level of household growth for the City at some 1,700 households above the evidence underpinning the 2014 SHMA. 1.10 The new household projections represent a meaningful change in the housing situation for the HMA that has significant implications for the approach to housing provision being promoted by the HMA authorities, exacerbating the real issues of under delivery in Leicester and the need for adjoining authorities to accommodate unmet needs. 1.11 A further issue raised by the new evidence available from the 2012 based Household Projections is the extent to which they accurately account for the international migration component of household growth. A number of commentators have highlighted key issues over the robustness of the projections in terms of the assumptions made on international migration. 1.12 The assumptions made in the projections for the Leicester urban area have been compared with the available evidence of the levels of international migration over a 5 and 10 year period. 1.13 Table 3 below sets out the migration components for Leicester annually from 2001 to 2013. The 2012 base SNHP assumes an annual average international migration component for Leicester City of some 1,460 households a year. This is well below both the actual levels of international migration recorded for Leicester City on either a 5 year or 10 year trend. This suggests that the 2012 based SNHP seriously underestimates the likely future levels of international migration to the City. Page 3 EMS.2299: Charnwood Local Plan Core Strategy Examination – 2012 Based Household Projections Jelson Limited and Davidsons Developments Limited: ID 2812 Table 3: Migration Components Leicester City Internal Net Migration International Net Migration Overall Net Migration 2001-2002 -2,996 1,819 -1,177 2002-2003 -2,876 2,399 -477 2003-2004 -2,579 3,888 1,309 2004-2005 -2,768 5,848 3,080 2005-2006 -2,863 3,353 490 2006-2007 -4,112 4,133 21 2007-2008 -3,565 2,712 -853 2008-2009 -2,691 1,891 -800 2009-2010 -1,623 2,123 500 2010-2011 -2,758 3,275 517 2011-2012 -2,311 1,200 -1,109 2012-2013 -2,996 2,366 -494 Annual Average 2008-2013 -2,476 2,171 -277 Annual Average 2003-2013 -2,827 3,079 266 Source: Office Statistics for National 1.14 This reinforces the evidence we have already submitted to the Examination highlighting clear uncertainties over the extent to which Leicester City can meet its objectively assessed housing needs in full. 1.15 The latest evidence of future household growth contained in the 2012 based SNHP further undermines the key assumptions underpinning the Charnwood Local Plan – that there will be no unmet needs arising from Leicester City over the plan period. 1.16 The projections confirm the key concerns over the soundness of the Core Strategy we have already presented to the Examination. The levels of household growth outlined in the 2012 based SNHP for Leicester cannot be accommodated in the City, and, as a result, adjoining authorities will need to meet some of this requirement. 1.17 The approach promoted by the HMA authorities through the Memorandum of Understanding is at odds with this new evidence of housing need and its distribution across the HMA. 1.18 The implications of the 2012 based projections for the Charnwood Core Strategy are therefore serious in that the plan as submitted for examination is demonstrably unsound and, more critically, the HMA authorities have Page 4 EMS.2299: Charnwood Local Plan Core Strategy Examination – 2012 Based Household Projections Jelson Limited and Davidsons Developments Limited: ID 2812 failed to satisfy the requirements of the Duty to Cooperate to ensure that the full objectively assessed needs for the HMA are met in full. 1.19 Adoption of the plan would represent an ill advised short term fix that will only delay the proper consideration of future housing requirements across the HMA over the period to 2036. This would be damaging to the proper planning of housing requirements in Leicester and Leicestershire and have implications for work on new and replacement plans by other HMA authorities. Page 5 EMS.2299: Charnwood Local Plan Core Strategy Examination – 2012 Based Household Projections Thank you for the opportunity to comment on the latest ONS Household Projections in the context of the Charnwood Local Plan (Core Strategy) (CSLP) Examination. As you may be aware, Nathaniel Lichfield and Partners act for Commercial Estates Group, the promoters of the North East of Leicester SUE (Policy CS19 refers). We note that while the latest household projection for Charnwood is lower than the previous projection, the overall housing number for the Leicester and Leicestershire Housing Market Area is not materially different to projections on which the CSLP is based (as there is a difference in the location of the projected growth with a return to a higher rate in the urban area). In our view the latest projections do not have a material effect on housing provision in Charnwood over the plan period. The PPG is clear that the ONS projections should only be the starting point for assessing need. PPG ID: 2a-‐016 states that “…this does not automatically mean that housing assessments are rendered outdated every time new projections are issued”, and Charnwood’s housing needs have been recently examined in detail at the EiP. In our view the plan is capable of being found sound and it is clear that the Charnwood CSLP should be adopted as soon as possible and without further delay to enable the Borough to return to plan-‐led growth. This will include the early delivery of housing through the development of the North East of Leicester SUE which represents the optimum location for sustainable development, on the edge of the city, regardless of whether the need is generated within Charnwood and/or arises from future need which cannot be accommodated in the City. Nick Baker Planning Director Nathaniel Lichfield & Partners, 14 Regent's Wharf, All Saints Street, London N1 9RL T 020 7837 4477 / M 07976 077838 / E [email protected] Dr Matthew O’Callaghan 21 Fennel Street Loughborough, LE11 1UQ Jane Strachan Programme Officer - Core Strategy examination c/o Charnwood Borough Council Consultation on Household Projections 2012 Firstly, I understand the Inspector has written to Charnwood Borough Council stating that in its current form the Core Strategy is unsustainable. I understand further that he has made some suggestions as to how the Core Strategy might be made sustainable and proposed the Council work up these proposals before going out to consultation on these. I believe the letter to the Council and the suggestions ought to be shared with all parties to the Examination in Public and to the public in general since these will ultimately shape the outcome of the Core Strategy. Secondly, it is my understanding that there was general agreement at the end of the Examination in Public that after taking into consideration all the applications that have been approved by the Council, there was a short fall of sites for only around 800 houses to be found. If this is not the case then we need the justification from the Inspector as to what is the new figure and why otherwise it will be challenged. Further the Council argued that Loughborough – Shepshed was one Housing Market Area (LSHMA) so all the applications approved for Shepshed should be counted against any overall unmet needs for the LSHMA. Finally the Household Projections themselves do not vary much from those already updated by the Council in its later submissions to the Inspector prior to the recommencement of the Examination in Public and so should not alter to any major extent the figures that have already been discussed in the EiP. Your sincerely Dr Matthew O’Callaghan Home Builders Federation Respondent No. R50 CHARNWOOD LOCAL PLAN CORE STRATEGY EXAMINATION Further comments on 2012 household projections The NPPG confirms that 2012 based household projections published on 27th February 2015 represent the most up to date estimate of future household growth (ID 2a-016-20150227) which is the starting point for objectively assessing housing needs (OAHN). However it should be acknowledged that household projections are only projections of past trends and not forecasts as such these projections reflect past influences on household formation. Housing shortages over the last two decades, and poor housing affordability, have restricted the ability of many young people to form independent households. Therefore such projections under-estimate future requirements by building into future housing provision the adverse impacts on household formation of past undersupply and very weak economic and market conditions between 2008 and 2012. When compared to the Leicester & Leicestershire SHMA Final Report prepared by G L Hearn dated June 2014 the 2012 based household projections show higher household growth in both Charnwood and Leicester City, which may still be an under-estimation for the reasons discussed above. This increase in household growth has ramifications for the Leicester & Leicestershire HMA as a whole. It is unclear from the note issued by Charnwood District Council if any collaboration between the Leicester & Leicestershire HMA authorities was undertaken in the preparation of this note. As discussed during the Examination Hearing Sessions there is concern that Leicester City will not be able to meet its own housing needs and as a consequence neighbouring authorities will be called upon to assist with meeting unmet needs elsewhere in the HMA. This position is worsened by the increase in household growth mentioned above. Therefore the question remains is the proposed housing requirement for Charnwood (790 dwellings per annum in the submitted Plan / 820 dwellings per annum recommended in the 2014 SHMA) sound and based on robust evidence which will significantly boost housing supply by responding to :• • • • • Projected household growth ; Economic growth ; Market signals ; Affordable housing needs ; Unmet housing needs from Leicester City. Susan E Green MRTPI Planning Manager – Local Plans Page 1 For and on behalf of Asiatic Luck Corporation (Respondent 1241) Charnwood Local Plan Examination Matter 2: Objectively Assessed Need for Housing on behalf of Asiatic Luck Corporation (1241) Prepared by Roland G Bolton Strategic Planning Research Unit DLP Planning March 2015 Report on the Roland Bolton Prepared By: Approved by: Date: Strategic Planning & Research Unit Ground Floor V1 – Velocity Tenter Street Sheffield S1 4DE Tel: 01142 289190 Fax: 01142 721947 Roland Bolton March 2015 4 Abbey Court Fraser Road Priory Business Park Bedford MK44 3WH Tel: 01234 832740 Fax: 01234 831 266 DLP Consulting Group disclaims any responsibility to the client and others in respect of matters outside the scope of this report. This report has been prepared with reasonable skill, care and diligence. This report is confidential to the client and DLP Planning Limited accepts no responsibility of whatsoever nature to third parties to whom this report or any part thereof is made known. Any such party relies upon the report at their own risk. Charnwood On behalf of Asiatic Luck Corporation (1241) THE 2012 HOUSEHOLD PROJECTIONS AND THE OBJECTIVE ASSESSMENT OF NEED 1.0 INTRODUCTION 1.1 This short statement is in response the publication of the 2012 Household Projections by the Department of Communities and Local Government in March 2015. 1.2 These projection have been made available after the inspector has confirmed in writing on the 22 January 2015 that he has found the Core Strategy unsound but considers it may be made sound with major modifications. 1.3 The impact of the 2012 household projections is that they providing a different (and suggest higher rates of household formation. The Projections themselves are based upon the 2012 Sub National Population Projections (SNPP) so the difference between the latest projections under taken by SPRU in our “Objective Assessment of Housing Need” Appendix 1 of out matter 2 submission and these official projections will be down to the assumptions regarding Household Representation Rates. 1.4 The Leicester and Leicestershire Strategic Housing Market Assessment unlike the SPRU report was not based upon the 2012 SNPP but on the consultants own assumptions (based in the 2010 and 2011 SNPP. 1.5 This means that the SPRU and the DLCG projections are directly comparable using as they do the same population base. 1.6 The DCPG 2012 Household projections cannot be directly compared the SHMA outputs as the SHMA makes different assumptions regarding the base population. 1.7 As the final Objectively Assessed Need (OAN) has to respond to other factors such as the economic strategy and affordability then there is still a case that the OAN for some areas will be need to be higher in order to respond to these issues. 2.0 THE 2012 HOUSEHOLD PROJECTIONS 2.1 The 2012 Household Representation Rates At the national level the 2012-based Household Projections have a very similar rate of household growth 2011-based Interim projections of the comparable period from 2012 to 2022. Population growth is lower than the previous Interim Projections but this is off set by higher projected household formation in the 2012 Household Projections (DCLG Housing Statistical Release 27 February 2015). 2.2 These are trend based projections and as such reflect previous level of under provision that have led to the present housing crises. The PPG makes it clear that these projections do not reflect unmet need (Paragraph: 015 Reference ID: 2a-01520140306). 2.3 The changes between 2001 and 2011 reflected in these projections are: a. The 36% rise for those living in Other households without dependent children b. The 30% rise between 2001 and 2011 for those living in Other households with dependent children. c. Households with six or more people rose 25% between 2001 and 2011. d. households with six or more people saw the largest proportional at almost 50%. Macintosh HD:Users:janestrachan:Library:Mail Downloads:Matter2_2012HH_SPRU.docx 3 Charnwood On behalf of Asiatic Luck Corporation (1241) e. 18% of all occupied household spaces were privately rented, an increase from 12% in 2001. This was the largest increase of all housing tenure types. f. The owner occupied declined from 69% to 64% over the same period Source: 2011 Census Analysis, Households and Household Composition in England and Wales, 20012011 2.4 In respect of the growth in Other households not only have these increased substantially but they have also increased in average size. The average size of Other households without dependent children increased from 2.92 people in 2001 to 3.06 in 2011 and saw the largest percentage increase (5.1%). Within this main category, the Other category includes unrelated adults sharing a household space and multi-family households with no dependent children; this category increased by 4.1% from 2.90 people to 3.02. It is suggested by the Office for national Statistics that this may reflect an increase in young working adults sharing accommodation and multigenerational households. 2.5 In conclusion it is considered inappropriate to utilise the household Representation Rates in the 2012 household projections as these project forward the continuation of above trends which are in conflict with the Framework notably in terms of: a. Not meeting housing demand (Framework paragraph 159) b. Not delivering a wide choice of homes and widen home ownership (framework paragraph 50). 2.6 The results for Charnwood The results of the 2012 Household Projections are set out in the tables below. 2.7 This suggests that the average dwelling requirement for Charnwood for the immediate plan period 2012 to 2020 is 839 dwellings a year but that this will reduce to lower average of 794 for the period 2020 to 2028. 2.8 As highlighted in verbal submission this emphasises that there is a higher level of immediate need. Any modifications to the Plan should seek to address this by encouraging the early release of sites and the bring forward of allocations. Table 1 Extracts from the 2012 Household Projections total households Blaby Charnwood Harborough Hinckley and Bosworth Melton North West Leicestershire Oadby and Wigston Leicester UA Total 2012 39,072 67,459 35,403 45,824 21,657 39,371 21,368 123,659 393,813 2020 41,247 73,903 38,737 48,776 23,143 41,456 21,570 133,055 421,887 2028 43,203 80,001 41,695 51,592 24,444 43,553 22,211 142,357 449,056 2037 45,029 86,250 44,417 54,102 25,629 45,570 23,001 152,665 476,663 Macintosh HD:Users:janestrachan:Library:Mail Downloads:Matter2_2012HH_SPRU.docx 4 Charnwood On behalf of Asiatic Luck Corporation (1241) Table 2 Estim ated dwelling requirem ent from the 2012 Household Projections Blaby Charnwood Harborough Hinckley and Bosworth Melton North West Leicestershire Oadby and Wigston Leicester UA Total Table 3 Dwelling Requirement 2020 to 2028 2,005 6,354 3,062 2,912 1,345 2,168 676 9,628 28,149 Dwelling Requirement 2012 to 2028 4,234 13,069 6,512 5,964 2,882 4,324 889 19,352 57,226 vacancy shma figure B32 2.5% 4.2% 3.5% 3.4% 3.4% 3.4% 5.4% 3.5% Estim ated dwelling requirem ent from the 2012 Household Projections Blaby Charnwood Harborough Hinckley and Bosworth Melton North West Leicestershire Oadby and Wigston Leicester UA Total 3.0 Dwelling Requirement 2012 to 2020 2,229 6,715 3,451 3,052 1,537 2,156 213 9,725 29,077 Annual Rates for dwelling 2012 to 2020 279 839 431 382 192 269 27 1,216 3,635 Annual Rates for dwelling 2020 to 2028 251 794 383 364 168 271 84 1,203 3,519 Average Annual Rates for dwelling 2012 to 2028 265 817 407 373 180 270 56 1,210 3,577 COMPARISON WITH SPRU EVIDENCE ON OBJECTIVELY ASSESSED HOUSING NEED 3.1 In terms of the SPRU projections of future households (Matter 2 Appendix 1) as stated above these likely the DCLG projections also used the same 2012 SNPP. 3.2 For the period 2011 to 2028 the SPRU projection using the same 2012 SNPP population base was 823 dwellings a year (matter 2 Appendix 1 table 14 page 44). This compares very favourably to the 817 dwellings suggested by the official government forecasts for the same period. 3.3 This close alignment when using the same population input validates the assumptions made in the SPRU (Chelmer Model) regarding Household Representation rates. This gives the inspector confidence when considering the implications of the level of housing required to meet the economic objectives of the plan the SPRU work in terms of population and Household representation rates closely align to the more recent 2012 Household projections. 3.4 This alignment between the SPRU work and the 2012 Household projections is further emphasised if consideration is given to the likely change in the working age population Macintosh HD:Users:janestrachan:Library:Mail Downloads:Matter2_2012HH_SPRU.docx 5 Charnwood On behalf of Asiatic Luck Corporation (1241) and potential workers that result for the level of housing in the DCLG 2012 Housing Projections. 3.5 The table 4 below identifies the change in the number of persons between the age of 16 and 74. 3.6 Table 5 applies the activity rates from the councils SHMA (fig B26) to the starting and end populations in order to demonstrate the likely change in the labour force as a result of the population assumptions in the 2012 Household projections. Table 4 2012 Household projections change in 16 to 74 age groups Blaby Charnwood Harborough Hinckley and Bosworth Melton North West Leicestershire Oadby and Wigston Leicester UA HMA 16 to 74 at 2012 68,881 126,847 62,628 78,312 37,205 68,953 40,546 242,647 726,019 16 to 74 at 2028 70,013 138,732 65,534 79,984 37,815 70,205 38,659 259,744 760,688 change in 16 to 74 1,132 11,885 2,906 1,672 610 1,252 -1,887 17,097 34,669 % change 2% 9% 5% 2% 2% 2% -5% 7% Source DCLG 2012 SNPP Table 5 2012 Household projections calculated change in labour assum ing no change in Em ploym ent ratio Blaby Charnwood Harborough Hinckley and Bosworth Melton North West Leicestershire Oadby and Wigston Leicester UA HMA 3.7 16 to 74 at 2012 68,881 126,847 62,628 78,312 37,205 68,953 40,546 242,647 726,019 16 to 74 at 2028 70,013 138,732 65,534 79,984 37,815 70,205 38,659 259,744 760,688 Employment ratio 16 to 74 SHMA Figure B26 70.6% 64.0% 71.6% 69.5% 71.3% 67.7% 65.1% 57.0% Change in Labour 799 7,606 2,081 1,162 435 848 -1,228 9,746 21,449 Table 6 applies the present activity rates from the councils SHMA to the starting and then the assumed increase in the activity rate as calculated by the SHMA (Fig B26) to end population in order to demonstrate the likely change in the labour force as a result of the population assumptions in the 2012 Household projections but using the increase activity rates implied by the SHMA. Macintosh HD:Users:janestrachan:Library:Mail Downloads:Matter2_2012HH_SPRU.docx 6 Charnwood On behalf of Asiatic Luck Corporation (1241) Employment ratio 16 to 74 SHMA Figure B26 Proposed increase in Employment Rate Labour 2012 Labour 2028 Change in Labour (including increase in employment rates) Change in Labour due to increased Employment rate Blaby Charnwood Harborough Hinckley and Bosworth Melton North West Leicestershire Oadby and Wigston Leicester UA 16 to 74 at 2028 2012 Household projections calculated change in labour assum ing SHM A levels of changes in Em ploym ent ratio 16 to 74 at 2012 Table 6 68,881 126,847 62,628 70,013 138,732 65,534 70.6% 64.0% 71.6% 72.9% 64.6% 72.3% 48,630 81,182 44,842 51,040 89,621 47,381 2,410 8,439 2,540 1,610 832 459 78,312 37,205 79,984 37,815 69.5% 71.3% 71.2% 72.2% 54,427 26,527 56,949 27,303 2,522 776 1,360 340 68,953 70,205 67.7% 69.1% 46,681 48,512 1,831 983 40,546 242,647 726,019 38,659 259,744 760,688 65.1% 57.0% 64.3% 59.0% 26,395 138,309 466,993 24,858 153,249 498,912 -1,538 14,940 31,919 -309 5,195 10,470 3.8 It is important to note that the projections that underlie the 2012 Household projections do not result in the same levels of labour increase as suggested by the SHMA work – in part at least because of the different population projections that underlie the SHMA and the 2012 Household projections. The SPRU work which utilises the same population base as the 2012 household projections (the 2012 SNPP) is, as argued previously both more up to date, and has now been demonstrated to be very closely aligned to the 2012 household projections. 3.9 The above work using the SHMA Employment ratios suggests that the labour force within Charnwood as a result of meeting the 2012 household projection would increase the labour force by 7,606 if there is no change in the employment ratio or 8,439 if there is a change in the employment ratio as suggested by the SHMA. This suggests a rate of growth of between 475 and 527 persons a year. 3.10 The Core Strategy (paragraph 4.12) references evidence that suggests 13,400 new jobs will be needed between 2010 and 2031 or 638 jobs a year this is based upon the Full Time Equivalent Jobs In Charnwood (EB/E&R/2: 4.4.2 and table 4.26). These Full Time Equivalent jobs are based on a growth of 16,900 workplace jobs being created or 8,034 persons per year (Charnwood (EB/E&R/2: 4.4.1 and table 4.25). 3.11 It is important to note that the floorspace requirement to meet the increase in the above increase in jobs as set out in Table 4.28 is much later than that planned level of provision in the Core Strategy. 3.12 This evidence clearly reinforces the earlier position taken by SPRU that the housing and economic strategies of the district are not integrated as required by paragraph 158 of the Framework. Macintosh HD:Users:janestrachan:Library:Mail Downloads:Matter2_2012HH_SPRU.docx 7 Charnwood On behalf of Asiatic Luck Corporation (1241) 4.0 THE 2012 HOUSEHOLD PROJECTIONS AND THE COUNCILS EVIDENCE BASE. 4.1 The analysis above of the implications of the 2012 Household projections on the level of available labour differs from the analysis in table of 8 of the councils post examination document PDS40 which suggests a change in the working age population of 16,843 persons from the 2012 SNPP and hence form the level of provision suggested by the 2012 Household projections. 4.2 The above analysis actually considers the likely employment ratio of the total population in order to provide an illustration as to the actual level of additional workers that might result from the level of housing provision suggested by the 20-12 Household projections. This is different form calculating just the number of additional people who are within that age group. This has been undertaken using the employment ratios assumed by the council’s consultants. 4.3 This demonstrates that while the level of housing suggested by the 20-12 Household projections might increase the number of persons of working age (including the proportion attributed to the change in the [pension age) the number of additional workers will be substantially less even if one applies the enhanced employment rations suggested by the councils own consultants. 5.0 CONCLUSION ON THE 2012 HOUSEHOLD PROJECTIONS. 5.1 The 2012 household projections provide additional confidence to the inspector that the work undertaken by SPRU in modelling the 2012 SNPP is reliable as the resulting level of housing need is closely matched between the SPRU (Chelmer) based projections and the 2012 household projections. The same conclusion cannot be reached for the SHMA as this utilises a different population base. 5.2 This level of housing provision “locks in” all aspects of the current housing market including poor affordability and an increase in sharing amongst unrelated adults. This is not considered to be in accordance with the Framework of the PPG and so a higher level of provision would be required to be fully policy compliant. 5.3 The above analysis suggest that even utilising the councils consultants enhanced employment ratio’s the increased level of workers that will result from this level of dwelling provision will result in a substantial mismatch between the employment strategies as represented by the proposed allocations and the housing strategy as presented by the proposed housing requirement. 5.4 It would appear incongruous that the council are suggesting improved economic ratios linked to increased opportunities for employment but are relying upon household representation rates influenced by recession and issues of affordability. Macintosh HD:Users:janestrachan:Library:Mail Downloads:Matter2_2012HH_SPRU.docx 8
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