4.1.1 The NPPF requires local planning authorities to deliver a sufficient supply of homes and states that “the size, type and tenure of housing needed for different groups in the community should be assessed and reflected in planning policies”.[1] 

4.1.2 The Central Lincolnshire Housing Needs Assessment (HNA) (2020) updated the evidence in the Strategic Housing Market Assessment (SHMA) (2015) to provide the evidence for affordable housing need in Central Lincolnshire. The HNA findings suggest that across Central Lincolnshire, there is a newly arising need for 592 affordable homes per year to 2040 taking into account the existing backlog. To help meet this need it is therefore important that a proportion of all new housing developments are affordable, subject to viability.

4.1.3 For developer contributions, national guidance is clear that the viability considerations of the policy requirement for affordable housing should be considered as a whole with other policy requirements such as infrastructure contributions. This means that it is important that we get the right balance between meeting affordable housing and infrastructure needs whilst ensuring that Central Lincolnshire continues to be an attractive and viable place to build and invest.

4.1.4 To help inform this balance, an assessment of the Whole Plan Viability has been undertaken which takes into account costs of building new homes and costs associated with policies in this local plan against the sales values of homes in Central Lincolnshire. This Whole Plan Viability Assessment informed what level of affordable housing can be sought, and where, whilst ensuring that development remains viable – a key requirement for local plans.  The Whole Plan Viability Assessment identified four value zones which are distinctive by the sales values achieved within these areas, these are indicated on Map 3 below and can be viewed in detail on the Interactive Local Plan Policies Map on the Central Lincolnshire website:

Map 3: Map showing the value zones in Central Lincolnshire with red indicating Value Zone A, orange Value Zone B, yellow Value Zone C and blue Value Zone D.

4.1.5 Some parishes within North Kesteven District are designated as a rural area under section 157(1) of the Housing Act 1985 as amended and in West Lindsey an application has been made to secure a similar designation. In these areas it is possible to seek affordable housing from sites of 5 or more dwellings rather than the generally applied threshold of 10 or more dwellings.[2] 

4.1.6 Affordable housing is defined as housing for sale or rent for those whose needs are not met by the market. The NPPF breaks this down into defined types including affordable housing for rent, starter homes, discounted market sales housing and other affordable routes to home ownership.  It is important that a variety of affordable tenures is retained to maintain a supply of homes to meet the varied needs and affordability levels.  The NPPF stipulates that at least 10% of all homes delivered on major development sites should be “available for affordable home ownership, unless this would exceed the level of affordable housing required in the area, or significantly prejudice the ability to meet the identified affordable housing needs of specific groups.”[3]

4.1.7 In May 2021, the Government introduced First Homes, a new tenure of affordable housing, to the Planning Practice Guidance (PPG). First Homes are a specific type of discounted market housing which are discounted by a minimum of 30% against market value, sold to people meeting set eligibility criteria.[4] The PPG stipulates that First Homes should make up at least 25% of all affordable housing units being delivered through planning obligations.  The purpose of First Homes is, as set out in the PPG, a mechanism to allow people to get on the housing ladder in their local area.

4.1.8 The PPG establishes national thresholds, percentages, caps and eligibility criteria for First Homes, but it also grants substantial opportunity for local deviation where evidence demonstrates that such a change is justified.

4.1.9 The Central Lincolnshire HNA sets out detailed information about affordability of various housing products when considering average local incomes. For example, in 2019 60% of households in Lincoln had an annual household income of less than approximately £30,000. This figure was slightly higher in West Lindsey at about £35,000 and in North Kesteven at £40,000.[5] These are substantially lower than the national annual household income cap of £80,000 to be eligible for First Homes.  Furthermore, the HNA also demonstrates that 90% of households across Central Lincolnshire have an annual household income of less than £80,000.

4.1.10 Furthermore, the PPG stipulates that First Homes cannot be priced greater than £250,000 outside of Greater London, after the discount has been applied – this would mean the full market value of more than £350,000, based on a 30% discount being applied. The HNA identifies that average house prices paid across Central Lincolnshire were substantially below this in 2019 at between £171,000 and £217,000.

4.1.11 This evidence in the HNA clearly demonstrates that if the £250,000 cap were applied in Central Lincolnshire it would render the product unaffordable for the majority of first time buyers[6]. Therefore, a reduced cap will be applied for First Homes in Central Lincolnshire of £140,000 (or full market value equivalent of £200,000 when 30% discount is applied).  This cap will ensure that the product is aligned to Government’s intention for First Homes and delivers homes that are truly affordable to people looking to get onto the property ladder as they will be accessible to approximately 50% of households in Central Lincolnshire.  The minimum discount of 30% will be applied to First Homes but larger discounts will also be welcomed to bring the value below the £140,000 cap.

4.1.12 It should be noted that £140,000 is not a target selling price, if the open market value of the First Home is below £200,000, before the 30% discount is applied, this will deliver a First Home price figure lower than £140,000. Providing a range of First Homes that offer a range of prices up to £140,000, to maximise affordable options is welcomed.

4.1.13 Affordable housing will be delivered through different mechanisms including: contributions from developers; securing funding from Homes England and other external agencies; utilising the Central Lincolnshire authorities’ resources, including developing Council housing; working with partner Registered Providers; delivery of rural exception sites either through an application or through a neighbourhood plan; First Homes exception sites built at the edge of settlements[7] (as is dealt with through Policy S4); and maximising the take up of Government initiatives for intermediate or assisted home ownership.

4.1.14 Based on evidence, Policy S22 below sets out the approach to securing affordable housing from developments in Central Lincolnshire.

4.2.1 The Central Lincolnshire authorities are keen to ensure that new homes are of a high standard in terms of the technical functioning of the home.

4.2.2 In the past, Local Plans could set such standards, but this led to inconsistencies between different Districts, and Government believed it generally caused confusion and expense for developers. Government therefore undertook a ‘Housing Standards Review’ and rationalised the setting of technical standards for new housing reducing the burdens on developers.

4.2.3 These are now set out in the Planning Practice Guidance (PPG) and allow local planning authorities the option to set technical standards exceeding the minimum standards required by Building Regulations in respect of access and water, and a nationally described space standard. Evidence will be required to justify inclusion of such technical standards, not least in regards to viability.

4.2.4 Whilst the Central Lincolnshire authorities acknowledge there could be evidence of ‘need’ to introduce one or more of the optional standards, there is strong evidence to indicate that viability of development would be compromised (or other essential infrastructure not deliverable) if such standards were imposed on development in full.

Meeting Accommodation Needs

4.2.5 A variety of housing types, sizes and densities are required in Central Lincolnshire so that people can access a home that they can afford and that meets their needs.

4.2.6 The accommodation needs of specific groups in the community need to be considered, including the needs of older people and of disabled people, the needs of Gypsies and Travellers[8], Travelling Showpeople, and student accommodation needs.

4.2.7 It is recognised in the Housing Needs Assessment (HNA) that Central Lincolnshire has an ageing population which will lead to specific accommodation needs. Improved space standards are gradually being introduced through building regulations to ensure that housing has adequate space to meet wider needs and can be adapted easily to meet changing needs. These optional standards, specifically M4(2) (accessible and adaptable buildings) and M4(3) (wheelchair user dwellings), are already being delivered in developments.

4.2.8 In a September 2020 Government consultation,[9]proposals were set out to increase the required access standards for all housing through building regulations.  This consultation set out a range of options for how standards can be improved and, whilst at the time of writing there are no formal changes being made, making M4(2) standards mandatory for all housing looks to be a likely outcome.

4.2.9 There is also a need to consider the development of specialist facilities for older persons such as extra care sheltered housing schemes. In the case of more specialist housing, the PPG provides guidance for how to deliver different types of specialised housing for older people. Where such specialist accommodation is provided as private provision, an affordable housing contribution will be expected in accordance with Policy S22. Providing a wider range of accommodation options to meet older persons' needs has the potential to free up housing such as family homes.

4.2.10 In developing housing proposals, developers should discuss proposals with local authority strategic housing departments and have regard to evidence of need contained within the latest Housing Needs Assessment, the Central Lincolnshire Housing Growth Plan and other appropriate evidence, such as the Joint Strategic Needs Assessment, the Lincolnshire Extra Care Strategy, and the Lincolnshire Homes for Independence Blueprint.

4.2.11

4.3.1 Custom and self- build homes is another form of route to achieving home ownership. This section sets out how the Central Lincolnshire Authorities will actively encourage opportunities to bring more custom and self-build homes through the development of this policy.

4.3.2 There is only a subtle difference between the two forms of development, with custom build being where a person commissions a specialist developer to help to deliver their own home or where they can make choices about the design, layout or style of the home; whilst self-build is where a person is more directly involved in actually organising and constructing their home. The legal definition of self-build and custom house building in the Self-Build and Custom Housebuilding Act 2015 (as amended by the Housing and Planning Act 2016) is outlined below:

“self-build and custom housebuilding” means the building or completion by— (a) individuals, (b) associations of individuals, or (c) persons working with or for individuals or associations of individuals, of houses to be occupied as homes by those individuals”.

4.3.3 This definition will be used to determine whether or not a home can be categorised as a custom or self-build house.

4.3.4 There are a number of mechanisms for delivering custom and self-build homes, ranging from people finding their own plot and building their own home, to developers providing serviced plots for people to design and have their own home built, to sites being specifically acquired, marketed and delivered by a builder or developer as custom build where the builder will construct the custom homes for an individual to their chosen specification.

4.3.5 Custom and self-build homes can not only provide an opportunity for people to deliver a home fit for their needs, but also offers greater diversity in the market and more options for people in choosing where to live and in what kind of property. In some cases it can also offer a more affordable route to home ownership than buying a property from a developer and builder.  Delivery of some plots as custom and self-build can also help with cash flow during construction.

4.3.6 The Central Lincolnshire Housing Needs Assessment (2020) highlighted that in 2019 there were 136 people on the self-build registers of the Central Lincolnshire Districts, which is maintained by the Districts in Central Lincolnshire, which clearly indicates there is interest in this form of housing. National registers of people wishing to build their own home and plots are also maintained as this industry grows.

4.3.7 The Central Lincolnshire Authorities support the principle of custom and self-build homes as part of the housing supply and so Policy NS24 seeks to provide a positive framework within which people wishing to build their own home or to select a custom-build house can realise this ambition.

4.3.8 The policy is arranged in three parts to enable different avenues of opportunities for custom and self-build homes to be brought forward. These homes will be expected to satisfy the requirements of other relevant policies in the development plan.

4.3.9 Part one, in broad terms outlines the Central Lincolnshire Authorities support to custom and self-build proposals and is aimed at individuals seeking permission for their plot.

4.3.10 Part two is intended for landowners/developers seeking permission for a site capable of delivering anything from one or more plots. However, the subtle difference to this section of the policy is that landowners/developers have no desire to build all (or any) of these for themselves. Part two requires the design parameters to be agreed at outline permission through the development of plot passport which is agreed through the planning permission process.

4.3.11 Plot passports have a role to play alongside design codes – they are a simple way of helping private homebuilders understand what they can build on a site. A plot passport is a succinct summary of the design parameters for a given plot. They add value by acting as a key reference point for the purchaser, capturing relevant information from the planning permission, design constraints and procedural requirements in an easily understandable and readily accessible format. Most are between one and four pages long and can form part of the marketing material available for the plot. The details set out in part two are a baseline for landowners/developers to set a vision for the site. However, landowners/developers may wish to include more detail within the plot passport such as costings/images which then be used to form the marketing of the plot subject to planning been approved, in accordance with local and national planning policy.

4.3.12 Part three is aimed at larger schemes of 100 or more dwellings requiring developers to provide 5% of all homes as custom and self-build plots. Sites of this scale are likely to have a master plan developed, and can apply design codes to ensure that any custom and self-build homes have clear parameters of what will be considered acceptable within the development when viewed holistically. This will help provide certainty to the District but also to the developer of the wider site. Such design codes should not stifle innovation and creativity for potential custom and self-builders but should help to ensure that the development as a whole is well-designed. The aim is to create a unique and sustainable sense of place that will be everlasting for future generations whilst still respecting the context of the site.

4.3.13 The Central Lincolnshire Authorities may produce additional guidance to further encourage the take up and delivery of custom and self-building in Central Lincolnshire.

4.4.1 Lincoln’s population has grown considerably in recent decades including increases in students and migrant workers. It is important that the housing needs generated by these people are met, with shared accommodation often being a preferred choice for many, for a variety of reasons. Whilst such accommodation does meet a particular housing need, it can cause difficulties where there is a high concentration in a particular area.

4.4.2 Problems mainly occur where there is a concentration of dwellings with a rapid turnover of residents or a concentration of converted dwellings in an established residential area causing issues such as an increase in parking pressures, an increase in anti-social behaviour and crime levels and creating an imbalance in the neighbourhood. These problems are particularly acute in densely populated areas and where properties share party walls. The rental yields that can be realised on shared accommodation can also put pressure on the ability of individual families or households to compete in the local housing market.

4.4.3 In an effort to manage the impacts of shared accommodation, the City of Lincoln Council has made an Article 4 direction to remove permitted development rights relating to houses in multiple occupation. Planning permission is therefore required for development comprising a change of use from a traditional dwelling house (Use Class C3) to a house in multiple occupation for between 3 and 6 unrelated people (Use Class C4). The Houses in Multiple Occupation Supplementary Planning Document (SPD) outlines how the Council implements the Article 4 direction and manages the development of houses in multiple occupation by setting out criteria that will be used in the determination of any planning application for the development of these properties within the city’s administrative boundary.

4.4.4 The needs of those requiring subdivided or multi-occupancy living can also be met through the development of purpose built accommodation which increases choice for those people and eases the pressure on existing residential areas. Therefore, purpose built accommodation that helps to meet this identified need will be encouraged in appropriate locations, provided that it meets the criteria listed in the policy below.

4.4.5 Whether through purpose-built accommodation, conversion or subdivision, any proposals for shared accommodation or self-contained accommodation must deliver accommodation that will not put future occupants at risk.  This includes, but is not necessarily limited to, development of residential accommodation or bedrooms at ground floor level in an area at risk of flooding.

4.5.1 The Housing Act 1985 (as amended) requires local housing authorities to assess and understand the accommodation needs of people residing or resorting to their District with respect to sites for caravans and the mooring of houseboats. The HNA undertook a review of data available to understand the need for houseboat moorings and caravan pitches.

4.5.2 For houseboat moorings the Canal and River Trust provided valuable insight into needs and confirmed that there is an ambition to deliver an increase of approximately 30-40 moorings near to Lincoln to meet their perceived current and future needs.

4.5.3 For caravans it is important to distinguish the difference between Gypsy and Travellers (the needs of which are addressed in chapter 14 of this Local Plan) and other people wishing to live in caravans. In relation to people who want to live in caravans or park homes, the HNA noted that such homes make up a valuable part of the housing stock at a lower price point than bricks and mortar homes.

4.5.4 The HNA identified that there is a modest increase in need for both houseboat moorings and caravans/park homes.

4.6.1 Residential annexes can offer an important solution for many situations including, for example, allowing multiple generations of a family to reside alongside one another, offering informal care and freeing up under-occupied housing.

4.6.2 In order to be considered an annex, the proposal needs to be within the curtilage of the host dwelling and not form its own planning unit and provide ancillary accommodation that has a functional and physical relationship with the host dwelling.

4.6.3 Often an annexe can be accommodated appropriately within a plot, sensitively developed and making better use of a site. However, the addition of annexes to residential properties can also have a considerable impact upon the character and amenity of an area through the intensification of development where a site cannot accommodate it or where they are poorly designed or located. There can also be impacts where annexes are subsequently converted into a separate dwelling. 

4.6.4 The Central Lincolnshire Authorities will seek to support the development of residential annexes where they can be appropriately accommodated within a site and taking into account the wider site context and where they are solely provided as ancillary to the original dwelling and not a new dwelling.