Affordable Housing Condition Removal Statement

Mss E.J. Callow, Secretary to the Planning Committee, Department of Infrastructure, Murray House, Mount Havelock, Douglas, Isle of Man IM1 2SF

20th December, 2013 Dear Ms Callow,

Dandara Group Head Office Isle of Man Business Park Coolio Road, Braddan Isle of Man IM2 2SA

telephone 01624 693300 facsimile 01624 693301 sales telephone 01624 615000 sales facsimile 01624 615161 email [email protected] web www.dandara.com

RECEIVED ON 20 DEC 2013 DEPARTMENT OF INFRASTRUCTURE

Re: Removal of condition 1 of PA 11/00990/B - erection of 45 dwellings with associated highway and drainage infrastructure, public open space and landscaping, parts of fields 134273, 134274, 134275, 134276 and adjacent highway, to the east of Gardeners Lane, north of former railway line and adjacent to EMI unit, Poylldooey, Ramsey

Please find enclosed four copies of an application seeking planning approval for the above, each of which comprises;

• a completed application form;
• a set of drawings as listed on the form; and
• a statement of supporting information.

Please also find enclosed a completed Planning Application Check List, a completed Land Ownership Statement Certificate and a fee of £240 in the form of a cheque.

I trust that this is sufficient to satisfy the requirements of the Planning Authority, please do not hesitate to contact me should you require further information.

Yours sincerely,

David Humphrey Planning Director

directors

Seamus Nugent Joe McLaughlin Gary Leeming John Cain Clarán Downey Alfie McGuinness David Humphrey

Heritage Homes Limited

Removal of condition 1 of PA 11/00990/B - erection of 45 dwellings with associated highway and drainage infrastructure, public open space and landscaping, parts of fields 134273, 134274, 134275, 134276 and adjacent highway, to the east of Gardeners Lane, north of former railway line and adjacent to EMI unit, Poylldooey, Ramsey

Supporting Information

• Introduction

1. Planning approval has been granted under PA 11/00990/B for a development of 45 dwellings and associated infrastructure on land to the east of Gardeners Lane, Ramsey. The application was considered at Inquiry in February 2012 (as within the site boundary there are sections of public highway which are vested with the Department of Infrastructure) and was approved by the Council of Ministers in May 2012¹.

1. The approval of PA 11/00990/B is conditional upon the applicant and the planning authority entering into a Section 13 Legal Agreement to ensure that 11 of the dwellings within the development are provided as affordable housing (condition 1). As a matter of course the Planning Authority no longer seeks to secure the provision of affordable housing by way of planning condition, this is now achieved by the completion of a S13 Legal Agreement prior to the granting of planning approval. As such the applicant seeks to remove condition 1 of the PA 11/00990/B approval and will instead enter into a S13 Legal Agreement prior to approval of the application which will ensure that affordable housing is provided within the development. Following extensive consultation and negotiation the Department of Social Care (DSC) has agreed to support a variation of the terms of the S13 Legal Agreement as set out below.

• Planning History

1. In addition to the above the land on either side of Gardeners Lane and to the north of the former railway line has been the subject of a number of relatively recent applications;

• PA 03/00790/B sought detailed approval for the residential development of land to the east of Gardeners Lane and immediately north of the former railway line with 175 dwellings, 38 of which are plots that have yet to have dwellings designed for them. The application was approved on 11th July, 2006 and work has commenced. It is subject to a S13 Legal Agreement which allows DSC to determine the extent of affordable housing to be provided. The 45

¹ The approval notice and Inspector's report for PA 11/00990/B are attached at Appendix 1

dwellings approved under PA 11/00990/B are located on land within this wider site and thus replace approximately 49 of the dwellings approved under PA 03/00790/B.

• PA 03/01846/B sought detailed approval for the development of land to the west of Gardeners Lane with 50 dwellings and a neighbourhood centre comprising shops, a nursery and a public house. This also includes a second carriageway and roundabout as approved under PA 03/00790/B, and was approved at appeal in January 2007. Approval has subsequently been granted to a number of revisions, including the provision of additional dwellings. Construction of the residential element of the scheme has now been completed.

• The Department of Social Care (formerly the DHSS) was granted planning approval under PA 10/00392/B to develop a site immediately to the east of Gardeners Lane and north of the former railway line with an EMI nursing home, which has been constructed and is now in use. It replaced 16 of the dwellings previously approved under PA 03/00790/B.

• The above application was approved subject to a condition which states that the unit shall not be occupied until the previously approved highway arrangements are in place. The condition has now been varied under PA 10/01805/C so that the unit may be accessed by way of the previously approved highway arrangement or by any alternative scheme subsequently approved by the Department.

• Planning approval has been granted under PA 10/01693/B for works to Gardeners Lane which will allow access to the EMI nursing home and further residential development without the need to provide a second carriageway at this stage.

• Approval has been granted under PA 13/00229/B to develop plots A1 to A6 of the approved PA 11/00990/B scheme with alternative dwelling types.

Planning Policy

1. Section 8.6 of the Isle of Man Strategic Plan (IoMSP) provides guidance in respect of affordable housing, and at paragraph 8.6.3 it is made clear that the

level of contribution to be made by each development will be assessed on an individual basis and will have regard to a range of factors;

"In the current circumstances the Department considers that approximately 25% of new housing provision should take the form of affordable housing. In assessing the appropriate percentage in each instance, the Department will have regard to the fact that the figure is a target over the Plan period as a whole; to evidence of local housing need; to the nature of the land and viability of the scheme; and to the nature of existing adjacent housing. The 25% provision will be monitored and reviewed as part of any review of the Strategic Plan".

1. The supporting text outlined above assists with the interpretation and application of Housing Policy 5 (HP5), which states;

"In granting planning permission on land zoned for residential development or in predominantly residential areas the Department will normally require that 25% of provision should be made up of affordable housing. This policy will apply to developments of 8 dwellings or more".

• The Proposal

1. The approval of PA 11/00990/B is conditional upon the applicant and the planning authority entering into a Section 13 Legal Agreement to ensure that 11 of the dwellings within the development are provided as affordable housing, and that S13 agreement has been completed.

1. Along with the Department of Infrastructure (the Planning Authority) the Department of Social Care (DSC) is a party to S13 agreements in respect of affordable housing provision. The Housing Division of DSC "helps meet the Island's affordable housing need" and is responsible for, amongst other things, setting Housing Policy on the Island, managing its own public sector housing stock, maintaining the First Time Buyer Register and providing financial assistance to First Time Buyers to purchase homes through the House Purchase Assistance Scheme. It is on this basis that DSC negotiates with applicants/developers regarding the affordable housing contribution of development proposals and then advises the Planning Authority accordingly.

1. Following the approval of PA 11/00990/B further discussions have taken place between the applicant and DSC in respect of the affordable housing to be provided as part of the development. As stated above, the IoMSP makes it clear that when assessing the appropriate percentage in each instance regard will be given to a number of factors, including the nature of the land and viability of the scheme. In this instance the ground conditions on site are extremely challenging and extensive piling will be required to support all aspects of the development, including the highway and drainage infrastructure. The cost of creating the first section of a new distributor road and the diversion of Gardeners Lane will also have to be borne by this development, with no immediate prospect of further development to share that burden. Further, demand for new housing in Ramsey is not as strong at present as in other parts of the Island and it is likely that the approved development will have to be phased over a period of time in response to that. Developing in such a “piecemeal” fashion has a significant impact upon preliminary costs which we estimate could be doubled in this instance, as well as upon sales and marketing costs (amongst others).

1. The price at which a developer must sell affordable housing is set under the provisions of the House Purchase Assistance Scheme and does not take issues such as construction cost into account. As such, the only way of ensuring that the affordable housing contribution of a particular development does not threaten the viability of the overall scheme is by having regard to such issues when considering the number of units to be provided, an approach which is in accordance with the guidance of the IoMSP. The DSC has reviewed the matters outlined above in the light of information provided to them by Heritage Homes Limited and in this instance has agreed to support a variation of the S13 Legal Agreement in respect of affordable housing². The affordable housing contribution will remain at 11 units, but if 3 of those dwellings are delivered in the first phase of development then the remainder will not be required. When considered in the context of the factors outlined above the current S13 has such a significant impact upon the viability of the scheme that the delivery of any affordable housing would be unlikely if it were to be retained in that form.

² Correspondence from the DSC is attached at Appendix 2

Summary

1. The approval of PA 11/00990/B is conditional upon the applicant and the planning authority entering into a Section 13 Legal Agreement to ensure that 11 of the dwellings within the development are provided as affordable housing (condition 1). As a matter of course the Planning Authority no longer seeks to secure the provision of affordable housing by way of planning condition, this is now achieved by the completion of a S13 Legal Agreement prior to the granting of planning approval. As such the applicant seeks to remove condition 1 of the PA 11/00990/B approval and will instead enter into a S13 Legal Agreement prior to approval of the application which will ensure that affordable housing is provided within the development.

1. The IoMSP makes it clear that when assessing the appropriate percentage of affordable housing to be provided in each instance regard will be given to a number of factors, including the nature of the land and viability of the scheme. The Housing Division of the Department of Social Care negotiates with applicants/developers regarding the affordable housing contribution of development proposals and then advises the Planning Authority accordingly, and following extensive consultation and negotiation in respect of such matters the DSC has agreed to support a variation of the terms of the S13 as outlined above.