Island Plan (revised) 2011: site to be rezoned for Category A housing – Field 632 and part of Field 559, La Route du Manoir, St. Peter

STATES OF JERSEY

ISLAND PLAN (REVISED) 2011: SITE TO BE REZONED FOR CATEGORY A HOUSING –

FIELD 632 AND PART OF FIELD 559, LA ROUTE DU MANOIR, ST. PETER

Lodged au Greffe on 3rd April 2019 by Senator K.L. Moore

STATES GREFFE

2019  P.39

PROPOSITION

THE STATES are asked to decide whether they are of opinion

to refer to their Act dated 17th July 2014 in which they approved the revised 2011 Island  Plan, and to  agree  that the Minister for the  Environment be requested to bring forward, subject to the provisions of the Planning and Building (Jersey) Law 2002, a draft revision of the Island Plan such that on page 247 of Chapter 6 (Housing) at Policy H5 Affordable housing in rural centres' – after the words "Access to affordable homes provided on this site shall  be  controlled  and  managed  through  the   St. Martin 's  Housing Association",  there  should  be  inserted  bullet-point  three  and  the  words "Field 632 and part of Field 559, La Route du Manoir, St. Peter and access to the dwellings to be controlled through the Affordable Housing Gateway with priority given to those who can demonstrate close links with the Parish of St. Peter .".

SENATOR K.L. MOORE

REPORT

Introduction

At the heart of this proposition lies a human rights issue. Particularly as the States Assembly moves to recognise the Rights of the Child, it is important to begin by acknowledging firstly that everyone has a basic human right to a decent, secure, stable and affordable home. Equally every child has the right to have the basic needs of people such as food, shelter, water, clothing and health care. And every child has the right to have everything he or she needs for a better life.

Yet Jersey faces its most significant housing crisis in a generation, characterised by an acute shortage of housing, particularly social and affordable housing, a lack of housing security, overcrowding, evictions and homelessness. The lack of housing supply is leading to spiralling housing costs creating an affordability problem, with too many families struggling to meet housing costs and without the inherent protection afforded either by a home that they own, or a home in the social housing sector.

There are too many people, particularly young people, who are forced to rent from the private rented sector, where they are more at risk of rent arrears, evictions and homelessness, causing financial hardship and problems to all those affected, and society in general.

We know today that children's well-being does not only depend on genetics or their interactions with their parents, but also on their physical environment. What could be more central to a child's environment than the home: the place where he/she eats, sleeps, and plays every day? Housing conditions affect all children, regardless of whether the home is rented or owned. Maslow's well-known theory on the hierarchy of needs demonstrates just how important adequate housing is for positive child development. According to Maslow, one's physical needs – such as the need for shelter – are the most basic of all, superseding the need for safety, love, or esteem[1].

Unfortunately, many children in our society experience very uncertain housing circumstances, and some have no long-term home at all, a point that was recognised in the Independent Jersey Care Inquiry Report (R.59/2017), where in the Executive Summary, Frances Oldham , Q.C. said: "We have also noted how the shortage and cost of housing have had a marked impact on family life and wellbeing for some families".

That impact on family life and well-being for families who experience stress due to the consequences of a shortage of housing manifests itself in children. They may have parents who have 2 or 3 jobs in order to meet their living costs, for example. This can limit outcomes for those children, particularly in respect of their educational attainment.

When the Children's Commissioner asked respondents to an Island-wide consultation what they would do to make things better for children and young people in Jersey, the cost of living was one of the key factors. One comment received stated –

"I believe there is a serious issue in Jersey with long hours worked by many low income families, children are left home alone or with older siblings, neighbours whilst parents work to be able to pay rent, bills, but off, clothing etc. Many families live in poor quality, cramped housing with little indoor space

and no outdoor space for children to play. This side of Jersey is hidden/forgotten about.".

This proposition seeks to highlight the needs of many families who, although they may not actually be homeless, find themselves in very difficult housing circumstances. If this proposition is approved, it will enable the development of 65 new family homes on Field 632 and part of Field 559, La Route du Manoir in St. Peter (Ville du Manoir), through an amendment to the revised 2011 Island Plan, adopted by the Assembly on 17th June 2014. In that respect, this proposition has the same effect as P.13/2019 lodged by the Connétable of St. Peter , which he subsequently withdrew.

The Ville du Manoir' scheme is just one example of an attempt to meet the demand for homes. It is not just St. Peter that sees this issue as a priority, the same concern is shared in the vast majority of parishes. Many Connétable s are considering how they will meet the needs of first-time buyers in their own parishes.

States Members will recall the encouraging comments of Deputy J.H. Young of St. Brelade , the Minister for the Environment, during his nomination speech for his ministerial post, when he said –

"We have to adopt that plan [Island Plan 2021], complete that by 2021 and that has to include, in my view, an interim review of housing, especially affordable housing policies by the end of this year. That will include producing village plans for future sustainable communities where the Constables identify and evaluate brownfield and infield sites. I would not, myself, rule out limited expansions of village envelopes if this can be accommodated with the communities.".

Housing need

The States of Jersey is committed to providing affordable and good quality homes for everyone in Jersey and, indeed, this is the aim of the former Minister for Housing's 2016 Housing Strategy. A specific objective in the strategy is to increase the levels of home ownership amongst Islanders, and to ensure the provision of land, both on existing sites and on rezoned land for this purpose.

The Strategic Housing Unit's submission to the public inquiry held to review the development proposals at Ville du Manoir (PP/2017/1444) provides strong evidence of the need for affordable first-time buyer homes at that time. In respect of the need for affordable housing for purchase, Band 5 of the Affordable Housing Gateway waiting- list, assigned to households wishing to purchase their own home but requiring some form of financial assistance to do so, showed that, at 31st December 2018, 1,223 applications were registered for assisted home ownership schemes. During the intervening period to 28th February 2019, the number of active applications has grown by a further 64 applicants to a total of 1,287. The position at 31st July 2014, when the Revised 2011 Island Plan was approved, is included in the table below to show the longer-term position, and the extent to which demand for affordable home purchase has increased during the term of the current Island Plan –

The projections of new affordable sale home completions up to 2020 indicate that a mere 40 new three-bedroom homes will actually be completed and sold to Gateway Band 5 applicants; and only 2 approved  sites  (25 units in total)[2]  currently remain undeveloped. Andium Homes has been making sales of its existing stock to Gateway applicants for a number of years, sold 40 homes in 2018, and intends to sell an additional 40 of its existing homes this year as it replaces those homes with newly developed rental properties. Notwithstanding those efforts, overall the supply of homes represents a significant undersupply in affordable homes for purchase.

It is a sobering thought that even if Ville du Manoir was developed with the 65 homes proposed by Andium Homes, this supply would only just meet the growth in Gateway demand for the first 2 months of 2019.

Given that demand for homes is so acute and supply so constrained, it is not at all surprising that the proposed development at Ville du Manoir received the wholehearted support from the previous Minister for Housing, who recognised the significant need to deliver more new affordable housing schemes, and the important role that the parishes had to play in supporting households to access home ownership at an affordable level. The Minister's office, the Strategic Housing Unit, provided support in helping to identify the wider strategic nature of housing need in Jersey, and in understanding how a parish-led scheme might contribute to the aims of the 2016 Housing Strategy. A copy of the letter sent by the Minister in support of the application is attached as Appendix 2 to this proposition and report.

What is less clear is why the Minister for the Environment at the time, and his Department, were so against the proposals. It seems that the Planning Department had failed to adequately monitor the performance of the Revised Island Plan as required by the Plan itself; no annual monitoring report has been presented to the States since 2013. Prior to that, annual monitoring reports in the form of Planning for Homes' and Interim Reviews of Residential Land Availability' were presented on a regular basis, and the last of these[3] taking account of the proposals for the 2014 Review of the 2011 Island Plan, which subsequently led to the rezoning of a number of sites for affordable housing development. This failure to monitor the performance of the Island Plan against housing demand  from  the  Affordable  Housing  Gateway,  over  successive  years,  is  key  to understanding how the demand for homes can have increased so drastically without a

corresponding change in policy, such as the provision of additional development land. We have failed, and it is young families who are now paying the price.

As the proposals for Ville du Manoir were taking shape alongside consultation with parishioners, an initial 120 applicants registered their interest for the "Ville du Manoir" scheme, and 115 of these were able to demonstrate a close parish connection. A further consultation which was undertaken by the parish and Andium Homes led to additional applications, and the list of applicants reached 244, at which point the Minister for Housing agreed to close the list.

All of the 244 applicants were then placed into Band 5 of the Affordable Housing Gateway waiting-list, and further assessed against the Minister for Housing's own affordability criteria, which set an upper household income limit of £85,000 per annum. In addition, the local context of the  proposed development required  that  specific allocations criteria be established to ensure that the homes were targeted at those who needed them most, and supported the maintenance of the existing parish vitality. The Minister agreed that, in addition to the usual Gateway criteria, priority for allocation would be given to applicants with strong links to the parish of St. Peter and to those with children.

It was subsequently demonstrated that 124 of the 244 applicants met the Gateway's affordability criteria, and each applicant was subsequently assessed against the agreed allocations  criteria.  The  results  of  the  allocations  criteria  being  applied  to  the applications is summarised as follows –

Based on the outcome of this rigorous means assessment, there can be no doubt that there is significant demand for these homes, both in St. Peter and Island-wide .

It is important to note that since then, Andium Homes has been receiving interest from applicants for the 40 homes for purchase at its Samarès Nurseries development; and presently the demand for homes on that site is oversubscribed threefold, with a total of 141 registered applications. This is further evidence of the acute demand for affordable first-time buyer homes.

During the Public Inquiry into the Ville du Manoir Planning Application4, comments were put forward by the Planning Department that the number of applicants identified for the St. Peter 's scheme were "implausible", because they suggested that 26% of the three-bedroom demand for the whole Island related to the parish of St. Peter . This is not surprising or implausible at all, as the parish had been asked by Planning to gather information to provide evidence that a significant need for such housing existed in the

4 PP/2017/1444

parish. The parish did this and, as the Island Plan demands, then took steps to ensure that those applications were assessed by the Affordable Housing Gateway.

The Minister for Children and Housing recently published the Arc4 Report entitled An Objective Assessment of Housing Need (OAHN) 2018'. This report looks across all tenures and assesses Jersey's Housing Needs between 2021 and 2030. Arc4 have opined that, during that period, Jersey will need to develop a minimum of 7,010 new homes[4], 3,800 of which will need to be for owner-occupiers, with a minimum of 1,100 being affordable purchase to meet Gateway Band 5 demand.[5]

These figures suggest that there is urgency to deliver more first-time buyer homes, which the rezoning of this site in St. Peter , and the subsequent scheme, would assist in delivering. On this basis alone, there is significant justification for making a departure from the revised 2011 Island Plan, in order that the Island can at least attempt to meet the demand for first-time buyer homes.

The Island Plan states there is a "clear need for better information about the numbers of affordable homes required and the establishment of a comprehensive Housing Gateway mechanism will help this",[6] and yet, in this case, the Environment Department disagreed with their own proposed mechanism to determine housing needs in the Island. Yes, 26% of the affordable housing demand may have been from St. Peter , but this is because the parish carried out the work required of it, and determined the level of need amongst local households. Whilst St. Peter may be disproportionately represented at the present time in Band 5, if other parishes carried out the same work (as some are doing), then there would be much higher demand identified in other areas of the Island.

With this in mind, the current Affordable Housing Gateway Band 5 figures represent a best-case scenario, and a significant amount of hidden demand is still likely to exist elsewhere in the Island. Arc4 appear to recognise this in their OAHN report, where they say (with my emphasis) that: "Given the high level of need for affordable housing evidenced in the demographic modelling, it is not recommended that there is further affordable housing uplift, but the scale of affordable need expressed in the modelling should be viewed as a minimum figure".[7]

If new sites like Ville du Manoir are not approved now, there is a risk, assuming that the next Island Plan is not approved until 2021, that no new development will take place until 2025/6 at the absolute earliest, as the sites that will be identified in that process will need to go through the Island Plan consultation and approval process. The Environment Department will need to write new development briefs for any new sites; planning applications will need to be submitted; and it is highly possible that they will be subject to third party appeals, as we have seen with many recent affordable housing developments. The States Assembly has an opportunity to take action now to address this urgent need for homes and make a positive difference to the lives of 65 families, rather than waiting for the new Island Plan.

Ville du Manoir

Andium Homes has proposed the development of 65 three-bedroom first-time buyer homes on this site, subsequent to the proposed rezoning. A site plan is attached at Appendix 1 to this proposition and report.

Once developed, Andium Homes will sell all 65 homes to approved purchasers using its established Homebuy scheme, where the purchaser only pays approximately 75% of the property value on acquisition, and the remainder of the property value is retained in perpetuity by Andium Homes. The actual percentage paid can vary to take account of relative affordability and the housing market. Subsequent sales are always at levels which ensure that the homes remain affordable in perpetuity.

States Members will be aware that, in March 2018, an Independent Planning Inspector conducted a Public Inquiry into a planning application for the site (PP/2017/1444), which had been submitted by Andium Homes following an extended period of consultation with Planning Officers, other States Departments, the parish and other relevant stakeholders. The inquiry was established by the Minister for the Environment, as the site, whilst directly adjacent to the built-up area of St. Peter , developed on 3 sides, and in the heart of the village, is located outside of the current built-up area. The application was, therefore, a departure from the policies set out in the current Island Plan, and required a public inquiry to be held before a decision could be made by the Minister.

In accordance with the Inspector's recommendation, the Minister refused to grant permission under the Planning and Building (Jersey) Law 2002, for the following reasons –

• The proposal would result in harm to the protected Green Zone.
• The proposal would be contrary to the Island Plan's approach to housing.
• The proposal would result in harm to local character and the natural environment.
• The proposal would result in the loss of agricultural land without sufficient justification.
• The proposal would be premature ahead of the completion of work to establish a detailed understanding of the Island's affordable housing needs.

What seems clear from the Inspector's Report is that the Inspector felt that "it would be premature to permit the proposed development ahead of work, that is already underway, aimed at providing necessary clarity in respect of the Island's affordable housing needs.". The Inspector was referring to the Objective Assessment of Housing Needs review being undertaken by consultants Arc4 on behalf of the then Minister for Housing. Arc4 were only engaged to commence work on the OAHN in January 2018, more than 3 months after the planning application was submitted.

The OAHN is now complete and was published by the Minister for Children and Housing on 24th January 2019. As outlined above, one of the principle outcomes of the

OAHN is that 1,100 new affordable purchase homes are required to be developed between 2021 and 2030.

In March of this year, the Statistics Unit published the Future Housing Needs report, which states that there is an anticipated shortfall of 2,750 units of accommodation in the Island by 2021.

The history of the Ville du Manoir' scheme

When the former Connétable of St. Peter , John Refault, stood successfully for office as Connétable of St. Peter in 2008, it was stated clearly that he supported the principle of building more homes for young families in the parish in order to support the vitality of the local community and viability of parish amenities. In bringing forward a planning application with Andium Homes, it was and is intended to respond to the genuine needs of our local families, and to target the large number of first-time buyer families that the evidence produced in support of the application overwhelmingly demonstrated exists.

In November 2014, at the nomination meeting for the Connétable 's re-election, an initiative was proposed to deliver first-time buyer homes in the parish that would be affordable in perpetuity. This received wide support from parishioners. With no sites in St. Peter  allocated  for  social  or  first-time  buyer  housing  development  within  the 2011 Revised Island Plan, and mindful of the financial difficulty faced by young parishioners wanting to get on the housing ladder, a scheme was envisaged of shared ownership  of  first-time  buyer  homes  so  that  they  would  remain  affordable'  in perpetuity when they changed hands in the future.

A Constable's Advisory Group ("CAG") was set up in January 2015, in order to study the possibilities of providing a first-time buyer affordable housing development within the parish. The CAG was a small group of parishioners appointed to discuss first-time buyer housing need, potential locations, funding methods and consultation strategy. The group evolved as the project progressed, drawing in professional advice from time to time  and  consulting  with  other  agencies,  including  the  Planning  Department  and Andium  Homes.  It  was  established  at  the  outset,  and  made  fundamentally  clear throughout the process, that the objective of the proposal was not to make a profit for the parish, but to support parishioners and young families to access home ownership at an affordable level.

It was made further clear from discussions with the Planning Department that, if an application to develop first-time buyer homes in the parish were to be successful, there would be 3 key matters that should be concentrated upon; these were –

• The gathering of information to prove that there existed a significant need for such housing in the parish.
• The undertaking of a rigorous analysis of potential sites in light of the Island Plan Spatial Strategy and other relevant Planning policies.
• Full engagement with parishioners and the securing of their support for what would become the finalised detailed proposals.

The case for these new homes and the reasons why they are required has already been put.

The rigorous assessment of potential sites required by Planning was undertaken against criteria set by the Planning Department. This included a full engagement process with parishioners. All of the criteria established by the Planning Department were included and satisfactorily met. The Ville du Manoir site emerged from that process as the best site for affordable housing development.

A Parish Assembly was subsequently held in April 2016, where parishioners were updated on progress on site appraisal and demonstration of demand. The Assembly overwhelmingly approved the proposal to develop Field 632 and part of Field 559. The Assembly also agreed to appoint Andium Homes – given the company's expertise in this area, to take forward the proposed development. Godel Architects were appointed by Andium Homes in December 2016 to develop a scheme design for housing on the site.

On 13th September 2017, a further Parish Assembly was held to consider an outline scheme prepared by Andium Homes for the development of 65 three-bedroom first-time buyer homes on the land, a  scheme  subsequently named  Ville  du Manoir'. The Assembly approved the scheme by an overwhelming majority and authorised the submission of a planning application.

As States Members will see, prior to the submission of the planning application, between the Connétable , the CAG, and Andium Homes, there were 3 years of extensive consultation to get to the point where all parties were satisfied that an appropriate and viable scheme had been developed, and that the site proposed was the most appropriate location for new homes, given the absence of any suitable area for development within the existing built-up area. As the Director of Policy at the Planning Department said in an e-mail to the former Connétable on 13th September 2017 –

"The emergent scheme seeks to respond to housing need, as evidenced by the diligent research and assessment that has been undertaken (which should deal with the numbers issue); and the design of the scheme responds to the need for family homes (as opposed to flats) and the rural character of the area (which should deal with the density issue).".

Site assessment

The desire to retain green fields and the aspects of our environment that make Jersey a beautiful place to live. The Island's countryside is not just about agriculture – parts of Jersey's coast and countryside are considered to be of national and international importance for landscape and environmental quality, including St. Ouen 's Bay, the most significant portion of which lies in this parish of St. Peter , and is the largest part of the Island's coastal national park.

However, a balance needs to be struck in relation to the needs of households who wish to have access to a home that they can afford, and to ensure the continued vitality of the parish community, including services such as the local primary school and community groups.

Given the significant demand for first-time buyer homes that has been identified, the rezoning of this greenfield site is justified, and will support parish housing needs, the community and, indeed, the rural economy. In respect of this latter point, the landowner

of the fields wishes to maintain their dairy herd, but does not see the future of their farm being based solely on selling dairy products. The landowner has been working towards diversifying their business activities, and has been developing more areas of activity in terms of education and tourism as ways of contributing to the running of their farm.

The decision on the use of these fields for first-time buyer homes should, of course, also be judged on their particular merits. In advance of bringing forward the proposed site, the CAG carried out a robust assessment of sites around the village that might be suitable for such a development. This site, already developed on 3 sides, and located right against the built-up area, and close to all parish amenities, was considered the most appropriate for the proposed housing scheme. The Infrastructure Department has not identified any significant issues with access or traffic, and the site is accessible for the provision of essential infrastructure such as drainage, water and other utilities. The proposed site represents 0.0003% of the total agricultural land currently farmed in the Island.

Precedent

Throughout history, land has been made available to respond to the needs of the community and provide housing. In the 1970s a significant number of fields were developed to provide affordable homes through the States' Loan Scheme.

In 2008, eight Green Zone sites were rezoned following a debate in the States Assembly to respond to identified needs and provide homes for the over-55s and first-time buyers. This proposition was almost unanimously supported by States Members 3 years prior to the debate on the 2011 Island Plan.

Also in 2008, an application was granted to convert farm buildings in a rural part of St. Peter into 2 very large houses, one of which is currently on the market for £8.95 million. The argument for this development to take place was to maintain the viability of the agricultural business that owned the site.

Field 402, St. Martin , was rezoned as part of the revised 2011 Island Plan. Planning approval for 20 three-bedroom homes on the site was given in December 2017.

Planning application

If the site is rezoned for development, a detailed planning application will subsequently need to be submitted by Andium Homes. In accordance with the requirements of the Island Plan, the Planning Department will provide guidance in the form of a Development Brief for the site, to guide and assist with its development. It is anticipated that the Development Brief can be prepared quickly, given the detailed work already carried out in collaboration with Planning Officers, and will therefore rely heavily on the application already made[8], the support from the former Minister for Housing, support from Traffic Engineers and the Environment Team at the Department for Growth, Housing and Environment.

It is accepted that the present revised 2011 Island Plan requires any rezoned sites to be developed for Category A affordable homes, which a future application would satisfy. Although the Island Plan requires rezoned sites to be apportioned according to the "80/20 split" rule – i.e. 80% social rented housing and 20% affordable purchase homes – it is suggested that this rule could be relaxed by the Minister for the Environment, given

the high level of demand for first-time buyer homes demonstrated by the OAHN and Band 5 of the Affordable Housing Gateway waiting-list. Indeed, there is precedent for a wholly owner-occupied housing development for parishioners, specifically the site mentioned above in St. Martin .

Financial and manpower implications

There would be no financial or manpower implications arising from the proposition. Subject to the proposition being adopted by the Assembly, and a planning application being submitted, a Planning Obligation Agreement could be used, as appropriate, under the Planning and Building (Jersey) Law 2002, to secure infrastructure provision and other amenities associated with the proposed development. Indeed, a draft Planning Obligation Agreement was considered as part of the planning application for the original scheme, and delivers significant benefits such as drainage reinforcement, road and traffic enhancements, and a per unit contribution to the Bus Service.

APPENDIX 1

SITE PLAN FIELD 632 AND PART OF FIELD 559

APPENDIX 2

LETTER FROM THE FORMER MINISTER FOR HOUSING, SEPTEMBER 2017