The Scottish Government

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SECTION 1: OVERVIEW

PURPOSE

1. This SPP sets out The Scottish Government's policy on the role of planning in the identification of housing requirements and the delivery of quality housing in the right locations. It sets out The Scottish Government's policy on how local authorities should make provision in development plans for new housing, taking account of identified need and demand.

STRUCTURE

2. This SPP is focussed on the supply and delivery of new housing, which must be of a high-quality design and contribute to the creation of sustainable places. The SPP is underpinned by the requirement to deliver high standards of design and environmental quality in all housing developments as outlined in SPP 1: The Planning System and The Scottish Government's policy statement Designing Places (2001) to meet the needs and demands of communities, the economy and the environment. ¹

3. SPP 3 is intended to be read as a whole rather than in discrete sections. It is structured to reflect the related processes of assessing, identifying and delivering an appropriate scale of new housing in the right places, having regard to the needs and demands within each local authority and the character of each area.

• Section 1 provides background and context;
• Section 2 covers the identification of the housing requirement, including the need for a robust and consistent basis of assessment; joint working across planning and housing to support the identification of the housing requirement; and the scale of the necessary land supply to achieve it.
• Section 3 focuses on the contribution made to the delivery of housing by different elements of the planning process, including a variety of considerations around the allocation of land for housing and related uses; the underpinning principles of design quality and sustainability; the content of development plans, development plan action programmes; and the role of development management in supporting provision of the right type of housing in the right places.

THE HOUSING MARKET

4. The housing system in Scotland has been under pressure for several years. A range of factors have contributed to house price inflation and growing divergence between incomes and house prices. As a result, many households have been excluded from the market, or have found it difficult to realise their aspiration for owner occupation. This has increased demand in the rental and social housing sectors in particular areas. There has been no corresponding increase in the supply of new housing in response to increases in both demand and cost. Difficulties in bringing forward sufficient land for housing were identified by the Scottish Housing Market Review (2007) as one of the most significant obstacles to the delivery of new housing. ²

5. The Scottish Government is committed to the goal of raising the rate of housebuilding to 35,000 new houses a year by the middle of the next decade. This sets a national political context that is strongly supportive of housebuilding. ³ The national goal is supported by evidence contained in the Scottish Housing Market Review, which identified a growing mismatch between supply and demand in some sectors of the housing market which has led to acute affordability issues in some areas. The review concluded that an increase in the supply of housing would improve affordability in the medium term.

6. The relationship between supply and affordability is complex. The aim is to encourage commitment to secure an increase in the delivery of much needed homes rather than focussing narrowly on the figure itself. The planning system has an important role to play in achieving both this goal and The Scottish Government's overarching purpose of ensuring sustainable economic growth through supporting the efficient release of land for housebuilding.

7. SPP 3 sets out The Scottish Government's policy on how local authorities should make provision for new housing in development plans. The level of new housing to be provided for by development plans should be informed by an assessment of housing need and demand. This should be undertaken on a functional housing market area level and will consider the operation of the housing system as a whole, covering all tenures. Housing Need and Demand Assessment ( HNDA) guidance encourages consideration of the factors which influence current and future housing markets and the implications for policy responses. ⁴ These should include The Scottish Government's aspirations for Scotland, reflected in targets for greater economic and population growth. This will provide a robust evidence base and clear vision of the housing requirements of the area to be addressed by the local housing strategy.

8. The preparation of local housing strategies and development plans, which inform each other, will identify the scale of the housing requirement and how it can be met. SPP 3 encourages local authorities to adopt an outcome-focussed approach which seeks to secure the speedier delivery of new housing, taking into account The Scottish Government's goal to increase the rate of housebuilding.

9. The allocation of an appropriate supply of land for housing is one of the key factors in ensuring continued opportunities for housebuilding and influencing the delivery of housing. Alongside this, consideration of the location, quality, design and energy efficiency of new homes and housing developments is required to achieve a high-quality product and successful, sustainable communities. Successful developments will remain desirable, attractive and safe places to live for many years. This can be achieved through appropriate location; links to transport networks and other settlements; attractive and functional layouts; good design; and high building and energy efficiency standards, as well as innovation and creativity. SPP 3 reinforces The Scottish Government's policy on the creation of quality places and emphasises that planning authorities and developers should work together to ensure the creation of quality residential environments that will provide stable places to live.

10. The planning system alone cannot deliver appropriate housing developments. The attitudes, knowledge, confidence and skills of all those involved in the planning, design and development process are crucial to the creation of new housing and communities which meet the needs and aspirations of the Scottish people.

DEVELOPMENT PLAN SYSTEM

11. At the time of publication the planning system in Scotland is entering a period of transition as progress continues towards the full commencement of the Planning etc. (Scotland) Act 2006 (the 2006 Act). This SPP will remain relevant throughout this process. Under the 2006 Act, strategic development plans and local development plans ( LDP) outwith strategic development plan areas will contain the strategic vision of how the development of the area should occur. The housing land requirement for the area should be expressed in these plans. All LDPs should contain land allocations to meet the housing land requirement.

POLICY CONTEXT

12. The revised SPP 3 will enable the quicker release of more land to meet housing requirements. It is a key delivery mechanism for The Scottish Government's national goal to increase the rate of housebuilding by 10,000 to 35,000 per year by the middle of the next decade, as set out in Firm Foundations. SPP 3 supports The Scottish Government's policy on affordable housing. The SPP should be viewed as part of a suite of policy and guidance on identifying and meeting housing requirements, along with local housing strategy guidance and housing need and demand assessment guidance.

13. SPP 3 also sits within the context of the modernisation of the planning system. The revised SPP makes the process of planning for housing more efficient, emphasising the primacy of the development plan. It contributes to culture change within the planning system by encouraging closer working within local authorities, and between neighbouring authorities, as well as joint working with house builders and others who engage with the planning system. The approach to planning for housing set out in SPP 3 will also assist the creation of well-designed, sustainable mixed communities.

SPP 3 supports The Scottish Government's Safer and Stronger and Greener strategic objectives by enabling the provision of high-quality homes which meet people's needs, are appropriate to location and contribute to sustainability.

Other Relevant Policy, Guidance and Advice

14. SPP 3 sets out The Scottish Government's policy on planning for housing across urban and rural Scotland. It does not restate detailed guidance and policy expressed elsewhere. SPP 3 is part of a wider planning policy framework which must also be taken into consideration. As such, it should be read in conjunction with SPPs and PANs relating to topics including fitting new housing development into the landscape; planning and flooding; transport and planning; renewable energy; micro-renewables; planning and natural heritage; housing quality; and planning in small towns. Reference is made to relevant policy and guidance throughout SPP 3.

15. Additionally, Annex B compiles a range of policy and guidance that should be consulted. This covers diverse topics such as transport, renewable energy, sustainability and quality housing and design, all of which contribute to the achievement of high-quality new homes in the right locations. The contribution of housing development to The Scottish Government's overarching purpose of promoting sustainable economic growth should also be considered. The policy set out in SPP 3 should be followed in conjunction with appropriate environmental legislation, such as the Environmental Assessment (Scotland) Act 2005.

SPP OBJECTIVES

16. The key objectives of the SPP are to provide policy guidance on the:

• identification of housing need and demand on a more consistent and robust basis through joint working between local authorities and a range of partners;
• the use of the planning system to facilitate the construction of well-designed, good-quality housing in sustainable locations;
• allocation of a generous supply of land to meet identified housing requirements across all tenures, including affordable housing, and related policy objectives;
• mechanisms to help ensure that planned housing is built, including quick and efficient review of development plans to enable maintenance of a
  5-year effective land supply; all of which supports
• the creation of high-quality places, which support the development of sustainable communities.

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