Appendix 3 - Review of Principal Residency Policies adopted or being introduced in England

 

Local Authority/ Neighbourhood Plan Area

Policy

Stage

Threshold/ trigger

Other evidence

Community Impacts identified

Method of Implementation

St Ives Area Neighbourhood Development Plan 2015 – 2030 (covering St Ives and Carbis Bay)

H2 – Principal Residence Requirement

 

 

Proposals for holiday accommodation will not be permitted unless it is located on an established holiday complex (this aspect of the policy was requested to be added by the examiner)

 

Made plan  December 2016

2011 Census showed that St Ives and Carbis were in the top 5 settlements in Cornwall with the highest proportion of second homes and holiday lets (25%). 

Between 2001 -2011 the number of dwellings not occupied by a resident household grew by 67%. Housing stock rose by 684 but the number of resident households grew by 6%.

The socio-economic effects of such a high proportion of holiday properties are being felt by local community - consultation responses.

100% Principal residence occupancy on new open market housing, excluding replacement dwellings – without price controls or any local connection requirement. 

Implemented by condition or obligation.

Occupiers required to keep proof that they are meeting the obligation – verifiable evidence (eg Local electoral register, and attend local services) and obliged to provide this proof if/when requested by Cornwall Council.

Does not impose an arbitrary limit on minimum number of days of occupation.

Other Cornwall Parishes Various Neighbourhood DPs as of April 2021:  Parishes within St Minver, Rame Peninsula Roseland Peninsula, Crantock , Fowey, St Agnes, Mevagissey

Similar to H2 above

Made NPs

 

A range of data sets set out in this briefing note produced by Cornwall: Second Homes in Cornwall

Loss of community facilities, decline in school numbers and closure of seasonal facilities – from local knowledge and consultation

Similar policy to St Ives

North Northumberland Coastal Area Neighbourhood Plan

Policy 14 covering parishes of North Sunderland, Bamburgh and Beadnell

 

Principal Residence housing is that which is occupied as the sole or main home of the occupants and where the occupants spend the majority of their time when not working away from home.

Made July 2018

Census data showing percentage of households with no usual resident – Neighbourhood Area as a whole 39.6% with one Parish (Beadnell) at 55.3%

Housing Evidence Paper

Loss of primary school in the 1980s (Beadnell), gradual loss of facilities in the village; now only one shop open during the holiday season. Residents are unable to rely on local services and facilities for their day to day needs

Excludes replacement dwellings, first and future occupation restricted in perpetuity and secured prior to grant of PP through appropriate planning obligations.

Salcombe Neighbourhood Plan Area, Devon

SALC H3

Made 2019 but seeking to modify the plan policy SALC H3

The level of second homes in Salcombe was quoted in 2017 by South Hams District Council as 38.45%. The NPG calculated in 2016 the figure to be 57 %.

NPG undertook a review of the electoral register and the database of residential addresses in the parish and analysis of properties rated for business rates and registered as holiday homes. 65% of survey respondents supported the PRP

The consequence of the high value placed on market housing which attracts primarily second home owners is the lack of supply of properties for younger working people and families. the aim is to help local people purchase a home in the Parish.

The modification relates solely to policy SALC H3 Principal Residence requirement for new housing, and replaces the requirement for a planning condition, S106 agreement or other legal agreement, with a requirement for a S106 agreement only.

South Huish Neighbourhood Plan – a parish in the South Hams district, Devon a coastal community in AONB

Policy SH H2 Principal Residence

Adopted May 2021

Two thirds of the properties in the parish are second homes

More than 40 per cent of the parishioners are retired, the 2011 census reported that 38.1 per cent of the population was 65 and over - one of the highest in England

Housing Needs Survey

New open market housing, excluding replacement dwellings, will only be supported where there is a restriction to ensure its occupancy as a principal residence guaranteed through a planning condition or legal agreement. New unrestricted second homes will not be supported at any time

Southwold  Neighbourhood Plan 2020-2039

 

 

Policy SWD4

 

 

Also has a policy on holiday lettings (SWD5) which only apply when a material change of use applies

Made Feb 2022

Southwold is a coastal community with of 50% household spaces with no usual residents, the highest proportion in the whole of England and Wales (an increase from 38% in 2001).

Additional research – street by street surveys of current uses and properties sold between 2006-2016.

Forecast impact on primary school place requirements. Social isolation and quality of live for Southwold’s elderly population and business viability

All new housing (except for like for like replacements) whether newly constructed or created from changes of use and/ or conversion of existing buildings. Would apply to affordable housing.

Wirksworth Neighbourhood Plan 2015-2028 - Derbyshire Dales

Policy NP4 in the Wirksworth Neighbourhood Plan states that planning permission for new dwellings will be subject to a restriction to ensure their occupation only as principal residence homes

Adopted 2015

There is no official figure for the number of second homes in the plan area. Looked at council tax and business rate data. Likely that the numbers registered for those purposes (4 to 5% of the homes in the plan area) underestimates the actual number of second homes in particular streets.

 

Local people were concerned that Wirksworth was moving towards being a town which has an older population and an absent population

Not specified in Plan.

 

There may be a few cases where developments are specifically intended to for other residential types e.g. log cabins as holiday homes. The policy will not apply to such developments.

Northumberland Local Plan 2016-2036

Policy HOU10 applies to parishes identified in most up to date census as having 20% or more household spaces with no usual residents. New market dwellings will only be supported where first and future occupation is restricted in perpetuity to ensure that each new dwelling is occupied only as a 'principal residence'

 

Adopted March 2022

The Census 2011 identified that across the County 6.4% of household spaces had no usual residents. At parish level a number are identified with 20% of more household spaces with no usual residents, others had more than 50%.

Council tax registered dwellings as second homes.

 

Number of Holiday homes identified from business rates

 

No of second and holiday homes as % of household space

 

House price to incomes affordability ratio

Loss of sense of community and risk loss of critical services/ scaled back to reflect size of local population but then come under increasing pressure during summer months as population increases significantly. Many smaller properties unaffordable to the local population.

Restricted as principal residence in perpetuity and secured through s106 agreement

Lake District National Park Local Plan 2020-2035

Policy 15: Housing

Adopted May 2021

According to the 2011 Census, 24 per cent of the housing stock in the Lake District has no permanent resident. For some Parishes much higher levels exist. It is generally accepted that if the percentage of second homes is more than 20 per cent then the sustainability of the settlement is affected

Household income to house price ratio trend; local need and supply studies

Local communities are shrinking or demographic make-up is changing which impact on local services and facilities. Concerned with the availability of housing that a full cross-section of a balanced community should ordinarily be able to afford.

New permanent homes are secured in perpetuity for permanent occupation with eligibility restricted to a geography that is tailored to local circumstances. Secured through condition or s.106 agreement.

As well as new builds, this includes the sub-division of existing houses, changes of use and the conversion of traditional buildings.

 

Housing SPD includes details on local connection criteria and planning controls; Supplementary Planning Document (lakedistrict.gov.uk)

Purbeck Local Plan 2018-2034

The submitted Plan proposes a policy (policy H14) to restrict new housing permitted in the Area of Outstanding Natural Beauty, on small sites (as set out in policy H8) and on rural exception sites (as set out in policy H12) to be occupied only as a principal residence.

Does not apply to new homes which are commercially let for holiday makers.

Examination – Main Mods stage. Inspector didn’t consider it reasonable/ proportionate to subject replacement dwellings to the restriction of the policy.

Average second home ownership in Purbeck is 7.3%, above the regional average of 6.6%. Figure ranges across parishes, rising up to 28% in Studland. The proportion of second homes is particularly high in the Area of Outstanding Natural Beauty (AONB), where around 91% of the District’s second homes are located.

Background Paper: Second Homes Background Paper (November 2017) (publichealthdorset.org.uk) looked also at electoral roll data.

Considered impact on affordability and housing supply

The condition or obligation will require that any new housing to which this policy applies is occupied as a principal residence. Occupiers of such homes will be required to keep evidence that they are meeting the condition or obligation - by verifiable evidence which could include, being registered on the local electoral register and being registered with a local GP.

Dorset Council Local Plan

None – following Evidence gathering for new Dorset Wide Local Plan -reviewing the issue given that PRP is being proposed in Purbeck LP.

 

Evidence shows that the second homes issue is highly localised issue in the district with specific coastal and AONB areas having high rates.

 

Background paper did not recommend inclusion of PRP in Dorset Local Plan.

Second Homes Background Paper January 2021: 9e6c81c7-b186-cad3-b5c9-99dab34d40f7 (dorsetcouncil.gov.uk)

Research concluded: the policy can negatively impact affordability, and may shift demand for SH both to alternative locations and onto the existing housing stock. Although the policy is intended to positively impact communities and the local economy, research indicates that in reality, this may not be the case as it does not appear to effectively reduce second homes demand in the first place

 

Yorkshire Dales National Park

Evidence Gathering Stage – looking at whether to continue with local occupancy policy/ or replace with principal residence policy or neither

Evidence Gathering stage

SHMA - According to the 2011 census, 20.7% of dwellings across the YDNP are second homes, holiday homes and vacant dwellings: Richmondshire had the highest proportion at 31% with Lancaster the lowest at 7%. Eden, South Lakeland and Craven all had around 16%. This compares with the English average of only 4%.

Estate agents report a continuing high demand for second homes, holiday lets and investment properties in the National Park.

Large numbers of second homes and empty villages are harmful to community vitality and viability.

 

Lynton and Lynmouth Neighbourhood Plan 2013-2028

Policy H3 - Open market housing without a restriction to ensure its occupation as a principal residence will not be permitted.

Made in 2013

Census data 28% of all household spaces in the parish have no usual residents; this is a significant proportion of the housing stock and is almost 3 times higher than the percentage for North Devon as a whole

Consultation responses; legal advice on appropriateness of policy

Principal residence housing is supported by the Plan only in order to provide cross subsidy for affordable housing or other development directly benefiting the community

Planning Condition

Exmoor National Park Authority Local Plan 2011-2031

HC-S4 Principal residence Housing – following the example of PRP implemented in the Lynton and Lynmouth NP

 

July 2017

19.2 % of homes in the National Park with no usual residents, at the parish level Lynton and Lynmouth have 28.5% no usual residents

During 2001 – 2011 some 263 dwellings were built within the National Park, however the population recorded in the Census for these dates demonstrates a decline in the National Park population by 600.

 

Viability assessment - agents and developers who advised the Authority on the viability assessment of the Plan agreed that a 5% reduction in the value of new dwellings subject to the principal residence requirement would be likely. This would have a small positive impact on affordability.

Brendon, where 33% of homes have no usual residents has no convenience store. Other effects are said to include the closure of local schools and shops and a general decline in social well-being. The intention is to ensure that any new market homes are lived in by people who will contribute to the local area.

Will only apply to new dwellings within the National Park and principally where they enable the delivery of local affordable homes. Through condition. Principal Residence housing will also apply to any new dwelling units created through the subdivision of existing dwellings (HC-D14) and the conversion/change of use of hotels/guesthouses to dwellings and in accordance with the tests set out in policy RT-D3 Safeguarding Serviced Accommodation

Islington Borough Council - Preventing Wasted Housing Supply Supplementary Planning Document

SPD applies to new residential developments of 20 units over across the whole borough.

July 2015

Evidence of buy to leave in new developments.

Analysis of overall number of units with nobody on the electoral register, across a range of developments completed since 2008.

 

S106 agreements – the obligations and evidence requirements are set out in the SPD: 20190926preventingwastedhousingsupplyspdjuly2015.pdf (islington.gov.uk)

 

The freehold / head lease owner (as the case may be) of the development will be required to include such an obligation in the lease/sub lease of the individual dwellings and to provide the council with reasonable evidence of compliance with this obligation. The Owner or developer will be required to publicise the details of this obligation in their sales