The results of the long-awaited Housing Delivery Test have finally been published by the Ministry of Housing, Communities and Local Government.
Promised to us in November last year, the results now provide a clear picture of recent housing delivery, assessed on a consistent basis nationwide, and the implications of this.
Savills welcomes the publication of the results, which will serve to ensure that it is the actual delivery of housing that matters, and not just the ability of an LPA to demonstrate a 5-year housing land supply (5YHLS).
The Test compares the delivery of housing within each LPA over the past three years against the required amount – delivery of the full amount would result in a Test score of 100%.
The Test has three components:
- If delivery has been less than 95%, the LPA should prepare an Action Plan to address the reasons for the shortfall.
- If delivery has been less than 85%, the LPA should include a 20% buffer in calculating its 5YHLS.
- If delivery has been less than 75%, the presumption in favour is engaged *.
* As a transitional provision, the threshold in the third element is set at 25% and 45% for the 2018 and 2019 Tests.
As expected, no LPA fails the third test and the presumption in favour is not triggered by the Test in any LPA. In comparison, Savills estimates that around 16 LPAs would have failed last year’s Test had the threshold been at 45%. These LPAs are thus under threat of having the presumption-in-favour triggered by this year’s Test.
A total of 219 LPAs have successfully delivered over 95% of their requirement.
Of the 107 other LPAs (including those 16 under threat of the presumption-in-favour this year) 21 are now required to prepare an Action Plan, and 86 are required to both prepare an Action Plan and include a 20% buffer when calculating their 5YHLS.
Overall, the results of the Test will see the number of LPAs that have to include a 20% buffer reduce and as a result the number that will be able to demonstrate a 5YHLS will increase.
Savills further supports the revised definition of ‘deliverable’ within the NPPF, which clarifies the relationship between likely deliverability of a site and its scale (major versus non-major) and type (outline versus detailed) of planning permission.