The content of this section is related to the theme of Croydon as 'A Place of Opportunity'. It looks at planning for homes and employment, and the need for new homes and new jobs resulting from future population growth.
Where we are now
4.1 The key issues that the borough faces in terms of planning for new homes up to 2036 are as follows:
Where we want to be
| Strategic Objective 3: | Provide a choice of housing for people at all stages of life. |
| Strategic Objective 4: | Reduce social, economic and environmental deprivation, particularly where it is spatially concentrated, by taking priority measures to reduce unemployment, improve skills and education and renew housing, community and environmental conditions. |
| Strategic Objective 5: | Ensure that high quality new development both integrates, respects and enhances the borough's natural environment and built heritage. |
| Strategic Objective 6: | Provide and promote well designed emergency services, community, education, health, and leisure facilities to meet the aspirations and needs of a diverse community. |
| Strategic Objective 7: | Conserve and create spaces and buildings that foster safe, healthy and cohesive communities. |
| Strategic Objective 9: | Ensure the responsible use of land and natural resources and management of waste to mitigate and adapt to climate change. |
How we are going to get there
SP2.1 In order to provide a choice of housing for people in socially-balanced and inclusive communities in Croydon, the Council will apply a presumption in favour of development of new homes provided applications for residential development to meet the requirements of Policy SP2, SP3.14 and other applicable policies of the development plan.
Quantities and Locations
SP2.2 In order to provide a choice of housing for people in Croydon the Council will seek to deliver a minimum of 32,8902 homes between 2016 and 2036. This will be achieved by:
Affordable Homes
SP2.3 The Council will seek to ensure that a choice of homes is available in the borough that will contribute to addressing the borough's need for affordable homes. This will be achieved by a strategic policy target of:
SP2.4 To deliver affordable housing in the borough, on sites of ten or more dwellings the Council will:
SP2.5 The Council will require a minimum provision of affordable housing to be provided either:
In assessing viability, the Council will compare Residual Land Value with Existing Use Value (plus an incentive to provide a competitive return to a willing landowner) or Alternative Use value if there is an alternative use for the site which would comply with the policies of the development plan and could be implemented4; will take account of features which appear to seek to exclude affordable housing by design or by incurring upper quartile construction costs5; and will take account of abnormal costs incurred.
SP2.6 The Council will only accept in exceptional circumstances commuted sums on sites with ten or more units in lieu of on-site provision of affordable housing (or provision on a donor site) if it is not possible to find a Registered Provider to manage the on-site affordable homes.
Mix of Homes by Size
SP2.7 The Council will seek to ensure that a choice of homes is available in the borough that will address the borough's need for homes of different sizes. For both market and affordable housing, this will be achieved by:
Quality and Standards
SP2.8 The Council will seek to ensure that new homes in Croydon meet the needs of residents over a lifetime and contribute to sustainable communities with the borough. This will be achieved by:
Gypsies and Travellers
SP2.9 The Council will deliver a minimum of 36 additional Gypsy and Travellers pitches in the borough by 2036 to meet the need of Croydon's Gypsy and Traveller community. Land is allocated for Gypsy and Traveller pitches in the Croydon Local Plan's Detailed Policies and Proposals. Any proposals for additional sites that are not allocated should meet the following criteria:
What it will look like
Figure 4.1 Growth in homes in Croydon 2016-2036
Figure 4.2 Housing trajectory of new homes in Croydon 2016-2036
Figure 4.3 Total number of new homes in Croydon 2016-2036
Why we have taken this approach
Quantities and Locations
4.2 There is a need for over 42,930 new homes in Croydon by 2036 and evidence indicates that half of these need to be larger homes6. However there is only a limited supply of land in Croydon for new homes without eroding the Metropolitan Green Belt, Metropolitan Open Land (MOL) and Local Green Spaces which are all protected by national policy and the London Plan. The target of 31,850 homes reflects the availability of land for development in Croydon, facilitating the sustainable growth of the suburbs, the need to provide a mix of homes to support sustainable communities and the objective to provide a choice of homes for people at all stages of life. It also reflects the need to provide land for other uses such as employment, education, health and other infrastructure to support growth in Croydon7. In particular, in Croydon Opportunity Area allowance has been made for office and retail development in line with Policy SP3 (Employment).
4.3 The provision of new homes is phased in accordance with the supply of land for new homes. Sites identified by the Strategic Housing Land Availability Assessment (SHLAA) as being deliverable have been included in the first five years of the plan. Those sites which could be developed but are not available now have been phased after 2026.
Affordable Homes
4.4 Of the overall number of homes needed in Croydon, about 91% need to be affordable homes for residents on lower incomes. It is not realistic to expect that this proportion of new homes in the borough will be affordable, both in terms of deliverability and because the private rental sector also meets and will continue to meet a significant proportion of the need for affordable housing. For this reason the strategic target is 40% of overall supply, which reflects the findings of the Strategic Housing Market Assessment, has regard development viability and the need to deliver balanced communities with a mixture of tenures and dwelling types.
4.5 An appraisal of development sites in the borough has found that a requirement for 30% on site affordable homes will be viable for the majority of sites in the borough. House prices have risen much faster against the original Dynamic Viability Model compared to construction costs such that, unless there is a severe economic downturn resulting in house prices falling by 25% (as happened in 2008) then either a minimum requirement of 30% on-site provision or an alternative of 15% on-site provision and a review mechanism is always likely to be viable. The Council will calculate the proportion of affordable housing based on habitable rooms so long as the resultant mix of units on the site meets the need for affordable housing in the borough identified by the most up to date Strategic Housing Market Assessment (or equivalent).
4.6 For schemes where it is not viable to provide 30% affordable housing on site, and, if applicable, there is no suitable donor site then a reduced provision of 15% affordable housing on-site combined with a review mechanism will ensure that, if the viability of the development improves such that by the time the homes are sold more affordable housing would have been viable than at the time of granting permission, a commuted sum will be payable to cover the cost of providing affordable housing on another site in the borough. The review mechanism will be linked to the gross development value difference between affordable and market units provided through a review mechanism at agreed stages of the development. Viability evidence suggests that schemes that are not viable with 15% on-site provision of affordable housing would not be viable with any affordable housing, and are therefore unlikely to be built.
4.7 Features which have been found to exclude affordable housing by design include an insufficiency of circulation cores (lifts and stairwells) to allow both affordable rented and private market homes to be managed in coexistence, or unnecessary basement car parks which inflate service costs.
4.8 Where the number of on-site affordable homes is low, the Council may accept a commuted sum in lieu of on-site provision of affordable homes if it is not possible to find a Registered Provider to manage the on-site affordable homes. The Council may also consider a different tenure split during negotiations, for example if the number of affordable units on-site is low and there is agreement between a Registered Provider and the Council that a different tenure split is justified. A minimum of three Registered Providers should be approached before the Council will consider applying this policy
4.9 Croydon Council considers that affordable rent homes (homes available at 80% of market rent levels) meet a range of housing needs within the affordable sector (including the need for social rented affordable homes due to the availability of Universal Credit/Housing Benefit to tenants unable to afford the full rent for an affordable rent property). Development proposals should be accompanied by a sustainable letting scheme to support the use of affordable rent homes in meeting the need for social rented housing and also develop and maintain balanced communities.
Mix of Homes by Size
4.10 Analysis of the Strategic Housing Market Assessment suggests that approximately 50% of homes should have three or more bedrooms. Unfortunately, analysis suggests that to meet this demand on the sites likely to come forward for development is impractical. Nevertheless a doubling of the outturn for family houses achieved since 2011 is a realistic target.
4.11 Between 2011 and 2031 the number of people in Croydon over the age of 55 is projected to increase by 63%, from a 2013 base. Therefore the Council will need to work with partners to facilitate the provision of specialist and supported housing for the elderly and vulnerable.
Quality and Standards
4.12 New homes in Croydon need to provide a choice of housing for people at all stages of life. In order to do so they will need to meet minimum standards of design. The National Technical Standards (2015), Mayor of London's Housing Supplementary Planning Guidance (2016) will be applied in conjunction with Croydon's Borough Character Appraisal.
4.13 A good quality design can mean that a smaller two bedroom property is suitable for smaller families. In order to establish what a home suitable for a family is, the Croydon Local Plan's Detailed Policies and Proposals will set out the design and amenity standards that are expected of family homes.
4.14 Policy SP6 (Environment and Climate Change) of the Croydon Local Plan requires all new homes to achieve the National Technical Standards (2015), Mayor of London's Housing Supplementary Planning Guidance (2015) or equivalent. The London Plan also sets requirements for 10% of homes to be designed to be wheelchair accessible (units that are designed for wheelchair users to live in) or easily adaptable for residents who are wheelchair users8. The London Plan also requires all new housing to make provision for play and informal recreation based on the expected child population generated by the development9. The Mayor's Supplementary Planning Guidance 'Shaping Neighbourhoods: Play and Informal Recreation' provides further guidance on the requirements. As the London Plan forms part of the statutory development plan for Croydon, these requirements are not duplicated in the Croydon Local Plan but will be applied to all residential developments.
4.15 Together these requirements contribute to ensuring that developments incorporating new homes will contribute to promoting sustainable use of resources and the principles of good design. They will also help to address the health and wellbeing impacts of poor quality housing.
Gypsies and Travellers
4.16 Both English Gypsies and Irish Travellers are recognised as ethnic groups and, like other members of Croydon's Black and Minority Ethnic communities, are protected from discrimination by the Equalities Act 2010. Local authorities are required to assess their need for housing in the same way that they are required to assess the needs for new homes for people who live in “bricks and mortar” homes.
4.17 There is a need for 49 new Gypsy and Traveller pitches (a pitch being space for one mobile home) and one emergency stopping place in Croydon up to 2036 providing for the English Gypsy and Irish Traveller communities10. However, that need was identified by a method which is reported to result in an overestimate of need. Subsequent to the study, government has amended the definition of gypsy and traveller for planning purposes so the figure for identified need is further reduced. Three spaces have been found at the existing Latham's Way site. In consequence, the residual requirement is estimated to be 36 pitches. The location of new pitches (including the emergency stopping place) must enable the residents to access services including schools and health facilities in the same way that residents of new houses need to be able to access community facilities. In addition, Gypsy and Traveller sites need good access to the road network as they often need to move larger vehicles as part of their livelihood and way of life11.The Croydon Local Plan's Detailed Policies and Proposals allocates land to help meet this need for additional pitches.
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Why we need this policy
4.18 The Council seeks the provision of a mix and range of housing as set out in Strategic Policy SP2.7 of the Croydon Local Plan and it is also the aim of Strategic Objective 3. This will assist in building sustainable communities, in line with paragraph 50 of the National Planning Policy Framework.
4.19 In line with Strategic Objective 7, residential development should set out to achieve healthy and liveable communities to support the health and wellbeing of residents.
4.20 The need for larger homes in Croydon was identified in the Croydon Strategic Housing Market Assessment 2015. Croydon has large numbers of households that are overcrowded. Meanwhile there is also a growth in single person households which is driving the requirement for smaller homes.
4.21 Three bedroom residential units are needed to house families and the existing stock retained to assist provision. The London Plan defines family housing as 'generally having three or more bedrooms'. In line with London Plan Policy 3.14, the retention of residential units originally designed with three or more bedrooms is supported by the Council.
4.22 Croydon's Strategic Housing Market Assessment identified the need for 44,149 new homes to be built between 2016 and 2036. The strategic policy requirement is for 32,890 new homes to be built in the same period, making more efficient use of housing stock a necessity including sub-divisions, conversions and change of use to residential.
4.23 The Strategic Housing Market Assessment 2015 identifies that 50% of the future requirement for market housing is for larger homes. The Strategic Housing Land Availability Assessment has identified that whilst projections of future housing requirements are rising, levels of building have fallen. Existing three bed residential units should therefore be retained and any conversions should ensure that there is no loss of three bed homes.
4.24 Within the Croydon Opportunity Area, the Croydon Housing Typologies Study has found that the strongest opportunities for homes suitable for families will be associated with the lower and moderate density sites in the Croydon Metropolitan Centre including the inner residential area in the Croydon Opportunity Area12). It indicates that there will be more opportunities for studio, one and two bedroom units on the higher density sites in the Croydon Metropolitan Centre.
DM 1.1 The Council will seek to enable housing choice for sustainable communities by requiring the minimum provision of homes designed with 3 or more bedrooms on sites of 10 or more dwellings as shown in Table 4.1, except:
DM1.2 The Council will permit the redevelopment of the residential units where it does not result in the net loss of 3 bedroom homes (as originally built) or the loss of homes smaller than 130m2.
Table 4.1 Minimum percentage of three bedroom or larger units on sites with ten or more dwellings
Setting13 |
PTAL14 of 0, 1a, 1b, 2 or 3 |
PTAL of 4, 5, 6a or 6b |
Suburban – areas with predominantly lower density development such as, for example, detached and semi-detached houses, predominantly residential, small building footprints and typically 2 to 3 storeys |
70% |
60% |
Urban – areas with predominantly dense development such as, for example, terraced houses, mansion blocks, a mix of different uses, medium building footprints and typically buildings of 2 to 4 storeys, located within 800 metres walking distance of a District Centre or along main arterial routes |
60% |
40% |
Central – areas with very dense development, a mix of different uses, large building footprints and typically buildings of 4 to 6 storeys, located within 800 metres walking distance of Croydon Metropolitan Centre |
This location does not exist in Croydon |
20% (minimum of 5% in Retail Core area of Croydon Opportunity Area and 10% in 'New Town' and East Croydon as defined by the Croydon Opportunity Area Planning Framework) |
4.25 This policy applies to both market and affordable housing, whether the homes are new build or conversions.
4.26 To meet the need for three bedroom homes the Council will require a minimum proportion of homes to have three bedrooms or more. London Plan Policy 3.4 Optimising Housing Potential provides the basis of Table 4.1 and the definitions of Suburban, Urban and Central, and relating new development to access to the public transport network.
4.27 The proportion of homes to have three bedrooms will vary across the borough based on existing character and public transport accessibility and is based upon the London Plan's density matrix15. The approach recognises that more central locations with higher density development will not be so compatible for accommodating larger units. The Council's housing allocations scheme gives more priority to households that are working and the use of local letting schemes and the level of housing need will help to balance any issues arising regarding the viability of providing family homes.
4.28 The Strategic Housing Market Assessment 2015 identifies a difference in the size of housing required between tenures with affordable housing requirement for a greater proportion of smaller homes (particularly one bedroom homes) than market homes.16
4.29 The Croydon Opportunity Area Planning Framework identifies percentages for levels of three bed housing in six 'character areas' in the Croydon Opportunity Area which are reflected in this policy.
4.30 It is recognised that the development market will need time to adjust to providing the quantum of larger family homes of three bedrooms or more in line with this policy to meet the identified need in the borough.
4.31 This policy is also intended to ensure that the conversion of single family houses into flats does not further reduce provision of three bedroom homes. Any dwelling house with a gross internal floor area of less than 130m2 cannot be redeveloped, demolished or subdivided, that would result in the loss of this type of property.
4.32 The gross original internal floor area does not include general storage areas such as lofts, cellars, fuel stores, garages or conservatory type structures. Parts of rooms with ceilings less than 1.5 metres are excluded unless used solely for storage. The calculation of the Gross Internal Area must comply with the National Technical Housing Standards or equivalent 2015.
Key supporting documents
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4.33 The Council seeks the provision of a mix and range of housing as set out in Strategic Policy SP2.7 of the Croydon Local Plan and it is also the aim of Strategic Objective 3. This will assist in building sustainable communities, in line with paragraph 50 of the National Planning Policy Framework.
4.34 In line with Strategic Objective 7, residential development should set out to achieve healthy and liveable communities to support the health and wellbeing of residents.
4.35 Croydon has a very high number of nursing and residential care homes compared to other London boroughs. Analysis of changing needs for services supplied by the nursing and residential care home market evidences a 'saturation point' has been reached for some customer groups or categories of people in need. At the same time there is a greater public policy focus on supporting people to remain living at home safely whenever possible. It is therefore necessary that Croydon plans to enable it to supply care provision to meet current and future needs of Croydon residents. A change in policy ensures:
4.36 Croydon experiences a range of challenges arising from the significant number of nursing and residential care homes that continue to be sited in the borough. These challenges include excess demand on a range of local health and social care services which is not reflected in national funding formulae for central Government funding towards local services.
4.37 As of September 2015 the 142 care homes in Croydon have a total capacity of 2,796 bed spaces. Between April 2014 and November 2014, 761 of those bed spaces were occupied by people placed by Croydon Council and Croydon Care Commissioning Group (the grouping of GPs in Croydon that provides primary health care services in the borough). It was estimated that between 1,000 and 1,150 bed spaces were occupied by self-funders. The remainder of the bed spaces were either vacant or occupied by people placed from outside of Croydon. This has an adverse impact on the provision of health services in Croydon.
4.38 Services provided by care homes within the borough do not fully meet the needs of Croydon residents with more specialised or urgent needs. As a consequence between April and November 2014, 382 people were placed in nursing and residential care homes outside the borough. This is an undesirable outcome because vulnerable people risk losing their natural family and community support networks when placed at distance from Croydon.
4.39 Croydon has produced a Market Position Statement (2015) to ascertain the level of future need. As need changes, it is projected that 1,118 beds spaces will be needed by 2020 and 1,450 by 2030 across learning disability, mental health, older people and physical disability services, to meet the increased complex and dual care needs of people placed by the Council or the Croydon Care Commissioning Group.
4.40 The National Planning Policy Framework (paragraph 50) states that local planning authorities should plan for a mix of housing based on current and future demographic trends, market trends and the needs of different groups in the community.
4.41 In accordance with the London Plan, the need for this type of accommodation has been identified taking into account the indicative requirement benchmarks set out in Annex A5: Specialist Housing for Older People.
4.42 Where there is an identified demand for residential care and nursing home bed spaces, the Council will support provision of this type of housing. This policy seeks to meet this need, however does not support an over-provision of care and nursing home bed spaces. This is the preferred approach as set out in the care home forecast.
4.43 The Care Act 2014 places a duty on all local authorities to meet the need for residential care and nursing home bed spaces within their own area. The policy accords with Annex A5: Specialist Housing for Older People of the London Plan.
4.44 According to Croydon's Market Position Statement there are ample care and nursing home bed spaces within the borough to satisfy demand up to 2031. The policy therefore seeks to address the current over-provision and supply this type of accommodation only where there is an identified need.
4.45 Croydon's Market Position Statement will be used to assess applications for new residential care and nursing homes to determine whether there is a need.
4.46 It is considered preferable that people within the borough that require care are cared for within their community, close to their networks of friends and family.
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4.47 A Ministerial Statement on 28th November 2014 introduced a vacant building credit for developers of vacant buildings such that a reduced provision of affordable housing should be required. This vacant building credit only applies to buildings which have not been made intentionally vacant in order to redevelop them and to sites which do not have an extant or recently expired permission for the same or similar development. A policy is required to set out how it will be determined that a building has not been made intentionally vacant, to define a same or similar development and a recently expired permission.
4.48 The Mayor of London's Draft Interim Housing SPG encouraged boroughs to have policies in their local plans that set out the criteria for how the vacant building credit will be applied. In particular it suggested minimum vacancy periods and marketing requirements should be set
DM3.1 The Council will promote the re-use or redevelopment of existing buildings by applying a vacant building credit such that affordable housing requirements will only apply to the net increase in floor space resultant from development of buildings which have been:
DM3.2 Vacant building credit will not be applied to development proposals or to proposals to modify S106 agreements for schemes which are the same as or similar to an extant or recently expired planning permission where:
4.49 The policy should ensure that only genuinely vacant buildings benefit from the vacant building credit and thus encourage their return to use.
4.50 Buildings that have been made intentionally vacant, including those made redundant through estate rationalisation will not benefit from the vacant building credit.
4.51 Vacant building credit does not apply to abandoned buildings. There is no planning definition of abandoned buildings; however an abandoned building cannot be marketed.
4.52 The threshold for a similar proposal is set to prevent applications for developments with marginal increases or decreases in floor space, or changes of use or reduction in size of non-residential floor space avoiding providing needed affordable housing.
4.53 Likewise, a two year period as the definition of a recently expired permission is set to provide a disincentive to simply let existing permission expire so that vacant building credit can be applied for thus reducing the amount of affordable housing provided.
4.54 Where vacant building credit is applicable to a development proposal, the full affordable housing requirements set by Policy SP2.4 of the Croydon Local Plan will apply to the net increase in floor space. This means that the Council will negotiate for 50% of the net increase in floor space to be for affordable housing and the current minimum requirements will apply in full. The Council will expect overall scheme viability to improve with the application of vacant building credit and this will be reflected in negotiations around any planning obligations including affordable housing.
1 Croydon's Strategic Housing Market Assessment - 2015 and Addendum Report 2015
2 Of which 4,890 are either completed or under construction
3 In such instances, the Council will expect the covenant to require the scheme to be solely for private rented accommodation owned by one institution or company for a minimum of seven years post completion of the development.
4 To be implementable an alternative use will generally need to have an existing implementable planning permission unless other evidence on how it will be implemented can be provided.
5 By reference to Building Cost Information Service (BCIS) or similar indices for similar development types in London.
6 Croydon Strategic Housing Market Assessment 2015
7 The infrastructure needs of the proposed new homes are considered by the Infrastructure Delivery Plan which sets out in its Infrastructure Delivery Schedule how the required infrastructure will be provided.
8 London Plan Policy 3.8
9 London Plan Policy 3.6
10 London Borough's Gypsy and Traveller Accommodation Needs Assessment (2014)
11 ODPM Circular 01/06 (paragraphs 64-66)
12 Paragraph 9.12 of the Croydon Opportunity Area Planning Framework Jan 2013
13 The definition of each setting is the same as that in the London Plan, Table 3.2.
14 Public Transport Accessibility Level - a rating of accessibility provided by Transport for London. A site with a lower PTAL than the surrounding sites and adjoining streets shall be considered at the higher PTAL.
15 London Plan Policy 3.4
16 Table 34, para 9.22, Fig.68 Strategic Housing Market Assessment, June
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