Preferred Strategy

9. Strategic Framework and Policies

9.1 Growth Strategy – How much development is planned?

The Replacement LDP must plan for a sustainable level of growth over its plan period 2022-2037:

• To deliver on the aspirations contained in the Vision and Objectives;
• To meet the needs identified in the evidence base including the LHMA and the Employment Needs Assessment; and
• To ensure sufficient flexibility to respond to specialist and changing needs.

The Replacement LDP identifies a Housing Requirement of 3,975 dwellings of which 1,036 will be affordable homes. This equates to an annual average build rate of 265 dwellings, of which 69 will be affordable homes.

The level of housing growth proposed is based on an average housing completion rate of 264 dwellings per annum over the ten-year period 2012/2013 to 2022/2023. This timeframe is considered appropriate because it encompasses a period of low housing completions and a more recent upturn in housebuilding seen in Powys.

To deliver the Housing Requirement, the Replacement LDP makes provision for 4,810 dwellings, which includes an additional 21% flexibility allowance above the Housing Requirement. This is explained further in the Housing Land Supply paper.

The Replacement LDP identifies an Employment Land Provision of 40 hectares for B1/B2/B8 Use Classes, which will meet identified employment needs and serve some of the anticipated increase to the labour force, reducing the need for commuting.

Whilst the supporting evidence has not identified a strong relationship between population growth and employment land, it is considered that 40 hectares of employment land is needed to provide sufficient opportunity for businesses to expand and relocate within Powys and to facilitate the Mid Wales Growth Deal. Additionally, for the Replacement LDP to be able to support more age-balanced communities, it needs to facilitate the creation of jobs, homes and opportunities which retain and attract more people of working ages, providing opportunities for an anticipated increase of 2,295 people to the workforce.

Both the housing and employment levels of growth have been informed by evidence of past take-up rates to demonstrate they can be delivered. The growth levels are also considered to be sufficiently ambitious to meet the needs of the Plan area and to reflect Powys's role in the Mid Wales Region and its two Regional Growth Areas.

Strategic Policy SP1 sets out the levels of growth to be delivered within the plan period. Planning for sustainable growth will meet the identified future housing and employment needs and support the Council's ambitions to address a number of key issues such as increasing the working-age population to address demographic imbalance.

9.2 Spatial Strategy – Where is development planned?

Having identified the scale of growth and development needed for the plan period 2022-2037, the Replacement LDP must through its spatial strategy, guide and distribute development to sustainable locations whilst protecting important strategic resources and assets, facilitating the enhancement of biodiversity, the resilience of ecosystems and the provision of green infrastructure.

The Preferred Strategy is based on the Regional Growth Area (focussed growth) Spatial Option, which directs the majority of growth to the Regional Growth Area Clusters. Outside of the Regional Growth Area Clusters, lower levels of growth are planned for Local Cluster settlements.

The 'Clusters' promote the concept of 'Living Locally' and aim for new development to be located within walking / cycling distance, or have a short journey via public transport, to key everyday services. This will reduce the need to travel by private motor vehicles, whilst promoting physical activity and the health and well-being of residents. The strategy makes full use of bus services and the Heart of Wales and the Cambrian Line train services, which enable residents in smaller settlements to connect with Tier 1 and Tier 2 settlements acting as service centres via a sustainable transport route. A particular example is the Heart of Wales Regional Growth Area Cluster, where there are several small railway stations in lower tiered settlements, within a ten-minute journey of the Tier 1 settlements of Llandrindod Wells and Builth Wells.

Provision is made to ensure that the housing needs identified for each Housing Market Area in the LHMA and the employment needs across the Commercial Market Areas, identified in the Employment Needs Assessment, are addressed. This approach provides sufficient flexibility to plan for development in places which are not constrained by nutrient (phosphate) neutrality issues or flood risk. It also allows for development in the Welsh Language Strongholds in a way that will encourage the Welsh language to thrive and will enable newly arising and specialist housing needs to be addressed.

Settlements not included within the 'Clusters' are classified as being Non-Cluster / Rural Area Settlements. Lower levels of development will be planned in the Rural Area and distributed to higher tier settlements in the Sustainable Settlement Hierarchy.

To achieve sustainable rural communities, the focus will be on addressing identified needs, supporting the rural economy and promoting the development of sustainable linkages within and between rural settlements. Some development in these settlements will support the Welsh language by allowing local people to remain in their communities.

Table 6 shows the distribution of housing growth between the Regional Growth Area Clusters, Local Clusters and Rural Areas. All components of the housing supply are shown including completions, commitments, windfalls and allocated housing sites. It indicates that 65% of the allocated sites will be located within the Regional Growth Area Clusters. However, factoring all components of housing land supply means an anticipated 55% of the Replacement LDP's housing growth will take place within the Regional Growth Area Clusters.

Employment growth is to be distributed across the Commercial Market Areas, prioritising those that are within or overlap the Regional Growth Area Clusters to align with the distribution of housing and respond to the needs arising from the Mid Wales Growth Deal.

Table 6. Percentage Distribution of Housing Growth between Regional Growth Area Clusters, Local Clusters and Rural Areas.

Distributing the majority of growth to the Regional Growth Area Clusters and Local Clusters will increase the viability of services and provide a focus for infrastructure improvements. This will support the Objectives of the Replacement LDP in responding to the climate and nature emergencies by encouraging the uptake of previously developed land, reducing the need to travel, and safeguarding the Powys landscape and environment.

Strategic Policy SP2 sets out the overall Sustainable Growth Strategy.

The sustainable growth strategy provides the framework for delivering growth. It reflects the different roles and functions of settlements within the Plan area. It will support and meet the needs of communities in a way that is sustainable, promoting sustainable transport choices and addressing demographic challenges.

Tier 1, 2 and 3 settlements are the most sustainable places to accommodate growth. Lower tier settlements (Tiers 4 and 5) within a Regional Growth Area Cluster or Local Cluster, which have a functional relationship with a Tier 1 or Tier 2 settlement may be able to accommodate limited growth to support the higher tier settlement and meet local needs. For settlements in the Rural Area / Non-Clusters, development will be supported to meet identified needs and achieve sustainable communities.

Policy SP3 sets out the distribution of housing and employment growth according to the Sustainable Settlement Hierarchy and the tiers of settlement defined by PolicySP2 - Sustainable Growth Strategy.

Tier 1 settlements - these are the larger towns in the plan area and are considered to be the most sustainable places for growth. They provide a wide range of services, bus / train services, active travel routes and electric vehicle charging facilities. It is estimated that the seven Tier 1 settlements will accommodate approximately 40% of growth.

Tier 2 settlements – these offer a narrower range of services and facilities compared to Tier 1 settlements but are important service hubs for their immediate and surrounding communities. They benefit from bus services and host a range of facilities which residents can access via active travel. It is estimated that the ten Tier 2 settlements will accommodate approximately 15% of growth.

Tier 3 settlements – these have more limited services and employment opportunities which can meet some needs of residents, but residents are likely to travel to a higher tier settlement to access some services such as supermarkets, high schools and health care provision. Tier 3 settlements in a recognised Regional Growth Area Cluster or Local Cluster have available sustainable transport choices for accessing such services. Where there are capacity constraints in Tier 1 and Tier 2 settlements, the Tier 3 settlements located within a Cluster are considered as suitable places to accommodate development. It is estimated that the 41 Tier 3 settlements will accommodate approximately 25% of growth.

Tier 4 settlements – these are smaller in size and host less services than Tier 3 settlements. However, many are located in close proximity, often in walking or cycling distance, to a Tier 1 settlement. Where the Tier 4 settlement is located in a Regional Growth Area Cluster or Local Cluster these close connections are well placed to accommodate development that cannot be provided within a Tier 1 or 2 settlement due to constraints and capacity issues. The Active Travel Network Maps show proposed routes for future investment in active travel routes and where connections are to be improved between some Tier 4 and Tier 1 settlements. It is estimated that the 18 Tier 4 settlements will accommodate approximately 5% of growth.

Tier 5 settlements – these have an important role in rural areas and are small in size with fewer services than settlements in higher tiers. Development in these settlements will be small-scale to meet local needs, with an emphasis on affordable housing and creating opportunities to retain the working age population. It is estimated that the 63 Tier 5 settlements will accommodate approximately 5% of growth.

Tier 6 settlements – these are the 23 smallest and least sustainable settlements in the Sustainable Settlement Hierarchy. Housing development will be restricted to meeting specific local needs by enabling proposals for single affordable homes.

Open countryside – this is a dynamic and multi-purpose resource which requires careful and well managed development. Whilst respecting the national policy principle of exercising strict control over development in the open countryside, given the nature of Powys and its rural economy it is important that the Plan supports development proposals which are appropriate to their location and which sustain and enhance the working countryside. All new development in the open countryside should respect the character of the surrounding area and be of an appropriate scale and design.

9.3 Housing Growth

The growth strategy identified a housing requirement of 3,975 dwellings to meet the identified housing needs and fulfil the aspirations of the Plan's Vision and Objectives.

To meet the housing requirement, the Replacement LDP makes provision for 4,810 dwellings (based on a 21% flexibility allowance). This equates to an annual average build rate of 265 dwellings a year. Strategic Policy SP4 summarises the components that make up the housing provision.

Housing delivery across Powys occurs mostly through the development of medium to small size development sites, reflecting the large geographic area, distribution of settlements and house building industry. Once commenced, slow build out rates can in some instances mean that sites are not completed for several years. This can be attributed to both the make-up of the housebuilding industry in Powys, with limited major volume housebuilders present, and wider housing market factors.

It is recognised that not all sites identified for housing development by the Replacement LDP are likely to be constructed during the Plan period. To account for this, a 21% flexibility allowance has been added to the housing requirement to give a housing provision figure of 4,810. The flexibility allowance is based on the housing delivery rate of the Adopted Powys LDP (2011-2026) and is explained in the Housing Land Supply background paper.

The housing provision figure is met through the components of housing land supply, as shown in Table 7. This indicates that since the start of the plan period 603 dwellings have been completed (row A). Dwellings under construction (row B) and housing commitments (row D) are expected to deliver a further 1,410 dwellings.

Windfall sites are sites not allocated for development and are expected to contribute 1,454 dwellings (rows F and G). Analysis of the delivery of housing completions over the thirteen years since the adoption of the Powys LDP (2011-2026) indicates that on average small windfall sites (sites of less than five dwellings) provided 78 dwelling completions per year, and large windfall sites (five dwellings or greater) contributed 40 dwellings per year. After further analysis, as set out in the Housing Land Supply (2024) background paper, it is projected that windfall sites will potentially contribute a further 1,454 dwellings over the remainder of the plan period.

The remaining 1,343 dwellings (row E) are the housing allocation for the Replacement LDP. Supporting evidence has not identified a requirement to allocate a regional-scale Strategic Housing Site(s) in the Preferred Strategy, and the housing site allocations will be identified at the Deposit Plan stage.

It should be noted that the components of housing land supply are subject to change and will be reviewed for the Deposit Plan.

Table 7. Summary of LDP Housing Provision and the Spatial Distribution of Housing April 2024

*A large site equals five residential units or more.

**Not every site with planning permission is developed or developed in full, and as a result not all dwellings permitted become new housing completions. To account for this a 44% non-delivery allowance has been applied to Row C, with the results presented in Row D. The 44% is based on the take up rate of dwellings on Housing Commitments included in the Adopted LDP (2011-2026).

9.4 Affordable and Specialist Housing

Meeting affordable and specialist housing needs are Objectives of the Replacement LDP.

The LHMA (2024) identifies that for the period 2022-2037, there is a need for 1,036 new affordable homes, 69 homes per annum. This comprises:

• 700 units of social rented accommodation.
• 336 units of intermediate rented housing.

To address this need, it is anticipated that the current housing land supply identified in Strategic Policy SP4 – Housing Growth, together with new allocations will deliver a minimum of 1,036 affordable dwellings through the planning system over the Plan period. Details on the affordable housing contributions from the existing housing land supply and those arising from the projected windfalls are included in Housing Land Supply Background Paper.

Policy SP5 sets out the strategic policy to deliver affordable and specialist housing.

Detailed policies and proposals will be provided in the Deposit Plan setting out thresholds, targets and site allocations and will be based on the outcome of the emerging evidence on development viability work.

To contribute to the Affordable Homes target, affordable housing led sites will be included within the Replacement LDP where needed. Affordable housing led sites are defined as those where at least 50% of homes on a site are affordable.

Affordable homes will be delivered at scale by Registered Social Landlords and the County Council and smaller projects such as community-led, co-operative and self-build homes will be supported providing the homes are secured in perpetuity for those who cannot afford market housing.

Open-market housing schemes will generally be expected to provide an element of affordable homes which will be based on the evidence of needs in a housing market area, taking account of development viability.

Specialist accommodation to meet, for instance, the needs associated with an ageing population or supported accommodation as identified by the LHMA (2024) are supported by the Replacement LDP. Powys County Council is also working with Registered Social Landlords and Welsh Government to address the housing needs of homeless persons, and this includes a programme of new build social housing schemes. Homelessness levels will be monitored through the Monitoring Framework which will be included in the Deposit Plan.

9.5 Gypsy and Traveller Site Provision

Land will be made available to accommodate unmet short-term needs for Gypsy and Traveller accommodation as identified in the latest Gypsy and Traveller Accommodation Assessment, 2021 (GTAA). Provision will be made for 12 additional residential pitches to serve needs in the Welshpool area within the first 5 years of the Plan period. The Deposit Plan will include a site allocation to meet the assessed need.

The GTAA 2021 has been submitted to Welsh Government for approval. The findings from the GTAA were further informed and updated by more recent evidence arising from the Council's Housing Service who engaged directly with the families in 2023 to discuss the results of the GTAA and how these should be interpretated and implemented. The figure for imminent unmet needs in the Plan area (12 pitches) has been agreed in principle through correspondence with Welsh Government. Longer term and unforeseen needs will be supported by a positive policy approach.

9.6 Employment and the Economy

An Employment Needs Assessment (2024) was undertaken to provide an assessment of the supply and demand for employment land in the Plan area. It looked at the available employment sites and existing employment areas to understand the supply side and reviewed the property market, whilst consulting with local stakeholders and forecasting employment growth, to understand the demand side. PPW requires LDPs to provide well connected employment sites which reduce the need to travel and support sustainable economic development. Informed by this national policy, the Employment Needs Assessment identified five commercial market areas which are presented in Figure 9.

The Employment Needs Assessment recommended that the five commercial market areas, which are focussed on Tier 1 and some Tier 2 settlements, should be the focus for the provision of new allocated employment land to support uses within Use Classes B1, B2 and B8.

Based on past take up rates, with an additional allowance for constrained supply, the Employment Needs Assessment indicated that to meet employment needs between 2022 and 2037, the Plan should make provision for 40 hectares of land for employment purposes in Use Classes B1, B2 and B8. It also considered that the provision of 40 hectares of employment land would provide sufficient flexibility to be able to maximise opportunities presented by the Mid Wales Growth Deal and any other regeneration initiatives.

The Demographic Evidence Report forecast that the size of the labour force could increase by 153 people per year, 2,295 for the period 2022–2037, based on the preferred growth strategy. The provision of 40 hectares of employment land for B-Class industries will support some of this increase, although growth will occur in other sectors.

Table 8 shows how the provision of 40 hectares of land will be delivered across the Commercial Market Areas.

Table 8. Summary of Replacement LDP Employment Provision and the Spatial Distribution across the Commercial Market Areas

Detailed policies, employment safeguarding areas and site allocations will follow in the Deposit Plan. This will include measures that recognise the dynamic nature of employment proposals and business growth, both in Commercial Market Areas and where needed to support the rural economy.

To support the rural economy and sustainable rural communities, small scale employment opportunities will be facilitated, including farming, growing and rural enterprises in the countryside where justified.

9.7 Retail and Town Centres

A Retail Needs Assessment (2024) has been undertaken to inform the Replacement LDP. The Assessment considered the capacity for retail development in the Plan area for the period 2022-2037. It concluded that although there may be a requirement for a small amount of additional comparison floorspace towards the end of the Plan period, it would be unlikely to be sufficient to generate a requirement for new sites to be allocated, instead offering the potential for vacant floorspace to be brought back into retail use.

The strategy supports the Plan area's existing Town Centres through the protection and encouragement of retail provision and other complementary uses such as those relating to leisure, culture and entertainment in appropriate and sustainable locations. All of the Town Centres are found in Tier 1 or Tier 2 settlements and benefit from a range of sustainable transport opportunities.

To inform the Replacement LDP, a Retail Review (2023) for the Plan area was undertaken. It reviewed the Adopted Powys LDP (2011-2026) Retail Hierarchy, considering the latest planning policy and guidance and the scale and diversity of the retail centres. This included undertaking a comprehensive 'health check' that considered the type and quantity of retail offerings for each of the centres. Although the Adopted LDP (2011-2026) hierarchy was considered to be generally robust it was found that it would benefit from an update particularly to reflect a regional approach.

The Retail Review found that Newtown had distinctive characteristics and would be more appropriately categorised as a Sub-Regional Centre in alignment with Aberystwyth in Ceredigion. In addition, the study identified that Powys has five Primary Towns - Welshpool, Llanidloes, Llandrindod Wells, Machynlleth and Builth Wells - serving large spatial areas and meeting the needs for shopping and local services not met within other smaller towns. The Secondary Towns identified included Rhayader, Knighton, Ystradgynlais and Presteigne. The Secondary Towns were noted to be of a smaller scale with smaller local catchments than the Primary Towns, typically meeting local needs with some specialised provision. The Review recommended that the hierarchy should also be supplemented with Local Towns that provide essential items required to meet day to day needs, these towns were identified as Llanfyllin, Montgomery, Llanfair Caereinion and Llanwrtyd Wells.

Future Wales recognises the need for the health and vibrancy of town centres to reflect their multi-functional nature and to be the focus for growth and regeneration. The Deposit Plan will include maps showing the Town Centre boundaries.

The types of other uses considered to be complementary to retail and therefore appropriate in retail and commercial centres include:

• Financial and professional services (A2).
• Food and drink (A3).
• Offices (B1).
• Hotels (C1).
• Educational and other non-residential establishments (D1).
• Leisure (D2).
• Other uses such as launderettes and theatres.

Town centres can face development pressures, whether from edge and out of centre developments or the change of use and loss of activity from the high street. Centres of different scale and function in the hierarchy also have different scales of opportunity with the potential to support their regeneration, growth and the 'town centre first' approach. The most important areas within the Sub-Regional Centre and Primary Towns will be protected with primary and secondary shopping frontage areas policies which will be detailed in the Deposit Plan. Opportunities will be sought to regenerate and improve the retail environment and improve access to and within Town Centres by all modes of transport, prioritising walking, cycling (active travel) and public transport.

9.8 Sustainable Tourism

The high quality, beauty and variety of the Powys landscape, combined with its history and culture, create an area of great attractiveness which has huge potential for high value tourism. The Replacement LDP seeks to support sustainable tourism, whilst ensuring the safeguarding (including the care, improvement and restoration) of important tourism-related resources and assets, such as the natural, built and historic environment, national trails, public rights of ways, the national cycle network, dark skies, distinctive landscapes and open spaces.

The Deposit Plan will provide a detailed policy framework that supports appropriate tourism, leisure and recreational development, whilst seeking to protect and enhance existing facilities, for the benefit of residents, visitors and the local economy.

The presence of second homes and short-term holiday lets in Powys tends to be more prevalent in a small number of rural communities, rather than being a county-wide issue. The Second Homes and Short-Term Holiday Lets background paper identified potential hotspots, where the proportion of properties being used as second homes or short-term holiday lets exceeded a threshold of 10%. The Deposit Plan will include a policy restricting the use of new dwellings to use as primary residences by using planning conditions.