6 August 2016 – by Louisa Clarence-Smith A new definition of “affordable” will be brought forward as part of planning guidance released in the autumn, London’s deputy mayor for housing James Murray has revealed. The new definition will be announced alongside a new, clear methodology for viability assessments and a non-negotiable fixed affordable housing tariff, giving developers the option to avoid viability assessments altogether. Asked about the possible exemption of build to rent schemes from starter homes requirements, Murray told Estates Gazette he was keen to exempt starter homes from build to rent and will be making the case to government. The policy overhaul is designed to allow mayor of London Sadiq Khan to start delivering on his campaign pledge to make 50% of new homes delivered in the capital “genuinely affordable”. Supplementary planning guidance allows the Greater London Authority to shape the existing London Plan inherited from Boris Johnson. Khan’s team has started the process of rewriting the development strategy document, but with public consultations and government approval, the process is expected to take two years. All the content from this weekís magazine, including this article, is available in the new app. Will build-to-rent schemes be exempt from starter homes? Murray said he was concerned about the viability of build-to-rent schemes made subject to a starter homes requirement. He said: “On-site provision of starter homes or even commuted sums for starter homes would seriously impact on their viability, so we are concerned about that and we will be making the case that the starter homes requirement, should it come forward more generally, certainly should not apply in that way to build-to-rent.” How the response to starter homes policy is worded in the planning guidance will depend on whether the government has published the regulations in time. How would a 35% fixed affordable housing contribution be implemented? Estates Gazette revealed on Friday that City Hall was consulting developers and boroughs on a 35% flat rate affordable housing tariff. Murray said a fixed rate would give developers the option to opt out of the viability process to help speed up planning permissions. He said the exact level of the fixed rate would be confirmed in the autumn but conceded that there needed to be an incentive for developers to go for the fixed contribution, rather than the viability route. He said: “We are going to have to have those discussions over the summer and work out exactly where the number might land. The end of viability assessments? The move will not mean the end of viability assessments completely, since in the current London Plan viability is central to its determination of planning applications. But through the supplementary planning guidance the mayor’s office does have powers to set out clearer guidelines for how to approach viability. Murray said the lack of “clarity or consistency” across London about which methodology was being used to assess viability was causing conflict between applicants and local planning authorities, and slowing down developments. Click here to listen to the full interview Source link

13 August 2016 – by Janie Manzoori-Stamford When consent was given for Network Rail’s plans to redevelop Brixton Arches, protesters came out in force. Nothing livens up a planning meeting like a glitter bomb. A shower of blood-red sparkles raining down amid catcalls of angry protest is a far more spirited conclusion to nearly three hours of discussion than a call for any other business. Especially when it is followed by the arrival of several uniformed police officers, drafted in to keep the peace. So very bohemian, so very Brixton. This is exactly what happened last week when Lambeth Council’s planning committee meeting, held in public at the Karibu Centre on Gresham Road, SW9, voted six to one in favour of proposals to redevelop the railway arches beneath Brixton rail station. The site is currently home to an eclectic mix of independent traders, including a fishmonger, carpet seller and hair salon. Landlord Network Rail says it aims to “enhance the character and improve the fabric and structural integrity” of the arches. Over the course of a 12-month, £8m revamp beginning at the end of this month, it says the plans will rejuvenate an important part of Brixton’s cultural heritage. New shop frontages, 26 re-clad units and 13 new kiosks are among the plans to improve the “commercial attractiveness” of the arches which the public sector body says will bring them in line with other Brixton retailers, increase footfall and help boost the local economy. But not everyone is on board. Apart from the glitter bombing protesters, a petition objecting to Network Rail’s proposal has attracted nearly 30,000 signatures. This is just one chapter in the ongoing debate around gentrification in London – for which Brixton has become the poster child. So just how could the transformation of such an historic fixture on Brixton’s retail landscape contribute to the on-going debate around pros and cons of “premiumisation” in London? All the content from this weekís magazine, including this article, is available in the new app. On paper, the arches scheme looks to have real potential to boost regeneration efforts in an area that has in the past been known for crime and poverty. Back in 2001 the centre of Brixton was described by a police chief as a “24-hour crack supermarket”. These days the visitors it attracts from across London are more likely to be there for a gourmet burger or a craft beer in the thriving food and drink hub of Brixton Village, housed in three bustling arcades that were previously home to covered markets. And as Brixton’s desirability has shot up, so too have house prices. Residential property values have increased by 128% in the last 10 years, with the average price of a semi-detached house in Brixton now topping £1m. The cost of renting also shows how far Brixton has come. On average, a one-bedroom property in Brixton rents for £1,744 pcm (up by 23% year-on-year), just £43 less than nearby and traditionally more affluent, Clapham, according to Zoopla. It is certainly a positive story from a landlord perspective, but at what cost? Network Rail says that to achieve its refurbishment ambitions, it needs to terminate the leases of the current occupiers. Around 30 independent traders and tenants, many of which have occupied and worked out of the space for upwards of 25 years, are to be evicted on 19 August. And they are not happy about it. “When Brixton was bad, we were good,” says Riccardo Festa, who owns menswear store The Baron, which his grandfather opened on the Atlantic Road side of Brixton Arches in 1974. “But now that Brixton is good, we are bad.” Festa, who has around 11 years left to run on his 20-year lease, is convinced that his landlord wants the current occupiers out because more money can be made from new tenants. And this is despite an offer by Network Rail to return to a refurbished arch – not necessarily the same one that was vacated – after works complete, with discounted stepped rents over seven years. This means that the 2015 market rate, which Network Rail has determined as being more than double what tenants currently pay, will not be imposed on returning occupiers until 2024. It is a strong offer and one that the company says it does not do anywhere else. But is it affordable? Click here to read more Source link

A good result for Scottish construction professionals – it has been reported by the Office for National Statistics that the industry’s productivity levels and output has reached record heights of success. The results, which highlighted the output figures at the close of last year, signifies the growing prosperity of the construction sector in Scotland, with the output figure reaching in at a staggering £14.5bn, a welcomed increase from the £14bn previous-high experienced in the 12 months building up to last September. With clear indications of a prosperous Scottish construction industry, it has also been highlighted that many of the key industry sectors have all contributed to the figure, hinting at quite widespread success, as opposed to success solely in one sector alone. Of those performing best, however, infrastructure is the frontrunner, which boasted a figure clocking in at about £4bn, effectively some 28% of the total output over the year. Additionally, the private commercial sector also performed incredibly well, adding another £2.4 to the pot, with a further £2.3bn seen in the much-welcomed housing sector, where investment is surely deemed a priority. Yet, despite the positive figures and inherent outlook of the sector, construction professionals have highlighted the impact that employment and recruitment figures may have on the continued success of the sector. With the present employment levels sitting well below to the figures reported pre-recession, concerns have been raised as to how, and why the construction industry has been able to perform at such levels with employment levels being maintained at such a low level. Keen to develop the integral link between productivity and levels of employment, the Scottish Building Federation’s Managing Director, Vaughan Hart commented that: “Against that backdrop, there is still work to be done to secure sustainable long-term growth in the Scottish construction industry – no least by re-establishing the important link between output and employment within the sector.”