You can’t move for swivel-eyed loons these days. They’re there throughout the Conservative party’s grassroots, we’re told; and they’re there, it seems, gratuitously blocking development via spurious judicial reviews.
Developers should take care. As the prime minister will tell you, good seldom comes of being seen to be quite so dismissive.
This week, the industry gathered to debate April’s government announcement of reform to the JR system. And the phrase “swivel-eyed loon” got an airing. More than once.
The consensus at the British Property Federation-convened event was that the reforms were a step in the right direction, though dangers lurk. Localism poses an additional risk, warned SJ Berwin’s Simon Ricketts, while the Growth and Infrastructure Bill places additional pressures on authorities.
Developers’ concerns are legitimate and the scale of the challenge is enormous. In 2011-12, 1,800 JRs started with legal aid, with more than 500 ending without benefit to the client. It’s a number that needs to come down.
But the industry will do itself no favours if it isn’t seen to be receptive to legitimate challenge. It is the price of development – and of democracy. Borrowing a phrase – even in jest – that is doing immeasurable damage to the government will not help that cause.
Keep an eye out for a refreshed comment section in next week’s Estates Gazette. As well as an updated look, including the introduction of a weekly international comment slot, we will be welcoming a host of new columnists. David Smith, economics editor of the Sunday Times, retailer and turnaround specialist Bill Grimsey and Tech City’s head of property Juliette Morgan will join the BPF’s Liz Peace to bring regular views from across the sector. British Land’s head of offices Tim Roberts, Level39’s Eric Van Der Kleij, SEGRO’s David Sleath and AHMM’s Simon Allford (architect of the Google HQ) are also among our new, frequent contributors.
As well as several other columnists from around the UK, read dispatches from The Big Wig: a well-known, senior property figure, who will write anonymously, lifting the lid on industry news and gossip.
Worrying signs this week that the community infrastructure levy is to be used as a planning tool, with student accommodation developers its first victim. Analysis of draft community infrastructure levy rates for more than half of London’s 33 boroughs show developers face a charge of up £10,000 per student bed – a fivefold increase on sums levied under section 106. But the fact that the charges are far higher than those being levied on hotel developers has understandably riled the student accommodation sector.
Do students need so much more infrastructure than hotel guests? Surely the reverse would be the case. So, presumably, councils are using the tax to discourage student flats.
This may not be the case. Yet whatever the motive, the consequence is one of unfairness. And while many local authorities around the UK would seek to conspicuously encourage a burgeoning student sector, what is a London problem today could become a national problem tomorrow.
GDP may not have been revised upwards this week, but sentiment at least is improving. Or is it? Have your say in the latest Estates Gazette/Grosvenor Property Sentiment Survey. We want to know your outlook on your sector and the economy at large.
As well as revealing the true state of the property market in 2013, more than anything we want to identify where growth is going to come from.
