Despite the fallout from the EU referendum and concerns from developers in the run up to the London mayoral vote, Sadiq Khan’s first 100 days in office have been far from disastrous.
The consensus seems to be that he has shown a willingness to engage constructively with the private sector with his own intention of forming a grand alliance. But more than 100 days in, on a swiftly changing political battlefield, does he need to change tactics, and what does the industry want from him?
The affordable war of attrition
One of Khan’s most controversial manifesto pledges was a requirement for developers to supply 50% affordable housing on their schemes. He and his advisers have since taken a more conciliatory approach, but the industry still wants clarity.
“Boris [Johnson], during his first term, sat down and listened to developers. He understood the challenges. Khan, once he has had time to understand the challenges, will also have to understand how to compromise,” said Jonathan Northey, partner at law firm DLA Piper. “There’s going to be compromise, because one thing worse than not meeting 50% affordable targets is 50% of nothing.”
This has already emerged in hints and consultations from both deputy mayors Jules Pipe and James Murray, which seem to be leading to a flat 35% of affordable on private schemes and the removal of viability assessments.
Lorraine Hughes, director of the London planning team at Turley, says: “While he’s wanting to maximise affordable housing provision, he’s aware, as are his deputy mayors, that there’s no point in having a policy that will turn off the tap to delivery.
“We need a sensible approach to viability, including how review mechanisms might be adopted, and an understanding that on complex, strategic sites, the community infrastructure levy might not stack up.”
The public land minefield
More difficulty may instead arise from his pledge to dispose of more public land, which developers want, but is no longer under direct Greater London Authority control.
David Montague, chief executive of housing association L&Q, says: “The next step is to build a long-term pipeline of clean, serviced and consented land.
“With this we can guarantee apprenticeships, jobs, growth, thriving communities and affordable homes. Without it, London will lose out in the competition for investment and growth.”
Boris Johnson has already disposed of all GLA land, and as a result, the new mayor will have to work with TfL to bring forward its assets, alongside health trusts, government departments, the Government Property Unit, and, of course, the London boroughs.
Other tenures: the proxy war
His support of the private rented sector, following from the previous administration’s policies, has also won him plaudits.
Ian Fletcher, policy director at the British Property Federation, says: “He sees the potential in build to rent and I think he will expand on the support offered by the previous mayor.
“He has no hang-ups on the private rented sector, but wants a better one.”
However, alongside jostling with central government about affordable housing, starter homes and planning guidelines, this also means balancing the needs of both small-scale and institutional renters.
“The key issue now is to deliver a rental market that works for everyone,” says Julian Goddard, head of residential at chartered surveyor Daniel Watney.
“That doesn’t mean hammering the buy-to-let sector with extra regulations and charges, but recognising the vital role private landlords play in providing rented accommodation and also supporting the growth of build to rent.”
Supporting the growth of the entire residential market is also key. Steve Sanham, development director at HUB, says Khan has focused only on the extremes of the market, promoting social housing and bashing prime.
“While those are both understandable, we need politicians to recognise the value of mid-market housing in London – homes in the open market, within reach of the majority of Londoners,” he says.
Winning the war
Perhaps Khan’s ability to negotiate with central government will be the most crucial factor. As a Labour mayor of a city that voted overwhelmingly to stay in the EU, with a different housing market to the rest of a nation that voted to leave, it could be an uphill struggle.
“There are big questions around how a Labour mayor can deliver effective policy under a Conservative government,” says Adam Challis, head of research at JLL.
“Housing policy can ill afford to be bogged down by politicking any more. Cross-party support for the mayor’s solutions are needed.”
He has already shown a willingness to compromise. L&Q’s Montague says his firm has been working with deputy mayor Murray on a new strategic housing partnership that brings together every housing association, local authority and housebuilder in London.
Perhaps Khan’s grand alliance is taking shape.
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SEE ALSO:
• Could TfL derail Khan’s 50% affordable housing plans
• Briefing: 100 days of Khan – the story so far
