Lisa Scenna, managing director of Morgan Sindall Investments suggests how we can be more creative in sourcing land for new homes.
Depending on whose estimates you are reading, figures will tell you that the country needs anything from 240,000 to 300,000 new homes built each year to meet current demand. Councils are increasingly stretched as they try to maximise housing delivery, and the pressure to identify sites appropriate for new development is acute.
The problem is so severe that in London the Evening Standard has gone as far as asking its readers to send suggestions of empty tracts of brownfield and green belt land that could be put to better use, sending on the information to City Hall in bulk to try and move things along more quickly.
However, with a bit of creative thinking developers and local authorities may have access to some hidden gems right on their doorstep that they previously hadn’t considered. A recent JLL report established 400,000 homes could be built by taking advantage of 10,500 existing car park sites across the country; a separate survey found that in one London borough almost three quarters of council-owned garages were empty – either too small or expensive to lease out.
With demand for land for housing and vital community infrastructure greatest in our city centres, car parks aren’t the only answer – a host of other small public land holdings, from disused open spaces to railway arches, can unlock greater value in good locations.
Examined case by case, it is easy to understand why there may be a sense of inertia within local authorities when it comes to tackling such small sites, with an assumption that not enough value will be gained in bringing forward their redevelopment. However, if we are to move in the right direction in fulfilling housing targets and enhancing our towns and cities in ways that meet local needs, then we have to do more in maximising the potential of assets like these.
Yet while local authorities have the knowledge of existing assets and are best placed to understand the concerns of their residents and the wider community, lack of funding and resources are a significant barrier to progress – even among enterprising councils looking to maximise the return from their land. The potential loss of existing community amenities and infrastructure is another immediate concern.
Collective knowledge
The trick is not to think of these unlikely sites as standalone assets but instead consider them within the context of other potential development nearby. Taking a holistic view of its assets and a bolder approach to its portfolio, a council can package up less attractive sites and blend them with others to unlock more value. Build housing on a surface car park, then use another site to replace your lost parking with a more space-efficient multi-storey; add another unit on an end-of-terrace infill site and not only are you delivering much-needed housing, but you can channel the profit into improving local infrastructure where it is needed.
The private sector has a pivotal role to play here, which is not to suggest that these important publically-owned assets are simply handed over to private developers. In Bournemouth, our £500 million 50:50 partnership with the borough council pools the local knowledge and assets of both Morgan Sindall Investments and the local authority with the experience, networks and supply chain which we bring as a private partner.
In efficiently delivering housing and infrastructure, the Bournemouth Development Company joint venture is greater than the sum of its parts. Most recently it has secured approval for 46 new homes on the site of a surface car park, delivering vital housing near the town centre and reinstating public parking in other areas, easing congestion in Bournemouth’s busiest streets.
In turn, this will bring residents into the centre, and their increased spend will support the viability and vitality of Bournemouth. We’ve already seen this happen over the course of our work in Bournemouth in the past six years. Then, the town centre was busy only in the holiday season – already we are seeing a hub of activity every day of the week.
Approaching the regeneration as a whole rather than piecemeal acts as a catalyst for other inward investment in the town centre. Simultaneously, the framework structure of the partnership allows newly-identified sites to be added to the programme, significantly increasing the pace of delivery.
There’s nothing new about collaborative working between public and private organisations.
However, in today’s environment it’s evident that we need to think in more creative ways if we’re to meet the needs of future generations. Today’s public car parks could become tomorrow’s city centre apartments – but only if we choose to be bold with our approach.
