Sadiq Khan yesterday published his draft London housing strategy, which is now out for consultation. The strategy lays out plans to intervene directly in the land market, boost affordability, and support private renters. Nick Johnstone and Alexander Peace outline the key points:
Direct intervention
Of the policies in the draft, the newest and most significant is the decision to pump as much as £250m into the purchase of sites, through compulsory purchase and other means. The strategy is light on detail about how this will be achieved, but it wants to focus on brownfield uses, and finding a way to turn a profit and use the proceeds to recycle into further land buying opportunities – that may happen through seeking planning consent and taking upside from the land value uplift. Housing associations are likely to be the target for the GLA’s disposals.
Brownfield is not the answer, but redeveloping town centres is
Despite a lot of hyperbole references to brownfield land, the strategy concedes there are not any large brownfield sites left, and they are too slow to build out anyway. It says that as a result two opportunities stands out: development in London’s town centres; and more development on small sites.
Apparently: “Working with councils and landowners, the mayor will identify town centres suitable for housing led regeneration that can revitalise high streets, create new employment opportunities, improve the public realm, and build more homes.”
He wants to be more like the HCA
Khan is also lobbying central government to be given more control on government land. While it does not specify which ownerships this means, it hints at a far more hands-on approach, not just selling land, but gaining planning and developing out too.
He wants a successor to Help to Buy
Interestingly, and despite the argument it is feeding the pockets of housebuilders with public money, Khan wants a continuation of the policy when it finishes in 2012: “He will urge Government to provide a sustainable successor to the scheme in London.”
Density is good, as is co-location
To avoid the green belt, the strategy has adopted a far more pleasant voice around higher density. It also talks of co-location and relocation to create new neighbourhoods: mixing residential with other uses, but also the “consolidation of industrial land to retain industrial floor space while opening up sites for residential development”.
Khan wants control
From devolved funding and regulatory powers to CPO central authorities and refinements of land valuation, Khan wants more control over London’s housing market and directing development. Whether a carrot or stick will be used unclear, under a section on incentivising development, there is talk of “incentives that could encourage landowners to consider redeveloping sites that are currently used inefficiently”.
He can’t do it alone:
Despite wanting more powers and trying to do it all, the strategy concedes Khan can’t do it alone:
- Local councils will have “clear expectations for local delivery”.
- The private sector is expected to increase homebuilding rates and affordable housing in return for support.
- Housing associations can be made strategic partners to support “key parts of this strategy”.
- Central government must allow further devolution of funding and powers.
Small sites, small builders
Procurement of development partners for public land has tended to focus on the largest, most strategic sites. Take, for example, Transport for London’s delivery partner panel, or the London Developer Panel, which is currently being procured – both are designed for larger developers. Khan’s new strategy makes a specific point of trying to bring small publicly-owned sites forward with small builders. It will be based on a simplified competitive disposal process, “combining some of the convenience of land auctions with some of the delivery and quality control of a development agreement – but without the complication of procurement”. The strategy doesn’t say exactly how, but it wants public landowners to be able to select small builders capable of building high quality homes with innovative solutions for complex sites, based on their track record and background.
Lack of detail about quality and place-making
Quality and design are not particularly prominent.
New deal makers
It’s famously difficult for the public sector to buy in expertise at the right price, because the private sector can always afford to pay more. City Hall wants new “deal makers” to help it negotiate with the private sector over land. It is unclear who that will be exactly.
No mention of the 80%
Boris was much maligned for treating 80% of market rent as “affordable housing”. Nothing in Sadiq’s document addresses this, which might come as a surprise to those thinking he would take a tougher line on what actually constitutes affordable.
To send feedback, e-mail alex.peace@egi.co.uk or tweet @egalexpeace or @estatesgazette
