With a new government in place and a new London mayor on the way, is the capital any closer to delivering the 65,000 homes the GLA suggests should be built annually? Reporting by Mark Simmons
The new government may have taken up residence in 10 Downing Street and Whitehall. But Sarsfield believes it is also sitting on the fence. And, he argues, it is high time that it got down. The chief executive of Family Mosaic, and chair of the g15 group of London housing associations of which it is a part, isn’t inherently opposed to the government’s plans to extend right to buy to his tenants. “It could actually increase our ability to provide more homes if,” he emphasises, “the government handles it well. But they’d need to fund us 100%. Otherwise why would we develop?”
Sarsfield is more acerbic when it comes to the proposed funding mechanism for local authorities, which he dismisses as “doomed”. “It puts the emphasis back on the Treasury. And they need to work out how to pay for it.” He is also concerned by plans to focus on benefit cuts to the working poor. The effect of those changes, in particular the way in which it might alter tenants’ ability to pay rent, isn’t clear.
But he commends the GLA for doing a good job of identifying and driving forward land supply and agrees that the assembly should be in the driving seat for the provision of new homes. However, he notes that the body’s fragmented nature – divided into the 32 boroughs of its constituent members – needs to be carefully managed. “It takes just one to say ‘I’m not playing’ and the output becomes sub-optimal.”
Andrew Boff, leader, GLA Conservatives, Greater London Assembly
“Anyone who says ‘The problem with London’s housing is X’ is probably a charlatan as there is no single solution. Housing problems won’t be solved by just building social housing. We need to increase volumes substantially and that means stripping away local authority land banks and ramping up investment. The mayor of should take a strategic lead, but this isn’t just a London problem. We have to develop up to 40 garden cities within the South East. However, not a single centimetre of green belt should be built on – I’d rather we built on the sea.”
Adrian Owen, head of UK residential, BNP Paribas Real Estate
“The majority of land suitable for development in London falls under the control of the public sector. As a result, local authorities and government departments will need to play a leading role in addressing the capital’s housing crisis. While councils are undertaking a direct development role, the expertise of the house building industry remains vital to delivering the volume of homes required. However, should we stop thinking we can ever supply enough housing for everyone who works in the capital? Maybe the focus should be on increasing supply outside London along with improving transport links.”
John Dickie, director of strategy and policy, London First
“We need government to give the right incentives to the boroughs to support the private sector building more homes. We also need to get more public land into play. The creation of the London Land Commission to identify surplus public sector brownfield land is a good first step – but the real challenge will be in getting this land into development.
Government needs to sweep away barriers which stop the market from delivering: for example, by reducing the complexity from having 33 planning authorities with multiple approaches to development in general and social housing, the Community Infrastructure Levy and Section 106 obligations in particular.”
Simon Cookson, partner, DLA Piper
“I do not think there is a single solution to London’s housing crisis; action on multiple fronts is going to be necessary. The best results are going to be achieved if the public sector can work both on its own account and with the private sector. More public land can be brought into housing use. London’s green belt can help to relieve the shortage. Local housing companies, a recalibration of viability and relevant adjustments in planning law would all help to make the market more liquid and drive prices down.”
James Lidgate, head of residential, Legal & General Property
“Beyond the volume housebuilders we need new entrants to the market, such as SMEs, to deliver smaller-scale developments. The weight of capital looking to invest in the build-to-rent sector will also play a contributory role. The real catalyst, however, will be driven by the blurring private and public sectors. The GLA, registered providers, London boroughs and Transport for London can leverage huge amounts of capital to invest in new housing of all tenures by reviewing how public/private partnerships are procured. If a more collaborative approach can be fostered there is an opportunity for better housing delivery.”
