COMMENT: Brexit-wide schisms are emerging in planning and development. And unless developers and local authorities can marshall greater support for change, more schemes will stall.
Last month the Adam Smith Institute urged ministers to empower a new wave of “yimbys” (“yes in my backyard”) to boost local housing development and add up to 30% extra to the UK’s GDP.
At a dinner hosted by Mishcon de Reya at the Labour Party Conference on Sunday, council leaders and property company bosses recognised the need for change.
Ealing council leader Julian Bell said some local issues had been the “planning equivalent of Brexit” in polarising opinion. Camden council leader Georgia Gould warned of an “inter-generational” divide where those with assets opposed development and those without supported it.
However, David Christie, Newham’s cabinet member for strategic policy, said it wasn’t just home owners who were difficult to win over.
“A successful development probably means [rental] tenants won’t be able to afford to live there,” he warned. “People are right to be sceptical of estate regeneration.”
Talk of polarisation was timely; just along Brighton’s seafront the Labour frontbench was calling for a crackdown on “property speculation” and backing nationalisation of private finance initiative contracts.
For now, whether Jeremy Corbyn is in a position to take such drastic action is moot. But further intervention in the market is inevitable.
Three weeks on from launching Sadiq Kahn’s draft housing strategy, London deputy mayor for housing James Murray promised a “more muscular interventionist role” on freeing up land.
“London is a city of economic success and jobs growth, but one of housing failure,” he said. “Eighty per cent of new homes in London are affordable to just 8% of Londoners.”
L&Q chief executive David Montague urged greater collaboration between central and local government and the private and voluntary sectors. He said all parties had moved on from a position where collaboration was once seen as “the suppression of mutual loathing in the pursuit of funding”.
That may have changed but other challenges remain. “Collaboration is seen as being in the pocket of developers,” warned Pat Brown, director of consultancy Central.
And Landsec development director James Rowbotham said there was work to be done to help the public understand why ground wasn’t always broken as soon consent was granted.
It might take fresh thinking to break the deadlock. “Are we solving the housing crisis by collaborating?” asked Southwark leader Peter John.
“We are never going to see a [significant] increase in the number of homes built unless – and until – the government really seizes this issue and says housebuilding needs to be done by people who don’t need to make a profit.”
Another way to depoliticise the issue would be to tackle the stigma around overseas sales.
Could government – local or national – act as guarantors for developers who would otherwise have to pre-sell flats overseas to secure early stage funding for developments? “Either we change the banking system or we act as guarantors,” said John. “It would take the sting out of it.”
Essential Living chief executive Darryl Flay warned the build-to-rent market may be in its infancy, but its success was not guaranteed.
“Build-to-rent is really fragile,” he said. “Our US investors look at the market as I do and see billions of pounds supporting the private housebuilder market which has never built enough homes.”
If collaboration is not enough and build-to-rent’s success is not yet assured, others at the dinner suggested further regulatory change to support housing delivery, particularly in the private rental sector. A separate use class for build-to-rent and zoning could be the way forward.
All that was clear was that the status quo was not an option and that the industry needs to do more than listen to the sound of its own voice.
“Eighty per cent of housing association chief executives voted remain,” said Montague. “Sixty-four per cent of tenants voted leave. If we do not connect with growing anger and resentment among young people then woe betide us.”
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