“Planners back REDUCTION of affordable homes in Honiton”

“… Councillors voted by 13 votes to one on Tuesday afternoon to allow the application, but not until Cllr Jenny Bond asked the committee to remember the 26 affordable homes and the families who would miss out when voting on it.

She had earlier added: “We have lived and breathed this application for many years through gritted teeth but this is disappointing as there is a real need for affordable housing in Honiton and Gittisham. The current offer is 90 affordable with £500,000 offsite, which equates to four houses, so the net loss is 26 families in desperate need of an affordable house who have to wait.

“With my heart I would recommend refusal and vote against it, but my head says that we have to vote with the recommendation and not waste public money on appeal. But to lose 26 affordable houses is unforgivable.”

Cllr David Barratt said: “I will propose approval as we need to vote with our heads on this one, even though affordable housing is incredibly important.”

The committee was told by development manager for EDDC Chris Rose that the applicants have submitted the request as they believe that current planning policy would support a reduction in the provision of affordable housing down to 25 per cent, if a new planning application were to be submitted.

The planning officers’ report advised that while there is a chance that Baker Estates may not be able to successfully argue 25 per cent affordable housing provision as part of a new planning application, there is an equal chance that such a proposal would be acceptable should an application be submitted and determined on appeal by the Planning Inspectorate.

Graham Hutton, Development Director at Baker Estates had said: “We think that we are making a very fair offer. We have consulted at length with the local ward members, as well as with both Gittisham Parish Council and Honiton Town Council, to make sure that we get this right.

“What is now on the table is a proposal to provide 31 per centaffordable housing, as well as a far better mix of homes and a further £500,000 off-site contribution. This provides the best chance of securing the swift delivery of 90 affordable homes for the local area – it’s worth bearing in mind that fewer than 10 affordable homes have been built in Honiton in the past decade.

“Only by reaching agreement at the local level today is it possible to offer a package this generous, as the costs of appeal or a new application would prohibit it. An agreement today will allow us to continue delivery of the homes and this will make a huge difference to Honiton and Gittisham.”

https://www.devonlive.com/news/devon-news/planners-back-reduction-affordable-homes-1305831

“Law Society criticises proposed government approach to planning conditions”

“The Law Society has expressed concern that the government’s proposed new approach to planning conditions was “overly prescriptive and risked generating more appeals as a result of refusal or non-determination of planning applications”.

The Ministry of Housing, Communities and Local Government’s consultation on draft regulations intended to improve the use of planning conditions ran until 27 February.

It invited comments on draft regulations which create an exemption to the requirement in the Neighbourhood Planning Act 2017 that local planning authorities obtain the written agreement of an applicant before imposing a pre-commencement condition on a grant of planning permission.

In its response Chancery Lane’s Planning & Environmental Law Committee said the generation of more appeals was an outcome that “would defeat the object of the exercise”.

The Committee went on to propose alternative approaches to meet the government’s objectives.

The Committee’s response, which can be downloaded here, was as follows:

Q1: Do you agree that the notice should require the local planning authority to give full reasons for the proposed condition and full reasons for making it a pre-commencement condition?
We agree with the requirement to give reasons for proposed conditions but are concerned that the meaning of “full reasons” is undefined (and is not defined in S100ZA of the 1990 Act) and could thus lead to litigation in the same manner as happened with “summary reasons”.
It may be preferable to apply the recently affirmed standard for reasons in the Dover case(1) – “proper, adequate and intelligible”, also per South Bucks(2) many years before.
(1) Dover District Council v CPRE Kent; CPRE Kent v China Gateway International Ltd [2017] UKSC 79
(2) South Buckinghamshire District Council v Porter (No 2) [2004] 1 WLR 1953

Q2: Do you agree with our proposed definition of “substantive response” set out in draft Regulation 2(6)?
A developer veto without reasons is also unlikely to help achieve government’s goals if it increases the number of non-determinations and thus appeals. Furthermore, the Planning Inspectorate may find it unnecessarily difficult to deal promptly with such appeals if the developer’s reasoning for bringing them is not known at the outset.
We suggest that developers should be expected to give “proper, adequate and intelligible” reasons for refusing a condition, just as planning authorities should do for proposing them.

Q3: Do you agree with our proposal not to give local planning authorities discretion to agree with applicants a longer period than 10 working days to respond to the notice?
We propose that planning authorities should have discretion to allow a longer response time where this facilitates an agreed position during the notice period. Given that a longer notice period can benefit an applicant there shouldn’t be negative consequences from the additional “delay”.
If a limitation is sought, the regulations could emulate recent changes in Environmental Impact Assessment by permitting extension by agreement up to a maximum (90 days for EIA).

Q4: Do you have any other comments on the draft regulations?
While commending their brevity and clarity, we have concerns that the regulations as proposed are overly prescriptive and could lead to unnecessary increases in appeals – thus defeating their original object. We hope that our proposed amendments offer constructive solutions and would be happy to assist the Ministry further.”

http://localgovernmentlawyer.co.uk/index.php?option=com_content&view=article&id=34464%3Alaw-society-criticises-proposed-government-approach-to-planning-conditions&catid=63&Itemid=31

“PM wrong to blame councils for housing crisis but big builders have a case to answer”

Owl says: Couldn’t have put it better than this Tory leader of the Local Government Association!

“Theresa May seems to like giving “major” speeches. She’s delivering them everywhere right now. If she’s not careful she’ll end up with the sort of sore throat that made her speech at the Tory Party conference rather more entertaining than usual last year.

The latest one is on housing, for which the over used adjective “crisis” is for once apt. Cue a telling-off for developers and “nimby” local authorities for failing to “do their duty” to foster the British dream of home-ownership.

It’s a standard, and cheap, tactic of central government to blame others for its own failings, particularly local government.

Some 321,000 new homes were greenlighted in 2016 to 2017. Just 183,000 were actually built. There is a bank of 423,000 homes with planning permission awaiting construction. If there’s something stopping housebuilding it wouldn’t appear to be the planning system.

By the way, Lord Porter is a Conservative.

The figures supplied by his Local Government Association would certainly suggest that there is something to the claim that the big housebuilders have been sitting on land banks with the aim of profiting from rising values.

There are perverse incentives on them not to build, not just through those land values but also because of the fact that a genuine increase in the supply of homes might serve to reduce asking prices and thus the developers’ profits, not the mention the crazy bonuses they have been handing to executives.

The PM, in her speech, railed against the latter, and no wonder given their companies have made huge profits on the back of her Government’s Help to Buy scheme without doing much to increase the supply of homes.

Councils quite like the idea of being given powers to force their hands. Whether the limp measures suggested by the PM would do that is open to question, if they ever reach the statute book. Allowing councils to revoke permissions after two years if a building doesn’t get started feels like a half measure.

We, said, Lord Porter, a council leader and chair of the Local Government Association, are doing our bit and we have the figures to prove it.

Nine out of every 10 planning applications are approved and when the rare refusals are appealed to the Planning Inspectorate nearly three out of every four (73 per cent) of council decisions are upheld.

One thing that would help increase the supply of available homes would be to allow councils to borrow to build so that they could pick up the development slack. It’s a suggestion that has found favour with Communities Secretary Sajid Javid in the past, but not, so far, with his colleagues.

Another might be a windfall tax on developers’ profits, and perhaps on their executives’ bonuses, like the one Labour imposed on bankers, too. They could help to provide desperately needed funding to cash-strapped councils.

They might also prove to be rather popular. But they would be controversial, and require a PM with some gumption to force through. This one prefers to talk and talk and talk, and to moan a bit about local government while she’s doing it. She’ll be needing more cough sweets before too long. The rest of us will be after headache pills and prozac.”

http://www.independent.co.uk/news/business/comment/housing-crisis-theresa-may-councils-builders-construction-a8240516.html

Do you want to tell the government what you think of the National Planning Policy Framework?

Well, you can – until 10 May 2018:

“… Alongside the National Planning Policy Framework consultation documents, we have published for reference the draft planning practice guidance on viability and the housing delivery test measurement rulebook. We will publish additional draft planning practice guidance for reference later this week. …”

https://www.gov.uk/government/consultations/draft-revised-national-planning-policy-framework

Housing minister who attacked NIMBYs is a NIMBY – or maybe a BANANA!

Sajid Javid has attacked councils and NIMBYs for standing in the way of more housing.

Now, it seems Javid is even worse – a BANANA – Build Absolutely Nothing Anywhere Near Anyone!

“…1) Just months before his re-election in 2015, Javid slammed plans from his local Tory Council, Redditch Borough, to build 2,800 new homes. He said:

“…..I wish to re-emphasise my concern that land within Redditch Borough is fully utilised before any consideration is given to expanding the area’s housing need into Bromsgrove Green Belt as a neighbouring district.”
Ah, the green belt, of course. Javid is a man of principle, let us not forget.

2) In June 2016, Javid slammed his local council’s plans to build 1,300 houses in Perryfields:

“While I understand this land was designated for housing, there is significant concern about the implications such a large-scale development would have on local infrastructure, facilities and environment.”
Aaaah, it all makes sense now: Javid cares about providing sustainable housing. Makes perfect sense:

3) In 2012, Javid backed another campaign against plans to build 175 homes in the Worcestershire village of Hagley. At the time, he said:

“People aren’t against it just for the sake of being against the development, it’s can the local infrastructure cope?”
Hmm, a theme seems to be emerging. Surely Javid was again rallying to defend the green belt, no? Well, no. The council head of planning Ruth Bamford responded to Javid’s NIMBYism by pointing out: “If it didn’t go here it would most likely go on greenbelt because there isn’t much land around Bromsgrove district that can take new housing.”

Slippery Javid just keeps on passing the buck #NIMBYpamby.”

https://politicalscrapbook.net/2018/03/housing-hypocrite-sajid-javid-fought-plans-for-4200-homes-in-own-backyard/

The myth of affordable homes

“Some of the UK’s biggest cities are allowing developers to plan huge new residential developments containing little or no affordable housing, a Guardian Cities investigation has found.

In Manchester, none of the 14,667 homes in big developments granted planning permission in the last two years are set to be “affordable”, planning documents show – in direct contravention of its own rules, and leading to worries that London’s affordable housing crisis is spreading.

In Sheffield – where house prices grew faster last year than in any other UK city, according to property portal Zoopla – just 97 homes out of 6,943 (1.4%) approved by planners in 2016 and 2017 met the government’s affordable definition. That says homes must either be offered for social rent (often known as council housing), or rented at no more than 80% of the local market rate.

In Nottingham, where the council aims for 20% of new housing to be affordable, just 3.8% of units given the green light by council planners meet the definition, Guardian research found. …

One major way developers get past planners is by filing confidential “viability” appraisals. These assessments, which often take place once significant work on the development has already been done, frequently conclude that, if the developer were forced to include any affordable flats, their schemes would be insufficiently profitable.

Research by the housing charity Shelter in November found that where viability assessments were used, new housing sites achieved just 7% affordable housing.

Liberal Democrat councillor John Leech, the one-man opposition to the Labour-run council in Manchester, has demanded the council publish these appraisals so that they can be scrutinised.

Last year, Bristol council decided to force housing developers to do so. Guardian figures show that in the last two years just 6.77% of new developments in the city will be affordable. …

Other cities are far more strict with developers. In Cardiff, 24% of the homes granted planning approval in 2016 and 2017 met the affordable definition.

Leeds council routinely forces developers to include at least 5% affordable units in any large development. Some 2,011 affordable homes have been built in Leeds since 2012 – 510 of which were in the private sector, agreed as part of agreements with big developers. …”

https://www.theguardian.com/cities/2018/mar/05/british-cities-developers-affordable-housing-manchester-sheffield

“May wrong to blame housing crisis on councils, says LGA”

“… The truth is that councils are currently approving nine in 10 planning applications, which shows that the planning system is working well and is not a barrier to building,” Porter said.

“Nearly three-quarters (73%) of planning refusals are upheld on appeal, vindicating councils’ original decisions. It is completely wrong, therefore, to suggest the country’s failure to build the housing it desperately needs is down to councils.”

He said the government proposal to put independent inspectors in place where councils were seen to be blocking housing development was “unhelpful and misguided”.”

https://www.theguardian.com/society/2018/mar/05/local-authorities-criticise-theresa-may-housing-crisis

How do you solve the housing crisis? With great difficulty given vested interests

Matt Ridley:

“Sajid Javid, the housing secretary, is right — and brave — to go on the warpath about Britain’s housing crisis in his new national planning framework, to be launched today. Britain’s housing costs are absurdly high by international standards: eight times average earnings in England, fifteen in London. A mortgage deposit that might have taken a few years to earn in the early 1990s can now take somebody decades to earn. Average rents in Britain are almost 50 per cent higher than average rents in Germany, France and crowded Holland.

Britain really is an outlier in this respect. Knightsbridge has overtaken Monaco in rental levels. Wealthy, crowded Switzerland has falling house prices and lower rents than Britain. Over recent decades, most things people buy have become more affordable — food, clothing, communication — and the cost of building a house has come down too. Yet the price you pay for it in Britain, either as a buyer or a tenant, has gone up and up.

Speculation exacerbates the problem. British people, and foreign investors here, borrow money to invest in housing on the generally valid assumption it will rise in value. This distorts our economy, diverting funds from more productive investments and exacerbating labour shortages in expensive places such as London and Cambridge.

The fastest take-off in house prices relative to earnings has been in the past two decades, when cheap money has further fuelled the house-price spiral, rewarding the haves at the expense of the have-nots. The high cost of housing is by far the biggest contributor to inequality. The reason people have to turn to food banks is not because of high food prices, but because of high housing costs. It is a rich irony that the Attlee government’s Town and Country Planning Act 1947 is probably as responsible as anything for the continuing prosperity of most dukes.

Yet seeking out profiteers misses the point. At the root of the problem is supply and demand. Britain restricts the supply of housing through its planning system far more tightly than other countries. That keeps prices going up, enabling developers, landlords and speculative buyers to make gains. We are building not much more than half as many houses each year as France, despite a faster population growth rate, and a quarter as many as Japan.

So why is British planning so restrictive? Until 1947 Britain regulated housebuilding in most cities the same way other countries did: by telling people what they could build, rather than whether they could build. As Nicholas Boys Smith, director of Create Streets, told a recent conference at the Legatum Institute, in the centuries following the Great Fire of 1666 “there was a series of pieces of legislation that set down very tight parameters: ratio of street width to street height, the fire treatment of windows etc. That is how most of Europe still manages planning. They have not taken away your right to build a building.”

Britain switched to deregulating what you could build, but nationalised whether you could build, by adopting a system of government planning in which permission to build was determined by officials responding to their own estimate of “need”. This brought great uncertainty to the system, because planning permission now depended on the whims of planners, the actions of rivals and the representations of objectors. Today local plans are often years out of date, if they exist at all, and are vast, unwieldy documents, opaque to ordinary citizens and subject to endless legal challenge and revision.

This makes Britain both far more subject to centralised command and control, and far more dominated by big corporations than other countries. It is a good example of how socialism and crony capitalism go hand in hand. Barriers to entry erected by planning play into the hands of large companies and make it hard for small, innovative competitors to take them on. In turn, this leads developers to produce unimaginative, repetitive designs to get the best return on their huge investment in land and permission.

Getting planning permission to build houses in Britain requires you to spend big sums on consultants, lawyers, lobbyists and PR experts, as you wear down the councils’ planning teams and their ever-growing lists of questions over several years. Not that the two sides in such debates are really antagonists: it is more like a symbiosis, a dance in which both sides benefit, because the fees to be earned by everybody from ecologists to economists are rich. And that is because at the end of the process the reward can be huge: a hundredfold uplift or more in the value of a field that gets turned into housing.

As a property owner, I have experience of this system and, I freely admit, a vested interest in it. I should be arguing for it, rather than against. However frustrating planning authorities can be, the rewards they bring to property owners can be large, either through upward pressure on prices and rents by their restrictions on permissions, or through uplifts in the value of land zoned for development.

Our mostly centralised taxes make things worse. In Switzerland, cantons compete for the local taxes that residential property owners pay, encouraging them to agree promptly to building bids, whereas here development brings headaches for local councils in providing infrastructure and services, only partly redressed with “section 106” agreements that make developers pay for schools and roads.

The system also creates opportunities for nimbyism on a greater scale than elsewhere. Opposing new development because it blocks your view, increases congestion on the roads and crowds the doctor’s surgery and local school, is rational everywhere. But it is much easier to organise a protest when the decisions are taken by council officials and the permissions are for big projects, rather than where many small decisions to build are taken by many dispersed owners and builders.

If Sajid Javid is to succeed in revolutionising Britain’s housing market, he must tackle the underlying causes. Rent control, Help to Buy, affordable housing and bearing down on developers’ land banks mostly address the symptoms. Forcing councils to set higher targets for housebuilding is a start, but if he were to succeed in unleashing a building boom across the country sufficient to bring down house prices, he would create a debt crisis among those with negative equity. So it will not be easy to cure Britain’s addiction to property, but he must try.”

Source: The Times (pay wall)

May desperately tries to claw back housing votes her government has lost

“Theresa May will hit out at the “perverse incentive” of housing industry bonus structures paying out millions of pounds to chief executives as a result of company profits rather than the number of homes built.

The prime minister will make the comments as she unveils a series of measures, previously outlined in the government’s housing white paper, to rewrite the rules on planning in an attempt to boost the speed of housebuilding and ease prices.

She will call the “national housing crisis” one of the biggest barriers to social mobility and argue that she “cannot bring about the kind of society I want to see” without tackling it.

May, who wants to make housing her number one domestic priority, will say she expects “developers to do their duty to Britain and build the homes our country needs”.

Under the plans:

Local authorities will be able to take into account how quickly a developer builds on a site before issuing future planning permission.
Independent inspectors will be given the power to take over decision-making in local areas if “nimby councils” fail to publish housing plans quickly enough.
Staff working for councils and hospitals will be given priority when public land is sold off.
Homeowners will be able to add two storeys to existing properties.
The prime minister will tell the national planning conference in London that developers must play their part too. “The bonuses paid to the heads of some of our biggest developers are based not on the number of homes they build but on their profits or share price,” she will say.

“In a market where lower supply equals higher prices that creates a perverse incentive, one that does not encourage them to build the homes we need.” [Duh – we told her that in 2010 when developers wrote their own rules]

The comments come after a decision to pay the chief executive of housebuilder Persimmon a £110m bonus was widely criticised, with some describing it as “corporate looting”. Jeff Fairburn collected the first £50m worth of shares on New Year’s Eve, while 140 members of senior staff were also in line for more than £500m, with more than 80 receiving in excess of £1m.

While the government cannot force a change in bonus structures, May will hope to pile pressure on companies. [While taking their donations to the Conservative Party and meeting them privately]

Areas where action can be taken include “allowing councils to take a developer’s previous rate of build-out into account when deciding whether to grant planning permission”, May will say.

May will argue that the aim is to improve affordability so that more people can achieve the dream of home ownership.

“I still vividly remember the first home I shared with my husband, Philip. Not only our pictures on the walls and our books on the shelves, but the security that came from knowing we couldn’t be asked to move on at short notice,” she will say.

But she will admit that in much of the country millions who ought to own cannot do so, and prices are being pushed upwards.

“The result is a vicious circle from which most people can only escape with help from the bank of Mum and Dad. If you’re not lucky enough to have such support, the door to home ownership is all too often locked and barred.”

Polly Neate, the chief executive of the housing charity Shelter, said the planning system was not delivering and welcomed the move, but said the evidence would be in the building figures. “It appears the government is waking up to the scale of our housing emergency and the critical need for action which is urgent and bold,” she said.

Steve Turner from the Home Builders Federation said: “We welcome measures to speed up the planning system and stimulate all parts of the market from starter to retirement homes. The industry has delivered big increases in recent years and is committed to working with government to go further and match supply to need.”

However, the shadow housing secretary argued that May should be embarrassed to be “fronting up these feeble measures first announced a year ago”.

“After eight years of failure on housing it’s clear her government has got no plan to fix the housing crisis,” John Healey said.

One industry expert questioned whether linking planning permissions to former build-out rates was workable. He pointed out that permissions were attached to the location, not a particular developer, and many were held by landowners or promoters who would then sell on the site to a housing company.

May will promise to retain protections for the green belt, saying boundaries can only be changed if every “other reasonable option” for places to build needed homes had been explored. Downing Street pointed out that only 10% of England has been built on and only 13% is covered by green belt. But Mark Littlewood, Director General at the Institute of Economic Affairs said the commitment to the Green belt meant the proposals fell “at the first hurdle”.

“I want to see planning permissions going to people who are actually going to build houses, not just sit on land and watch its value rise. Where councils are allocating sufficient land for the homes people need, our new planning rulebook will stop developers building on large sites that aren’t allocated in the plan – something that’s not fair on residents who agree to a plan only to see it ignored.”

https://www.theguardian.com/society/2018/mar/04/may-attacks-perverse-incentive-housing-industry-bonuses

Javid says build more expensive houses to solve housing crisis

So, where houses are expensive MORE expensive even more houses must be built because Javid thinks that will bring prices down! Yet developers will still be allowed to make more than 20% profit on EACH development before affordable housing has to be built.

Just watch for the first developer to blame Brexit for house prices that don’t go down, and watch Letwin’s report on land banking get kicked into the long grass!

Remember this is the man who has just given more than £800m earmarked fo4 affordable housing back to the Treasury.

And it will be COUNCILS which are sanctioned when developers keep land with planning consent bare NOT DEVELOPERS.

Well done, Javid, well done. Your developer donors getting bigger profits and councils being forced to bend to developer will – and still youngsters won’t be able to get on the housing ladder.

“Thousands of new homes are to be approved and council Nimbyism curbed, the housing secretary Sajid Javid tells Tim Shipman.

Up to five new garden towns are to be approved for the corridor between Oxford and Cambridge under government plans to launch a “housing revolution” this week.

In an interview with The Sunday Times, Sajid Javid, the housing secretary, said he would give the go-ahead to at least two new towns in the next few weeks and could push for up to three more. The decision comes after ministers agreed to fund a high-speed rail line and an “expressway” for cars between the two leading university towns.

“Along that corridor there’s an opportunity to build at least four or five garden towns and villages with thousands of homes,” Javid said. The first step will be to establish “new town development corporations” for the chosen sites, which will help developers and town planners to “cut through a lot of the bureaucracy”, he said.

Referring to the creation of Milton Keynes in 1967 and the transformation of London’s Docklands in the 1980s, Javid said: “We haven’t been that ambitious for a long time.”

Now that Theresa May’s latest Brexit speech is behind it, the government will return this week to what Javid calls “our No 1 domestic priority”.

He said: “We have a housing crisis in this country. Average house prices in England are eight times average earnings. In London, where we have the most acute shortage, it is 15 times average earnings. That’s not just the worst we have had in England , it’s the worst of any major developed economy.”

Last year 217,000 homes were built, more than double the total in 2010, but well under the 300,000 a year the government is aiming for by 2025.

This week ministers will change the planning rules to try to kick-start house-building “where it is needed” and turn the heat up on “Nimby councils” who have refused to build what is needed.

Tomorrow Javid will unveil a new version of the National Planning Policy Framework (NPPF), to get councils to give more land for development. “You’ve got to release it where people are demanding more homes,” he said.

The NPPF will contain new national rules determining how many homes councils should be building each year — taking account of local house prices and wages and the number of key workers in the area. Javid is clear that will force many councils to set higher targets.

“It will no longer allow Nimby councils that don’t really want to build the homes that their local community needs to fudge the numbers,” Javid said. “For the first time it will explicitly take into account the market prices. If you are in an area where the unaffordability ratio is much higher you will have to build even more. It will make clear to councils that this number is a minimum, not a maximum.”

Javid will also launch a crackdown on councils who do not meet targets. He said: “The other thing we’ll introduce is the delivery test. If they say we’re going to plan for 300 a year at the moment there is nothing in the system that checks to see they are actually delivering the 300 and that is going to change.”

Councils who fail to step up will be stripped of their right to decide what gets built in their areas, with decisions made by independent planning inspectors instead. “Developers can only apply for planning permission in the areas the council has identified,” he said. “If the protection of that plan is switched off, a developer can apply for planning permission anywhere in your area.

“This is quite a big sanction for every local authority to not just come up with the right number, but once that number is in place, we are going to be breathing down your neck to make sure you are actually delivering on those numbers.”

Javid says that does not mean building on the green belt, “but it does mean that outside of naturally protected land like woodland and green belt they can pretty much roam everywhere outside that”.

The housing secretary has shown he is prepared to intervene after he threatened 15 councils who had failed to draw up any local plan for development.

“The last time York had a plan was 1954,” he said. “There was the chancellor’s district council, Runnymede. They responded positively. It doesn’t matter who you are or who your MP is, if you haven’t got a plan you will be hearing from me. If a council keeps ignoring its responsibility we can take that planning responsibility away from them and give it to someone else.”

The new planning framework will also seek to make local plans more responsive to their populations’ needs. Javid said: “Our nurses, police officers and fire officers want to live as close as possible to where they serve the British public. We want to make it easier it build and take their needs into account.”

In cities he is keen to see more building upwards. New rules will make it easier for homeowners to add two storeys to their houses — and will clear the way for a large number of mansion blocks to be built.

“The density of London is less than half that of Paris. We don’t want London to end up like Hong Kong,” Javid said, but he wants more “mansion blocks, the kind you might see in Kensington and Chelsea”. He said: “It will be quite surprising how easy we want to make it for people who want to build upwards.”

Further proposals to force developers to build more quickly will be revealed next week when the former cabinet minister Oliver Letwin publishes the interim findings of his report into the problem of land banking by developers.

“We need planning permission to turn into homes,” Javid said. “I don’t think Oliver is going to hold back.”

Javid is aware that failure to deliver could cost the Tories the next election. “We need a housing revolution. We have to show the British public that we are doing everything we reasonably can because if we don’t they will turn to the hard-left ideas of [Jeremy] Corbyn. If that means taking on councils, developers and others that’s what we’re going to do.”

Source: Sunday Times (pay wall)

Developers and loopholes – go together like a horse and carriage!

Owl says: as millions of pounds meant to be used for affordable homes was returned to the Treasury by the Department of Communities, Local Government and HOUSING, we can only assume this government doesn’t give a stuff about this.

“Property developers have used a legal loophole to halve the number of affordable homes that they are building in the countryside.

A study of more than 150 new housing developments found that confidential viability assessments had been used to cut the number of affordable houses by 48 per cent. The assessments let developers break promises made to get planning permission, if they can show those commitments will eat into profits.

The research, which was commissioned by Shelter, the charity for the homeless, and the Campaign to Protect Rural England (CPRE), found that eight rural councils lost 938 affordable homes after viability studies over the course of a year. “The viability loophole is slashing affordable housing supply in the countryside,” the report said. “The profits of volume housebuilders are rocketing, yet affordable housing provision by the same developers is being undercut on the grounds that it is not profitable enough.”

In one instance in Cornwall, the owners of a disused tin and copper mine promised that 40 per cent of the site’s 99 new homes would be affordable. They cut that commitment to zero with a viability study. The owners then advertised the plot for sale, boasting in the brochure that all of the plots had been approved for “open market housing” without any “liabilities”.

Central Bedfordshire, which was the worst affected of the eight councils in the study, lost 533 affordable homes in the 2015-2016 financial year.

Affordable housing includes homes for social rent, shared ownership and other intermediate tenures. “The term affordable in this context does not necessarily mean that these homes are in fact genuinely affordable to local people,” the report said.

The profits of Britain’s three biggest builders, Barratt Developments, Taylor Wimpey and Persimmon Homes, have quadrupled since 2012 to £2.2 billion a year. Yet they regularly cite financial constraints to reduce the percentage of affordable homes at new developments.

At Sowerby Gateway in North Yorkshire, Taylor Wimpey promised to build 256 affordable homes. A viability study cut that promise to zero. “Too much of our countryside is eaten up for developments that boost profits, but don’t meet local housing needs because of the viability loopholes,” said Crispin Truman, the chief executive of CPRE.

Councils can challenge viability studies but the government has guaranteed big builders at least a 20 per cent profit. If the builders can show that they stand to make less, the government will side with them.

“Developers are using this legal loophole to overpower local communities and are refusing to build the affordable homes they need,” said Polly Neate, the chief executive of Shelter.

Sajid Javid, the communities secretary, has promised to review how “viability is assessed” when he starts a consultation next week to overhaul the planning laws.

Separate research by the Institute for Public Policy Research, a think tank, found that the number of people sleeping rough in rural parts of England increased by 42 per cent from 397 in 2010 to 565 in 2016.

Houses are 26 per cent more expensive in the countryside because of pressure from wealthy retirees and buyers of second homes, but wages in rural areas are 26 per cent lower, which has created an exodus of young families.

Andrew Whitaker, from the Home Builders Federation, an industry body, said local authority targets were always negotiable. “There is a limit as to what can be extracted from development sites before they become unviable and you get no homes of any sort,” he said.”

Source: Times (paywall)

Bovis pays out £10.5 m to repair sub-standard homes

“Profits at Bovis slumped last year after the housebuilder was forced to spend millions of pounds repairing poorly-built homes and fending off takeover attempts by rivals Galliford Try and Redrow.

The company was criticised after rushing the construction of some properties and offering customers cash to move into unfinished houses, some of which had plumbing and electrical problems.

The scandal has so far forced it to spend £10.5m on repairs, including £3.5m in 2017. Other one-off costs last year included £4m for restructuring and £2.8m on advisory fees as it tried to see off the takeover bids.

The charges dragged down Bovis’s annual pre-tax profits, which fell 26pc to £114m. Revenues dipped 3pc to around £1bn, despite a 7pc hike in its average selling price to £272,000.

The housebuilder’s previous chief executive David Ritchie resigned last January, just days before the quality scandal came to light, after Bovis was forced to issue a profit warning because it had struggled to build as many homes as expected in 2016. …”

https://www.telegraph.co.uk/business/2018/03/01/bovis-profits-slump-35m-payout-botched-homes/

“Parish [council] wins permission for judicial review over decision under delegated authority”

“A parish council has been granted permission to apply for judicial review in their challenge to a grant of planning permission by a district council under purported exercise of delegated authority, barristers’ chambers Francis Taylor Building (FTB) has reported.

FTB, whose Meyric Lewis is acting for Newton Longville Parish Council, said members at Aylesbury Vale District Council had resolved to grant planning permission for residential development “delegated to officers… subject to such conditions as are considered appropriate and to include a condition requiring that a reserved matters application be made within 18 months of the date of permission and that any permission arising from that application be implemented within 18 months”.

The set said that in exercising their delegated authority, officers took the view that there was insufficient justification for shortening the period for applying for reserved matters and for requiring implementation within 18 months. “But that matter was neither raised with members nor addressed in the delegated report published by the Council.”
FTB added that in committee, members had wished to impose these short timeframes “because they were concerned about the length of time that the site had remained undeveloped notwithstanding the existence of planning permission granted in 2007 and then renewed in 2011 and so they wished to encourage the building out of the site more swiftly than if longer timeframes were allowed”.

The set said permission to apply for judicial review had been granted by the High Court on the ground that the decision went beyond the terms of the delegated authority because it conflicted with the confined terms of the members’ resolution.

Permission was also granted on a ground concerning the related section 106 agreement and in respect of officers’ failure to provide adequate reasons, as required by under reg. 7 of the Openness of Local Government Bodies Regulations 2014, in that they did not address the matters relied on as justifying a departure from the terms of the members’ resolution in the delegated report.

The parish council has made representations based on the terms of the judge’s grant of permission to see if a full hearing can be avoided, FTB said.

Meyric Lewis is instructed by Bob McGeady of Ashtons KCJ.”

http://localgovernmentlawyer.co.uk/index.php

“Tory ministers decide not to spend £72 million set aside for affordable homes despite housing crisis The money will now be spent on building houses for sale worth up to £600,000”

“Tory ministers decided not to spend £72 million set aside to build affordable homes because it was “no longer required”, despite the housing crisis gripping Britain.

Communities Secretary Sajid Javid was forced to “surrender” the cash and send it back to the treasury, as part of £817 million his department failed to spend last year.

Some 115 million people are on council waiting lists in England, almost a quarter of whom are in London.

But a government memo, explaining the department’s underspend to the Treasury, states: “Part of the funding allocation for the Affordable Housing programme has not been required in 2017/18.”

The document also notes that the £817 million figure – much of which would have been intended for social or affordable homes – will now be spent on funding the Help to Buy programme.

In 2016-17, just 41,530 affordable homes were built, the second lowest figure for a decade.

The majority of affordable homes are so-called ‘affordable rent’, where the monthly rent is set at up to 80% of private market rent.

The number of cheaper, “social rent” houses built each year has plummeted from 39,560 in 2010-11 – the year the new “affordable rent” definition was introduced – to just 5,380 last year.

Labour’s Shadow Housing Secretary, John Healey said: “Feeble ministers are selling families short by surrendering much-needed cash for new homes.

“If the Secretary of State can’t defend his Department’s Budget from the Treasury he should give the job to someone who can.”

A DCLG spokesperson said: “We are delivering the homes our country needs and since 2010 we have built over 357,000 new affordable properties.

“But we are determined to do more and we are investing a further £9bn, including £2bn to help councils and housing associations build social rent homes where they are most needed.”

https://www.mirror.co.uk/news/politics/tory-ministers-decide-not-spend-12098770

What happens when developers pay planners for pre-planning “advice”?

Guardian letters today. We also have this “premium service” – our prices go from £150 (inc VAT) to £900:

Click to access pre-app-charging-schedule-jan-2017.pdf

The letter:

“Further to Simon Jenkins’ article (Wine and dine democracy is now on trial – and about time, 23 February), there is another facet of this situation. Milton Keynes council now offers its residents and prospective developers the possibility of a premium planning service. If we wish to ease the planning and development process we can peruse the biographies of its planning staff on the council website and pick a suitable one. Prices on the site range from £150 to £7,500 plus VAT. The council is “dedicated to building relationships with our customers and therefore have found that some Applicants and Agents like to have the continuity of working with specific Planning Officers”.

This may work very well in some cases by improving planning efficiency, but where is the oversight if Milton Keynes residents find that neighbourhood plans are ignored? The ethos of our initially well-planned town is disappearing while developers who ignore the unique character of the place are helped to get planning permission by a planning authority that has enjoyed a close, paid-for relationship with them.

No doubt the planners show impeccable integrity but, if there is insufficient oversight, the temptations must be there.
Gill Boothy
Milton Keynes, Buckinghamshire”

https://www.theguardian.com/politics/2018/feb/26/the-dangers-of-paid-access-to-council-planning-officers

Will dredging problems affect Exmouth’s water sports centre?

“Dredging from a marina in Exmouth is being halted after sands on Teignmouth’s beach turned black at the weekend.

The contamination was a shock to local residents and businesses ahead of the all-important Easter break.

The town has worked hard to drive up bathing water quality standards in recent years but local people were annoyed when the Marine Management Organisation (MMO) granted a licence for the disposal of thousands of tonnes of silt from the marina in Exmouth close to their beach.

The MMO said it was suspending the licence “relating to the dredging of Exmouth Marina and disposal of materials at the Sprey Point site”.

It added: “The suspension will be active immediately once the notice is served on the licence holder.”

Heavy seas have washed away most of the black silt in the meantime.”

17.48 hrs
http://www.bbc.co.uk/news/live/uk-england-devon-43129090

“Party’s over for City jollies” but alas not for local government schmoozing

A short article in today’s Sunday Times Business section notes that new EU rules now forbid fund managers and analysts from accepting hospitality beyond a minimal level – it has to benefit “ordinary” customers and if over a reasonable limit it is considered “an inducement”. It goes on to say that most firms have set £100-150 a head as the maximum in London.

Fortunately, our local Tory councillors can rest easy as it does not apply to local government, so they can still take their Exeter Chiefs rugby tickets and their meals with developers and the like – which never seem to cost more than £25 a head when declared (where are they going – Nando’s or perhaps Frankie and Benny’s? And DEFINITELY t-total!).

Source: Sunday Times Business supplement (pay wall)

Dominic Lawson: Big bonuses the fault of former Chancellor and help-to-buy

Owl says: While Lawson blames Osborne it should be noted that May and Hammond have not closed the loophole … which could easily be done …

“At first he said he deserved his £110m bonus, and resisted all the pressure to assign a large chunk of it to charity. Then he said he would give some of it to good causes, but not how much (“a private matter”). Finally, on Friday, after three months of hectoring by the media and investors, he said he’d forgo . . . £25m.

I’m referring to Jeff Fairburn, chief executive of the housebuilder Persimmon and the principal beneficiary of a remarkably generous share-based incentive scheme that has sprinkled more than £500m of equity around 140 of the company’s “top individuals” as if from a fairy godmother’s wand. Except it doesn’t come out of thin air, but by diluting all the ordinary shareholders’ stakes in the business.

Their representatives — pension fund managers, principally — have spent those past three months moaning about it. But when the incentive scheme was drawn up in 2012 — linking the rewards to share price performance and dividend payments — it was approved by 85% of shareholders. So Fairburn’s resistance is understandable; and, indeed, Persimmon’s investors have done fine — since 2012 their shares have quadrupled in value.

But the main reason is not the ingenuity of Fairburn and his colleagues. No, if there was a fairy godmother in this, it was George Osborne. As chancellor, he launched the help-to-buy scheme, which economically crazy but politically astute subsidy supports about half of Persimmon’s recent house sales. We as taxpayers are not directly funding those £500m worth of bonuses, but we have underwritten the personal mortgages that made that colossal windfall possible. Don’t mention it, Jeff: happy to help.

The person most annoyed by this is actually a lot richer than Fairburn — and another housebuilding boss. Steve Morgan, the head of Redrow, complained: “For somebody who has not taken a salary for 20 years it sticks in the craw, being called a greedy housebuilder because of that one company.” And why has Mr Morgan not taken a salary for 20 years? Because he founded Redrow in the 1970s and is worth about £830m. He would be a billionaire (according to the compiler of The Sunday Times Rich List) had he not passed £226m of Redrow shares to his charity, the Steve Morgan Foundation, which supports disadvantaged and disabled people in north Wales and northwest England.

Here we see, in instructive proximity, the sort of wealth that compels admiration and the sort that provokes contempt. That stark divergence is not because Morgan has been philanthropic. It is because he has created his own business and, at the outset, would have been at personal risk if it had not worked out (perhaps, like so many entrepreneurs, he had offered whatever he owned as security for bank loans). Fairburn had a good story to tell, too: he began in the building trade as a youth training scheme apprentice, studying to become a quantity surveyor while mixing concrete. But he did not create the firm of which he is, after all, just another employee: he is taking the rewards of entrepreneurialism without the risks.

He is not, in the true sense of the word, a capitalist. But Morgan is. And the point is that while there has in the decade since the credit crunch been a gale blowing the sails of those who denounce “capitalism”, the public hostility is actually — and rightly — directed against those who are not capitalists (as Karl Marx defined them), but who have seized capital from its owners. After all, that is what the discredited banking executives, both here and in America, did. They leveraged the capital of which they were merely managers, to generate vast bonuses for themselves: when that blew up the banks, the exploded corporate balance sheets were rescued by the taxpayer . . . while the executives kept all their winnings.

In his latest book, Skin in the Game (which I review today) Nassim Nicholas Taleb calls this “the Bob Rubin trade”, in (dis)honour of the former US Treasury secretary who kept his $120m compensation from Citibank: “When the bank, literally insolvent, was rescued by the taxpayer, he didn’t write any cheque — he invoked uncertainty as an excuse.”

The risk — to the market system now under attack from the unreconstructed Marxists at the helm of the British Labour Party — is that the bonny baby of entrepreneurial endeavour will be thrown out with the dirty water of executive self-dealing.

Much of that self-dealing — which I first wrote about as long ago as 1989 in a Spectator cover piece titled “How the bosses help themselves” — is promoted by the argument that it makes senior managers behave more like proper owners, rather than mere time-servers. Specifically, the executive compensation committees of FTSE companies have argued that through the awards of share options, the interests of those managers are aligned with the investors who, collectively, own the businesses.

It is a theory generally accepted and, like many such established doctrines, false. The ordinary shareholders have actually paid for their equity, so if things go pear-shaped, they stand to lose what they have invested; and those who have created businesses can lose everything, even their homes. But share options are free. There is an upside, but as no capital is at risk, no real downside.

One result is that share option schemes have encouraged undue risk-taking by executives, for example by borrowing heavily to finance acquisitions — which is what happened at Carillion. It also encourages a more short-term approach to business-building than a true owner would adopt: share option schemes tend to last for a few years, not the decades that a good business should be measured in.

I should confess, at this point, to having been a beneficiary of just such a scheme. When I was an executive of the Telegraph group I was assigned, for the first and only time in my life, some share options . . . and within just a few months they were most unexpectedly realised when the majority shareholder decided to buy out everyone else. Without any effort on my part — other than just continuing to do my job of editing a newspaper — I was suddenly presented with a cheque sufficient to pay off my mortgage.

I was delighted, of course. But it also felt wrong, somehow. I suppose I might feel the same way if I won the national lottery, although that is most unlikely to happen, and not just because of the odds: I don’t enter it. At least the lottery winners have paid for their stake. We should expect our best-remunerated business leaders to have done the same.”

Source: Sunday Times (pay wall)

Oh, what a surprise! Another poor, poor developer at Hayne Lane, Honiton

One presumes that Councillors Diviani and Twiss are aware of this, having declared hospitality from Baker Estates in September and December last year:

https://eastdevonwatch.org/2018/02/22/eddc-councillor-freebies/

PRESS RELEASE

“Developer requests reduced affordable housing provision on residential development at Hayne Lane, Honiton

Local planning authority will consider offer from Baker Estates to provide improved mix of houses at Hayne Lane development plus £0.5m contribution towards off-site affordable housing

East Devon’s Local Planning Authority (LPA) has received a request from Baker Estates to amend the amount of affordable housing that they provide on their development of 300 houses on land to the west of Hayne Lane in Honiton.

The request will be considered after 12 noon at the next meeting of East Devon District Council’s Development Management Committee on 6 March 2018, which is being held at Exmouth Town Hall

East Devon planning officers are recommending that the request be agreed.

As present Baker Estates is required to provide 40% of the dwellings (120 units) as affordable housing in accordance with the original planning permission granted on the site in 2015.

However, the developer is now asking the LPA to agree to reduce the affordable housing provision to 30% or 90 dwellings, whichever is the greater. This change would also affect the amount of financial contribution being secured for off-site open space, which would be reduced from £488,000 to £210,000.

In exchange Baker Estates is offering an improved mix of houses on the site and £500,000 financial contribution towards off-site provision of affordable housing.

The applicants have submitted this request as they believe that current planning policy would support a reduction in the provision of affordable housing down to 25%, if a new planning application were to be submitted. While they are offering less than the 40% affordable housing provision currently secured, they are offering more than the 25% they believe they would be required to provide if a new planning application were submitted.

The planning officers’ report advises that while there is a chance that Baker Estates may not be able to successfully argue 25% affordable housing provision as part of a new planning application, there is an equal chance that such a proposal would be acceptable should an application be submitted and determined on appeal by the Planning Inspectorate.

In addition, the planning officers believe that the viability of the site is such that it is unlikely that the council would be able to secure the current 40% provision into the future, and that agreeing to the request will negate the need for a lengthy and costly planning appeal, enabling the development to proceed as quickly as possible while providing 90, much needed, affordable housing units.

The report can be viewed on the council’s website:

http://eastdevon.gov.uk/council-and-democracy/committees-and-meetings/development-management-committee/development-management-committee-agendas/

Cllr Mike Howe, Chairman of East Devon’s Development Management Committee, said:

“It is important that this sort of decision is made in the public view, so that everyone can understand the issues at stake. It is about striking a fair balance, while ensuring that the right amount of affordable housing provision is made.”

“Wine and dine democracy is now on trial – and about time”

There wasn’t a paragraph in this article that could be edited out – truly we are in The Swamp:

“Each time a US gunman goes berserk, the British media erupts in fury at the money the gun lobby can devote to its lethal interest. To be sure, big time lobbying is the occupational disease of American politics. In the US, it can have murderous consequences. Still, on matters of principle, Britons would do well to watch their hypocrisy.

The sums spent by property companies on lobbying Westminster city council’s planning committee – revealed in Tuesday’s Guardian – may be dwarfed by those spent across the Atlantic. But the hospitality showered on the committee’s chairman for 16 years, the amiable Robert Davis, was breathtaking. Five-hundred freebies, including 10 foreign trips, in just three years. At least 150 of these were from a who’s who list of property industry figures. Even Harvey Weinstein is on the list. Entertaining Davis was clearly a Westminster cottage industry. He can hardly have had time to down one glass of champagne before raising another.

Everywhere money is at stake, those regulating it will be open to temptation
Meanwhile in the planning committee, the London Evening Standard’s Jim Armitage – there as a local resident objecting to a planning application – watched planning approvals get ticked off mechanically. He noted that not a single objection was upheld. Members “looked at the ceiling, buffed their nails and scratched their noses” as each was nodded through.

Westminster council asserted this week that all hospitality was received during “meetings”, and the idea that any of its councillors “could be bought by the property lobby was demonstrably untrue”. The meetings apparently took place at Wimbledon, at a performance of the musical Hamilton, and in the south of France. There is nothing wrong in this, provided gifts and hospitality are declared. But this assumes that what is declared cannot be considered, under the 2010 Bribery Act, a “financial or other advantage” offered or accepted to secure “improper performance”. Transparency is not enough.

Davis’s most extraordinary case was that of the late Irvine Sellar’s 72-storey “Paddington Pole”. This required the demolition of an Edwardian baroque sorting office and the erection of a gigantic tower, within the boundary of a conservation area and towering over Brunel’s Paddington station. Proposed in 2016, it breached every conceivable principle of good planning, but Sellar entertained Davis and apparently secured his approval for the pole Davis later described as a potential masterpiece. Sellar added seven more storeys to his plans. A public outcry led eventually to plans for the pole being withdrawn, but only to be replaced by a proposal for a bigger in volume but lower glass box. This was waved through the planning committee against all local opposition after Davis had publicly hailed it as a “game-changer”.

What is highly questionable is what happened next. Protesters pleaded for a meeting with the council but were ignored. Despite the obvious unsuitability of a vast box in a conservation area, Sadiq Khan, the mayor of London, declined to intervene. That decision was followed by a similar refusal by the planning minister, Sajid Javid, who declined to give his reasons for doing so. This is most unusual for such a controversial project. The Shard, also developed by Sellar, was, in contrast, subject to a lengthy public inquiry. Protesters are trying to take Javid’s refusal to explain why he declined to intervene to the court of appeal.

British planning is a mess. It is awash with political donations and lavish lobbying as the construction industry wrestles to capitalise on the Conservatives’ “let-rip approach” to urban and rural development. Before the 2010 election, the Conservative Property Forum is recorded as donating £500,000 to the party.

The Cameron government duly dropped proposals for local appeals against development from its planning framework document. Lobbyists from the British Property Federation and others were effectively invited to rewrite the framework for themselves. The industry then donated a further million pounds to stave off higher council tax banding in response to Labour’s mansion tax.

This is hardly unique to planning. The NHS is awash in inducements to doctors to prescribe branded medicines. Arms company boards are stuffed with generals. The banks that fund private finance initiatives keep the Whitehall doors revolving. Declarations of interest by members of the House of Lords read like a lobbyists’ congregation. It clearly pays companies to lobby. The irony is that it was David Cameron who made great play of curbing this in his Lobbying Act. It was, he said, “the next big scandal waiting to happen”. Yet the only scandal was how the act was watered down, and how Cameron’s transparency register for lobbyists was lobbied to oblivion.

British lobbying is not as blatant as Washington’s infamous “Gucci Gulch”, where interest groups stuff the pockets of congressional lawmakers. Corruption in Britain is rarely through payments to individuals, and public officials seldom indulge in the log-rolling – legislators trading support for each other’s pet projects – seen in American politics. But the risk of bias and partiality exist in parts of the public sector. Of these, property planning, where huge sums of money can be involved, is the most obvious.

Everywhere money is at stake, those regulating it will be open to temptation. That is why oversight is crucial. But oversight of British local government is currently on a par with a banana republic. The Standards Board for England was abolished in the course of Cameron’s “quango cull” in 2012. It supposedly monitored the ethical performance of officers and councillors in local government. It was criticised as cumbersome, meddlesome and bureaucratically intrusive. Few mourned the board’s passing. Each local council was then expected to make its own arrangements.

The minister at the time said there was a need “for a light touch”. Westminster council took him at his word. It might have been a good idea to see the Standards Board go, but it should have been replaced with something. Even the most ardent localist cannot expect councils to float free of any oversight. Millions of pounds can turn on a planning decision. Anyone who knows these local controversies will attest that many stink to high heaven.

Davis has denied any wrongdoing and nobly referred himself to Westminster’s own “monitoring officer”. It is hard to see how this meets any plausible test of independence. Much now rests on the shoulders of this officer, as it does on the judges reviewing the Sellar glass box decision. The Paddington horizon will be their memorial. Everyone is now on trial, not least local democracy.”

https://www.theguardian.com/commentisfree/2018/feb/23/wine-dine-democracy-trial-westminster-city-council-planning-committee