Rich council has 621 billionaire/millionaire homes left empty as investment vehicles

“A west London council has requested new powers to take over so-called ‘ghost homes’ and use them for council tenants when they are left unoccupied for long periods of time.

Kensington and Chelsea council’s deputy leader Kim Taylor-Smith has written to the housing minister to call for an overhaul of council powers to acquire unused houses.

Mr Smith said growing demands for social housing in the west London borough had been “framed by the Grenfell tragedy”, which led to the deaths of 72 people and left hundreds of council tenants homeless in June 2017.

Kensington and Chelsea was said to have a “huge buy-to-leave investment market”, meaning properties are bought and left empty, often to accrue value.

Mr Taylor-Smith said 621 properties in the area have been empty and unfurnished for more than two years, 347 of which are “amongst some of the most expensive in the borough”, including one worth almost £30 million. …”

https://www.standard.co.uk/news/london/london-council-calls-for-extra-powers-to-take-over-millionaires-empty-homes-a3955186.html

“CIH calls for right to buy to be suspended as discounts climb to ‘£1bn’ “

“Right to buy is costing English councils £1bn – £300m net – a year and cutting the discounts could lead to an extra 12,000 homes being built every year, a trade body has said.

Since 2012, when the discount was increased to £108,000 in London and £80,000 in the rest of the country, 69,467 homes have been sold, the Chartered Institute of Housing revealed in a briefing paper on Tuesday.

But construction has only started on 18,958 to replace those homes sold, the CIH calculated.

The housing body is calling for the policy to be suspended and for the government instead to invest in building more social homes for rent.

Terrie Alafat, CIH chief executive, said: “Not only are we failing to build enough new homes for social rent, we are losing them at a time when we need them more than ever.

“Suspending the scheme means the government could invest the savings in more homes for social rent – which is often the only truly affordable option for people on lower incomes – and also in fairer and more cost-effective ways to help tenants access home ownership.”

CIH research from January found that more than 150,000 social homes for rent in total had been lost between 2012 and 2017 due to right to buy and other factors. It estimated this figure will reach 230,000 by 2020 unless “we take action now”, Alafat said.

Council leaders warned earlier this year that just one third of councils were able to replace homes sold under the scheme in five years’ time.

The Local Government Association called for “fundamental reform” of the scheme and for councils to be allowed to borrow in order to build new homes….”

https://www.publicfinance.co.uk/news/2018/10/cih-calls-right-buy-be-suspended-discounts-climb-ps1bn

Another developers’ charter announced by government

“The government has announced plans to consult on further reforms to the planning system, including giving local authorities more flexibility to dispose of surplus land that could instead accommodate new homes.

Other measures will include

introducing a new permitted development right to allow property owners to extend certain buildings upwards, “while maintaining the character of residential and conservation areas and safeguarding people’s privacy”.

clearer guidance to give more certainty for communities when land is needed to make a new town a reality.

The government has set a target for the delivery of more than 300,000 homes a year by the mid 2020s.

The Secretary of State for Housing, Communities and Local Government, James Brokenshire, has also confirmed that the government will ban the use of combustible materials on external walls of high-rise residential buildings. The ban will also apply to hospitals, care homes and student accommodation over 18 metres.

This ban will be delivered through changes to building regulations guidance and will limit materials available to products achieving a European classification of Class A1 or A2.

Other measures announced by the government include the creation of a New Homes Ombudsman to support homebuyers facing problems with their newly built home, and £165m in funding to unlock up to 5,100 homes in Birmingham in support of the 2022 Commonwealth Games.”

http://localgovernmentlawyer.co.uk/

May puts sticking plaster on homes crisis

“The government believes there is evidence that allowing foreign buyers to snap up homes while paying the same duty as British residents “is inflating house prices”. …”

https://www.independent.co.uk/news/uk/politics/conservative-conference-stamp-duty-foreign-uk-home-buyers-theresa-may-housing-crisis-a8561136.html

Well, who would have guessed!

“The government set a target of 300,000 new homes a year but weakening demand means that construction is slowing”

“England is building 21 per cent fewer homes than during a peak in 2007 as the government struggles to reach its target of 300,000 homes a year.

Figures from the Ministry of Housing, Communities and Local Government showed that housebuilders started work on 38,730 homes in England on a seasonally adjusted basis in the three months to the end of June. This is down from 48,920 in the first three months of 2007. However, it was 126 per cent higher than a low of 17,120 in the first quarter of 2009, in the depth of the financial crisis.

Conversions — for example, turning an office block into flats — also count toward the 300,000 target. When these are included, the figures show that there were 217,350 “additional dwellings” in England in 2016-17, a ten-year high. However, the number of housing starts for new homes is still declining, suggesting that a higher total figure may not be achieved this year. Compared with the previous quarter, the number of housing starts fell by 3.7 per cent from 40,200 in the three months to March and by 4.1 per cent from a year earlier.

Hansen Lu, of Capital Economics, said that demand was weakening. Analysts believe that buyers are starting to hold back because of uncertainty about what Brexit will do to the economy.

“With starts having fallen in four of the last five quarters, the big picture is that housing construction is on a gentle, downward trajectory,” he added. “We expect builders to slow construction further over the rest of 2018, rather than run the risk of building homes they cannot sell.”

The government figures were contested by property analysts and housebuilding groups, and have been discredited by the UK Statistics Authority, because they are compiled through local planning departments. These have been seen to be less reliable in recent years because the planners do not always receive information from all builders in their area.”

Source: Times, paywall

“First-time buyers: average salary requirement rises 18% in UK cities”

Remember when we were told that Help to Buy was for first-time buyers? We were sold a pup – it was for many-time developers!

“The average salary required by a first-time buyer to purchase a home in the UK’s biggest cities has risen by 18% in the past three years, above the rate of earnings growth – making it harder for young people to get on the housing ladder.

London house prices post first annual fall since 2009

In the latest sign that homeownership was becoming an increasingly distant prospect for young adults in the UK, figures from the research company Hometrack showed only three out of 20 major cities had become more affordable since 2015.

The biggest drop in affordability in the past three years was in Bristol and Manchester, where rapid growth in house prices had pushed up the average wage needed by a first-time buyer by almost a quarter.

In Bristol, a first-time buyer now needed to earn £58,826 per year to afford the average property, compared with £47,283 three years ago; while Manchester has seen the salary requirement jump by more than £6,500 to £34,770.

It has also become harder for first-time buyers to purchase a property in cities that include Leicester, Birmingham and Nottingham, with home values rising by more than the rate of growth in earnings over the past three years. …”

https://www.theguardian.com/money/2018/sep/27/first-time-buyers-average-salary-requirement-rises-in-uk-cities

“Housing crisis drives more than 1m private tenants deeper into poverty”

“More than a million vulnerable people on low incomes are being driven deeper into poverty after being shunted into the private rental sector due to an acute shortage of social accommodation.

A report commissioned by the Nationwide Foundation, an independent charity, says that the shortfall in social housing has been met by a doubling in size of the private rented sector in the past 25 years.

But this has forced more households, many on benefits with dependent children or a disabled family member, to pay significantly more for unsuitable housing.

The shake-up of the benefits system – which has led to sanctions being imposed on people claiming universal credit who fail to attend meetings with job advisers or decline to participate in employment schemes – has had a dramatic effect on the attitudes of private landlords.

“Because of sanctions you’re more likely to fall into arrears and to be asked to leave because you are in arrears,” said the author of the report, Dr Julie Rugg, of the University of York’s centre for housing policy. She has spent 20 years studying the benefits system and its relationship with the housing sector.

“The welfare system change has created vulnerability,” Rugg said. “It didn’t used to be the case 10 years ago but it is now. People know the benefits system is tightening up but they might not realise that if you’re at the bottom end and receiving benefits then your situation can be pretty precarious indeed.”

Rugg’s report found that more than a third (38%) of the private rented sector now comprises low-income households who are classed as vulnerable.

And almost nine out of 10 of these – equivalent to 1.4 million households – are living either in poverty or in poor or overcrowded conditions.

The shortage of social housing stock means private landlords can charge more than housing associations, often for inferior accommodation.

“Generally speaking, people are paying an extra £25 a week because they are living in the private rented sector,” Rugg said. “It might not sound a lot but if your benefit income is £75 a week, £25 is quite a big chunk of money.

“We know from talking to people on benefits that after paying their tax and utilities and rent they might be looking at £30 a week to live on. If they are paying an extra £25 a week as a result of living in the private rented sector then that’s actually creating a level of destitution that’s quite frightening.”

Last week Theresa May announced £2bn to build new “affordable” homes in England. Under the plan, housing associations, councils and other organisations will be able to bid for the money to spend on new projects, starting from 2022.

But Leigh Pearce, chief executive of the Nationwide Foundation, said that the government needed to examine the role of the private rented sector, too.

“We need a fundamental rethink about who private renting is for and a comprehensive strategy to ensure it is fit for purpose, to ensure that everyone in this country has a home they can thrive in.

“This includes addressing the really important question about what is expected of the private rented sector, including who it can and should provide homes for, and how it sits alongside other housing tenures.”

https://www.theguardian.com/society/2018/sep/22/housing-crisis-drives-million-deeper-into-poverty-social-housing-universal-credit

“Fewer households will ‘reduce need for new homes’ “

Will the number of extra houses predicated for the Greater Exeter area (57,000] be reduced in line with these new findings? Of course not – develipers rule, OK!

“There are likely to be 1.4 million fewer households in England by 2041 than the government originally thought, a forecast that economists warned yesterday could have a big impact on housebuilding targets.

The Office for National Statistics said that the number of households in England was projected to grow by 159,000 a year, from 22.9 million in 2016 to 26.9 million by 2041.

The figures are used by the government to work out future housing needs and have been a key reason for its target of building 250,000 to 300,000 homes a year.

This is the first year that the projections have been calculated by the ONS rather than by a government department.

A large proportion of the growth will come from the rising elderly population. Households headed by someone aged 65 years and over are set to account for 88 per cent of total growth between 2016 and 2041. The highest growth is set to take place in London and the lowest in the northeast.

However, while this overall 17 per cent increase in households may seem large, it is significantly smaller than the projection made in 2014. Then, the government said that there would be an extra 210,000 households a year in England, resulting in 28 million homes by 2041.

Bidwells, a property consultancy, said that the latest projections would lead to a dramatic drop in the required number of homes in England.

Ian Mulheirn, director of consulting at Oxford Economics, said that the drop in projections demonstrated that there were several myths around Britain’s housing shortage and argued that it was not necessary to build 300,000 homes a year.

“Over the last 20 years, the various housing departments have used a methodology to predict household need that was flawed,” he said. “It predicted that a significantly higher number of households would form and it was consistently shown to be incorrect at each census point.

“The ONS has changed the methodology and if we had used their figures over the last 20 years we wouldn’t have this figure of extremely high housing need being quoted everywhere.”

Previous projections made by the government were based on census data starting in 1971, which showed household sizes steadily shrinking as more people chose to live alone or to have smaller families. But this trend stopped around 2001, which is when the ONS is now basing its projections from.

The latest figures were disputed, however. Matthew Spry, senior director at Lichfields, a property consultancy, said: “The number of households that have formed can only ever match the number of dwellings that there are for people to live in. Statistically a household cannot form if it doesn’t have an extra house to form into.”

The ONS has also made a new assumption for net migration. It is now projected to be 152,000 a year from mid-2023 onwards. The 2014 projection had assumed 170,500 a year.

Joanna Harkrader, of the Office for National Statistics, said that the slower growth reflected “lower projections of the population — notably assumptions around future births, how long we will live and migration — and more up-to-date figures about living arrangements, such as living with parents or cohabiting.”

Source: Times (pay wall)

The big 2022 “social housing” con

“… May’s rabbit-in-the-hat was an additional 2bn funding for affordable housing. Considering the scale of the crisis, this is almost pitiful. It will build just 40,000 new affordable homes, when we have a need for more than a million. And the funding itself won’t be available until 2022, at which point are very likely to have a different government and/or prime minister. …

… For a number of years, big housing associations have been behaving more and more like private developers. May was quite right yesterday when she said they are ‘major multi-billion pound businesses’. And as the number of homes they build increases, their new model is proving so lucrative that private providers, pension funds and other investors are coming along for the ride, reinventing themselves as ‘affordable housing developers’, seeing a clear business opportunity for doing something that apparently has a social purpose.

But the homes they are building are not the houses we need, and the social purpose is often harder and harder to see. By far the greatest need is for social housing, and we are building the lowest levels of that since the Second World War, despite the pretty high housing outputs of housing associations. …

https://www.huffingtonpost.co.uk/entry/social-housing-theresa-may-housing-crisis_uk_5ba3bfbce4b0375f8f9af692

Buying votes with new social housing – but only after 2022!

Throughout this government’s term those in social housing have been demonised as scroungers and workshy. The government instead chose to line the pockets of already-rich developers and people being helped to buy houses that cost up to £600,000.

Today, as Brexit continues to be a shambles, education is at breaking point, inequality is at its widest, the environment is being trashed and the NHS is on its knees, May announces that, in fact, people in council houses are mostly hard-working people trying desperately to make ends meet. And that occupying such housing should not be a “stigma”!

So what changed?

Nothing, except that more and more people are deserting her party and their votes are, of course, going with them – to people like Claire Wright, for example. And to other feisty independent councillors such as East Devon Alliance’s Gardner, Rixon, Jung and Shaw.

Read the fine print on this housing. It is not promised until 2022 – when Tories may well not be in power and when our economic climate could be very different.

And if you want to know who thinks social housing is a stigma, read here:

“… Housing Secretary James Brokenshire, asked who Mrs May saw as the politicians who “look down” on social housing, told BBC Radio 4’s Today programme: “I think it’s more a sort of a greater public perception, sadly.”

Pressed further if there are Conservative politicians who take this view, Mr Brokenshire again referred to a “general stigma” which he said was a feeling among tenants who were consulted for a Government policy paper. … “

http://www.itv.com/news/2018-09-19/pm-to-push-for-social-housing-reform-amid-second-rate-citizen-stigma-concern/

“Landowners Pocket £13bn Profit In One Year Just For Getting Planning Permission”

Is there an election in the air? Tories talking about removing the “stigma” of social housing! You know, the housing they don’t build because, as George Osborne said – why would you when Labour supporters live in them!

https://www.independent.co.uk/news/uk/politics/tories-refused-to-build-social-housing-because-it-would-create-labour-voters-nick-clegg-says-a7223796.html

“Landowners pocketed a staggering £13bn in profit last year simply for securing planning permission while a housing crisis continues to grip the nation.

Research by the Centre for Progressive Policy and the National Housing Federation has unmasked how land-holders are raising massive sums simply for being a proprietor.

Agricultural land now becomes 275 times more expensive once it receives planning permission, even before a single home is built. This is a huge uplift from just two years ago when planning permission increased the value of farmland by around 100 times.

It means proprietors are effectively sitting on a goldmine once planners green-light development on a site they own.

The CPP and NHF report found landowners’ combined profits were more than the global profits of Amazon, McDonald’s and Coca Cola combined and has increased by £4bn over the course of two years to reach £13bn.

Theresa May is due to announce that £2bn of Government funds will be directed towards housing associations to give them long-term certainty they need to build homes.

But the NHF and CPP say a radical overhaul is needed so some land sales profits can be captured and ploughed into the public purse for new affordable housing and infrastructure, such as roads.

David Orr, chief executive of the NHS, said: “This research shows the astronomical sums that landowners have been able to pocket, before they even build a single new home. At the same time, the numbers of people in desperate need of social housing is sky rocketing – we have to build 90,000 new homes for social rent every year to meet this need.

“In the face of a disastrous housing crisis, it is clear that the the broken housing market is simply not delivering. What’s more, the way we buy and sell land is the key cause. Now, we need a fundamental rethink to tackle this fundamental problem.”

It comes as house prices and demand for social homes soar, with housing associations trying to build council housing for poorer families increasingly outbid on land by private developers.

May, who will address the National Housing Federation Summit in London on Wednesday, said the £2bn will be separate to the £9bn of public funding put toward the existing affordable homes programme until 2022.

She will also focus on ending what she calls the “stigma” attached to social housing, claiming some view tenants are “not second-rate citizens”.

The PM will say: “Some residents feel marginalised and overlooked, and are ashamed to share the fact that their home belongs to a housing association or local authority.

“On the outside, many people in society – including too many politicians – continue to look down on social housing and, by extension, the people who call it their home.”

Gavin Smart, deputy chief executive of the Chartered Institute of Housing, said recognition of the social housing sector from the PM was welcome, and added: “But, as the Prime Minister recognises in her speech, it’s crucial that government investment helps housing associations to build the right kind of homes at the right prices.

“In practice this means building more homes at the lowest social rents – which is often the only truly affordable option for people on lower incomes.”

Labour also hit out at the Government plans.

John Healey, Shadow Housing Secretary, said: “Theresa May’s promises fall far short of what’s needed.

“The reality is spending on new affordable homes has been slashed so the number of new social rented homes built last year fell to the lowest level since records began.”

The English housing survey 2016/17 reported that 3.9 million households, approximately nine million people, lived in the social rented sector – which was 17% of households in the country.

The survey added 10% rented from housing associations and 7% from local authorities.

By contrast, 20% of households were private rented and 63% owner-occupied.”

https://www.huffingtonpost.co.uk/entry/landowners-pocket-ps13bn-profit-in-one-year-just-for-getting-planning-permission_uk_5ba12638e4b046313fbfe3ee

Wainhomes in the (bad) spotlight again

Many will recall Feniton’s problems with Wainhomes, for example:
https://eastdevonwatch.org/2016/05/31/wainhomes-feniton-another-second-chance-and-another-and-another/

and those in Axminster:
https://eastdevonwatch.org/2016/07/26/wainhomes-axminster-eddc-considers-legal-action-to-recover/

You might also have seen the feature on regional BBC Breakfast this morning where residents at the Wainhomes estate in Tawton having to move out because floors not finished, outside rendering falling off walls. They interviewed one unhappy house owner who’d been complaining for two-and-a-half years.

Interestingly enough there’s a website devoted to complaints about this company: https://www.thewainhomesnightmare.co.uk/?page_id=121

It seems to highlight a flaw whereby developers can build defective houses, but policing by NHBC not up to scratch.

Buyer beware, as they say!

Cold homes are killing people

“… people in the UK were more likely to die from a cold home than in a road traffic accident during the cold snap last winter a report found. …

… the particularly cold spell between February 28 and March 3, dubbed the beast from the east, also left thousands of households stranded without access to support. …

We heard frequent reports of vulnerable people being discharged from hospital to homes with no light or heat. This is despite national guidance to the contrary.”

National Energy Action, as quoted in Sunday Times (pay wall)

Manchester regeneration makes inequality worse

“Glitzy high-rise developments have been on the march in Manchester for the past 30 years but they have left poorer families out in the cold, according to a damning report.

Predictions have been made that Manchester is facing a looming housing crisis due to a “misguided” developer-led regeneration strategy.

Almost 50,000 new and mostly private homes are planned in central Manchester by 2040 – yet some 80,000 people are currently on Greater Manchester’s social housing waiting list.

The report from Alliance Manchester Business School said regeneration over the past 30 years has focused disproportionately on new flats and offices in the two central boroughs of Manchester and Salford. It said this has resulted in a centre filled with one and two-bed buy-to-let flats built for one demographic – young white-collar workers – and is failing to meet the demands of others such as families and those on lower incomes.

The report also argued that there is a danger of the creation of “social clearances” where expensive new developments could create community tensions. As central Manchester expands, the planned developments in areas such as Angel Meadow and Collyhurst could intrude on existing communities, many of them in areas of social deprivation.

Over the past 30 years, according to the reports’ authors, local authorities have allowed private property developers to lead the city’s regeneration, focusing primarily on building new flats and offices in central Manchester and Salford. The repercussion of this, they said, is that the city is no longer meeting the needs of many of its residents and does not have the social infrastructure such as schools, libraries and broadband “that communities need to thrive”. …”

https://www.theguardian.com/uk-news/2018/sep/13/manchesters-building-boom-has-left-poorer-families-out-in-the-cold

The new slums: 250,000 (including children) living in squalid rented homes

“A quarter of a million families bringing up babies and infants in England are living in privately rented accommodation that fails to meet the decent homes standard, it has emerged.

The number of households bringing up children aged under four in squalid conditions, which can include damp walls, broken heating and infestations of rats, has increased by an estimated 75,000 since 2007, according to analysis of official figures.

The study of England’s private rented sector says renters of all generations have been failed by successive governments. The number of rented homes has more than doubled since 2000, to 4.8m, as the construction of private and social housing has slowed dramatically since the financial crisis and hundreds of thousands of new landlords have entered the market seeking better investment returns amid low interest rates.

“It is scary for me to think we have a lot of families in these circumstances,” said Julie Rugg, a senior research fellow at the University of York’s Centre for Housing Policy who co-authored the report. “There is a disproportionately high percentage of households with babies and infants living in the private rented sector and there is a particular concern for the longer-term health consequences of living in damp, mouldy property with poor thermal comfort.”

The problem conditions are not confined to young families. One in three homes at the lowest rents and one in five of the most expensive homes are classed as non-decent. In 2016/17, half of new households were private renters, twice the number who became owner–occupiers.

The Centre for Housing Policy also warned of a new kind of “slum tenure” at the bottom of the rental market spreading as a result of welfare cuts and the introduction of universal credit causing landlords to cut back on maintenance and allowing properties to fall into squalor.

The findings come amid growing pressure on the government to toughen regulation of private rentals, especially as more vulnerable people who would previously have been in social housing are relying on the sector.

Campaign groups including Shelter, which has described private rent as like the “wild west”, want the government to start making public its database of convicted rogue landlords and to insist on minimum three-year tenancies to give tenants greater leverage to challenge poor conditions. A new fitness for human habitation bill will mean tenants can take landlords to court with evidence that their homes are unfit.

“Declining home ownership and a shortage of social rented homes have led to a surge in the number of people privately renting, particularly families with young children,” said Rugg. “Unfortunately, in its current form the private rental market isn’t providing a suitable alternative. We need to see a fundamental rethink of the role that private renting plays in our housing market.” …

https://www.theguardian.com/money/2018/sep/10/study-reveals-rise-in-children-raised-in-squalid-rental-homes

“Berkeley calls affordable housing targets ‘unviable’ as chairman earns £174m”

“… Excluding developments where planning consents were gained by a previous owner and the student accommodation projects, in 93% of Berkeley’s 57 London developments the company told local authorities that their affordable housing targets were unviable.

In one example, Land Registry data indicates Berkeley Group sold 71 homes in its Ebury Square development in Belgravia, central London, for a total of £358m.

The company told Westminster council that as the development was refurbishing an existing building that contained 60 units, only 11 additional homes would be generated. This meant, under Westminster planning rules, that Berkeley was obliged to build only one affordable home. But instead of building it on site, Berkeley made a payment to the council of £1.6m towards low-cost housing elsewhere in the borough.

Freedom of information disclosures show that Berkeley bought the Ebury Square site – a former police house – from the Metropolitan Police for £23.6m in 2009. The profit on this single development is thought to be in excess of £200m.

At Kew Bridge in west London, Hounslow council accepted that Berkeley could only build 20% of a 308-unit scheme as affordable – half the local authority’s affordable target.

Building those units, Berkeley stated in a planning agreement, would mean the scheme would be £24.6m in deficit. Berkeley told Hounslow that house sales would generate £132m. Berkeley did agree to make an extra payment to Hounslow capped at £8.3m in the event of the scheme performing well. Land Registry data suggest that the scheme generated close to £250m, with one apartment selling for £4.55m.

A spokesman for the company said: “Berkeley has a sustainable, successful business model that enables it to perform well throughout the economic cycle, as demonstrated by its results of recent years and creation of fantastic new communities and long term value. We are justly proud of our track record in building 10% of London’s much-needed private and affordable homes.

“Last year alone, Berkeley contributed more than £400m of subsidy for affordable housing and wider community and infrastructure projects, which has helped us be recognised as London and the south-east’s leading place-maker. Sales utilising Help to Buy are a very small part of Berkeley’s sales.” …

https://www.theguardian.com/business/2018/sep/03/berkeley-calls-affordable-housing-targets-unviable-as-chairman-earns-174m

Clyst St Mary and the Greater Exeter Strategic Plan – the EDDC position

This was the addendum to the post below – the East Devon District Council case for the extra 57,000 homes it has been agreed must be built around Exeter. Do note that government funding is NOT guaranteed by any current budgetary measures nor are there any major job creation schemes in the pipeline.

ALSO NOTE: these are paragraphs from the report, not the full report, chosen to reflect the particular issues for Clyst St Mary:

“The purpose of this report to Strategic Planning Committee is not intended to pre-judge any Greater Exeter Strategic Plan (GESP) detailed assessment and evidence gathering but simply to start the debate to establish broad principles and locations for growth.

The continued growth of the district and the future incentives form a vital element in the mitigation of the future financial pressures anticipated in East Devon from 2020/21.

GESP gives an opportunity for councils to negotiate deals with the government to fund additional infrastructure in association with growth.

Much infrastructure funding comes from development, central government grants and the Councils themselves. Other Councils have worked with the Government to agree ‘infrastructure deals’ to provide more and higher quality homes in return for infrastructure investment e.g. Oxfordshire have agreed a deal where the Government provides up to £215 million towards infrastructure and housing in return for a commitment to a specific number of homes being built. We realise that new development, transport and infrastructure need to be thought about together and more detail on those issues will be identified and consulted on in the draft GESP in the summer of 2019.

Up to 2040, extra large-scale infrastructure is likely to cost more than £1 Billion. This will be determined to a large extent by future development sites in the plan but these sites are not yet determined. The infrastructure we may need to provide up to 2040 in the GESP area are:

New primary and secondary schools; Relief to major junctions on the M5; Improvements to the A30/A303; A number of new Park and Ride sites on the main roads into Exeter; Walking and cycling routes in and between towns and Exeter; Improvements to rail and bus routes and buses; Low carbon energy generation and a smart grid; New, accessible green space; Healthcare facilities; Community facilities; Internet connectivity and mobile communications and this is likely to cost around £700m.

Projects are funded in part but there is still a large ‘funding gap’.

Providing more, better and a wider variety of new homes is the main way to improve the present unbalanced housing situation. New NPPF policies require a baseline of a minimum of 844 homes per year to be accommodated in East Devon although this is less than the 950 new homes per year already agreed in the East Devon Local Plan to 2031. However, the baseline of 844 homes does not account for any additional need that the Council may agree to accommodate with neighbouring authorities in GESP which may lead to an increase in the overall number.

Therefore, if Councils deliver more than the minimum total provision of 2,600 housing per year for the combined GESP areas, then the Government will provide more funding for infrastructure. Prompt housing delivery could also be Government funded for affordable housing lost through right to buy sales in our high value housing Districts which continues to be problematic. Additionally, East Devon’s aspiration of one job per home will also need to deliver enough employment space to accommodate a minimum of 844 jobs per year with Councils in the South West agreeing that they will also try to double the size of the local economy by 2036 to increase local prosperity. Evidence suggests that the area has a high number of entrepreneurs and small businesses and encouraging these businesses and providing suitable accommodation for them to expand and grow will be an important factor for accommodating growth.

The NPPF recommends the effective use of previously developed or ‘brownfield’ land for meeting development needs but avoiding low density to make optimal use of sites with allocated sites and those with outline permissions being commenced within five years.

The government intend that viability assessment work is primarily undertaken at the plan making stage. The onus is on local authorities to undertake robust viability assessments which are open and transparent and publically available. The revised NPPF addresses the importance of good design (“Paragraph 124. The creation of high quality buildings and places is fundamental to what the planning and development process should achieve. Good design is a key aspect of sustainable development, creates better places in which to live and work and helps make development acceptable to communities”).

However, decision making in relation to flood risk and heritage assets remains unchanged in the revised NPPF with one of the Key Issues in the Report to Committee stating

· Flood zones – Clearly we should not be planning for new homes in areas at high risk of flooding and so areas within flood zones 2 and 3 should be excluded from any search for locations to accommodate growth.
Two of the main principles for growth are to
· Accommodate growth outside of areas within flood zones 2 and 3 and ensure that sustainable drainage systems are incorporated to ensure that surface water is wherever possible dealt with on site.
· Locate growth in locations well served by jobs and services to minimise the need to travel and encourage the use of walking, cycling and public transport to promote sustainable travel.

Suitable locations for accommodating growth recommend the west end of the district as it is less constrained. There may be some scope for further growth at Cranbrook but it is not likely to be close to the scale of growth accommodated in the last two local plans in this area.

9. Options for growth in the North West quadrant of the district
The western most quadrant of the district to the north of Exmouth and west of Ottery St Mary is the least constrained part of the district for accommodating growth. The land is relatively flat with no landscape designations. It is well served by main roads with good vehicle access via the M5, A30, A3052 and A376 and has good existing public transport links with the railway line and existing bus routes. The main constraints in this area of the district are the airport safeguarding and noise zones but these cover a relatively small part of the area and development could readily be accommodated outside of these zones.

9.1 Centre growth around one or more existing villages ​

This scenario would identify a number of key villages with scope for significant expansion based on factors such as access to public transport, road infrastructure and the services and facilities available within the village. This option has the benefits of helping to support existing businesses and services potentially helping to secure the future of existing village shops, schools, pubs, churches etc. It could also encourage new services and facilities to be provided which are then beneficial to existing residents as well as new residents. This is something that the new NPPF encourages, however these issues would require further consideration on a village by village basis as in most cases growth would have to be quite substantial (in the region of 400 – 500 homes) to make it viable to deliver the required services and facilities to make the settlement suitably sustainable for growth and in the process could harm the character of the village and the existing community.

9.3 Establish a further new town – This scenario would involve the creation of a new community similar to Cranbrook within the western part of the district. Cranbrook has been successful in delivering a high number of new homes in a relatively short space of time and has delivered some significant infrastructure alongside such as schools, a community centre and the railway station. There is however still much to be delivered at Cranbrook and the creation of a similar new town in the district could harm delivery at Cranbrook. Cranbrook benefited from substantial government investment to get development started and there is no guarantee that such resources would be made available again. It has also been a private sector led development and there is some uncertainty whether the private sector would commit to a further new town delivered on a similar basis in the district. Cranbrook has also been criticised for delivering one type of housing which has successfully met the needs of young families but it has not to date provided a wide range of choice to meet the broad range of housing needs that exist in the district. The delivery of a town centre and some other key facilities at Cranbrook is still pending with the town needing to reach a critical mass to support these things. This in itself illustrates the scale a new community needs to achieve before such facilities can economically be provided.

9.5 Establish a number of new villages – This scenario would involve the creation of a series of modern Devon villages that could reflect to some degree the form of existing villages within the district. This option would potentially be the most sensitive option in landscape terms. If the villages were designed so that they had different characters and form then there would be the greatest potential to broaden the choice of housing in the district and maximise delivery rates by having several developers delivering different types of housing simultaneously across the area and is favoured in terms of delivery as there would be scope to have several builders delivering simultaneously with each village providing opportunities to develop their own form and character. A significant concern with this option is the ability of new villages to deliver the required service and facilities as well as jobs alongside the housing. Existing villages are struggling to maintain such facilities and providing new within a new village is likely to be even more difficult unless the villages are quite large and facilities are somehow shared with neighbouring settlements and good transport links provided between them.

Exmouth – Options for growth at Exmouth include sites that are locally sensitive and would potentially involve incursions into the Maer Valley or expansion of the town out into the Lympstone ward.

9.7 Each of these options raises issues but the new NPPF acknowledges that “The supply of large numbers of new homes can often be best achieved through planning for larger scale development, such as new settlements or significant extensions to existing villages and towns, provided they are well located and designed, and supported by the necessary infrastructure and facilities. By working with the support of their communities, and with other authorities if appropriate, strategic policymaking authorities should identify suitable locations for such development where this can help to meet identified needs in a sustainable way.”

9.8 The assessment of each of the options is at an early stage but Members views are sought on these options and any clear preferences that Members may have.

Recommendations:

· A significant proportion of growth to be accommodated within the western part of the district.
· Accommodate growth in the existing towns focusing strategic growth around Axminster, Exmouth, Honiton and Ottery St Mary with the remaining towns taking more modest growth to meet the needs of those settlements.
· Villages to bring forward modest levels of growth to meet their own needs through neighbourhood plans.
· Focus development around main transport corridors where possible.

11. Conclusion

It is early days in terms of understanding how growth could be accommodated in the district and this report is not intended to pre-empt this work which will establish an evidence base to inform detailed consultation and discussion in the future. The principles included in this report are proposed as a baseline position to inform strategy development and work only but hopefully help to aid understanding of the issues and start the debate.

Greater Exeter Strategic Plan – Update and Vision

Since the previous consultation the GESP team has been busy analysing the consultation responses, the sites suggested and exploring issues for preparing the Draft Plan. A consultation will be held between 5 October and 30 November 2018 on a new vision for the plan, separated into three sections covering ‘the plan, ‘the place’ and ‘the priorities’ and includes the key areas of housing, a potential transport strategy and required infrastructure but no details about specific proposals will be published until the summer of 2019 (after the Local Elections in May 2019).”

“Land now 51% of UK’s net worth – a huge transfer of wealth to landowners, say campaigners”

“A dramatic rise in land values pushed Britain’s wealth to a fresh high of more than £10tn last year, highlighting the huge gains made by developers in property hotspots across the UK.

From London and the home counties to Cambridge and popular parts of Devon and Cornwall, land values have become the single largest element of wealth, dwarfing household wealth locked up in property and financial savings.

Official figures showed that the UK’s net worth rose by £492bn between 2016 and 2017 to £10.2tn, with the lion’s share of the increase accounted for by a £450bn jump in the value of land.

The rise continues a trend since 2012 that has pushed the average assets held by each Briton to £155,000, up £6,000 from 2016.

The Office for National Statistics said consistent increases in the value of land meant it accounted for 51% of the UK’s net worth in 2016, higher than any other G7 country that produces similar statistics.

In France, which has a land mass twice the size of the UK, land values account for 41% of wealth while in Germany they account for only 26%.

This week several landowners have outlined plans for developments, including the Duke of Westminster’s Grosvenor Group, which said it was taking a growing interest in residential property outside central London.

It said it would build thousands of homes on greenfield sites around Oxford and Cambridge, which are to benefit from Treasury plans to connect the two university towns with a cross-country rail link.

Analysts said much of the increase in land values was in response to Britain’s rising population, which has put pressure on the government to back house builders seeking to develop green field sites and farmland in south-east England and other development hotspots around the country.

The price of farmland can increase by 100 times when developers succeed in persuading ministers to re-designate it for housing. Areas of London that were previously derelict, especially in the east of the capital, have seen huge rises in values as regeneration efforts and improved transport links have fed into property prices.

Commercial property has also enjoyed an upswing in value since Britain’s recovery following the 2008 banking crash, more than offsetting recent declines in much of the retail sector.

The ONS figures go beyond a study last year by Lloyds bank that showed that Britain’s net worth had climbed above £10tn for the first time, but did not single out the value of land.

The steady increase in land values is expected to trigger further calls for a land value tax or new rules allowing local authorities to reap the rise in values by allowing them buy land earmarked for development.

A growing number of thinktanks and politicians support imposing a tax that would take a slice of rising land values.

The Institute for Fiscal Studies has urged the Treasury to develop a scheme, while the Green party co-leader, Caroline Lucas, has tabled a private member’s bill proposing a land value tax. Labour said in its 2017 election manifesto that it would consider a similar tax.

Mark Wadsworth, the head of the Campaign for Land Value Taxation, said: “The minority with a vested interest in high land values will no doubt celebrate higher values, saying that is shows the importance of land to the UK economy.

“In truth, land values are not a net addition to national wealth, they merely represent the benefits that accrue to landowners because of government spending on public services funded out of general taxation; land values are actually just a measure of ongoing transfers of wealth from taxpayers to landowners and a zero-sum game.”

https://www.theguardian.com/business/2018/aug/29/uks-wealth-rises-as-land-values-soar-by-450bn-in-a-year