Letwin on housing: no bricklayers, no infrastructure, developers slow to release (wrong kind of) housing to keep prices up

As reported in “Decisions, Decisions, Decisions – original article from today’s Sunday Telegraph.

Owl says Well, we could have written this, couldn’t we! And where is the Magic Money Tree for infrastructure?

It is two years since Sir Oliver Letwin formally left the government, and yet in recent months he has found himself relied on by Theresa May almost as much as if he had retained his role in the Cabinet Office.

The former Conservative policy chief has been credited with averting at least two major Tory rebellions over Brexit by developing compromise amendments to the Government’s EU (Withdrawal) Bill.

In November he was asked by Philip Hammond to tackle another thorny issue for the Prime Minister, who has pledged to increase the number of new homes to 300,000 per year: the vast gap between the number of properties given planning permission, and those that have actually been built.

Sir Oliver’s inquiry began amid claims developers were deliberately “banking” land. The only “land banking” that does exist, he has concluded, is as a result of the “absorption rate”, which sees builders sell new properties over a longer period of time because putting a large number of similar homes on to the market at the same time was depressing prices.

Sir Oliver’s analysis found that firms were taking an average of 15.5 years to complete large developments, with work progressing at a rate of 6.5 per cent of the development per year. At the extreme end of the scale the buildout rate of a development was almost 44 years. “It is an extraordinary fact,” he says. The larger the site, Sir Oliver’s team found, the smaller the percentage of the development that would be built each year.

The problem, he has concluded, is that homes on the largest sites were too alike, both in terms of the buildings themselves and their surroundings, and the “tenure” of the properties – whether, for example, they were ultimately aimed at private purchasers or renters, or those who would be renting through local authorities or housing associations.

‘Co-ordination across the various layers of government… is not good enough’

“When you go to these estates they will sometimes tell you, ‘we have three or four different flags’, as they put it, or ‘outlets’, or even ‘brands’,” he says.

“We have wandered up and down these sites and looked for the differences. I assure you, it’s very difficult to tell which is which.”

He adds: “There are people who want retirement living, people who want student accommodation, people who want homes that look and feel completely different from the sorts of things builders are building on these sites. They will find them in the second hand market very possibly, but they won’t find them on these sites, because these sites are being built like these builders build them – that’s what’s on offer. Any car you want as long as it’s black.”

The exact “policy levers” that Sir Oliver will recommend to tackle the problem will be the subject of the next six months of his review, on which he will report ahead of the November budget. But he now knows what he is aiming to achieve.

“The outcome we need is an outcome which somehow varies in lots of different modes and ways what’s on offer. Just as important that they should be varied in soft ways to do with architecture, urban design, ecology and style as in the hard ways of tenure and size.

“If you can have different markets that you’re addressing… you will end up with more homes.”

Sir Oliver has been careful to keep his focus on the time period between planning consent being gained and a site being completed, in line with his formal brief. But he will also make recommendations for tackling problems that he has discovered are delaying – by an average of more than four years – the point at which full consent is provided.

“We discovered en route that the provision of major infrastructure, particularly major transport infrastructure… has a huge effect,” he said.

“Barking Riverside [in east London] for years and years didn’t happen to speak of because everyone was discussing how not to provide an extension of the Docklands Light Railway. They eventually decided it wasn’t going to be provided and they would instead extend the London Overground. Then Barking could proceed.

“It would be much better if our country were one in which once someone’s decided that there’s a large area of post-industrial land which it would be really useful to build, somebody got their act together and got the infrastructure in place.”

He added: “There are lots of government schemes and money and so on available… but I have noted that co-ordination across the various layers of government – departments, agencies, Highways England and National Grid and all these others – is not good enough to create the energy to get rapid decisions made.”

Another problem is a shortage of bricklayers – which will only get worse if the Government’s efforts lead to a rapid expansion in the number of homes being built, he warns.

He calls for a five-year “flash” programme of on-the-job training to increase the number of bricklayers by around 15,000 – adding almost a quarter to the current workforce.

Sir Oliver understands the scale of the task on his hands. Housing, as Mrs May has realised, could make or break the Conservatives at the next election.

“I think there’s absolutely no doubt that any political party that doesn’t take really, really seriously the need to provide sufficient homes for our population… is going to suffer.”

https://andrewlainton.wordpress.com/author/andrewlainton/

“The Greater Exeter plan has been delayed”

Owl is STILL having difficulty understanding how the Greater Exeter Strategic Plan (GESP) fits in with the Devon and Somerset Heart of the South West Strategic plan!!! So many strategies, so many plans, so many people being paid to work out how to invent what might, or more likely might not, turn out to be a wheel – though one of them MIGHT just manage to invent a square one!

“Mid Devon, East Devon, Teignbridge and Exeter City Council, in partnership with Devon County Council, are teaming up to create a Greater Exeter Strategic Plan (GESP) which focuses on the creation of jobs and housing until 2040.

… A consultation on the issues that the GESP should focus on took place 12 months ago and it was initially hoped that a consultation on a draft plan would begin in January of 2018.

But publication of the draft plan has been delayed and it is now likely that the draft GESP will be published in the summer of 2018.

Explaining the delay, a statement said: “In respect of the Greater Exeter Strategic Plan (GESP), and since our last Local Development Scheme was approved, there have been a number of factors which have delayed plan production.

“These include the fact that a great many sites were submitted through the Housing and Employment Land Availability Assessment ‘call for sites’ and these are being carefully assessed as well as further draft changes to national Government planning policy and a wish to investigate differing ways to ensure we can secure the best forms of development, including the highest quality new housing with supporting facilities, to meet our future needs.”

… The GESP will sit above District-level Local and community Neighbourhood Plans, taking a long-term strategic view to ensure important decisions about development and investment are coordinated. … “

https://www.devonlive.com/news/devon-news/greater-exeter-plan-been-delayed-1412993

Productivity, weather, climate change and – robots!

Our LEP says we can double productivity in Devon and Somerset by 2030. But can we do this given recent weather/climate activity that has apparently already cost Devon £200m?

https://www.devonlive.com/news/business/snow-storm-emma-cost-south-1289777

To recap: the only 2 main roads into and out of Devon (M5 and A303) were both impassable at the same time, the rail service collapsed in Dawlish and London, Exeter airport was closed and rural bus services were all cancelled. Devon came to a standstill. At a time when there were threats to cut gas supplies to larger, non-strategic businesses.

Good quality and quantity infrastructure is essential to get productivity growth, and now the cold weather has – yet again – shown how bad our infrastructure is, and that the current government has under invested – almost certainly because the south-west is generally a set of safe seats – so there is no need to invest – need as defined by political election need not citizen need.

So LEP claims to double productivity would be extremely optimistic / challenging in the best of circumstances, with great infrastructure, but with crumbling infrastructure, struggling under the weight of homes growth, and subject to the vagaries of the weather and lacking in desperately needed investment, there is not a hope of getting anywhere close. And indeed, we might ask, with the woeful infrastructure we currently have, and no investment, should we expect a decline in productivity rather than an increase?

And we have another problem. Productivity = output. so, with robotics does that mean more or less employment – and if less, and no one wants to move here, who are going to live in all these new homes and how will they afford to keep them?

Even Greggs the bakers are now using robots to make sausage rolls and pasties:

https://www.dailystar.co.uk/news/latest-news/685288/Greggs-to-cut-hundreds-of-jobs-sausage-roll-doughnut-robot-UK

Privatised profit, public loss – a masterclass

Virgin – running vast parts of our NHS; Stagecoach – a virtual monopoly on bus services in East Devon and Greater Exeter.

“For the third time in a decade, an East coast rail franchise operator has shown little of the financial prudence once associated with the great cities linked by its trains from London to Yorkshire and Scotland. Following the failures of GNER in 2007 and National Express in 2009, Virgin Trains East Coast has run out of steam, with the government declaring a financial covenant breached and the contract set to fail in months.

The latest incumbent has, like its predecessors, bid too much to run a lucrative line whose potential revenues have fallen short, at a time when economic uncertainty has gnawed away at ticket sales.

But exactly why Stagecoach, the 90% lead partner to Virgin’s 10% stake in the current franchise, promised £3.3bn to run the line, and how that contract is now resolved, remain key questions – amplified by East Coast’s unique place in the blazing political row over how the UK rail network is run.

In 2013, when bidding started, East Coast was nationalised, run by Directly Operated Railways (DOR), a government-owned firm returning around £200m a year in premium payments to the Treasury.

The previous year, the parallel line north, the West Coast intercity service from London to Glasgow run by Virgin with Stagecoach since privatisation, had been the subject of a bidding competition gone bad. The award of the franchise to First Group was overturned on legal challenge after Virgin argued that its rivals had won with a colossal but unsustainable bid.

Pointing at the lessons of the past, failed East Coast franchises, the Virgin founder Sir Richard Branson railed: “Insanity is doing the same thing over and over again and expecting different results. When will the Department for Transport learn?”

Not soon enough. A government-commissioned inquest concluded that franchising remained the best model. A queue of rail contracts were almost up, not least the Virgin-run West Coast. But the reletting of East Coast to the private sector was prioritised ahead of a 2015 election that was expected to see a hung parliament, potentially keeping the line in public hands.

The dust had hardly settled when the DfT invited bids with a vision that would lead to Branson and Stagecoach promising undeliverable riches of their own.

Investment was coming to the East Coast line, including track and power upgrades, critically bringing a new fleet of InterCity Express IEP trains, with more than half of a £5.7bn government order earmarked for the line. What was promised, pledged or inferred – and how relevant it is to the collapse of VTEC’s contract – is contested.

Stagecoach claim upgrades were promised and not delivered that materially impacted its franchise; a review by Peter Hendy axed or deferred engineering works around the country after the infrastructure body Network Rail blew its budget on the electrification of the Great Western mainline.

However, Network Rail is clear it has already done the work necessary to bring in new trains and a timetable that would have turbocharged passenger numbers – and Stagecoach’s premium payments – after 2019. Chris Grayling, the transport secretary, has also said that no cancelled upgrades have affected the franchise to date.

What was wrong, it appears, was Branson’s conviction that a new livery and “people hungrily trying to make a real difference” could propel passenger numbers upwards from when Virgin took over. Instead, fares went up and the outlook went down.

They got their forecasts wrong, Stagecoach’s chief executive, Martin Griffiths, admitted this week. But, he added, the DfT “decided we offered a high quality and realistic bid … indeed, I was personally told at the time that it was the highest quality bid they had ever seen”.

In March 2016, a year after taking over, Branson and Stagecoach’s chair, Brian Souter, rode into King’s Cross on one of the first government-bought IEP trains, now in Virgin livery and rechristened Azumas by the private operators, a name with echoes of the Japanese rising sun. “Like a new day dawning on the railway,” said Souter.

But City analysts were flagging concerns. And by the time Grayling came to the Commons in November 2017 to announce a “rail strategy” that slipped in news that VTEC’s contract would be replaced in 2020 by an East Coast Partnership, investors had already factored in heavy losses.

Stagecoach’s share price bounced back on Grayling’s plan, widely described as a £2bn bailout – the value of the remaining payments to the government due from VTEC’s owners had the contract continued from 2020 until 2023. Condemnation was largely led by Lord Adonis, the former Labour transport secretary who nationalised the line when National Express failed to meet payments in 2009.

It is not clear why Grayling then waited until this week to announce the franchise’s imminent collapse – stoking fury by simultaneously confirming a direct award to extend Virgin’s West Coast deal, a contract now held, without competition, from 2012 to 2020.

Officially, Stagecoach had “breached a financial covenant”, although the company has not acknowledged this, and the financials have not altered significantly. The mooted East Coast Partnership was met with some bemusement – one well-placed rail industry figure said there was “no chance of it being up and running, and absolutely the last place you’d do something like that”. A Stagecoach statement spoke of “a hardening of the DfT’s negotiating position, coinciding with increased media and political scrutiny”.

Adonis himself sees it differently – that once the ink was dry on the West Coast extension, the rules had changed and Grayling had lost his bargaining chips. He said: “I’ve sat around a table from Brian Souter. He knows when he’s got his man. Stagecoach are playing Grayling.”

DfT officials are now assessing the relative cost of returning the East Coast franchise to public sector control or allowing VTEC to continue on a “not-for-profit” basis – which would nonetheless relieve them of paying hundreds of millions due to be paid to the government in the original deal. Other train companies will be watching intently as they too grapple with franchises whose ambitious promised payments to the government rely on passenger growth that has not materialised, or even gone into reverse.

Had Stagecoach continued to deliver its payments, which in the second and third year were roughly 30% higher than East Coast under its previous operator DOR, and improved the service, it would have been compelling vindication for those who urged its restoration to the private sector. Instead, Virgin joins the ranks of those who bet high on East Coast and saw it all go south.

https://www.theguardian.com/uk-news/2018/feb/10/east-coast-line-bailout-rail-privatisation-spotlight

Axminster North-South relief road gets £10 million from government plus grant for “Greater Exeter” alternative green spaces

Good news for Axminster? The much-needed relief road that East Devon District Council Tories initially refused to put in the Local Plan (when Bovis was building in the town) is getting a government grant of £10 million. £10 million doesn’t go far on roads these days, so will it be enough? Good news for Crown Estates and Persimmon who are said to own a large parcel of land to the east of Axminster (at least they did in 2015]:

https://eastdevonwatch.org/2016/05/27/axminster-persimmon-and-crown-estates-meet-the-neighbours/

On a more worrying note, “Greater Exeter” (which includes East Devon) also gets £3.7 million for “Greater Exeter Suitable Alternative Natural Green Space” which means allowing developers to build on current green spaces if others can be created elsewhere.

The only problem being, the areas to be concreted over seem to get build on rapidly before the “alternative green spaces” are found or designated!

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/678379/MVF_Successful_Bids.xlsx

When is government funding not government funding?

… When you announce a fund of £1.7 billion and, in the same press release, announce that you have only agreed to spend £250 million!

“… The Transforming Cities fund aims to improve connectivity, reduce congestion and bring in new technology to create high-quality jobs and spread wealth around the country.

Some £250m has already been allocated to the West Midlands. …”

https://news.sky.com/story/theresa-may-reveals-16317bn-transport-boost-ahead-of-budget-11135211

Local campaigner’s brilliant analysis of “development” in Devon

Georgina Allen is a local campaigner based in Totnes – suffering similar problems to East Devon. This has been published by the Campaign for Rural England (CPRE). For further information, see the South Devon Watch Facebook page

“The papers at the moment are full of grim warnings about the Green Belt. It is anticipated that seventy percent of new builds will be built within the Green Belt, very few of which are going to be affordable, none of which, I suspect are going to be well built or add anything to the landscape or to the lives of people who live there.

Our countryside is under threat is the general theme, but it is more than under threat, it is under attack. Already thousands of acres have been swallowed up by new mass developments. Little towns are consumed under the weight of great new estates, so often built without thought or reason other than to make money for distant shareholders.

This government has removed, as it loves to do, much of the restraint and red tape around the building industry. A few well placed lobbyists, the understanding that the ‘conservative’ part of the Conservative Party was on its way out and the housing plan was hatched. It’s all been very cleverly done.

The housing crisis was basically used as a smokescreen to hide the fact that the building industry was going to be used to prop up the economy. It’s a short term solution of course, not much of a solution at all really. It’s been used in so many other places and at the end fails, not until a lot of land has been ruined of course, but at least a few people make a lot of money.

We don’t have a shortage of homes, of course. What we have is a shortage of houses that people can actually buy. I was 35 when I bought my first house. The mortgage was three times that of my teacher’s salary. It was a stretch, but I coped and then, of course, house prices soared; my little house became a valuable asset and when I sold it, the price was above the reach of a similar teacher in my area.

This is the problem.

If the government actually wanted to solve the housing crisis, they would put money into social housing, control land value tax and limit the amount of housing that investors from overseas can buy. But of course they don’t. Osborne was caught on tape saying that he had no interest in social housing, – it only bred Labour supporters. At least that was honest. What isn’t honest is the way they’ve gone about building the myth of housing need to cover up the fact that they are lobbing enormous amounts of our money to the building industry.

I went to look at Canary Wharf recently. It’s still an impressive sight, all jostling, shiny towers, cranes everywhere, but a little investigation revealed that many of the new skyscrapers, the residential ones at least, are left empty. Investors come in right at the beginning, when the ink on the architectural drawings is still wet and buy the whole build, neglecting often to rent the new flats out – and why should they? If they are allowed to use our buildings as gold bricks, then it seems reasonable that they should keep the value of their investment high.

It makes sense to ensure that demand continues to outstrip supply and that the number of houses available to the public is limited. Thousands of new-builds are breaking the skyline in East London and yet this huge amount of building is yet to bring prices down. People move out of the centre because they can’t afford to live there and migrate to the outskirts, the outskirts get more expensive, so they move further out, dislodging the inhabitants there, who are moved even further out and so on and so on, the ripples continuing across the country. Our major cities are hollowed out and people live in areas they don’t necessarily want to be in, finding themselves dependent on their cars and transport to get them back to the place where they have a job.

By the time the ripples get to Devon, they’ve changed slightly.

These ripples are the people who have decided they no longer need to commute to the city. They discover they can buy two houses in Devon for the price of their one in the South East and realise that they can fund their retirement/break through a buy-to-let. This has been the pattern of movement around us in South Devon recently.

The new-builds, which were of course spun to seem as if they would solve our local housing issues, have often gone to people moving into the area. These builds come with all sorts of assurances as to improvements in infrastructure – anything over 14 houses is supposed to trigger money for healthcare, transport, leisure, – all sorts of things are promised. Local councillors talk grandly of new parks, new hospitals, but of course that doesn’t feed into the ultimate aim of all this building, which is to make money, so the government has cleverly inserted all sorts of get-out-of-jail free cards, which the developers are only too happy to take on.

Viability studies are the worst of these.

S106 monies are promised before the build at planning stage. The local council pauses, – they know that this new build on the edge of AONB will severely impact local roads, local services, destroy a farmer’s land, restrict access to a town, but they might well run the risk of being sued if they say no and at least afterwards they can point to all the lovely benefits – all that money coming in to improve the swimming pool, health care etc.

Planning permission is granted, work starts, ancient hedges are ripped up, protected trees are undermined, the wildlife disappears. Then a viability study is done. Ah, it appears that we won’t make enough profit if we build more than 10% of these houses as affordable, so here are our new plans. Also, sorry, but we have no money for S106s, as it proved a little more expensive than we realised to flatten this hill, so that money has gone too.

The council, hamstrung by the more than 40% overall cut to its budget and short of legal expertise and planners, has to agree. For example, we’re getting 1,200 houses around our little town of 8,000 and are yet to see the great improvements, any improvements in fact to our town’s infrastructure. There’s a need for housing we keep getting told. There’s a need for actual affordable housing and improvements to roads, we reply and are greeted by silence.

But the worst spin of all is the calculation of need. We need houses and to deny this is selfish and this is said across the political spectrum. So how is local need calculated?

Here in Devon, during devolution at least; local need was worked out by a group called the Local Enterprise Partnership, the LEP. These groups have evolved out of the old rural business development model and are in place across the country. Their primary role is to support business and investment in their region. and they are paid vast sums of money by the government to invest locally. So far, so good.

Just a quick look at their board. Our one at least seems to be made up almost entirely of property developers, arms manufacturers and the CEOs of major construction companies; almost all of the construction companies at work in the South West seem to be represented. Their conflict of interest declarations cover many pages. So these are the people who came up with the figures of housing need. The fact that they could benefit personally from having high figures here, does not seem to have been challenged in any meaningful way.

How did they come by the figures? They do not need to say, they are not an accountable organisation and the calculations behind these figures are not accessible to the general populace. There are three or so councillors on the board [our own Paul Diviani is one and he’s responsible for housing!]; they represent the democratic will of the people, the rest of their work is none of your business. The LEPs are not democratically elected, their meetings are held in secret, their minutes are concealed, their work is surrounded in mystery and yet they spend our money. They are funded with public money.

The audit office has criticised them, our councillors have criticised them, everyone does, but they are the creation of government and can take the criticism. The people on the board benefit directly from much of the building they do with the public purse. Their companies build the roads that lead to the new developments, their companies finance the new developments, their companies profit from the new business parks set up around the new developments. The conflicts of interest are so huge they seem to be forgotten about.

Newton Abbot is a case in point. Despite the fact that the population of Newton Abbot has hardly grown at all in the last five years, it was calculated by the LEP that the town housing stock would need to double in the next ten years.

I asked the head of Teignbridge planning – Why? The answer – Housing need. How was this calculated? Ah well, its a very complex process, which I personally do not fully understand. Ok, can you point me in the direction of someone who can explain? No. And that’s the typical response you get for any of this type of questioning.

The LEP was given a multi-million growth fund payment from the government. It’s widely understood by local councillors here that the 40% cut to council budgets has reappeared as payments to the LEP. Our council’s money has in part gone into financing a group we have no say over. £46 million of the growth fund money is going into the Newton Abbot expansion, despite the rejection of this plan by local residents. The money is going into widening the roads and building further access. Who is building the roads? Galliford Try. The CEO of Galliford Try is on the board of the LEP. Who made the decision to spend this money in Newton Abbot? The LEP. Who gave planning permission for this huge expansion into the green belt around Newton Abbot? The leader of the council led the decision. The leader of the council is on the board of the LEP.

I am not of course, saying that this is corrupt. It is not illegal, – it is happening the way it was intended by central government. These are the sweeteners to keep the building going. The government can say they’ve built new houses, – they point to these spurious housing need figures. The building industry is delighted of course, – they can build cut-price housing in the most desirable areas for the greatest returns. Local councils have been so starved of cash that the promise of new homes bonuses keep them pliable and if they complain, if doesn’t matter, they have no money to mount any type of challenge to development anyway.

The building trade and certain powerful councillors have formed alliances through the LEP, where they all profit through the public purse and can talk happily of growth and building. The only people left out of this equation are the people who actually need houses, local people, who are completely sidelined and ignored. Their wishes and needs are irrelevant.

The biggest loser though, of course, is our countryside, our most valuable resource. In survey after survey, the British people cite the NHS and the countryside as the most precious and valuable assets we have. Our countryside is invaluable really and to see it treated the way it is at the moment, for the profit of shareholders and government is sickening.”

Source: CPRE magazine

Another reason to have a breakaway eastern East Devon?

Very, very few people in the eastern part of East Devon will benefit from this, yet it is in the EDDC area.

“The Department for Transport (DfT) has confirmed funding for two major projects in Devon …

[One is £9 m at Sherford new town near Plymouth]

… east of Exeter, the continuing growth and development will receive a £4 million boost, which with £3 million developer contributions will deliver improvements to Moor Lane junction to provide more capacity for traffic using the A30 and from Sowton Industrial estate; extension of the higher quality cycle routes into the city; an additional multi-use car park at the Science Park; plus extension of the electric bike scheme.

The news has been welcomed by Devon County Council, which put in the bids for the DfT funding.

Councillor Andrea Davis, Devon County Council Cabinet Member for Infrastructure, Development and Waste, said:

“This is great news for Devon. Great for Devon residents, and great for Devon businesses. The £9 million will bring with it improvements in Exeter, and much needed access, and High Street, to the new town of Sherford. Both schemes will be a boost for new housing, jobs and connectivity in Devon.”

https://www.devonnewscentre.info/new-schemes-will-be-a-boost-for-housing-and-jobs-in-devon/

Infrastructure: the forgotten need and M5 worst road for traffic jams in 2016

More and more houses, more and more and more cars … tipping point now reached.

“The UK has been confirmed as having more traffic jams than anywhere else in Europe. The Independent Transport Commission has found that the cost of these jams to the UK economy is a staggering £9 billion per year. That’s more than the cost to most European countries combined.

… Looking at vehicles per capita, the UK is 34th in the world. It comes behind France, Sweden, Italy, Luxembourg and Greece, so that doesn’t seem to be the problem. The UK has six million fewer cars than France on its roads. …

Additionally, research by traffic analytics company Inrix shows that, in 2016, drivers encountered 1.35 million traffic jams in the UK. That works out on average to 3,700 traffic jams every day. The estimated annual cost of £9 billion wasted is based on time, fuel spent while idling or starting vehicles in jams and the resultant cost of all that unnecessary pollution.

M5 wins title of “worst traffic jam” in 2016

On 4 August 2016 at the M5 near Somerset, two lorries collided. This created the worst traffic jam of last year, with a 36-mile tailback. It took workers 15 hours to clear the debris. This jam alone was estimated to have cost £2.4 million.

The northbound M6 has three serious traffic jams in the top five worst traffic jams of 2016, while a serious car accident on the A406 was the fourth worst jam of the year.

The causes of the worst queues ranged from fuel spills and emergency repairs to broken down lorries. November was the worst month in terms of the total number of traffic jams. There were 169,000 on the UK’s major roads during that month. April had the second highest number of jams recorded.

UK roads not fit for purpose

Investment has been made to update Britain’s main trunk roads. We are totally reliant on these to get up and down the country. Unfortunately, the sheer volume of traffic on them means that if anything causes the traffic flow to stop at all, there are no alternative road systems nearby for drivers to move across to. Many of the new “smart motorways” being built across the UK are exacerbating the problem because they are built with no hard shoulder in place, just emergency refuge bays provided at maximum intervals of 2,500 metres. …”

[The rest of the article consists of (a) the government saying it is working on the problem and (b) a plea for more roads which hardly seem worth commenting on]

https://www.petrolprices.com/news/worst-traffic-jams-europe/

After freehold leases another scam: unadopted roads

Rumour has it there are many such roads in our part of the world …
http://www.midweekherald.co.uk/news/practical-advice-issued-for-sensible-parking-in-cranbrook-1-3999229
and
https://eastdevonwatch.org/2017/02/20/cranbrook-estate-rent-charges-another-developer-cash-cow/comment-page-1/

Owners of new homes are living on potholed roads with no street lights or rubbish collection as housebuilders and councils shun the responsibility for road maintenance.

Developers can save thousands by dodging the legal agreements that pass the roads on to local authority control, allowing builders to make roads narrower than usual, for example, and leaving homeowners to pay for the road’s upkeep or see it fall into disrepair.

People living on these unadopted streets have been forced to seek approval from road management committees before selling their homes and say it is harder to find buyers.

The government is to ban new houses from being sold on a leasehold basis to tackle onerous ground rent charges, yet owners of freehold houses on unadopted streets are being “held to ransom” by management companies that charge households up to £660 a year for road maintenance.

“We seem to be rewriting the rules on the way that roads are looked after,” says Derrick Chester, a councillor for Littlehampton and Arun in West Sussex.

Normally housebuilders have new roads “adopted” by the local authority through a legal agreement under Section 38 of the Highways Act 1980, while the sewers underneath are covered by a similar Section 104 arrangement. When the road is left unadopted, homeowners on the road are responsible for its upkeep, and often the sewers and facilities such as playgrounds and parks.

Halima Ali, 30, and her husband bought their freehold four-bedroom home in Rochdale, Greater Manchester, from Persimmon, the developer, and believed that the road would later be adopted by the local council. Seven years later the streets around the 120 flats and houses remain unadopted and are deteriorating.

“The street lights have not been fixed for years, so there are areas that are in complete darkness; it is quite scary at night. A neighbour has had a problem with a sewer cover, which is in danger of collapse,” she says. “There is a children’s playground and, even though it is a public park, residents are required to maintain it. The public come and trash it and we can be made to pay for its maintenance, which is outrageous, and we are paying council tax on top.”

Another homeowner, 56, bought a three-bedroom freehold house in Kettering, Northamptonshire, from SDC Builders nine years ago. “At the time it was sold to me as a benefit, your own private neighbourhood, which would be passed into the residents’ control once the developer had left,” she says, “but, as an unadopted road, we have no street lighting, the bin men won’t come down and we are liable if anyone has an accident on the communal land.”

She has been trying to sell her home, but buyers pulled out when they found out about problems with the unadopted road.

She says that SDC Builders set up a limited company for managing the development, which was passed to residents, who elected two neighbours as directors. She was not aware that if she wanted to sell her property it would require the directors’ approval, and they have refused permission over what she says is a trivial disagreement about parking.

Christine Hereward, the head of planning at Pemberton Greenish, the law firm, says councils and highways authorities will only adopt roads if they are built to their standards. Section 38 agreements are also backed by a lump sum, sometimes running to hundreds of thousands of pounds, put down by the housing developer as a bond against the road not being finished properly. Developers receive their bond back only when the road is adopted. Ms Ali says: “Persimmon has not built our road to the required standard. The council won’t adopt it.”

Critics say developers are choosing not to enter into a section 38 agreement so that they can bypass local authority standards; roads can be narrower and car parking spaces smaller than regulations require, for example. They also save tens of thousands by not making the required bond payments.

In 2009 the government estimated that it would cost £3 billion to bring the country’s thousands of unadopted streets up to an adoptable standard. “Developers can achieve cost savings and make their lives easier. It does enable them to construct a substandard highway. It is a shortcut. To be fair to the developers, it is up to councils to enforce the standards,” says a source who did not want to be named. “There is very little sanction.”

The public come and trash the park and we can be made to pay for it
Mr Chester says councils and housebuilders are colluding over the issue because it saves both parties money. “It fits into the narrative about local authority budget cuts,” he says.

Phil Waller, a former construction manager who runs the website Brand-newhomes.co.uk, says: “I know of one development where a fire engine was unable to access a fire because of parked cars and the layout of the road.”

Unlike private roads, which are often gated, unadopted roads appear as ordinary streets. Whether the public has right of way can be uncertain. Mark Loveday, a barrister from Tanfield Chambers in London, says he frequently hears from homeowners who did not realise that their property was on an unadopted road. “What very often happens is nothing is done to the road for many years and it is only when potholes appear and someone living on the road says, ‘hang on, someone should be maintaining this road’”, he says.

Buyers of new-build homes ought to check the specifics of the road before the sale. “This is an important thing that should be flagged up by the solicitor,” says Mr Loveday. Those who are unsure about the status of their road can apply to the Land Registry for details.

Steve Turner of the Home Builders Federation, the trade association, says housebuilders are increasingly in dispute with local authorities and planning departments over the specifications of newly built roads, which is causing delays in local authorities adopting them. “The resolution typically involves the authority demanding more cash,” he says.

‘We may have to pay for the road upgrade’

Residents of unadopted streets often need to take out public liability insurance in case someone is injured on the street.

Keith Beattie used the government’s flagship Help to Buy scheme to buy his house in Haydock, near St Helens, Merseyside, from Westby Homes North West. In February 2014, when he moved in, the road was unfinished, with tarmac not properly laid and potholes filling up with water. The housebuilder went into administration in August. “The administrators have informed us that they won’t be completing the road and paths. St Helens council will not enter a section 38 until the road is brought to an adoptable standard, which it is not,” he says. “As residents, we may have to pay to have the road completed to the council’s standard.”

Source: Times, pay wall

Tourism, new roads and more second homes is not the answer for Cornwall

” … Cornwall is a major tourist area, but its economy is one of the weakest in Europe. EU investments, together with “matched funding”, have injected around £1.5bn into the region, but this has had little impact on raising GDP.

One of the biggest stumbling blocks has been the perception by successive governments that the Cornish economy is synonymous with tourism, with its focus on unskilled, low-paid and part-item employment.

Cornwall is being directed to build 52,500 houses before 2020. A large proportion of these will be bought as holiday homes or by people retiring to Cornwall. This large-scale “immigration” has vastly distorted the housing market. People employed in tourism cannot afford these houses. Perhaps Cornwall’s perversity in delivering a very large pro-Brexit vote was because there are so many middle-class retired incomers who are putting stress on the social and health services .

Tourism is supposed to generate billions of pounds, but very little of this “sticks” in Cornwall because much of it goes to the major supermarkets, which employ unskilled people on low pay.

Government (and the Cornish will not forget the Brexiters’ claims that EU funding would be replaced by central government) must encourage high-value opportunities, such as those within the digital industries that are beginning to grow in Cornwall. And perhaps government should improve the social and health services, digital connectivity and rail and air infrastructure, rather than pumping more money into roads that primarily serve tourists.

Dr Ben Dobson
Crantock
Newquay”

https://www.theguardian.com/business/2017/aug/13/letters-tourist-areas-need-investment-in-jobs-not-just-better-roads

Exeter fourth largest growth rate in UK

Surely at this rate the Exeter area economy will become greatly overheated with an inevitable crash, especially as we are told that 70% of its exports currently go to the EU? Will East Devon, with Cranbrook’s creep towards the city just become a suburb of an ever-sprawling Greater Exeter but with no supporting infrastructure to speak of?

“Exeter is in the top five cities in the UK for job creation, new figures have revealed.

The UK Powerhouse report, produced by law firm Irwin Mitchell alongside the Centre for Business and Economic research, provides an estimate of the value of goods and services produced and annual job growth of 45 of the UK’s largest cities, 12 months ahead of the Government’s official figures.

Exeter sees an annual change of 1.5 per cent when it comes to employment, putting it as fourth in the UK.

It also revealed the growing importance that the banking, finance and insurance sector has on the city, revealing that 5,900 jobs were created between 2013 and 2016.

The report also predicts that Exeter’s city economy will grow by 18.1 per cent over the next 10 years whilst employment will grow by 9.4 per cent during the same period.

Jack Coy, economist at Cebr, said: “Despite the UK-level economic slowdown over the first quarter, it is good to see some bright sparks in local economies across the country.

“In particular, the best performing cities have benefitted from a combination of cutting-edge, productive industries and high-skilled workforces.”

http://www.devonlive.com/exeter-fourth-best-city-in-country-for-employment-growth/story-30444024-detail/story.html

“The £104bn HS2 cover-up: Government refuses to publish report into whether the controversial rail route should be scrapped”

“Ministers were under fire last night after suppressing a key report into HS2 overseen by the country’s most senior civil servant.

The review assessed whether the UK’s biggest ever infrastructure project is on budget and provides value for money for taxpayers.

It was led by the Infrastructure and Projects Authority, which reports to the Cabinet Office, led by Sir Jeremy Heywood.

The review was concluded last summer, before the legislation required to build the first phase of the high-speed railway, between London and Birmingham, received Royal Assent.

But although the key findings were relayed to Sir Jeremy Heywood and the government spending watchdog, the National Audit Office, the report has never been published.

Sir Jeremy was nicknamed Sir Cover-Up after preventing the Chilcot inquiry into the Iraq War from seeing letters and records of phone calls between Tony Blair and George Bush.

The Government was last night under fierce pressure to release the findings after a rail expert warned that the London to Birmingham phase will cost £403million per mile to build, making it the most expensive railway in the world

How cash could be spent

An east to west high-speed trans-Pennine rail link – nicknamed HS3 – connecting Liverpool, Manchester, Sheffield, Leeds and Hull.

The electrification of the mainline between London and South Wales. Completion of this project has been delayed until 2024.

Improving rail links between London, Devon and Cornwall.

Rebuilding the vulnerable Dawlish coastal line between Exeter and Newton Abbot in Devon which has been repeatedly battered by storms and floods.

Reopening the Great Central passenger line between Burton upon Trent and Leicester. It was closed to passengers in the late 1960s as part of the Beeching cuts. Only freight trains now run on the line.

Electrification of the Valley lines in South Wales.

The calculations were produced by Michael Byng, the expert who devised the standard method used by Network Rail to cost its projects.

He told The Sunday Times that using his method the London to Birmingham phase, would cost almost £48billion – double the official estimate.

He claims the full scheme, including extensions to Manchester and Leeds, would cost up to £104billion. The first 6.6 miles, from Euston station in London to Old Oak Common, would cost £8.25billion, or £1.25billion a mile.
The Department for Transport stressed that it had not commissioned the report but said it would look at the figures.

One furious MP described a ‘pattern of concealment’ over HS2, with the Government also refusing to publish two critical Cabinet Office reports conducted in 2011 and 2012 on the project.

Ministers were finally forced to publish them in 2015, after losing a case in the Supreme Court brought by campaigners.

The Infrastructure and Projects Authority concluded last year that the £55.7billion project was £9billion over budget.

Sir Jeremy identified £9billion of savings that could be made, but because the full report has still to be published it remains unclear how he came to his conclusions.

Campaigners expressed fears that Sir Jeremy’s report had exaggerated the cost savings that could be made.

Opponents of HS2 believe the findings of the latest Cabinet Office investigation into the high-speed link have been kept quiet by ministers anxious to press ahead with the new railway without delay.

Cheryl Gillan, Tory MP for Chesham and Amersham, said: ‘No report on a project which uses so much taxpayers’ money should remain secret.

‘There is a pattern of concealment, with previous reports also withheld. If this report was positive the Government would have had no hesitation making it public.

‘This will make the public believe there is something highly risky about this project – which people like me know is the case.’

Andrew Bridgen, Tory MP for North West Leicestershire, said: ‘This white elephant is growing bigger and bigger.

‘It is especially galling to waste such eye watering sums on this disastrous vanity project when there are such pressing things to invest public money in.’

A fresh row is expected to erupt today as the Government announces the final route of the Manchester and Leeds arms of HS2.

Homes on a new housing estate in Mexborough could be bulldozed to allow the line to run into Sheffield city centre.

Transport Secretary Chris Grayling will stress the economic benefits of HS2 as he announces the winners of the first stage of the major construction contracts for the line. He will say the Government expects that the £6.6billion in contracts will support 16,000 jobs.

A Department for Transport spokesman said: ‘HS2 will become the backbone of our national rail network – creating more seats for passengers, supporting growth and regeneration and helping us build an economy that works for all.
‘We are keeping a tough grip on costs and the project is on time and on budget at £55.7billion.’ “

http://www.dailymail.co.uk/news/article-4701986/Government-refuses-publish-report-scrapping-HS2.html

HS2 rail link £403 million per MILE!

First 6.6 miles from Euston to Old Oak Common could cost more than £8bn

http://www.independent.co.uk/news/uk/home-news/hs2-high-speed-railway-most-expensive-world-403-million-mile-michael-byng-a7843481.html

Cranbrook expansion plans including travellers site

For plans and pictures see quoted article.

“Plans for the southern expansion of Cranbrook have been revealed – and it includes 1,200 new homes, a new primary school, a sports hub, a petrol station, and a site for travellers.

Two new applications for the southern expansion of Cranbrook have been submitted to East Devon District Council for the outline planning permission for 27.2 hectares of residential development, 9.2 hectares of employment development, a new primary school, a local community centre, and sport pitches and tennis courts as part of a sports hub.

Since the build of the new town in East Devon began in 2010, 3,500 homes, a railway station, St Martin’s Primary School, play facilities, the neighbourhood centre, local shops, the education campus, the Cranbrook Farm pub, while construction of buildings in the town centre and the sports pitches are underway, while plans for the ecology park in the town have also been submitted.

Now, as part of the southern expansion for Cranbrook, the town is set to get an additional 1,200 homes, but also a petrol station, a residential care home, employment land, a new primary school, and an all-weather sports facility.

The long-running problem of travellers pitching-up in Cranbrook is also set to be solved as an area has been identified within the employment area site as a potential travellers site, but discussions will need to be held with the district council about the exact location.

WHAT THE APPLICATION INCLUDES

Residential

The parameters plan proposes 27.2 hectares of residential development of up to 1,200 homes.

Employment

Employment provision forms part of the mix of uses within the southern expansion area. It proposes 9.2 hectares of employment land, comprising of up to 35,000 sq m of employment uses and a petrol station with associated convenience retail and facilities. An area is identified within the employment area as a potential travellers site. Provision is also made within the employment area for a future expansion of the energy centre if required.

Education

A two form entry primary school is proposed within the southern expansion area.

Local Centre

A local centre is proposed in the heart of the southern expansion area to serve all the residents and the employment area. It will comprise of financial services, restaurants, pubs, takeaway and business uses.

Open space

Around 35 hectares of green infrastructure will be provides. The sports pitches are proposed in one central location on the southern edge of the development. The outline application sports hub land can accommodate an all-weather playing pitch with floodlighting, senior and youth football pitches, changing facilities, and a youth and children’s play area. Two adult rugby pitches and four tennis courts can be delivered.

The application says: “The adopted East Devon Local Plan identifies the future growth of the town of Cranbrook as part of the strategic growth of the area referred to as East Devon’s West End. Land is allocated within the local plan to meet the demand for the town to grow to 6,300 dwellings.

“The three outline planning applications for the expansion of Cranbrook to the west, east and south were submitted in December 2014 which sought planning permission for up to an additional 4,120 dwellings. The three 2014 expansion area outline planning applications are awaiting a decision.”

The latest application comes following public consultation on the plans over the past two years.

The application says: “The southern expansion of Cranbrook establishes an attractive and sustainable development that will become a place where people will to and enjoy living.

“The vision for the town is that Cranbrook will be a dynamic town, of a size to support a broad range of facilities, infrastructure and opportunities in a vibrant town centre and local centres sustained by its population. Cranbrook will be independent from, yet serving, existing communities, with the identity of surrounding villages always protected by a strong green buffer.

“The expansion of Cranbrook, including the southern expansion area, is able to realise that vision.”

http://www.devonlive.com/major-cranbrook-expansion-plans-revealed/story-30420895-detail/story.html

East Devon bursting at the seams – official!

Owl says: all these extra residents accessing fewer and fewer services. Let’s hope most of them are young and going to Cranbrook, Exmouth and Sidmouth – because there will be no maternity services or community hospitals in Axminster, Seaton, Honiton or Ottery St Mary.

“People moving to East Devon increased the population by almost 2,500 people – more than almost anywhere else in England and Wales.

An estimated 8,316 people moved to East Devon from elsewhere in the UK between July 2015 and June 2016.

This compared to 5,848 who went the other way during this time, new figures from the Office for National Statistics show.

This meant that an extra 2,468 people moved to East Devon than left – the second highest figure anywhere out of almost 350 counties and districts around England and Wales.

As of June 2016 there were 139,908 people in East Devon, meaning that 1.8 per cent of the population was made up of people who had just moved to the county from elsewhere within Britain.

This was the highest share out of anywhere in England and Wales.

The most popular destination for people to move to East Devon from was Exeter.

… A total of 700 people were estimated to have moved from East Devon to Exeter after subtracting those that went the other way, more than anywhere else.

On the other hand, Taunton Deane was the number one destination away from the area.

A net total of 54 people moved to Taunton Deane from East Devon in 2015/16.”

http://www.devonlive.com/more-people-move-to-east-devon-than-nearly-anywhere-else-in-the-uk/story-30405338-detail/story.html

“Greater Exeter Strategic Plan”: are we already shafted?

Time is running out to comment on the “Greater Exeter Strategic Plan” initial consultation on “Issues”. Comments must be in by

10 April 2017

and the document is here:

https://www.gesp.org.uk/consultations/issues/

and the full (12 page) document is here:

Click to access Greater-Exeter-Strategic-Plan-proof-v14.pdf

Owl thinks that there is precious little in the document that points either to a strategy or a plan! There are, however, many issues not covered such as:

– inequality ( how are the “just managing”, the “barely managing” and the “not managing at all going to access Greater Exeter’s resources (housing, transport, infrastructure, environment, health care, education) none of which is geared to them – only to the “managing very nicely thank you and ready to trade up to a bigger property or luxury retirement village” group

– the effect of Brexit, labour and skills shortages on the much-vaunted “economic growth”

– landbanking and housing supply – how they undermine all strategic planning projects

Owl also thinks this “plan” is shutting the door well after several horses have bolted, as already in the pipeline are massive developments planned to circle the city:

– west of Exeter: the 5,000-plus houses planned for “Culm Village” (Mid Devon)
– north/east of Exeter: the more than doubling in size of Cranbrook (East Devon) and the connected developments at Tithebarn Green, Pinn Brook Pinhoe and Monkerton (East Devon and Exeter City)
– south of Exeter: the massive development of Alphington and similar plans for doubling the size of Newton Abbott
– not to mention city developments such as St James’s Park and the thousands of student units in the city centre
– Local Enterprise Partnership plans to build extra houses just about everywhere else

Can anyone tell Owl which bits of “Greater Exeter” are left to consult on?

Greater Exeter Strategic Plan consultation – only one public meeting to discuss implications for East Devon

NOTE THAT, UNLIKE THE EMAIL TO EDDC COUNCILLORS (see earlier post) WE ARE NOT BEING ASKED IF WE WANT TO PUT FORWARD SECRET LAND HOLDINGS – THOUGH NO DOUBT THE TAXMAN WOULD BE VERY INTERESTED IF YOU DID!

THE BIGGEST PLANNING ISSUE TO HIT EAST DEVON SINCE THE LOCAL PLAN AND YOU MUST TREK TO HONITON ON 8 MARCH IF YOU WANT TO HAVE YOUR SAY. THAT’S IT – ONE MEETING IN ONE PLACE.

DO YOU RECALL BEING ASKED IF YOU WANTED TO BE PART OF GREATER EXETER? OWL NEITHER!

Greater Exeter Strategic Plan Consultation: Issues

The local authorities of East Devon, Exeter, Mid Devon and Teignbridge in partnership with Devon County Council are working together to prepare a Greater Exeter Strategic Plan (GESP). This formal statutory document will provide the overall spatial strategy and level of housing and employment land to be provided up to 2040. Please visit http://www.gesp.org.uk for more information.

Engagement with stakeholders and communities will be critical to the success of the Plan. At this first stage, the authorities are consulting on an initial ‘issues document’ which, after setting out some background information, looks to explain the scope and content of the plan as well as describing the key issues facing the Greater Exeter area. This early stage of consultation is designed to stimulate debate and the local planning authorities are seeking your views on the scope and content of the plan as well as the key issues facing your area.

A number of other associated documents are also being consulted on:

Draft Sustainability Appraisal Scoping Report:

· The Draft Sustainability Appraisal Scoping Report is the first stage of work in undertaking the Sustainability Appraisal (SA) and Strategic Environment Assessment (SEA) for the plan. This process is used to assess the sustainability of the plan content as it develops.

Statement of Community Involvement:

· The joint Statement of Community Involvement (SCI) sets out the approach for consultation in the GESP. The SCI sets out the way in which we will be engaging with communities and other interested parties throughout the process.

The consultation will run from 27 February 2017 until 10 April 2017. To view the consultation material and to make your comments please visit http://www.gesp.org.uk/consultations/issues/.

Alternatively, paper copies of the consultation document are available to view at your local library and Council Office.

A series of exhibitions are being held during the consultation period in the following locations:

Honiton: Mackarness Hall, High Street, EX14 1PG – Wednesday 8 March 2017, 2pm-8pm

Tiverton: Mid Devon District Council Office, Phoenix House, Phoenix Lane, EX16 6PP – Wednesday 15 March 2017, 2-8pm
Exeter: The Guildhall, High Street, EX4 3EB – Thursday 16 March 2017, 2-8pm
Newton Abbot: Old Forde House, Brunel Road, TQ12 4XX – Thursday 23 March 2017, 2- 8pm

A ‘call for sites’ has also been arranged to run alongside the consultation. This is a technical exercise which allows interested parties to submit potential sites for development to the Local Authorities. The sites are then assessed to consider whether they are suitable for possible inclusion in the plan. Further information is http://gesp.org.uk/call-for-sites/.

If you need further information please visit the website, email GESP@devon.gov.uk or contact your Local Council using the phone numbers below:

East Devon: 01395 571533
Exeter: 01392 265615
Mid Devon: 01884 234221
Teignbridge: 01626 215735

As there are four Councils contacting their stakeholders for the consultation and call for sites, you may receive duplicate letters/emails. Please accept my apologies if this is the case.”

“Council questioned about Exmouth seafront application”

“District bosses say they will not begin building on Exmouth seafront if an application is approved, despite saying it would permit them to ‘take forward development’.

East Devon District Council (EDDC) has put in a reserved matters application for Queen’s Drive, seeking detailed permission for facilities. EDDC says this will extend outline permission, and allow consultation, but opponents say it would allow building to begin.

Seeking clarification, the Journal approached EDDC, citing the Government’s Planning Portal website, which says: “When all of the reserved matters have been approved, work may begin.”

In response, a spokesman said: “A planning permission that can be implemented is very important. Therefore, the council has applied for approval of matters which were reserved under the outline planning permission. In other words, reserved matters is permission to take forward development, but the council’s development role is limited in budget and authority to build the new road and car park only. The rest of the site will be delivered later and in full consultation with the public.”

When the Journal asked why the application was needed for the road and car park when reserved matters for these had already been approved, the spokesman said: “Yes, the council has a reserved matters approval already for the road and car park but it is necessary for the council to secure reserved matters for the entire site (phases two and three as well as phase one) before the road and car park can be built. In any event, the council will only start works on moving them when it is sure that [developer] Grenadier has secured planning permission for its watersports centre.

“Reserved matters on the rest of the site also enables Grenadier to take forward their plans to consultation, design and planning.”

In response, Independent EDA district councillor Megan Armstrong, who has previously criticised the plans, said: “Why don’t EDDC simply acknowledge the fact that approval of a reserved matters application is a full permission to build without further planning applications or consultation?

“The Government says ‘When all of the reserved matters have been approved, work may begin on the site’. So why doesn’t the council come clean instead of using back door tactics and obscure wording?

“I also find it most bizarre that the district council should apply for this when it seems that it has no intention of using it. What other planning applicant would do this, and at such huge cost to the council tax payer?”

Cranbrook’s district heating system under fire – no switching allowed and developers get a cut for 80 year contract

“Energy customers who find themselves paying over the odds for their heating can simply switch to a cheaper deal. But there’s a hidden, but rapidly growing, number who estimate they’re paying up to three times more than the expected price… but don’t have the right to switch. In most cases, they are stuck with the same supplier for 25 years or more.

They are among the 220,000 households signed up to District Heating networks which power entire estates by sending hot water and steam via insulated pipes from a central generator, instead of having a boiler in each home. [This is the system used at Cranbrook].

The system, often fuelled by natural gas or biomass, is supposed to point the way to a greener future and has the enthusiastic backing of government.

However, the suppliers are unregulated and customers of only five of them have the right to turn to the energy ombudsman if things go wrong. [The system at Cranbrook is run by E.on where it appears from this article customers do not have the right to go to the Ombudsman].

On the face of it, the schemes are good news. Unlike condensing power plants, that only use around a third of the electricity generated, district networks use 90%. Waste energy can be recycled, households no longer have to maintain their own boilers, and heating bills are supposed to be cheaper.

Last year the government announced it was investing £320m in expanding the system across the UK and predicts that it will supply 8 million households by 2030. In London, where new developments are required to be zero carbon, it is being used in most large estates.

In reality, though, residents complain of enormous, opaque energy bills, frequent outages and misinformation.

A Which? investigation in 2015 found that some schemes are poorly designed and that customers are being misled about costs. It also concluded that many people are unaware of the District Heating scheme when they purchase a flat.

… Any company – including the property developer – can set itself up as a District Heating supplier without a licence, and a full list of those in operation is not yet publicly available.

They are selected by the developer who will receive a commission, or a substantial contribution towards the network infrastructure, in return for a contract to supply the development for at least 25 years. E.on has an 80-year contract to supply Cranbrook, a new town in East Devon.

Once they’ve bought into a development, residents are locked into a monopoly. They are not allowed to fit solar panels or heat source pumps and, whether or not they use their heating, remain liable for often large standing charges which include maintenance and repair of the infrastructure.

Matthew Pennycook, Labour MP for Greenwich and Woolwich, which includes eight District Heating networks, says residents tell him bills have tripled under the scheme, and there’s no transparency in consumption and billing. …

… Last year Pennycook [an MP] surveyed residents at New Capital Quay, a development in his constituency that uses e.on District Heating scheme. The responses, he says, provide “prima facie evidence of systematic problems” including inexplicably high bills and poor customer service.

Last April, the Advertising Standards Authority upheld a complaint by New Capital Quay residents that e.on’s advertised promise that its charges were comparable to those of a traditional gas boiler, was misleading. The sentence has since been removed from its website.

“E.on offers customers a market-leading energy source with long-term protections and guarantees, as well as affordable bills and a lower environmental impact,” the company claims.

There are fears that these issues will make it difficult to sell on flats. …

… Kabir Dhawan bought a one-bed flat in New Capital Quay in 2014. “I was told it was supplied by an energy-efficient scheme and was given a written promise that the costs would be no higher than for a conventional gas supply,” he says. “Instead, we are paying around £900 a year, including standing charges – the fixed cost of providing the home – of £1 a day.”

But 15 months ago the automated reading facility, which provides daily updates, stopped working.

“Some of my neighbours have the same problem, but although the standing charge is supposed to cover repairs to meters, it hasn’t been fixed,” he says.

“Instead, they’ve offered me £15 for the ‘inconvenience’.” Dhawan claims. “Because I can’t monitor my usage, I’m expecting a catch-up bill of around £500.”

Using e.on’s own estimates of consumption for a one-bed flat, he reckons that he is paying twice what he should for heat and hot water. Moreover, he says, the hot water supply is cut off for lengthy periods around once a month, most recently on New Year’s Day and that e.on often tries to duck the £30 payout due under its terms and conditions for outages of 24 hours or more.

A neighbour secured the compensation, due to all the residents after one such breakdown, but only after initiating legal proceedings.

E.on declined to comment on individual customer cases and stated it did not accept the basis of many of the allegations.

Dhawan fears that he will struggle to sell or let his flat because of the high costs and the service is a monopoly.”

https://www.theguardian.com/money/2017/feb/05/district-heating-fuel-bill-regulation