Memorandum from Adrian Cole FRICS (CRED 55)

 

 

I understand this Committee is to examine the Governments response to the Impact of the Credit Crunch on its Housing Policies. In Particular the Committee will consider the Likely effectiveness of the DCLG's action to deal with the slow down including measures to achieve its house building targets and help Housing Association and affected home owners.

 

1. PLANNING PROCESS - By far the most significant contributor to supply of housing is through MDA. Consents for these developments invariably have prohibitive (in today's market) section 106 costs towards infrastructure and other related matters. I suggest it would be a significant help if Central Government were able to fund the 106 cost securing repayment in stages as development progresses.

 

2. AFFORDABLE HOUSING - Whether the Government wish to hear this or not a significant mix with a particularly Low Cost Rental with Open Market housing in any given development has an insignificant impact on the sale-ability of the open market housing.

 

The problem has arisen from the insistence on "pepper potting" the affordable housing throughout the development. This is both a management problem for Housing Associations and unattractive to private buyers. I am sure, in Labour Parlance there is a middle way to persuade Developers to bring forward significant sites of say 100 units or more. The Developers should be able to agree with the Government a part ownership scheme funded 50% through Building Society or Bank mortgage, the balance underwritten by Government funds. The agreement would be a total package of build and delivery at the agreed cost and sale prices. The Latter would only be varied by increase in say RPI and not at the Developers whim.

 

3. PLANNING SYSTEM GENERALLY - Again the Government won't wish to hear this but one of the major log jams in is in the Planning Process. Where a local plan or planning brief has been agreed to or approved by the LPA and adopted, there should be a presumption in favour of development. There are too many instances where subsequent Applications for Detailed Planning being refused.

 

4. PLANNING CONSENT - Recent outline planning consents may only be valid for three years. In the current economic cycle, this could mean the consents have lapsed by the time the market is functioning again. This aspect needs to be considered.

 

 

October 2008