{"id":39313,"date":"2018-03-09T14:05:18","date_gmt":"2018-03-09T14:05:18","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=39313"},"modified":"2018-03-09T16:00:02","modified_gmt":"2018-03-09T16:00:02","slug":"property-industry-urges-mayor-to-review-draft-london-plan","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/property-industry-urges-mayor-to-review-draft-london-plan\/39313\/","title":{"rendered":"Property industry urges Mayor to review Draft London Plan"},"content":{"rendered":"

The British Property Federation (BPF) has urged today (9 March) that the Mayor of London revises the Draft London Plan\u2019s proposals for both the Build-to-Rent and purpose-built student accommodation sectors<\/h2>\n

Delivery of new Build-to-Rent homes for all Londoners is threatened<\/h3>\n

While the BPF welcomes the Mayor\u2019s continued recognition of the Build-to-Rent sector and the role it can play in providing much-needed new homes in London, he has contradicted this support by asking both Build-to-Rent and build-for-sale developments to provide the same minimum of 35% affordable housing<\/a>. Meeting this threshold will fast-track a development through planning.<\/p>\n

Build-for-sale, however, is delivered on a very different financial model, where developers typically benefit from revenue earned from sales throughout the construction phases of the development.<\/p>\n

Although the BPF agrees with the requirement for affordable housing, Build-to-Rent developers must complete construction of the entire development before having tenants move in and pay rent.<\/p>\n

Build-to-Rent, as a result, cannot compete with build-for-sale on land acquisition and pricing, and so the two sectors should be treated differently. The Plan recognises that difference, but then contradicts itself by asking for the same threshold.<\/p>\n

The Build-to-Rent sector<\/a> wants to cater for a range of Londoners and their needs. Currently, this has typically meant setting rents at different price points \u2013 and within the sector\u2019s affordable provision, this includes varying discounts from 20-50%, delivered in a tenure blind manner. If the Mayor sets an unrealistic threshold, the sector will be squeezed and end up delivering less of a range of discounts, thus not catering for all of Londoners.<\/p>\n

For the same reasons \u2013 given the sector\u2019s ability to deliver new homes is not linked to the rate of sale \u2013 Build-to-Rent can deliver more homes, more quickly. It is growing rapidly outside of London and at a time when the Mayor has committed to an ambitious target of 65,000 new homes each year, there is a danger that more Build-to-Rent investment will be attracted out of the capital.<\/p>\n

For student accommodation, the Mayor\u2019s Plan is living in the past<\/h3>\n

For the purpose-built student accommodation sector, the Mayor\u2019s proposals also need revision.<\/p>\n

London has insufficient purpose-built student housing in comparison with its student numbers, which puts significant pressure on the capital\u2019s residential housing stock.<\/p>\n

The Draft London Plan<\/a> stipulates that the sector must link with a Higher Education institution on all new developments \u2013 but this will limit access to purpose-built accommodation for students attending smaller institutions.<\/p>\n

The number of smaller institutions is growing, with universities from around the world wanting to establish London campuses. They rarely have housing of their own and they lack the financial resources and expertise to invest the significant time required to partner with developers in respect of a specific purpose-built student housing development.<\/p>\n

The Mayor\u2019s proposals also apply a 35% threshold approach to affordable student accommodation, again without any evidence that this is achievable.<\/p>\n

Ian Fletcher, Director of Real Estate Policy, British Property Federation<\/a> said: \u201cAlthough we are supportive of the Mayor and believe his Plan is excellent in many respects and goes much further than any before, we have growing concerns that on some key aspects there is little evidence to support its policy aspirations.<\/p>\n

\u201cWe would prefer to work with the Mayor to set a realistic threshold for Build-to-Rent, which was the GLA\u2019s intent up until November of last year, and base it on evidence from the existing Build-to-Rent developments across London. Build-to-Rent has the potential to contribute significantly to London\u2019s housing shortfall<\/a> \u2013 and through proactive policymaking, successive Mayors have made London a magnet for that investment, particularly in London\u2019s outer boroughs. Setting the wrong threshold may be good politics, but it is not good policymaking.<\/p>\n

\u201cThe Mayor\u2019s proposals also disincentivise investment into the student accommodation sector \u2013 at a time when we should be doing all we can to support the growth of the higher education sector in London and its associated accommodation needs.\u201d<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

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