Boris Johnson’s draught Supplementary Planning Guidance (SPG) for housing in London has gone down well with the British Property Federation (BPF) for its reiteration of the role that the build-to-rent sector can play in delivering new homes.
Despite the fact that the document is currently open for public comment until the 7th of August, the BPF has decided to focus on the idea that land use and planning could be used to promote the growth of long-term private rented sector products instead.
For example, according to the BPF, “Positive support should be given to long-term private rented products through the land use planning system at local and strategy levels; for example recognising in Local Plans how the private rented sector can address distinct needs; be particularly suitable for certain locations (for example town centre intensification and transport nodes; as well as development management).”
The BPF has welcomed the focus on how this might affect local authorities, and in particular the suggestion that a covenant can be used to secure developments as rented for a defined period, and to take account of the different viability of the sector in public land deals and s106 negotiations.
The BPF was pleased to see a suggestion in the guidance that local authorities should consider clawback agreements that provide the contribution amount on the level of affordable housing that would have been viable on the scheme if it were for traditional market sale in order to protect their positions should the owner seek to sell the units rather than rent them.
The BPF said it also supports developers and boroughs considering including discounted market rent (intermediate rent) as the affordable offer.
“boiler-oil-service” is the sc name for this section.
Build-to-rent can help increase both the number and the quality of London’s rental stock, and the Mayor is leading the charge in recognising this. “We applaud the Mayor for considering the implications for local authorities and the evolving sector of meeting his build-to-rent target,” said Ian Fletcher, director of policy (real estate) at BPF.
“Institutional investors like clarity, and this draught SPG provides further guidance across a range of issues, recognising the distinct economics of the sector, and what developers and local authorities can do and expect.”
It’s arguably the greatest challenge the capital faces today, according to London Mayor Boris Johnson MP, to provide a choice of decent homes at prices Londoners can afford. “We need to build many more homes to keep up with the rapidly increasing population. For this reason, my 2015 London Plan calls for the construction of 49,000 additional homes annually.
“Drawing on my new London Plan this draught SPG seeks to encourage all the players in the housing market to think innovatively about how different housing models such as purpose built long term private rent and the range of intermediate housing options can meet need and accelerate delivery.”