Developers and affordable housing, can Brent learn from Islington?

Across the country – and especially in superheated London, where stratospheric land values beget accordingly bloated developments – authorities are allowing planning policies to be continually flouted, affordable housing quotas to be waived, height limits breached, the interests of residents endlessly trampled. Places are becoming ever meaner and more divided, as public assets are relentlessly sold off, entire council estates flattened to make room for silos of luxury safe-deposit boxes in the sky. We are replacing homes with investment units, to be sold overseas and never inhabited, substituting community for vacancy. The more we build, the more our cities are emptied, producing dead swathes of zombie town where the lights might never even be switched on.

The council last week launched a consultation on supplementary planning guidance that would require all viability studies to be supported by ‘robust evidence’. This will include details of arrangements between landowners and developers, and information provided by the developer to banks.

Viability studies are commissioned by developers to assess how much affordable housing a scheme could provide while remaining financially viable.

Islington said it has received a ‘significant number’ of viability studies that do not provide underlying methodology and modelling.

These studies are ‘unsupported by robust evidence’ and create ‘an artificially pessimistic outcome’, leading to what the council calls ‘super-profit’.

The council proposes that viability studies that lack ‘all relevant information required’ to have a reduced weight in terms of decision making.

Speaking at a Communities and Local Government committee meeting on 10 September, James Murray, executive member for housing and development at Islington, said: ‘The modelling is often not shared with the council, so we have to try to extrapolate from that. We need national action.

London Councils, the body that represents local authorities in London, said it is ‘aware of concerns from a number of councils’ about viability studies and transparency.

Richard Lemon, associate director of planning at property consultancy CBRE, said: ‘One can be as transparent as you like, but you need skills in-house to be able to properly scrutinise viability.’

WEM36 and WEM38 set out requirements that major new development provides new open space and food growing facilities. Such exceptional provision, which also includes the provision of play space in WEM40 and wildlife enhancements inWEM41, will have an impact on viability and thus will have an impact on Section 106 obligations, after CIL.

Blocks up to 20 storeys high are planned for the Quintain site

Councils across England will redevelop £13.5bn worth of land and assets over the next five years as part of local plans to turn underused land into a source of revenue, an examination by Localis has found.

A survey of local authorities by the think-tank found many were reacting to ongoing austerity by acting more like property developers.

Instead of deciding to sell buildings and land for one-off capital receipts, authorities were looking to redevelop assets to derive revenue income from them that they can use to help support public services.

To help further develop this process, today’s Public Land, Public Good report called for councils to come together to establish a ‘hit squad’ of highly experienced council officers who could provide advice on maximising returns on council assets. The report suggested that if they could deliver a 5% increase on the £13.5bn assets, this would produce almost £700m of extra revenue.