"For developers looking to buy land, nothing is clear," said Richard Donnell, director with FPDSavills Research. "The process of acquiring and developing land in London will become ever more complex and risky.
"Policy is ultimately implemented by the local planning authority and so it is important developers get a steer on how policy will be implemented in relation to any site they are looking to acquire or develop," Donnell advises. "If the site is so large it will be referred to the mayor, then the mayor should be consulted."
A study by chartered surveyor Drivers Jonas has concluded that the Greater London Authority is failing to tackle the question of providing affordable housing for key workers and says that unless mayor Livingstone provides clear guidance developers will be reluctant to include it.
The mayor and the GLA-appointed Housing Commission proposed the 50% affordable housing target for residential schemes last November.
Affordable housing provision in London now stands at a crossroads. As Building Homes goes to press consultancy Three Dragons is due to report on whether the 50% target for affordable housing is workable for developments in the capital. The first successful bidders in the Government's Starter Home Initiative are due to be announced soon. Housebuilders are also awaiting the proposed green paper on Section 106 agreements.
An increasing number of developers are trying to enter into partnering arrangements with registered social landlords to improve the bidding and delivery parts of the development process. But some find that they have to drop their RSL partner under present Section 106 negotiations, if the RSL partner is not on the local authority's preferred list.
At the same time, the health of the office market is making it tougher for residential developers who face increasing difficulty in assessing the land value generated by different affordable uses. FPDSavills has established a team to give advice on how to maximise land value.
Source
Building Homes