Localism, Permitted Development, Vacant Bulding Credit Scheme. But where are the homes?

A year or so ago I wrote in this blog that the worst thing that could happen as a result of London’s property-lead economic boom would be central or local government meddling in an attempt to correct the market. Inevitably this has happened and there are two resultant problems. Local Planning authorities take so long to draft policy, consult, amend and implement it that it is often too late and has the opposite effect. In contrast this government has introduced legislation that, no doubt, seemed like a great idea in the brain storming session but is so far removed from reality that even the people it was meant to help are protesting.

I am referring to the Vacant Building Credit scheme introduced in November 2014. The idea is simple, if an office building is empty and it is brought back into residential use the developer need not provide affordable housing or make a financial contribution in lieu. This is probably even more witless than the Permitted Development relaxation introduced by the coalition government two years ago. (see November 14 blog - Permitted Development - Failing the modern city

The Tories campaigned on Localism, they introduced reform that handed power back to local communities who now have the ability to write their own neighborhood planning policy, and there are now over 1200 of these plans. Strangely, at the same time they have undermined the Local Authorities core planning policy. The LDP’s (Local Development Plan) take months and year to prepare, they are tailored to the needs of the community and are an extremely expensive use of taxpayers money. These plans attempt to understand the future needs of the community, and housing is a top priority.

On the face of it what is wrong with the Permitted Development (PD) change of use idea? It brings life back to redundant buildings and it adds to the housing stock. There are plenty of redundant buildings across the UK that need to be put to use. But sadly in London it probably only helps investors and buy to let merchants, it is shameful that businesses are being turfed out of their workspaces to create a one-off short-term profit for the landlord.

Furthermore, PD conversions have no affordable housing requirement, and this exemption has now been transferred to all office to residential conversions. The result will be that many London local authorities will have to build barriers to resist applications for change of use and therefore retain the offices that in the past would provide homes and affordable homes. In other words it is another silly knee jerk policy that will have the opposite effect to the one intended.

At the weekend there was a march for homes in London (1 Feb 2015),

yesterday (2 Feb 2015), many of Londons biggest and most influential developers wrote to the government expressing their dismay that this legislation, (designed to help them) had been introduced. Developers are actually saying that they agree with the planners and that they want to deliver affordable housing!

It demonstrates very clearly how out of touch politicians are, and with a General Election in May the Tories ought to take note of the anger that is building in the metropolis.

Today London’s population passed its previous 1939 peak. More than schools and hospitals, this rapidly growing city needs homes that its people can afford to buy or rent.