The Greater London Authority (GLA) has published its formal consultation document, 'Towards a New London Plan', asking stakeholders and the public to engage with shaping the new London Plan, the latest edition of which is due to be circulated next year.
Tell me more...
The emergence of the new London Plan will provide one of the main vehicles by which the future of the City's urban development is shaped. The consultation document outlines strategic objectives and potential changes to the existing London Plan to influence the capital's growth over the coming period, including focussing on the pillars of housing, economic development, and environmental sustainability.
Housing priorities...
In particular, the GLA wants to receive meaningful input on the proposed strategies and policies that will underpin the new London Plan. It is part of the process of identifying areas in the City for housing development, which is crucial for addressing London's housing crisis. The current target which is included in this regard is 880,000 new homes to be delivered over the first ten years of the plan (annual figure is 88,000). The last decade has seen under half of this amount – so something will have to improve to unlock this strategic objective. Other issues (which are all interlinked) include the promotion of sustainable economic growth and meeting ambitious commitments relating to the climate.
Build to Rent...
A key component of the proposed new housing strategy is the continually emerging issue (in planning policy terms) of Built to Rent (BTR), including Single Family Housing (SFH). Within the document, BTR refers to housing that is specifically built as a rental product, being owned and managed for that purpose. It is distinct from the sales market. Implicit, therefore, is the intention to encourage BTR (in all its forms) to both diversify the housing market and, at the same time, address affordability concerns within it.
In plainer English, this means increasing the supply of good quality, privately rented housing stock, for those who want to rent in the medium to longer term and who are not as captivated by, as previous generations may have been, or able to enjoy the luxury of the ideology of owning and (managing) their own home. This trend is reflected in the sustained appetite from investor and BTR/SFH operators in this area of the living sector.
BTR changes in the new London Pan
The current London Plan specifies that BTR schemes should consist of at least 50 units. There is a suggestion that this limit would be expanded to include a more flexible approach – so schemes with less than 50 units may be permitted. The document also mentions that affordable housing thresholds/models may be developed to provide genuinely affordable housing as part of BTR developments. Key here will be balancing the meeting of housing need, supported by robust and transparent planning policy, against the desire to create BTR as a 'third tenure' within the overall planning milieu.
Next steps...
The deadline for responding is 22 June. Stakeholders, including local councils, businesses, and residents, are encouraged to participate in the dialogue to ensure that the new plan reflects the diverse needs and aspirations of Londoners.
Give us a call...
This briefing note provides a flavour of what is in the consultation - we'd like to hear from you, especially if you would like to discuss the matters raised in the consultation and/or how they might affect you/your organisation in more detail.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
