10 November 2008
Why we need an open book approach to planning negotiations
I spoke last week at the East Midlands Property Show on the issue of new housing supply. In many ways my presentation picked up on the important subjects I’ve been discussing in my recent blogs. In the first part of my speech I talked about the current downturn and the economic fundamentals faced by housing developers. I then moved on to look at some of the other very important issues that effect new housing supply including planning, sustainability and regeneration.
One of the key points I made during my presentation was to call for a new realism in the planning negotiations which govern major long-term developments in light of the unprecedented decline in new housing supply.
I set out a new ‘open book’ approach, with financial disclosure at its heart, to working with the public sector and called for trust from all parties to conclude negotiations. I asserted that this was fundamental to keep new housing supply from drying up in the current economic conditions. An open book approach helps to demonstrate what a development can and cannot afford. This involves negotiating the percentage of affordable housing for the initial phase or phases of large projects before negotiating the obligations for subsequent phases in line with market conditions as they improve.
It will take trust from both sides to make it work, but work it must to keep our much needed new housing supply from drying up for both private and affordable homes.
Interest & mortgage rates
The cut in interest rates is most welcome and such a large cut is no doubt recognition by the Bank of England that the outlook for the UK economy is of increasing concern. How this decision impacts on housing markets however remains to be seen. Much will depend on how many banks and building societies lower their mortgage rates accordingly. Whether or not lower interest rates will bring about an improvement in the supply of funds for home loans is fundamental to the housing markets.
It is of course very important to stabilise the housing markets at the earliest possible time as housing is extremely significant to the wider economy.
On this and many other housing topics Anne Ashworth in The Times is always well worth a read.
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