Development Land values plunge in SW London...


T

Troy Steadman

Under Kingston Borough's Section 106 Planning Obligation, if you build
more than 10 units you are contractually obliged to...

1)....make half the units affordable and pass them over to the council.

2)..."pepper pot" these council houses throughout your development.

3)...build the maximum the land will accommodate.

4)...in the case of flats, ensure any service charge is also affordable
("full price" residents subsidise their "council house" neighbours).

....and the same applies to smaller developments wherever practicable.

http://www.kingston.gov.uk/affordable_housing_spd.pdf

Surely nobody is going to be building new homes except Housing
Associations?
 
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C

Colin Forrester

Troy said:
Under Kingston Borough's Section 106 Planning Obligation, if you build
more than 10 units you are contractually obliged to...

1)....make half the units affordable and pass them over to the council.

2)..."pepper pot" these council houses throughout your development.

3)...build the maximum the land will accommodate.

4)...in the case of flats, ensure any service charge is also affordable
("full price" residents subsidise their "council house" neighbours).

...and the same applies to smaller developments wherever practicable.

http://www.kingston.gov.uk/affordable_housing_spd.pdf

Surely nobody is going to be building new homes except Housing
Associations?
or those developers building 10 or less units?

However how does the subject line square with your post?
 
T

Troy Steadman

Colin said:
or those developers building 10 or less units?
"3.62: The council will also encourage the provision of affordable
units on sites smaller than the size threshold where feasible and
practicable".
However how does the subject line square with your post?
Because there is now an inverse economy of scale - the bigger your
development plot the *less* it is worth. You can't split it into
smaller chunks. No one will buy it except a Housing Association. Less
is more.
 
M

mogga

Under Kingston Borough's Section 106 Planning Obligation, if you build
more than 10 units you are contractually obliged to...

1)....make half the units affordable and pass them over to the council.

2)..."pepper pot" these council houses throughout your development.

3)...build the maximum the land will accommodate.

4)...in the case of flats, ensure any service charge is also affordable
("full price" residents subsidise their "council house" neighbours).

...and the same applies to smaller developments wherever practicable.

http://www.kingston.gov.uk/affordable_housing_spd.pdf

Surely nobody is going to be building new homes except Housing
Associations?
Not sure if they can do this at the moment but they're definately
looking at it - private property left unoccupied for 6 months or more
can be seconded by the councils anyway and used to house people they
pick at council rents?
 
C

Colin Forrester

Troy said:
Because there is now an inverse economy of scale - the bigger your
development plot the *less* it is worth. You can't split it into
smaller chunks. No one will buy it except a Housing Association. Less
is more.
So how much have they plunged, since say this time last year?
 
T

Troy Steadman

Colin said:
So how much have they plunged, since say this time last year?
At least 50%. I live next door to a factory. A couple of years ago they
were offered £1.6m to demolish part of it and build 14 flats. Today
the best offer for the *whole* factory is £800k.
 
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T

Tumbleweed

Colin said:
So how much have they plunged, since say this time last year?
At least 50%. I live next door to a factory. A couple of years ago they
were offered £1.6m to demolish part of it and build 14 flats. Today
the best offer for the *whole* factory is £800k.

========

Seems like a deal. Was 114k per unit (1.6M /14) now its 89k per
unit(0.8M/9).

Also, since the units will be bigger you can sell them for more.
 
T

Troy Steadman

Tumbleweed said:
At least 50%. I live next door to a factory. A couple of years ago they
were offered £1.6m to demolish part of it and build 14 flats. Today
the best offer for the *whole* factory is £800k.

========

Seems like a deal. Was 114k per unit (1.6M /14) now its 89k per
unit(0.8M/9).

Also, since the units will be bigger you can sell them for more.
Doesn't work like that:

"4.2 The best use must be made of development sites...The Council will
look closely at proposals that fall short of providing 10 or units to
make sure the best use of land is achieved..."
 
T

Troy Steadman

Troy said:
Doesn't work like that:
Also your maths is faulty. You'd rather have £0.8m than £1.6m because
9 houses make better accomodation than 14? :)
 
A

Alan Frame

Tumbleweed said:
Troy Steadman said:
Troy Steadman wrote: []
So how much have they plunged, since say this time last year?
At least 50%. I live next door to a factory. A couple of years ago they
were offered £1.6m to demolish part of it and build 14 flats. Today
the best offer for the *whole* factory is £800k.

========

Seems like a deal. Was 114k per unit (1.6M /14) now its 89k per
unit(0.8M/9).

Also, since the units will be bigger you can sell them for more.
Whatcha mean?

800k for *one* *big* *house* now sounds like a good deal to me ;-)

rgds, Alan
 
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T

Tumbleweed

Troy said:
Doesn't work like that:
Also your maths is faulty. You'd rather have £0.8m than £1.6m because
9 houses make better accomodation than 14? :)

============

No, I'd rather *buy* it for 0.8M and build 9 houses, than 1.6M and build 14.
[hence 'sounds like a deal']
 
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