Government social housing policy deterring developments

[Robin]

I've been looking into selling my property along with the two adjacent properies to a developer. Aprox 22 flats would be possible on the site.
I've learned that with developments of 15 or more flats, 25% of the flats have to be sold to the local housing association at cost price. Usually 67% of retail price. This means on many sites developers do no more than 14 flats because for develpments of between 15 to 19 flats there simply is no more profit than for a 14 flat site that would be unencumbered with having to give 25% of the flats away to the council for free housing for unmarried mums, layabouts & freeloaders etc. Oh & the odd low payed essential worker. I don't mind that so much.
This means my land is devalued to pay for these scroungers. Guess what. The government intend to reduce the threshhold to 10 flats or more & will be increasing the ratio to 30% to 40% of the flats to be given to the freeloaders as from next year. What they will be doing will be cooking the golden goose. Developers simply will not bother to do developments of more than 10 flats.
The result will be an even greater shortage of new homes. Thanks Mr Blair.
Does 'New Labour' stand for 'Communist' ?

[billmccallum]

If the site were to be developed in two phases of 11 flats (or 10+12 or 3 phases 7+7+8) then you would not have the problem.

But if you own the 3 properties why would you want to sell to a developer, why not develop them yourself.

Bill McCallum
Managing Director
McCallum BDF Limited
Project Management & Consultancy

[pdk]

Be careful, the Council may not look too kindly at splitting up a development like this to avoid a social housing contribution... Why not change it from 15 flats to say, 9 town houses??

PETER

NOTE: Peter Kyte BSC (Hons) DipTP MRTPI CGeog FRGS is an official LandlordZONE Topic Expert… For more information on Peter D Kyte Associates and Enabling Projects please see the websites at http://www.enablinguk.com and http://www.development-seekers.com. Any advice given by Peter Kyte in this Forum is of a general nature only and should not be taken to be a final and binding planning opinion. Based on any initial advice given you are strongly advised to seek a further professional opinion, which may involve a site visit and a detailed analysis of the issues... For information on the sort of work Peter undertakes please see TRACK RECORD (http://www.enablinguk.com/track.html), WORKING WITH INVESTORS (http://www.enablinguk.com/ur-property-investors-planning.html), and PROJECT TYPES (http://www.enablinguk.com/planning-project-permission-appeal-UK.html)...

[Robin]

If the site were to be developed in two phases of 11 flats (or 10+12 or 3 phases 7+7+8) then you would not have the problem.

But if you own the 3 properties why would you want to sell to a developer, why not develop them yourself.

Bill McCallum
Managing Director
McCallum BDF Limited
Project Management & ConsultancyIt wouldn't be possible or viable from a practical point of view to do a purpose built block in stages like that.
I don't own all three. A developer is looking at 12 houses instead as a way round social housing. It looks as if the usual 35 to 40% of gross development value (GDV) that developers will pay for a site is unlikely to exceed the value of the three existing properties on the site.

[pdk]

The house route is what I said....!! I could look at the scheme and suggest ways to add value... don't forget that the developer will be trying to do that for himself!! Why not look at my website and see what we have done for landowners??

Regards, PETER

NOTE: Peter Kyte BSC (Hons) DipTP MRTPI CGeog FRGS is an official LandlordZONE Topic Expert… For more information on Peter D Kyte Associates and Enabling Projects please see the websites at http://www.enablinguk.com and http://www.development-seekers.com. Any advice given by Peter Kyte in this Forum is of a general nature only and should not be taken to be a final and binding planning opinion. Based on any initial advice given you are strongly advised to seek a further professional opinion, which may involve a site visit and a detailed analysis of the issues... For information on the sort of work Peter undertakes please see TRACK RECORD , WORKING WITH INVESTORS , and PROJECT TYPES...

[Robin]

Three different medium size developers have already had their architects look at it. The site is 0.59 acres but there is the issue of neighbour's habitable rooms looking across the site on one side. The potential is between 22 to 28 flats or 12 houses. Either way the GDV isn't anymore than the three plots are worth now. Thanks for your offer of assistance however.