Legal development

Take 5: the Mayor's bold plans for London

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    It seems like only yesterday that we were tearing open the latest London Plan, but it's already time for a makeover. In anticipation of the next edition, which is due to be published next year, the Mayor has published a consultation document which asks the public for views on a number of significant changes.

    The consultation document published on Friday runs to almost 60 pages, so we've picked out five of what we think are the most interesting and potentially effective ideas suggested:

    1. Building on the grey belt

    88,000 new homes a year in London is no mean feat, especially when we face more regulation, rising costs and delayed, but critical infrastructure.

    The Mayor's headline-grabbing review of the green belt was just the first step. Now he has confirmed that green belt sites for large scale residential development (more than 10,000 new homes) are being considered either where they already have good public transport links or where such links could be "feasibly" delivered). This is not taken lightly, and it is stressed that any green belt release will only be for "sustainable, liveable neighbourhoods" with better access to green space and nature. A requirement for 50% affordable housing on these sites also looks likely.

    It is a major change in position from the current London Plan, but it sounds like the Mayor is serious about the need for the grey belt to play its part. He knows that this level of housing delivery is "an extraordinary challenge", but "one we must do everything we can to meet".

    2. Building denser, building taller

    One of the main routes to really hiking up housing numbers is to allow greater densities and build taller buildings. The Mayor thinks that London is still relatively low rise and has a way to go to reach the density levels of other major global cities.

    A new approach is floated, which would set out the "in principle" acceptable building heights in all locations across London that share certain characteristics. The Plan could also set a minimum height benchmark across London to support small site development.

    Another radical change mooted is to redefine tall buildings clusters. Currently seven storeys, increases to ten or even twenty storeys are suggested. It is these kind of revisions that would start to make an impact.

    3. The affordable housing threshold

    The Mayor is clear that a consistent approach to affordable housing in London is fundamental to maximising delivery. His fast track threshold has been successful and well-received by housebuilders and investors.

    This success is undermined by the setting of different thresholds and approaches at a local level. Instead of providing clarity and certainty, the system gets bogged down by lengthy negotiations on viability. It sounds as though the new London Plan will do more to address this. "The London Plan could be clearer about the need to consistently apply this incentive across all boroughs" said the Mayor.

    His threshold will be reviewed as part of the new Plan makeover and there could be greater emphasis on social rented units and a new tenure called "Key Worker Living Rent", based on key worker incomes.

    4. New economic clusters

    Whilst there are many famous clusters of economic activity in London: the City, the West End and Canary Wharf to name a few, the Mayor recognises that there are other clusters that do not fall neatly within existing designations. Such areas include life sciences activity in White City and Whitechapel and the East London Fashion District in Stratford.

    Not all economic clusters are well-suited to a town centre or industrial designation. Instead, the new London Plan could take a different, more flexible approach to economic cluster designation, so that these sites are protected and encouraged – surely a key part of securing the Capital's future growth.

    5. Securing transport infrastructure

    Another crucial aspect of London's future success is its infrastructure and the Mayor's frustration at the delays to major transport infrastructure provision in London, largely due to lack of funding, certainly comes through loud and clear.

    Cited as one of the main constraints on housing delivery, the new London Plan will need to be ambitious but realistic when it comes to the requirements around sustainability and accessible sites. As the Mayor himself put it, "these issues and challenges will need to be addressed". Hopefully his friends in Whitehall are listening.

     

    The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to.
    Readers should take legal advice before applying it to specific issues or transactions.

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