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News Release from: Chartered Institute of Building [CIOB] | Subject: Access to house-building sites
Edited by the Buildingtalk Editorial
Team on 02 September 2005
Bidding to unlock access to
house-building sites
U.K.growth area authorities bidding to unlock access to house-building sites.
The statement issued by the Office of the Deputy Prime Minister revealed that the United Kingdom Government has promised further funding of up to GBP200 million to promote innovative development projects in the South East of England illustrates the great difference between building housing estates and building sustainable communities John Prescott's Housing and Planning Minister Yvette Cooper said that the ODPM has invited the sponsors of more than 70 schemes to submit by November fully worked up bids for a wide variety of projects
This article was originally published on Buildingtalk on 12 Mar 2004 at 8.00am (UK)
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Funding of GBP200 million does not sound much against the huge scale of house building being planned in the growth areas, but as ever what matters is not so much the amount but the effect it will have in opening up sites for development.
This type of expenditure usually comes under the heading of leverage.
The developments up for approval are all related to the Government's Sustainable Communities Plan which has now been running since February 2003, at which time GBP164 million was committed for site assembly and remediation works in the growth areas at Milton Keynes/South Midlands, Ashford (Kent) and London-Stansted-Cambridge-Peterborough.
The Milton Keynes/South Midlands sub-region, known as MKSM for short, could benefit by as much as GBP120 million new capital investment if all the bids originating within its boundaries are accepted.
On top of that however are some dozen 'greenspace projects' costing in all around GBP10 million.
These include the River Nene Regional Park masquerading under the bland title of North and West Northants Green Infrastructure.
If this is accepted, it will attract funding of up to GBP1,750,000 to move ahead with a pioneering initiative by the county council and its partnership organisations.
The regional park is a flagship project and its bid stands an excellent chance of going ahead.
Conceived as central to delivery of green infrastructure throughout Northamptonshire, the regional park is an obvious candidate as a basic element of a sustainable community.
Corby's Parkland Gateway project has rightly been given local priority as a GBP60 million development to transform the civic heart of this former steel industry town.
The local authorities are asking for help in financing a new 'civic hub' designed as a landmark building.
If their bid succeeds they stand to gain GBP9 million of government funding.
That should be enough to bring in the private finance required to complete the development.
The schemes outlined so far belong to the Milton Keynes/South Midlands growth area.
Harlow within the London-Stansted-Cambridge-Peterborough growth area stands to net GBP10 million for regeneration projects and transport improvements.
Stevenage likewise is down for some GBP6 million.
Housing in the former goods yard.
One of the most interesting schemes in this area, though perhaps with the least appealing title, is the redevelopment of Bishop's Stortford Goods Yard.
This is a major housing and transport development on 5.5 ha of land surrendered by Network Rail.
The location is well connected with the City of London by a fast train service and easily accessible from the M11 motorway.
No details were given of the bid but it is understood that the money is needed to provide a new link road which will make the site more accessible, and to provide a purpose built transport interchange at the front of the station.
The development will provide 670 homes and since it is a condition of approval that the concept is consistent with sustainable community principles, the scheme will include a good proportion of affordable housing.
Indeed the density of development has been increased from the 560 apartments originally proposed.
After more than 100 years of railway service, the former goods yard at Bishop's Stortford seems to have a bright future as a site highly valued for its proximity to excellent commuter facilities.
The railway is on the doorstep and Stansted Airport a short distance across the motorway.
If approved, which again seems highly likely, support for this project will produce a call of some GBP2.2 million on government funding sources.
Peterborough, one of the key centres in this growth area, could stand to benefit by as much as GBP16 million: projects submitted include the GBP5.5 million Stanground Bypass which is the key to developing a large area of arable farming land for 1,525 dwellings with 5.5 ha set aside for business units, a primary school and community centre.
Without this money the city council would not be able to seek funding, let alone obtain it, before April next year.
This is the kind of funding blockage that is inhibiting the growth of sustainable communities, for which the first principle of development has to be making suitable land available.
Peterborough also has a GBP10 million sub-regional green park in hand for which it is seeking funding assistance.
Such projects are highly beneficial to the environment of sustainable communities, containing as they do wildlife areas, woodland, grassland and wetland habitats.
The Stanground South development will provide for protection of one of the few remaining wildfowl wetland habitats in England.
Going for growth at Ashford.
The story would not be complete without mentioning Ashford within the East Kent and Ashford sub-region of South East England.
This expanding town has put in bids quantified at GBP8 million, one of which is to assist with development of the Ashford Learning Campus.
This is a project which comes within the sub-regional strategy for provision of further education.
The Learning and Skills Council has been examining for some time how this GBP55 million development could be funded.
If as seems likely ODPM comes up with 10 per cent of the cost, this would see the project well started.
Ashford, one of the four designated growth areas, has potential for building 31,000 houses and creating 28,000 new employment opportunities over the next 25 years.
It is now enjoying the advantage of connection with the high speed section of the Channel Tunnel Rail Link which allows Brussels to be reached in less than two hours.
The latest funding announcement brings to light numbers of typical impediments to the plan for sustainable communities.
It demonstrates the inability of the local authorities to deal with these problems notwithstanding the high importance of these locations, barred from access by want of relatively small sums of capital expenditure.
With access to resources denied to the local authorities, government departments now have unprecedented powers to influence the pattern of development, fortunately moderated by the selection and bidding process which has been adopted.
The actions now in hand are bound to enhance housing market values in the selected growth areas where land is at a premium.
This is one factor the Government will have to bear in mind when in the Autumn as promised Gordon Brown and John Prescott bring forward their proposals for implementing Kate Barker's ideas on financial regulation of the planning process.
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