Housing London DIGITAL

8/10/2019 Housing London DIGITAL

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Digital Edition. This document is intended foronline viewing only.THINK BEFORE YOU INK.

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housinglondon.org/

2014 THE PR INCES FOUNDATION FOR BUILDING COMMUNITY

ALL IMAGES ARE PROPERTY OF THE PRINCES FOUNDATION FOR BUILDINGCOMMUNITY UNLESS OTHERWISE STATED.

001 OVERVIEW

007/025 HOUSING IN THE UK

007 Historical Development

008 Current Development

014 Policy Context 015 Tenure Types

018 Industry Recommendations

036/010 MID-RISE DEVELOPMENT

027 Londons Mid-rise Legacy

032 Mid-rise: Building Social, Economic & Environmental Value

034 Inll Strategies

038 Intensication Strategies

042 Large-scale New Build

044 Estate Regeneration

045 Barriers to Mid-Rise

053/058 RECOMMENDATIONS

059 CONCLUSION

060 REFERENCES
http://www.housinglondon.org/http://www.housinglondon.org/


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B HOUSING LONDON A MID-RISE SOLUTION

001

London is facing acute housing shortages of both quality and quantity which threaten the vitality of the city. The majority of new housingprovision serves only those in the highest earning bracket, forcingmany Londoners to live within a built environment that neithersupport their needs nor promotes their wellbeing. The UKs capitalcity is becoming increasingly spatialised by housing affordability - withcentral London property prices rising exponentially over the past few

years, pushing lower-income residents to the periphery of the city andemphasising the separation between the haves and the have-nots. Theprospects for young people in London are increasingly compromisedtoo, as young workers and families struggle to nd footing on thehousing ladder.

While affordability problems threaten the vitality and vibrancy ofLondons population, poor design quality does the same to Londonsstreets and neighbourhoods. Faceless residential towers and poorlyconceived mega-schemes erode street life and undermine thecreation of strong, harmonious and enduring communities and placeLondons historic architectural and urban identity under increasingthreat.

How to respond to this challenge? The purpose of this report is toposition the question of urban form and housing typology at thecentre of the housing debate currently taking place. The key toLondons future success is not only how much we build but what webuild - quality must stand alongside quantity. The report seeks toexplore the terms of the debate about Londons housing: to establishclearly the nature of the housing problem facing the city and inresponse, to explore the viable contribution that mid-rise housing hasto make to the needs of Londons residents - present and future.

OverviewLONDON HOUSINGSUPPLY AT GLANCE


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002 HOUSING LONDON A MID-RISE SOLUTION

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Intensi cation alongkey routesWHERE ALONG KEY TRANSPORT CORRIDORS IN THE CITY.

RECOMMENDATIONIDENTIFY KEY TRANSPORT CORRIDORS (EXISTINGAND FORTHCOMING) WHICH ARE SUITABLE FORINTENSIFICATION THROUGH MID-RISE HOUSING.DEVISE SUPPORTIVE PLANNING PROCESSES,FINANCE SCHEMES AND LAND ASSEMBLYSTRATEGIES TO ENABLE INTENSIFICATION SCHEMES.

Four strategies formid-rise developmentin London

In ll on small /medium sitesWHEREIN HISTORIC AREAS WHERE THE TYPE ISAPPROPRIATE AND IN SMALLER BROWNFIELD SITESBETWEEN CENTRAL LONDON AND OUTER SUBURBS.

RECOMMENDATION ESTABLISH DEDICATED INFILL STRATEGIES,INCLUDING ACCURATE SCOPING TO IDENTIFYTHE TRUE CAPACITY OF SMALL - AND MEDIUMBROWNFIELD SITES AROUND THE CITY. ESTABLISHFINANCIAL AND PLANNING INCENTIVES TOENCOURAGE MID-RISE DEVELOPMENTS TO FILL INTHE APPROPRIATE GAPS IN LONDONS BUILT FABRIC.

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Large-scalenew buildWHERE LARGE-SCALE SITES IN AND AROUND THE CITY.

RECOMMENDATIONCONDUCT THOROUGH FEASIBILITY STUDIES INTO THEPOTENTIAL OF LARGE - SCALE DEVELOPMENT SITES,BOTH WITHIN AND ON THE OUTSKIRTS OF LONDON.SHOULD A SITE COME FORWARD TO PLANNING, ALLMEASURES SHOULD BE TAKEN TO LEARN FROM BESTPRACTICES IN ORDER TO PROVIDE AFFORDABLE,DYNAMIC AND SUSTAINABLE NEIGHBOURHOODSFOR NEWRESIDENTS. MID-RI SE HOUSING SHOULDBE CONSIDERED AS A TOOL TO DEFINE CENTRALCORRIDORS OF ECONOMIC AND TRANSPORTACTIVITY IN SUCH DEVELOPMENTS. FOR LARGE-SCALE SITES WITHIN LONDON, MID-RISE STANDS TOCONTRIBUTE MEANINGFULLY TO AN URBAN FORMWHICH SUPPORTS NEW STREETS, NEW COMMUNITIESAND NEW PIECES OF CITY.

EstateregenerationWHERE INNER - AND OUTER-LONDON SITES

RECOMMENDATION DRIVEN BY LOCAL AUTHORITIES, COLLABORATIVESTRATEGIES OF ESTATE REGENERATION SHOULDBE EXPLORED. ANY REGENERATION SCHEME MUSTREPLACE SOCIAL HOUSING ONE-FOR-ONE ANDSHOULD CONTRIBUTE POSITIVELY TO THE SUPPLYOF AFFORDABLE HOUSING IN THE CITY THROUGHQUALITY HOUSING CONSTRUCTION AND URBANDESIGN WHICH RECONNECTS THESE SITES WITHTHEIR SURROUNDING NEIGHBOURHOODS.

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LEARN FROM GLOBALBEST PRACTICES WHICHHAVE PRODUCEDSUCCESSFUL MID-RISENEIGHBOURHOODS

AROUND THE WORLD.

ENCOURAGE INWARDINVESTMENT INTOINTELLIGENT MID-RISEDEVELOPMENTS, RATHERTHAN HIGH-RISES

WHICH ONLY CATERFOR A MINORITY OFHOUSEHOLDS.

ENGAGE WITH FINANCIALAND CONSTRUCTIONCOSTS SUPPORTSTRATEGIES WHICHPROMOTE MID-RISESCHEMES AND IN TURNSUPPORT A WIDERRANGE OF HOUSEBUILDERS .

PROMOTE PLANNINGPOLICY CLARIFICATIONAND EFFICIENCY INORDER TO INCENTIVISEMID-RISE DEVELOPMENT.

USE DESIGN GUIDANCEAND BUILDINGSTANDARDS TO PROMOTEQUALITY DEVELOPMENTSWHICH SPEAK TOLONDONS GREATMID-RISE LEGACY ANDPRESERVE LONDONSBUILT IDENTITY.

KEEP COMMUNITIESAT THE HEART OFREDEVELOPMENT INORDER TO ENSURE THATLONDON PRODUCES THEHOUSING LONDONERSWANT.

INVEST IN INFRASTRUCTURE WHICH SUPPORTS THEFEASIBILITY OF NEW MID-RISE DEVELOPMENTS ANDALLOWS COMMUNITIES TO THRIVE.

Recommendations:Build quality, mid-rise residentialdevelopments

to support harmoniouscommunities.In order to truly meet Londons housing needs, a holisticview is crucial. The opportunity for an inspired, long-term vision of Londons future is for the taking. Politicalwillingness, public buy-in and investment support willall be crucial in allowing such a vision to be achieved.Vibrant, liveable neighbourhoods, provided for byquality, adaptable housing, should be the building blocksof Londons boroughs. These neighbourhoods will onlythrive if supported by well-functioning streets andtransit services, along with easy access to green spaceand public amenities.

The citys allure has never been stronger, but atpresent the average London house does not meet theneeds of the average Londoner. Unless we embracethe recommendations laid out here, London willcontinue to see the erosion its diverse communities aswell as the deterioration of its street life and vibrantneighbourhoods. Unless we meet the housing needsof all Londoners, present and future, the city stands tolose its shine. Mid-rise is a tried and tested form whichpromises to deliver innumerable benets to the cityand its residents if used strategically and designedthoughtfully. The form deserves space in the ongoingdebate about Londons housing provision - its capacityto deliver beauty, density and affordability have neverbeen more wanting in the capital.

The mansion block in particular shouldbe celebrated as a local form to aspire to:allowing for a exibility of living spaces,supporting shared green spaces and providingappropriate densities in sites across the city.The mansion block form, along with converted

Victorian and Georgian mid-rise houses,exhibit many of the strengths of well-designedmid-rise residential buildings and promote thetype of walkable, sustainable urbanism thatLondon needs as it looks to solve its housingproblems. It is crucial in the response ofdevelopers and policy-makers to the housingshortage, that density is not approachedsolely as the domain of high-rise towers. This

report does not seek to re-hash the establishedfailings of the tower-in-the-park model, northe problems of the multi-storey estates in thecapital, but rather seeks to present a forward-looking, solution-based piece of research thataims to inform future development to ensurethat the failings of the past are not repeated.

While much of the report directs its attentionto London, the problem of housing failures,either in quality or quantity, as well as of theubiquitous skyscraper model that is beginningto render city skylines indistinguishable from

one another, while on the ground streetscapesare brutalised - can be recognised in citiesthe world over. Despite the re-privileging ofstreet-based urbanism, liveable densities andnon-motorised transport as key principlesof city-making, the tower-in-the-park modelcontinues to propagate. In London, thelegacy of the high-rise tower and the multi-storey estate continue to inform many areasof the city, while new skyscrapers and luxury-accommodation projects continued to be

welcomed into the city - often at the expenseof both the street and social integration.

The promotion of mid-rise development

here should not be seen as the proposal of akind of panacea for all of the citys housingproblems, nor the perfect solution to all thehousing needs of the population. Rather, themid-rise form is here promoted to encouragethe appropriate use of a housing typology

which has both proven its strength onLondons streets as well as its popularity withits population.

What are the alternatives to the glass towers which are proliferating across the Londonlandscape, and which are coming to dominate

The enduring popularity and desirability of Londons SloaneSquare, Mayfair and Notting Hill neighbourhoods speaks tothe strengths of mid-rise as a form.

Londons historical mid-rise buildings, with their strongrelationship to the street and popularity with residents,should be re-imagined and re-asserted as a housing type inthe city.


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the imaginations of both developers andresidents in their approach to new housing?This report explores what can be done tosupport and encourage mid-rise developmentin London, examining common barriersto the form and proposing a range ofrecommendations. Drawing on best practiceexamples from around the world, this reportseeks to reinstate the mid-rise typology as a keyhousing solution for London; both historicallyand indeed for the future.

In the ongoing debate around housingprovision in the capital, it is crucial to examinethe housing types and urban form thatcurrent policy, housing standards promote

and economic circumstance produce. Well-designed mid-rise buildings can offer dense,liveable housing which promotes urban vitalityas well as healthier and happier communities.

I think the orthodoxy in the UK, and possibly Northern Europe, is that you know the start point is perimeter block planning, but I dontthink thats true in the developing world andthats what alarms me most.

There are a number of problems for developingcountries that are opting for the high-rise inthe middle of the plot option. The worst part ofthe tragedy is the socio-economic danger andthe public safety dangertheyre going to move

from well-supervised, overlooked streets withmixed traffic, and theyre going to remove thecare and attention and concern of residentswho live at the top, for life in the streets. Itsabsolutely heading in the wrong direction, andit will be a disaster.BEN DERBYSHIREManaging Partner, hta Architects

HistoricalDevelopment

The last re-housing boom in England, during

the 1960s and 1970s, saw the rise of the multi-storey estate. Problems of scale have plaguedmany of these developments - from disjunction with local contexts and to underused commonspaces to an uncomfortable relationship withthe street, characterised by set-backs and fences.The negative impacts on residents, both physicaland psychological, of the legacy of poor design,construction and management of Britains lasthousing boom has dominated contemporaryhousing concerns. The relative ghettosationof estates has continued to inform wider builtenvironment inequality across the UK.

From the period between the early 1950s and 1980,1.5 million homes 1 were demolished around the UK,many replaced by poorly conceived mass housing.The argument has also been made that the 1965Housing Subsidy Act exhibited a bias in termsof promoting multi-storey estates 2. This periodof demolition also resulted in the destructionof a certain degree of street fabric. While thosedemolished houses had been oriented along streets,

the new multi-storey estates were often orientedaround large communal spaces which over time would prove underused and often neglected. Today,it is estimated that 360,000 dwellings in London arein post-war multi-storey estates 3.

In the haste to build after the second WorldWar, many untested, new design theories were put into practice, with the best of intentions,but with disastrous results, and Im thinking

particularly of the brave new world of housingestates, the system-built, deck-access variety,and the tower block, which quickly became sinkestate all across the country - unloved, andrelentlessly, depressingly ugly, with endlesswasted access of public open space and adearth of private space.HRH, THE PRINCE OF WALES

New Buildings in Old Places, 2008

Unpopularity of the built form of many post-warestates, both with tenants of the estates, and with wider society, has endured across the last vedecades. The resulting backlash led to something ofa slowdown in multi-storey developments across thecountry - with only six buildings with a height over35m being built in Britain between 1979 and 1998 4.London has seen something of a return to high-risedevelopment in the past decade - but rather than inthe form of estates with provisions for social housing,Londons new high-rises are glittering towers ofexclusivity and luxury living - out of the reach of theaverage Londoners, and unsuitable to the needsof many households. New development in Londonrisks perpetuating ghettoisation, carving out moreand more areas of the city which cater only to higherincome residents.

New planning guidance issued in 2000 discouragedlow-density development, thus the shift to higher-density housing developed as a matter of planningguidance, mediated by economic pressures, ratherthan housing preferences. From 2001, the buildingof individual houses declined, while the constructionof ats and high-density development increasedacross the country. In the 2000-2008 period, the

Housing inthe UK

1 Banham, J. et al, 2012. 2 Boys Smith, N. & Morton, A. 2013. 3 Boys Smith, N. 2013a. 4 Boys Smith, N. & Morton, A. 2013.


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construction of ats and apartments trebled - mostlybuilt in tall blocks in and around city centres. From2009, the number of new homes completed fellconsiderably and has continued to do so. In 2010,the National Planning Policy Statement was modied,introducing the New Homes Bonus to incentiviselocal authorities to build more homes. This newprovision also hoped to overcome the threat ofNIMBYism inherent in devolutions of power asproposed by the coalition government through theLocalism Act and related policies.

In addition to these developments, demographictrends, coupled with national policies on urbandevelopment and weakening quality standards, setthe stage for the UKs current housing troubles. Thesecond half of the twentieth century saw policies ofurban containment dene urban development inthe UK. Londons urban boundary was set by theGreen Belt, effectively seeking to dene Londonsgrowth and encourage denser urban development.Higher birth rates and increased real incomes drovean unprecedented increase in demand for housing.In the process, the average size of new homes in thecountry has decreased and the needs of residentsand larger communities have become increasinglycompromised.

Current Development

UK HOUSING CONTEXT

Jump to 2014, and cities and towns across thecountry are facing a range of housing pressures.Britain on a whole is struggling with providinghousing to meet the changing size and makeupof its population. Currently, around 230,000 newhouseholds are forming each year, while thenumber of new homes built around the country isaveraging between only 100,00 and 150,000 5 per

year. 2007-2008 saw a fourteen-year peak in new

housing supply, with 170,610 new homes addedto the national stock. Since then, this gure hasplummeted with only 125,000 new homes added inthe year to April 2013.

Rising demand, coupled with an existing backlogof around two million homes, has resulted in thecurrent context of chronic under-supply and lack ofafford-ability. Consensus estimates show that even ifthe economy remains depressed, the country couldexpect an increase of almost 20% in the numberof households over the period, and the emergingUK economic recovery looks likely to spur on evengreater demand for housing across the country.Critically, the projected number of new homes thatneed to be built around the country also impliesthe building of around 500-700 new communities 6 -and herein lies the fundamental importance of theform which new housing will take.

The Bank of England recently suggested that thefailure of housing supply around the countrypresents a structural risk to the British economy atlarge. Recent polling by Ipsos MORI has revealedthat the majority of people in the UK now regardthe countrys rising house prices as an unfavourabletrend. On both the macro and micro scale, thefailure to supply housing of sufficient quality andquantity is threatening the vitality of the UK.

Housing price increases remain far out ofproportion with average increases in income, withprices rising by an average of 8.4% 9 in 2013, whileaverage wages rose by only 0.7% 10. Price increaseshave been evident in all thirteen of the UKsregions, but prices in the South-east of Englandhave increased particularly rapidly. A considerationof Britains past experiences of housing supplyshortages serves as a forewarning. House building

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5 Griffith, M. & Jeffreys, P. 2013. 6 Banham, J. et al, 2012. 7 Lloyd, T., 2013; Policy Exchange, 20138 Joseph Rowntree Foundation, 2003. 9 Based on Nationwides 2013 own mortgage data10 For the year to August 2013, Office of National Statistics, 2013

recessions in 1974 and in 1990 resulted in extendedperiods of lost output, and attempts to revive thesector led to periods of stagnation, rather thanof innovation. The threat of another lost decadeof housing market output should serve as anurgent motivator for action. Longer-term failuresof quantity and quality delivery only serve tocompound these recent shortcomings.

Within this context, it is also necessary toconsider the changing needs of UK households,a generally ageing population 11. An increasingnumber of elderly people are also now livingalone, contributing to the general rise of thenumber of single-person households (now 30%of all UK households 12). Families are comingto represent a minority of households and aresuffering increasingly from housing failures asnew developments fail to cater for their needs andproblems of affordability continue to plague largerhouseholds. The destabilising effects of rising rentand mortgage costs, coupled with high energy andfood bills are exacerbated by wage freezes in manysectors. Families are often the worst affected, with70% of those renting or making mortgage payments with children reported to be struggling or fallingbehind - this in contrast to 63% of the generalpopulation of renters and homeowners 13. Thesepressures continue to push families and lower-income residents further and further into poorquality housing, destabilising existing communities.

Problems of affordability are affecting residentsacross all tenures and households types, with recentresearch suggesting that around 9% of adultsfeared they would be unable to pay their rents

or mortgages in the rst month of 2014 14, whileother estimates suggest that around one millionhomeowners could be at risk of defaulting on theirmortgages and losing their homes as a result ofeven the smallest increase in interest rates 15.

For young people around the country, the lackof affordable housing is becoming evermorecritical. Estimates see around 1.5 million more young people (aged 18-30) being pushed into theprivate rental sector by 2020 16, driven by increasinglack of access to either social renting or owneroccupation. Further estimates show the number of young people owning their own homes to fall by1.1 million, to only 1.3 million by 2020, while thenumber of young people living with their parentslooks set to increase six-fold. Young families and

young people on low incomes are vulnerable dueto their support needs have been identied asparticularly vulnerable to the current exclusionaryhousing market.

Furthermore, the key link between poor housingand poor health, and the subsequent costs tosociety, must be acknowledged. Research acrossthe past decade has shown that factors of the builtenvironment have directly measureable effects onour health - both physical and mental. The burdenof these negative effects has also been shown to falldisproportionately on low-income communitiesand ethnic minority populations 17. The segregationof lower income residents into isolated housingpockets in the city has also been linked with obesityand mental health issues. Poor housing quality inparticular is linked to exposure to lead, as well asto asthma triggers including mould, moisture, dust

18 20 21

1160% of projected household growth to 2033 will be aged 65 and over, HM Govt, 2011 12 ONS, 2013 13 Shelter, 2014. 14 Shelter, 2014. 15 15% of minorityethnic households live in a home with at least 1 category 1 HHSRS hazard, Resolution Foundation, 2014. 16 Clapham, D. et al., 2012. 17 Hood, E. 2005.18 Harrison, B. et al, 2013. 19 Harrison, B. et al, 2013; Heywood, A. 2012 20 Harrison, B. et al, 2013 21 Savills, 2013.


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mites. These physical health hazards are oftencompounded by the mental health hazards of socialisolation. If the current poor condition of housingfor minority ethnic households continues, theprojected costs to the NHS are estimated at 25million per year 22, while wider costs to society areestimated to be two and a half times this gure 23.Poor housing clearly plays a role in exacerbatingand perpetuating existing inequalities around thecountry and the supply of adequate housing shouldstand as a top priority if we wish to achieve social

justice in the built form.

LONDON HOUSING CONTEXT

London is currently facing a chronic undersupplyof housing, coupled with skyrocketing costs, asdecades of inadequate building - both in terms of

quality and quantity - come face to face with thecitys booming population.

Londons housing affordability has been heldup as a key indicator of the citys struggle inaccommodating its swiftly changing population.London is positioned as Europes fastest growingcity - expected to grow by one million people overthe next decade. The citys property prices areincreasing at an annual rate of 10% and typicalproperty values in October 2013 are 8% higherthan peak 2007 prices 24.

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29 3130 32

22 Resolution Foundation, 2014. 23 Due to factors including a lack of educational attainment, lost income andhigher insurance premiums and emergency services costs, Resolution Foundation, 2014. 24 Henley, J. 201325 Jones, R. & Osborne, H. 2013 26 PricedOut, 2014. 27 National Housing Federation, 2013. 28 Heywood, A. 2012

Recent calculations show that average houseprices in Westminster, Hackney and Islington havedoubled over the past decade - with average pricesin Westminster rising by 114% 25.

A recent report suggested that, despite earning3,804 more per year than the average personnationally, the typical Londoner is actually 4,027 worse off after theyve paid for somewhere to live 26.Housing benets gures illustrate the affordabilitycrisis most plainly: in May 2013, around a quarter ofa million working adults claimed housing benet -representing a 110% increase over just three years 27.

Problems of affordability are preventing a range ofhouseholds from accessing home ownership withfewer and fewer residents capable of taking therst step onto the housing ladder. The average ageof a rst-time buyer is currently 29 - with nancial

support - and 3333

without, while estimates suggestthat the average rst time buyer needs to save anaverage deposit of 60,000 in order to qualify for amortgage 34. Other estimates put the average rst-time buyers in London in the top 20% of the cityshousehold income distribution 35 - a clear sign ofthe affordability problem facing Londons residents.Once housing costs are taken into account, thenumber of people living in poverty in Londondoubles - from one to two million 36. Larger andlarger swaths of inner London are now simply outof reach for households earning median incomes.

In a place like London, we are moving towards a moreand more polarised market place we are going to moveto the ones that own homes and the ones that rent homes,and there will be a bigger and bigger gulf between the two.London is an important creator of value and growth inthe UK generally so it needs to be made as competitiveas possible to provide homes for people in good qualityenvironments to support the enterprise of the city, and theworry is that if housing isnt supplied at the right pacethen a) housing gets more expensive which businesses

will be unhappy with, and b) the people living in thosehouses will squash up more and more and then the social problems start.

I do think shared ownership and intermediate rentin areas further out around London, in slightly moreaffordable areas, is an enormously important offer. But for shared ownership, there isnt much gap fundingaround at the moment so there is a question of the extentto which local authorities can repatriate value acrossborders, to effectively create gap funding for those schemesto make them affordable. Shared ownership is somethingthat should be massively grown in the London context.

BEN DENTON Strategic Director of Housing, Regenerationand Property, Westminster Council

2011 census data reveals that the four southernregions of the country account for 60% of allhousing demand, while London alone accountsfor 25% of total demand. This level of demand,coupled with exceptional rises in land and property values, only serves to exacerbate the perceived gap

between the capital and the rest of the country.Indeed, the value of the homes in Londons tenrichest boroughs has been estimated to be worthmore than the housing stock of Northern Ireland,

Wales and Scotland put together 37.

The relationship between housing provision andLondons global competitiveness is a crucial one,and is coming under more and more strain as

workers struggle to access housing in the capital.For the rst time, businesses are citing housingabove transport in their identication of barriersto growth in the city 38. With 70% of businessesin London cite housing costs as a major barrierto growth 39. The rise of the private rental sector,coupled with decreases in owner-occupationsignal underlying problems of affordability in thecapital. Research has estimated that London couldexperience a shortfall of 50,000-90,000 homesfor professionals over the next ten years. 2014has already been identied as the year in whichbusinesses will consider housing costs as a potentialrisk to their business and to their ability to recruit

and retain staff 40

. Talent attraction - especially forthose rms looking to a younger workforce - willbecome increasingly tempered by problems ofhousing access.

29 Fredriksson, U. 2008. 30 ONS, 2013. Annual Survey of Hours and Earnings 2013. 31 Estimates based on ONS, 1995. Social Trends Survey Edition 25, 1995; Atkin, K. &Hirst, M. 1994. 32 ONS, 2013 Annual Survey of Hours and Earnings 2013. 33 Banham, J. et al, 2012. 34 Savills, 2013. 35 Power, A. & Lane, L. 2010. 36 Theseira, M. 201337 Wiles, C. 2013 38 Confederation of British Industry, in London Councils, 2013 39 Theseira, M. 2013 40 Jones Lang LaSalle, 2014.


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There is a genuine lack of housing supplythat is undermining the economic prospectsof London. For London to have the jobs thatit needs, it needs those people to be able to behoused appropriately and for that housingto be at an appropriate cost. The shorter thesupply of housing, the more difficult it is foremployers to look at London as a destinationand know that theyre going to get the rightlevel of skilled workers, and ultimately thehousing shortage acts as a constraint on GDP.ELLIOT LIPTONManaging Director, First Base

While Londons housing need is undoubtedly acute,estimates of exact gures remain varied. Whilesome propose that between 245,000 44 and 300,000 45 new homes are needed to meet Londons demandeach year, a recent calculation by London Councilsestimated that more than 100,000 new homes a year from now until 2021 - totalling 809,000. TheMayors recently released housing strategy aimsto deliver 42,000 houses each year going forward.Despite variation in scale, all these gures sit farabove the 2011 new build output of just 145,000 46.The private sector has only delivered over 150,000homes in 5 of the last 40 years - only increasingsupply by 23% even during 1995-2007 boom period.

The implications of these shortages areundoubtedly a reduced quality of life for manyLondoners. 11.6% of dwellings in the city havingtoo few bedrooms for their occupants. Londonshomes are the most overcrowded in the country,and are becoming increasingly strained - withovercrowding increasing by 50% between 2000 and2009/10 47. Overcrowding is especially problematicin Londons poorer boroughs - Newham reportsthat 25.4% of its dwellings are overcrowded.Furthermore, the city is experiencing recordlevels of homelessness, with 41,250 households intemporary accommodation in 2013 48. The numberof homeless families being re-housed outside thecity by London councils has doubled over thepast year 49 - a direct result of the rising costs ofprivate rented accommodation in London. In thetwelve months up to June 2013, 789 households were housed in areas as far out as ManchesterBirmingham, Swansea and Accrington, with results

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for the rst quarter of 2013/14 showing that thenumber of households placed outside London bylocal authorities has increased 129% 50.

Recent analysis of the shape of housing demandin London reveals short-sightedness in continueddevelopment of the type of luxury residentialprojects that currently occupy so much of Londonsattention. While the bulk of demand can beidentied at the lower end of the market (in theform of affordable housing and properties pricedbelow 450 per square foot), new developmentscontinue to target wealthier buyers, producinga disproportionate amount of housing stock forthe New Prime market (properties between1,000 - 2,000 per square foot 51). The currentmodel of investment into luxury, typically high-rise,

residential developments is risking oversupply inthe Prime market, while failing to deliver wherethe bulk of future demand lies. Research estimatesthat 28,500 new homes are needed at the lower endof the market each year, while only 18,500 will beneeded in the mid and upper core markets 52. Thesegures show that new housing supply needs to betargeted at mid - and lower income families if weare truly to address demand in the city. The marketfor high-end, prime developments is not sufficientto support the range of sites, house builders andnancing options available in the city. Housingsupply need to diversify and look to the middlemarket as a priority for future development.

London residential is an inefficient market, withcustomers at either end of the earnings spectrum gettinghomes - - if youre rich or in need of support, thenthe state system works for you...its the people in themiddle that the system works less well for and that is

fundamentally caused by a lack of supply.

Firstly theres unused land that could be developed...andsecondly, is that land being used efficiently, could it beused more intensely or could that land be used for morethan one purpose, and its rare that people think throughmultiple uses of land properly...there isnt actually adetailed analysis of what land could be used for housing.

ELLIOT LIPTONManaging Director, First Base

41 Nationwide, 2013 42 Nationwide, 2013 43 National Housing Federation, 2013. 44 Mannion, F. 2013. 45 Banham, J. et al, 2012. 46 Henley, J. 2013.47 Harrison, B. et al, 2013. 48 London Councils, 2013. 49 Duxbury, N. 2013. 50 Duxbury, N. 2013. 51 Savills, 2013.

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PolicyContext

The Mayors new housing strategy plans to deliver42,000 homes each year for the next ten years.Funded by 1 billion of public funds allocated toLondon in the national governments summerspending review, the strategy identies strongnancial settlement with the national governmentas a key strength of the policy. The strategy takesas its main aims the promotion of institutionalinvestment in new housing, increasing the abilitiesof local councils to build new homes, bringingforward surplus public land to encourage new

builds, and the development of specialised HousingZones.

Of the 42,000 gure, 15,000 affordable homes areto be developed each year - 40% of which will be forlost-cost ownership, and 60% will be for affordablerent. These targets, given the mere 17,000 homesbuilt in London last year, only 6,000 of which werebuilt by housing associations and councils, havebeen praised as ambitious, if not unrealistic. ALondon Housing Bank is to be piloted with 160million in funding - the investments from whichare set to be targeted at large vacant or stalledsites. Housing Zones, which would mimic many ofthe freedoms of existing Enterprise Zones are alsoproposed within 33 designated Opportunity Areasin the city. Ten of these zones are laid out in theMayors strategy and would benet from light-touchplanning regulation, tax incentives and special landassembly powers.

The strategy also draws attention to increased inlland intensication in existing London areas, as

well as considering the possibility of new garden

suburbs, including sites like Barking Riverside. Thestrategy also encourages increased exibility in howthe GLA manages its own landholdings in cases where development can be accelerated. Estate-based development, through the improvement ofquality and energy efficiency of existing homes, ispromoted.

While a strong degree of commitment to increasingthe stock of affordable housing in the capitalcan be identied among Housing Authorities,local authorities and other stakeholders, manyhave expressed a scepticism on the commitmentfrom both city and national government andhave identied a degree of limitation in whatgovernment is willing to contribute. Many havecalled for greater autonomy and scal freedomsfor local authorities to enable them to build manyof the houses the city needs. While the AutumnStatement of 2013 saw the cap raised on localcouncil borrowing, many have argued that thismeasure does not go far enough, with the RoyalInstitute of Chartered Surveyors concluding that:

The lack of housing supply is crippling the propertymarket. If help to buy is to remain, right to buyextended, and expensive social housing sold off then

the governments commitment to building houses simplymust be extended We still believe housing is not atthe centre of a coordinated property-led growth thatsupports a balanced regional recovery where all canaccess the market. The increase in the HRA borrowingcap will only make a very minor dent in the housingdecit (2013).

Increased borrowing alone is set to produce only3,000 affordable homes, meaning funding foradditional need will have to be raised through othermeans (including controversial calls for councilsto sell off most valuable social housing assets).Concessions on borrowing opens up a potential 300million over the next 2 years 53 - this in the contextof the 7 billion that councils have estimated isneeded in order to build 60,000 new homes.

The Mayors new strategy makes welcomed policysuggestions in terms of incentives to increasesupply and does well to recognise the fundamentalimportance of this issue to the city. Questions ofscale, nancing and of commitment to ensuringaffordability have all been raised in response tothe Mayors latest strategy - with critics labeling thestrategy as too modest in its housing delivery aims.

TenureTypes

Problems of supply, quality and affordability areaffecting residents across all tenures in London.

A present, 49.5% of Londoners live in houses theyown, 25% in subsidised housing and 25% in privaterented housing 54. As such, developments in eachof these tenures affect a substantial proportion ofresidents and the corrosive effects of the currenthousing crisis need to be understood in the contextof each tenure and addressed with the accordingdetail and focus.

PRIVATE RENTAL SECTOR

The private rental sector (PRS) makes an importantcontribution to Londons housing offering -housing the many mobile students and workers who move into, and indeed through, the city. Whatis needed in the sector is an increase in both thequantity and quality of the product offering, as well as a raising of expectations from the sector which should heed a much needed call for higherstandards. The sector is suffering under numerousstresses: demand outstripping supply, increasedcosts, overcrowding and troublesome standards.

Private renting is the only form of tenure thatis growing across England, as well as in Londonspecically. The sector has experienced greatgrowth over the past decade - from accounting for15.3% of the total London market to accountingfor 25% of the market in 2011. This growth canlargely be understood in relation to the increaseddifficulty of access to both homeownership and ofsocial renting. At present the PRS market plays a

crucial role in accommodating the young peopleof the city, with 60% of private renters under age of35, only 4% over 65. By 2020, the number of youngpeople living alone in the sector is set to increase by1.3 million to total 3.7 million, while the number of young people living with parents in private rentedaccommodation will increase by approximately170,000 to 400,000 in 2020 55. 874,000 couples withchildren are currently renting privately - an increaseof more than 200% since the late 1990s. Problemsof overcrowding are notorious across this tenure, with overcrowding in PRS in London increasingby 6% between 1995 and 2010. Rental prices areset to treble by 2020, with the biggest price risesset for Londons cheaper outer boroughs, forcing

more and more families, young people and lower-income households to accept inadequate housingprovisions.

The Mayors third housing covenant pledges tomake the private rental sector work for Londoners.This pledge is underpinned by three strategies: tosupport the supply of new housing in the sector, toempower consumers and to promote standards.These three strategies should be consideredapplicable and appropriate across all housingtenures.

International evidence suggests that incentives forlandlords, including tax breaks for more stablelonger-term tenancies for vulnerable or lower-income tenants, can be used to achieve morestable tenancies. Calls for large-scale institutionalinvestment in this sector have been gaining

momentum. Figures suggest that the UK needs toinvest 200 billion in PRS stock over the ve yearsin order to meet demand - with 30% of this demandlocated in London.

While some have pointed to an increasing desirefor the tenure type as part of the reason for theincrease in the sector, preference studies show thatthe overall preference for ownership has remainedsteady for the past two decades.

52 Savills, 2013. 53 Duxbury, N. 2013. 54 Theseria, M. 2013. 55 Clapham, D. et al., 2012. 56 London Councils, 2013, National Housing Federation, 2013

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OWNE R OCCUPATION

Owner-occupation for residential property inLondon dropped from almost 60% to under 50%between 2001 and 2011 - the largest regional dropin owner occupation in the country - despite thecitys household numbers rising by 250,000 overthe same period. Home ownership is expectedto decline even further over the next decade -predicted to reach around 40% by 2025 57. There ismuch discussion around the prospects for rst timebuyers in London, much of it relaying increasingdependence by buyers on the so-called bank ofmum and dad and the increasing implausibilityof home ownership for those who do not haveaccess to such resources. 70% of rst-time buyerssupported by other source.

The national governments Help to Buy schemelaunched earlier this year, due to remain in effectuntil December 2016, has elicited a number ofresponses. While some argue that the policy istoo demand-side focused when supply remainsthe crucial issue - and fear that the policy willonly exacerbate the overheating of the market,others attribute a recent increase in new homebuilding registrations to the scheme. Registrationsfor new homes around the UK were up by 19%,

while privately-funded new house buildingregistrations had increased by 23% in October2013, according to National House BuildingCouncil gures. Despite these apparent increases inintention to build, many recognise that the extentof the housing shortage is such that even withconsiderable new building, acute shortages are setto remain for at least the next two years. Withouta sustained, long-term increased in the supply ofhouses in the city, these demand-side initiativesdesigned to aid aspiring home-owners, initiativeslike Help to Buy will only serve to sustain the highhouse prices they pledged to help overcome. Thescheme is also capped at homes costing 600,000or less - which is out of the range of the 937,110average price of a prime inner-London property 58.

AFFORDABLE HOUSING

The Affordable Rent Model (ARM), introducedby the national government in 2010 as part ofthe October Comprehensive Spending Review,represents the latest proposed policy solutionto the affordable housing problem around thecountry. The policy is intended to offer housingassociations and local authorities more exibility in

how they set up rent structures, tenancy terms andin how they leverage their assets. The ARM is setto run until 2015, with an initial national target of170,000 homes - to be let at rents up to 80% of themarket rent for comparable properties. A target of16,000 ARM homes has been set for London - to t within the wider Affordable Housing Programmetarget of 22,000 homes for the 2011-2015 period.This in turn, forms part of the wider GLA-fundedprogramme to deliver 55,000 new homes by 2015.

Arguments have been made for a percentageof new homes to be covenanted for private rentbelow market rates for at least ten years - withsome housing associations citing this as a way torealise equity and long-term nancing. David Lunts,Executive Director for Housing and Land at theGLA, has noted that the provision of affordablehousing in the current austerity context has

become perhaps Londons biggest challenge .The ARM model has however come underconsiderable criticism. Given the extent of theneed for affordable housing in the capital, theschemes denition of affordable as up to 80%of market rents leaves much to be desired. Theaverage affordable rent level is currently at 65% ofmarket rent 59 - a level of affordability still too highfor many Londoners. Recent policy developmentsacross this tenure type provide further causefor concern. Overall government subsidies foraffordable housing provision have been drasticallyreduced. While caps on housing benets havebeen introduced, the cap on what is classiedas affordable rent has been lifted - meaning thatless funding is available for rents that are nowmore expensive. The denition of housing needhas also been widened - increasing the numberof people more eligible for support (althoughpotentially directing support away from those mostin need). Need now refers not only to those mosturgently in need of housing support, but also tothose households looking to buy their rst propertybut who are not able to afford it, as well as othergroups which are failing to secure home-ownership.This broadening of denition reects the growingnumber of London residents who do not qualifyfor traditional housing subsides, but neverthelesscannot afford to live in the city. While the ARMmodel is well positioned to cater for this group ofLondoners, current caps and affordability levelsare not drastic enough to make a meaningfulcontribution to the overall degree of housingaffordability in the capital.

SOCIAL HOUSING

The past decade has seen a decline in the socialrented sector - from 25.7% of the market in 2001to 24.1% in 2011. Inherent tensions exist betweenhigh land and property values in many areas ofthe city and the presence of social housing. Arecent Office for Budget Responsibility (OBR)report shows that housing benet is set to cost6bn more over the next 5 years than estimatedin the Chancellors March budget (the third timeestimates have increased in a year). While the costof housing benet continues to rise, the supply ofaffordable housing does not. More housing benetsclaimants than ever before are in work. The UKhas taken 20 years to add 0.5 million social rentedhomes to total stock, the waiting list for social

housing is currently around 5 million people 60. Thenumber of young people living in social rentedtenancies is expected to decrease over the nextseveral years, while the number living with their

parents in social rented accommodation looks setto increase by approximately 170,000 61. Suggestionshave been made that social landlords could helptackle the challenges facing young people byhelping them to access private rented tenanciesand offering more shared tenancy options at localhousing allowance rent levels as part of a variedhousing offer.

The lack of supply of this tenure form is one of themost pressing challenges facing the city. Despitegovernment pledges of one-to-one replacementsfor every unit of social housing sold, only 1,662council home replacements started in 2012/13 andthis year to date, while 10,954 council homes havebeen sold nationwide 62. The buying up of councilhomes without adequate replacement, coupled withnew schemes which fail to deliver on social housing

pledges, has eroded Londons social housingstock to critical levels. Whole zones of the city riskbecoming exclusive enclaves, the existence of whichthreatens London very vitality.

57 Oxford Economics, 2011 in Heywood, A., 2012 58 Rightmove, 2013 59 Johnson, D. 2013. 60 Lloyd, T. 2013. 61 Clapham, D. et al., 2012 62 Apps, P. 2014.


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IndustryRecommendations

Increasing housing supply across all tenuresis the most comprehensive and widely-acceptedresponse to the current unsustainable housingmarket. Proposed strategies to achieve this aim,however, differ markedly across various elds, as well as across the local-national spectrum. Despitethese differences, there exists consensus that without an increase in housing stock, the problemsof affordability, accessibility and integration areall likely to continue unabated. Wide calls forincreased certainty around factors of supply in

the housing market, chiey land supply, planningpolicy and construction standards, need to beheeded if the countrys supply of new housing is tobe increased at the necessary pace.

The following recommendations set out currentproposals touted in the housing industry toincrease supply in Londons housing market. Theserecommendations deal only with the quantitativeaspects of supply - laying out how more homescan be built. Suggestions of the specic formor typology that this housing should take, orof the wider urbanism principles this housingshould aspire to, have been largely absent frommainstream debates on the problem.

INCREASE THE RANGE OF INVESTMENTCHANNELS INTO HOUSING PROVISION

A range of investment channels are crucial inorder to speed up the supply of new housing.These channels include direct central governmentfunding, new allowances for council borrowing

and investment, new government guarantees, as well as institutional investment channels and theMayors proposed London Housing bank, are keyin establishing productive avenues for housingprovision. Numerous calls have been made tonational government to devolve great nancialfreedoms to cities. Chief among these calls arethose relating to localised property taxation powers,including stamp duty land tax (2 billion last

year, making up 40% of the national total). Localauthorities have a large role to play here. Witha clearer understanding of local housing need,councils are well poised to promote schemes thatpromote the mixed-use, mixed-tenure communities

which we know thrive and serve residents best.The Localism Act has attributed new powers andresponsibilities to local authorities - and thesepowers, along with existing land holdings - positionlocal councils as key actors in Londons housingfuture.

MAKE MORE LAND AVAILABLE IN BOTH THEPRIVATE AND PUBLIC SECTOR

The swift release of land for development remainsone of the primary enablers to increasing supplyin London. Studies estimate that the governmentowns around 330 billion of land and propertyaround the country, with the public sector holdingup to 40% of developable land and around27% of browneld land suitable for residentialdevelopment. Wider UK estimates suggest than

British house builders have enough land to build1.5 million homes 63. The government has recentlylaunched a Right-to-Contest scheme, allowing thepublic to challenge the use of government-ownedland should they believe that the land could be putto better economic use - including for housing.

In seeking to make more industrial/browneldsites suitable for development, some have arguedthat the urban development corporation model - asexercised in the London docklands developmentand Stratford Olympic site - should be promoted.Studies 64 in other countries that have successfullydelivered housing as needed, suggest a much morepro-active role in the land and development marketthan is currently in place in England.

The strategic release of public land is a much-fetedpolicy response to the current housing dilemma.

Any land release action should form part of a wider vision for smart growth, and should be structured inorder to deliver maximum housing outcomes. Sucha strategy would involve strong political leadershipto encourage public land owners including theMinistry of Defence and the National HealthService to release land under the right incentives.

Community Land Auctions should also be exploredin their capacity to increase the amount of landavailable for development, while simultaneouslymuting the amount of power landowners can exertin the planning system. The compulsory allocationof land for development to small builders, self-builders and affordable housing providers, shouldalso be considered should local authorities fail tomeet their delivery targets. The consideration ofstrategic Compulsory Purchase Orders can alsohelp to discourage speculative land-hoarding.

CASE STUDY:

SAN FRANCISCO, USA

Following more than a decadeof strong growth, San Franciscopresents another city facing criticalhousing affordability problems.With a population approaching 1million residents, and a populationdensity of 17,687 people per squaremile, San Francisco is struggling tokeep its housing stock affordability

as demand outpaces supply.In earlier years, the city was down-zoned in an attempt to preserveexisting densities following intensepressure from citizen groups. Thisrestrictive planning environment,coupled with an inux of newresidents given the citys primaryrole in the Silicon Valley nexus,has seen housing supply lag, andprices rise. The past two decadeshave seen San Francisco produce anaverage of only 1,500 new housingunits annually.

Rather than embrace strategies ofdensication, the city attemptedto divert regional growthelsewhere, while the citys walkableneighbourhoods, attractive builtform and urban amenities continuedto attract residents. The rising valueof land in the city - driven up byhousing demand - has, as in London,

resulted in extraordinary pressureson affordable housing. Researchestimates that below-market-rateunits each require a $250,000subsidy from the government. If thecity sought to provide subsidizedhousing for 10,000 households,these efforts would come with aprice tag of $2.5 billion. Residentson medium incomes are strugglingto nd space in the city, whileswathes of the city risk becomingexclusive zones for the wealthy,countering initial efforts byresidents to keep the citys mixedcharacter.

Considering San Franciscos supplyproblem, many have suggested well-designed, strategically located inlldevelopment which would make themost of existing urban amenitiesand also encourage sustainableliving through supporting non-motorised transport. Given thehighly political and emotive context

of densication in the city, mid-rise developments offer a strongsolution, whereby residentialdensities can be increased, withoutoverwhelming the much lovedcharacter.

63 Griffith, M. 2011.

IMAGE COURTESY OFCARLOS A. ROMERO-DIAZ/FLICKR


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Land release, not just land supply, is a big issue inLondon. Around 50% of land with residential consentis held by people who have no intention of building thehomes. I think the public sector should take a more activerole in intervening there. We have sites in Westminsterthat have sat there for twenty, thirty years, emptybigsites that you could put three to four hundred homes andcreate great places. Theres no worry from a landownerthat someone is going to step in and force them to dosomething, and therefore, in a market like Westminster,where if property value go up by 15%, the land value

probably goes up by 30% - hanging on to land anddoing nothing is a good way of making money.

To address that issue, you could encourage landownersto release their land through tax regimes, or those sortsof initiatives. Local authorities and the GLA do havethe powers to drop in and look at CPOing [CompulsoryPurchase Ordering] bits of land. The worry of a piece ofland being CPOed will force people to try and move ascheme through to development. I think in some selectedareas, even that pressure of the public sector doing thatmight encourage landowners to partner with other peopleto deliver housing supply.

I think there needs to be some prioritisation, so housingzones are a good example. There are lots schemes that areall over the place which can provide thousands of homesand they just need an additional push. What we knowis that if you apply a bit of focus in an area, the outputthat you can deliver in that area are enormous. Focus isreally important, and housing zones are a good exampleof that.

BEN DENTON Strategic Director of Housing, Regeneration andProperty, Westminster Council

EMPOWER RESIDENTS AND COMMUNITIES TOACCESS THE HOUSING THEY NEED

Calls have also been made for a more consumer-oriented housing market, which would place home-buyers and communities in a stronger positionto inuence the form and design of their futurehomes and neighbourhoods. RIBA [ Royal Instuteof British Architects ] has noted that home-buyersand renters suffer from limited choice and thatthe marketing of homes lacks the basic standardsof transparency that the average consumer wouldexpect from any product.

The issue of overseas home ownership has oftendominated the housing shortage debate. TheHome Builders Federation recently announcedtheir intention to offer new homes to UK residentsand foreigners at the same time - replacing the

current practice in which homes are offeredto foreign buyers rst in apparent effort to getprojects funded. Eleven homebuilders, includingBarratt Development Plc, Taylor Wimpey Plc andTelford Homes Plc have agreed to this new policyin an apparent bid to reposition UK buyers in themarket. Initiatives like this might serve to keepsome properties in the hands of British citizens,but do very little to address the problems ofaffordability which are most restrictive in helpingcitizens access property.

Londons attractiveness is as a global city sotherefore its market is not just the UK, itsthe world and that brings some quite unusual

pressures. So in terms of demand, youretalking on a world stage rather than justa country stage and so not just the flow ofthe number of people, but also the flow ofmoney into places creates unusual marketcircumstances.BEN DENTONStrategic Director of Housing, Regeneration and Property,Westminster Council

LINK HOUSING TO LONG-TERM ECONOMICRECOVERY

A long-term housing strategy for London whichlinks new housing supply to wider economic growthshould be pursued and supported as a matter ofurgency. House building has been championed bymany as an effective counter cyclical intervention

which could produce a variety of both economicand social benets. Previous research shows thatevery 1 spent on construction generates anadditional 2.09 of economic output - a higherreturn than most other sectors, including bankingand nance 65. Of every 1 spent in building, 92pstays in the UK, and of every 1 spent by the publicsector, 56p returns to the Exchequer (of which 36pis direct savings in tax and benets 66). If Britaininvested as much in housing as France or Germany,35 billion could be added to UK constructionoutput 67.

INCREASE THE DIVERSITY OF THE HOUSEBUILDING SECTOR

The UKs increasing inability to keep up withhousing demand should be considered alongsidedecreasing diversity in the housing delivery sector.The mix between private and public providers, as well as between high density and single dwellingunit builders has become increasingly narrow - withthe housing sector now increasingly reliant onlarge-scale house builders. These builders oftenrequire larger sites, a certain type of business modeland will be subject to similar cyclical pressures,restricting overall levels of supply in the market.

At present, 70% of all private sector output in themarket is the product of a small number of large-scale builders. The largest seven private housebuilding companies alone have around 40% of themarket in new homes.

The high price of land and the planning processhas steadily eroded the diversity of house buildersoperating in London. Since 2008, the numberof small house builders in operation (producingbetween 10 and 30 units per year) has halved, whilethe number of larger-scale builders has increasedslightly. In 2012 alone, 70% of all new housingstarts in London came from only 27 companies 68.Subsequently, decreased levels of competitionerode the incentive for builders to focus on designstandards and has the potential to erode the qualityof new homes. Many large building companieshave vast land stocks which were purchased at highprices before the 2008 crash. Weakened balancesheets, coupled with increased banking liabilities

64 Cambridge Centre for Housing and Planning Research 65 Griffith, M. & Jefferys, P. 2013. 66 Ibid. 67 Banham, J. et al, 2012. 68 London Councils, 2013


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and a considerable adversity to risk in the sector atpresent have created signicant economic obstaclesin the provision of the housing London needs.

This narrow diversity of suppliers risks the abilityof the sector to respond adequately to demand.

Widening the range of players in the housebuilding market ranges from schemes to assistsmall-to medium house builders, to allowing forself-build to contribute to its full potential throughsupportive planning policy. International housebuilders, primarily from the Far East, have alsobeen promoted as part of a widened mix of housingproviders. Government intervention in the marketsince 2007, while high in cash terms, has beencaptured disproportionately by major house-builders and has elevated short-term concerns overlong-term reform.

When you look back and see that housing was deliveredat higher levels - there were just more players in thatmarket place. There were the small builders, there werethe public sector bodies theres not one answer, its justthat everyone needs to be pushing in the right direction tobe stimulated to deliver homes. For local authorities, theincentive about getting involved is that it either savescosts or it makes money for you, so I think there is a need[for incentives]. Even things like New Homes Bonuseshave been really positive, because local authorities cannow see that as a result of getting planning consent, theyget cash incentives.

One of the issues there is just about encouraging asmany people to enter into that marketplace as possibleand reducing the barriers of entry to that marketplace.So in terms of planning, its not planning itself, butthe amount of technical work you need to do to get to

planning consent is potentially a barrier to new entrantscoming into the marketplace.

BEN DENTON Strategic Director of Housing,Regeneration and Property, Westminster Council

To expect the current range of housing providersto meet the current shortcoming in supply isbeyond viability, and thus an expansion of housingproviders and builders is crucial. The deliverycapabilities of Housing Associations and localauthorities should both be re-invigorated, andhere restrictive scal regulations from national

government need to be reviewed. Special purpose vehicles which allow local authorities to developtheir own landholdings or other land released ontothe market should be pursued.

One of the most repeated calls is for housingassociations to be able to reclassify the 14.4bnsocial housing grant currently classied asgovernment debt. converting this gure intoequity held by the government which housingassociations will then be able to borrow against.This reclassication could result in the capacity tofund over 80,000 new homes by 2021 69.

USE FINANCIAL REFORMS TO INCENTIVISE THEBUILDING OF NEW HOMES

David Lunts, Executive Director of Housing andLand at the GLA, has suggested that by looking atprojects from a different angle - that is, seeking tomaking funding and support mechanisms t theproject, rather than the other way around - thatdevelopments might be able to be sped up. Theproposed London Housing Bank might have a keyrole to play here in its capacity to breathe new lifeinto stalled projects.

The borrowing capacity of local authorities isanother supply-side strategy that has found manysupporters. Many have argued that, rather thanunderwriting demand through Help to Buy, thegovernment should focus its efforts on supportingincreased supply capacities at the local level. Thereclassication of local authority housing debtas investment has the potential to boost housingoutput substantially. Studies estimate that such areclassication could result in local authoritiesbeing able to borrow up to 20bn across the nextve years, unlocking between 170,000 - 230,000 newhomes.

Suggestions have been proposed to incentivise

builders and developers to accelerate developmentschemes, including further land value tax schemes- allowing government to capture gains from record-level housing prices to support transport andeducation infrastructure in the city.

Political, social and economic pressures areresulting in a strong push for new housing startsacross the capital. The form they take will be crucialin determining Londons future. The quality, designand size of new and existing houses cannot beoverlooked in considering the current crisis.

The Construction Products Association (CPA)predicts a 2.7% growth in construction in 2014,rising up to 5.1% in 2016. Government statisticsfor England reveal a 45% increase in planningapplications for major residential developments(greater than 10 units) for the three monthsleading up to June 2013, as compared to the sameperiod for the previous year. Despite this, SimonRubsinohn, chief economist of RICS, notes: we are still way behind in terms of building enoughhomes to meet the nations growing housing need andoverall construction projects are at a historical low...inthe face of this challenge, it is particularly concerning

that we are already receiving reports of some skillshortages as well as capacity constraints for somebuilding materials such as bricks (2013).

Demands for mansion taxes and for newdevelopments to be marketed to Londoners rstbefore offering homes up to overseas buyers is notsufficient to address Londons dire housing need.Giving Londoners rst access to new residentialdevelopments which are neither affordable norsuitable to their housing needs to begin with doeslittle to address the supply problem in the capital.Taxing empty properties does not necessarily resultin more homes for Londoners especially if thosetaxes are collected at the national level, and if thehousing models that these taxes are directed into isa failing one.

We need to build differently to offer up a differenthousing model which can be produced by a range ofinvestors and builders, and which can ultimately beaccessed by a range of Londoners.

To focus only on quantity is to commit to a short-sightedness which will ultimately harm not only residents,

but London as a city itself. The degree of investmentthat will be channelled into housing in the capital overthe next decade provides a crucial moment to lay barethe ambitions of London. Aspirations for longevity,affordability and vibrancy should be held high. Londonersdeserve homes t for the needs of today, adaptable for

future needs. Beautiful, well-connected, enduring homesfor all.

69 London Councils, 2013.


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Mid-rise development creates the potentialof a new market that is capable of housinghundreds of thousands of people in the comingdecades...it makes a huge contribution toraising the quality of life throughout ourregion by improving daily living, working andtransport life cycle choices of existing residentsPAUL J. BEDFORD, 2013

Mid-rise developments present thecity with the opportunity to achieveboth a range of housing choicesfor Londons increasingly diversepopulation, as well as offering up aliveable urban streetscape which is

currently neglected by so many newresidential developments.

MID-RISE DEFINITION

For the purpose of this report, mid-rise is classiedas a building of between 5-8 storeys. This denitionallows for considerable density levels as well asexibility in the type of accommodation that canbe offered without venturing into levels around10-12 stories which present more difficult economicmodels. This height level also speaks to Londonsmansion block legacy - a form which has provenboth popular and enduring in the city.

Importantly, residential densities should not beconsidered within a vacuum - but rather shouldbe understood in relation to surrounding context.

As such, mid-rise can also be dened in termsof right of way (R.O.W.). Mid-rise developmentscan be dened as those buildings not tallerthan the R.O.W. of the streets onto which theyface. This denition allows for a exibility and

adaptability according to street context - with wider roads allowing for taller buildings which donot overwhelm the streetscape and speak to theexisting fabric of the area. Mid-rise targets - tiedto density targets - can be identied according todifferent layouts and different trade-offs associatedaccordingly. A degree of adaptability, taking cuesfrom relative urban contexts, can be built in todening the mid-rise form.

Mid-rise is usually achieved with stacked walk-uptownhouses or ats, and at the higher densitiesscale, lifts and corridor-accessed units will benecessary. Estimates state that 4-storey stacked walk-up townhouses can produce up to forty dwellings

Mid-rise Development


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1 HONEYBOURNE ROAD, LONDON. SOURCE: STEVE CADMAN/ FLICKR2 (BROWN BUILDING WITH TREE IN FRONT) OLD KENT ROAD, LONDON.SOURCE: READING TOM/ FLICKR 3 HIGHBURY GARDENS, LONDON.SOURCE: OWN 4 MAIDA VALE, LONDON. SOURCE: KATHLEEN TYLERCONKLIN/ FLICKR 5 MIDRISE BUILDINGS CAN BE DESIGNED IN A NUMBEROF DIFFERENT WAYS TO ACCOMMODATE GREEN SPACE, STREET-FACING ENTRANCES AND HIGHER FLOORS WHICH ARE STEPPED BACK,SUPPORTING A SYMPATHETIC RELATIONSHIP WITH THE STREET ANDNEIGHBOURING BUILDINGS.6 WELL-DESIGNED MID RISE BUILDINGS CANOFFER SHARED AMENITY SPACES, A CLOSE RELATIONSHIP WITH THESTREET, AS WELL AS PRIVATE SPACES WHICH CAN BE ADAPTED TO THENEEDS OF DIFFERENT RESIDENTS.

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Mid-rise: BuildingSocial, Economic &Environmental ValueMid-rise residential developments offer a rangeof wider urbanistic benets, given the formsrelationship to the street.

The form has been shown to contributesubstantially to the goal of complete streetsaround the world. Complete streets are supportive,inclusive locations for both residential andcommercial spaces and thrive on the mid-risemodel of retail uses at grade and residential usesabove. Density of both supply and of use is key inthe creation of resilient, exible streets in our cities.

Without the addition of more people, the potentialfor adaptability, transformation and rejuvenation ofour streets remains limited. At-grade retail is oftengiven primacy in mid-rise schemes - encouraging walkability diversity of amenities and vibrancy ofplace. Mid-rise buildings exhibit a great strength intheir compatibility with existing neighbourhoods.Directed by strong design guidelines, mid-risedevelopment can serve existing neighbourhoods without alienating the street level or compromisingon the aesthetic integrity of an area.

I think the most important thing is streets and streetlifeI think Londoners now demand streets andthey demand that their city should be developed as anextension of the network of streets and I think thatsa really powerful and important, actually democratic, principle because I think as citizens of London, we expectaccess to all areas on ground that is in public ownershipand that is policed by consent, and therefore, its ourspace. And I think thats what streets give you, becausetheres a language, but also because theres a whole kindof legislative framework which enables streets...

We have a democratic expectation of access to all areasand also streets that are publically ownedand I thinkthats the guiding principal. Above all, I think whatmakes great cities is great streets. The perimeter block, Ithink, is a subsidiary point, because it is the perimeterblock that is easily built and serviced from streets. Forme, the first thing is streets, and the second thing is, wellwhat do you build in the blocks. If you build up to theback pavement in the blocks, actually I think a streetnetwork is incredibly forgiving...

The other thing that streets do for you is provide youwith permanent access for the long-term renewal of the

perimeter blockits just a brilliant solution to anendlessly sustainable city.

BEN DERBYSHIRE Managing Partner, hta Architects

Ecologically, mid-rise housing also has thepotential to contribute positively to the future ofour city. Mid-rise housing can be built using moreecologically-friendly, locally-sourced materials,especially in contrast to the glass and steel high-rises currently rising around the city. Sustainable

water and energy infrastructure systems can also besupported by mid-rise developments. Furthermore,in the compact communities that mid-rise housingsupports each person uses less energy, and emitsless carbon dioxide, than comparable residentsin more sprawled out communities. Walkabilityand shared services are key here, and indeedrely on density to ourish. Taking advantageof existing redevelopment opportunities inbrowneld sites and small-scale inll sites are allkey in tackling sustainable growth in the city andin providing locations for mid-rise developments.

Accommodating future growth within alreadyurbanised areas, as well as in strategic suburbannodes, is key to achieving smart growth. Mid-rise,dense schemes should seek to avoid resulting in akind of compacted suburbia, but rather shouldengage with the notions of climate-responsiveadaptable housing forms.

CASE STUDY:

PARIS, FRANCE

One of the most admired cities inthe world, Paris is often noted for itsmid-rise housing stock that supportsboth residential density as well aslively, walkable neighbourhoods.Most of the old city is made upof a uniform building height ofaround 6-storeys - a form which hasendured across decades. Duringthe Haussman era, apartment

buildings were required to be notaller than 6-storeys on average,and the current urban form ofthe old city is reective of thislegacy. The form has supportedthe continuous ground level activestreet frontages that supporteconomic vitality and encouragea spread of urban amenities. Theaverage density of Paris traditionalmid-rise neighbourhoods is around52,590 people per square mile 71.In the densest area of the city, the11th Arrondissement, the city houses40,000 inhabitants per square kmarranged along a network of straight

streets, the Parisian mansion block,often arranged around a privatecourtyard, typically produces 92dwellings per acre. Parisian mid-rises provide attractive, exiblehomes, make the most of urbaninfrastructure and amenities,and have allowed for sustainablecommunities to take hold in the city.

Aside from favouring mid-rise in itsbuilding regulations, Paris is alsotaking admirable steps to managerent levels. The Parisian mayorand Director of Housing at Conseilde Paris introduced a rent controlpolicy in 2012 in order to supportmixed communities in the city. Thepolicy proposed to cap rents as apercentage above a median rentlevel in set geographical areas,a stronger variation on LondonsAffordable Rent model of up to80% of median rent levels. The cityis building around 6,000 homes forsocial rent every year, to be offered

at 30-50% of average market rates,and has also committed to raisingthe percentage of homes availablefor social rent in the city to 25%.Crucial too, is the regulation that45% of social homes providedshould be family-sized (3-bedroomsor more), ensuring that families havethe space they need throughout thecity.

The city has rst option to buybuildings when the come up forsale, and since 2010 has purchased377 of the 1,030 uninhabited homesthat have been identied for socialhousing around the city. Largerhousing subsidies also allow thecity to charge lower social rents - in2012, the average capital subsidy fora family-sized home was 50,000,compared to the average 28,716subsidy for an equivalent propertyin Londons 2011-2015 affordablehomes programme.

71 French Land Register Measurement in Brown, C. 2013.

IMAGE COURTESY OFSTEVE EBERLE/ FLICKR


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Many people believe, erroneously, that the onlyway to achieve environmental efficiencies indevelopment is by building very tall buildings.

Indeed, improving the average density ofbuilding in England is critical to gettinglocation efficiency, which reduces automobileuse and greenhouse gas emissions, as wellas minimising land take. These efficienciesonly begin to be achieved at 17 units to thehectare, when public transport becomes feasible,and begins to tail off at densities above 70units per hectare...this is because achievingenvironmental gain is a function of density,

access to public transport, and walkable,connected streets. Pedestrian street accessbecomes more difficult at higher densities,indeed there is also a question about whether

Londons overstretched public transportnetwork can actually support greater density atthe centre. Creating visual pollution is not theanswer to achieving greater efficiency. Theselocational efficiencies can be achieved easilyby traditional English building types includingthe 4-5 storey terrace and 6-10 storey mansionblock...in fact, its worth remembering that

Kensington and Chelsea, which so far lacktower blocks, is the densest London borough.HRH, THE PRINCE OF WALES

New Buildings in Old Places, 2008

Crucially, the mid-rise housing typology is alsoone which brings a wider variety of house buildersinto the housing market. Londons house buildingmarket has become increasingly narrow overthe past decade, with only a handful of mega-builders producing the majority of Londonsnew housing stock. The nature of the high-risesin development around the capital means thatnot only is the nal housing offering exclusive afew, but so too is the building process. By contrast,mid-rise developments are easier to build andrequire less specialisation - opening up the housingsupply market to a greater variety of builders.Promoting more mid-rise housing in the capitalmeans supporting small and medium buildersand opening up more opportunities for Britishbusinesses to contribute to the capitals futuregrowth.

There is a need for exibility and adaptability inour housing stock. Sprawling suburban greeneldsites and high-rise studio ats can provide only somuch by the way of exibility. Taking advantage ofexisting redevelopment opportunities, of existingbrowneld sites and small-scale inll sites are allkey in tackling sustainable growth in the city andin providing locations for mid-rise developments.

Accommodating future growth within alreadyurbanised areas, as well as in strategic suburbannodes, is key to achieving smart growth. Mid-rise,dense schemes should seek to avoid resulting in akind of compacted suburbia, but rather shouldengage with the notions of climate-responsiveadaptable housing forms.

Ecologically, mid-rise housing also has thepotential to contribute positively to the future ofour city. Mid-rise housing can be built using moreecologically-friendly, locally-sourced materials,especially in contrast to the glass and steel high-rises currently rising around the city. Sustainable

water and energy infrastructure systems can also besupported by mid-rise developments. Furthermore,in the compact communities that mid-rise housingsupports each person uses less energy, and emitsless carbon dioxide, than comparable residentsin more sprawled out communities. Walkabilityand shared services are key here, and indeedrely on density to ourish. Taking advantageof existing redevelopment opportunities inbrowneld sites and small-scale inll sites are allkey in tackling sustainable growth in the city andin providing locations for mid-rise developments.

Accommodating future growth within alreadyurbanised areas, as well as in strategic suburbannodes, is key to achieving smart growth. Mid-rise,

dense schemes should seek to avoid resulting in akind of compacted suburbia, but rather shouldengage with the notions of climate-responsiveadaptable housing forms.

Key to advancing the growth of mid-rise is therecognition of the realistic development potentialof identied areas for intensication in the city.Engaging with the realistic development potentialof underutilised or ill-utilised plots within Londonsexisting urban boundary will help to establish thecase for mid-rise development. Smart developmentis not merely a question of how developmenthappens, but also where it happens. Equally crucialis the recognition of the need for holistic, long-termthinking around urban development.

INTENSIFICATION ALONG KEY ROUTES

i. Along key transport corridors

INFILL ON SMALL/MEDIUM SITES

i. In historic areas (usually in Central London) where the type is appropriate

ii. In smaller browneld sites between CentralLondon and outer suburbs

LARGE-SCALE NEW BUILD

i. Large-scale sites in and around the city.

ESTATE REGENERATION

i. Inner - and outer-London sites

While much of the debate around Londonshousing needs has pitted these options againsteach other in an either/or argument, it is key torecognise this debate as a false one. All of the abovestrategies will need to be engaged in order to meetLondons housing needs. One strategy alone cannot

be held up as the panacea to the complexities ofLondons housing challenges. The four strategiesoutlined below offer a variety of timeframes andof investment requirements which engage with allsectors of the housing delivery market, and moreimportantly, which seek to meet the needs of all ofLondons residents.


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Much of the discourse around mid-risedevelopment is closely tied to notions of

intensication. Urban intensication canbe understood as a strategy which aims toaccommodate regional growth through theredevelopment of land within the existing urbanareas. This strategy involves the improvement andincreased use of existing urban infrastructureand services, rather than the introduction of newinfrastructure and services on the urban fringe.Intensication (including the promotion of mid-rise development) looks to reduce the impacts onthe natural environment and improve the liveabilityof existing city regions, while reducing the pace at which greeneld sites along the urban boundaryare developed. The reduction of car-reliance, ofgreenhouse gas emissions and of the consumption

of non-renewable resources are all broad targets ofintensication schemes.

In those places where more ambitious urban developmentis appropriate, there are principles of planning whichagain can make sure that new development is addingto communities in this country. Such principles includewell-designed public spaces, a mix of shops and serviceswithin walking distance, values of hierarchy, legibility,and proportion, integration of high - quality private,social and affordable housing. And by incorporatingthese qualities, we are applying the lessons traditionteaches us - about how better neighbourhood designimproves the lives of those who live in new developments.

HRH, THE PRINCE OF WALES New Buildings in Old Places, 2008

Key obstacles from global case studies toredeveloping browneld sites include competitionfrom greeneld development, uncertain planningprocesses, problematic public perceptions aboutbrownelds, and uncertainty around remediationprocesses which often involve various levels ofgovernment. Policy makers in London should takeheed of these barriers, ensuring that the processes

around remediation and planning for brownelddevelopment are clear and simplied, and thatthe appropriate support is provided across thegovernmental agencies concerned. Explicit targetsfor both browneld redevelopment and greenelddevelopment will aid in promoting both formsthrough providing certainty for developers.

Research on housing demand research hasconcluded that new supply must target Londonsouter boroughs - increasing supply in the ringaround central London from Zone 3 and beyond 72.Developers involved in browneld developmentalso advocate for nancial tools to incentivise theprocess. Whether these take the form of grants,tax assistance or loans, these tools can be usedto reduce the costs associated with the risks ofbrowneld development and should be givenserious consideration as part of Londons efforts todensify within its existing urban boundary.

London is prime to consider a strategy of transport-led intensication. Plans for Crossrail 1 and 2,

coupled with the future extension of existingrail services should provide momentum forcorresponding housing strategies. The capacityfor existing transport corridors to accommodategreater housing densities should be established,and a number of key corridors identied around

which intensication schemes can be proposed.The mayors new housing plan has been calledtransport-centric a labelling which ts well withintensication strategies. Director of housing forthe mayor of London, Richard Blakeway, recentlyrecognized that housing opportunities aroundnew Crossrail routes and stations should be givenparticular attention. Alongside these calls, Blakewayalso cited the capability of new housing to stimulate

Intensi cationStrategies

CASE STUDY:

VANCOUVER, CANADA

Vancouvers Cambie Corridor Planhas been implemented over thepast few years as a strategy toaccommodate growth and providean alternative form of urbanismto the high-rises dominatingVancouvers downtown. An existingtransport corridor is set to be lledin with buildings of four or morestoreys, with 12-storeys denedas the general top out level. Thestrategy has been planned inalignment with the opening of anew transit development - the fullyautomated rapid transit Canada line,which runs along the corridor.

The Cambie Corridor Plan is aland use policy, which seeks totake advantage of the buildingblocks of transit connectivity, landavailability and housing demand.The policy also seeks to provide aland use strategy that optimisesthe investment in transit thatthe city has committed to. Thecreation of complete communitiesis a guiding principle of thestrategy, supported by walkableand cycleable neighbourhoods that

are linked seamlessly into publictransit provisions. Core aims of thestrategy are to focus communityactivity around transit stations andareas which display opportunitiesfor public amenities, to providea variety of housing choices toresidents, coupled with a range ofpricing models, and to ensure jobspace and diversity.

Mid-rise buildings, coupled with railtransit and district energy systemsare being billed as the new NorthAmerican best practice. In the case

of the Cambie Corridor, residentswere most accustomed to single-family homes or bungalows, butmid-rise developments provideda level of density that was bothpolitically viable as well aspalatable for new and existingresidents of the area. With theaim not to overwhelm the existingneighbourhoods, developmentheights are stepped down asthe distance from transit pointsincreases, resulting in peripheralareas with gentler densities. Theplan embraces long-termism, with

a 30-year outlook and aims tointroduce around 14,000 moreresidents along the corridor,resulting in a net density of around110-170 units per acre.

Thats a transition for us becauseour development industry, andeven the marketplace, has come toexpect that densification will meantowers with views. I often hear thatswhat sells in Vancouver, thatswhat the market expects. On theother hand, our mid-rise projects do

very well in the city. They can bemore sustainable. They can even bemore affordable, and they are moreacceptable to the public, [which]tends to be more negative to heightthan they are to density....thathelps with our entire discourse ondensification in the city.

BRENT TODERIAN

Vancouver Planning Director

72 Savills, 2013.


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Unused or underused sites within Londons existingurban fabric are key in meeting Londons housingneeds in a sustainable way. Small and medium sizebrowneld sites within existing urban fabric presenta range of devel

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