A Commercial Planner’s View… Giles Pink Berwin Leighton Paisner LLP

Sustainable development Back in the day – the 1987 UN “Brundtland Report”: “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs” Greg Clark’s Foreword to the NPPF: “sustainable development is about positive growth – making economic, environmental and social progress for this and future generations” NPPF - an economic role; a social role; an environmental role “These roles should not be undertaken in isolation, because they are mutually dependent […] to achieve sustainable development, economic, social and environmental gains should be sought jointly and simultaneously through the planning system”

Sustainable development II The approach of the Courts e.g. Scrivens

“A City for All Londoners”…

A City for All Londoners… A document out for consultation – a forerunner for the new Mayor’s London Plan update Targeting 50% “affordable housing”? Mixed-use developments around transport hubs Public land availability for development Tall buildings

Affordable Housing “A City for All Londoners” As Mayor I want to do a lot Strategic, London-wide target of 50% Supplementary Planning Guidance (SPG) Post-Autumn Statement release date (late November/early December 2016) Consultation in Spring 2017 Commencement in Summer 2017 Sadiq Khan’s vision for London was published last week in a document called “A City for All Londoners”, which is open for consultation until 11 December 2016. This document says that he is working towards a strategic, London-wide affordable housing target of 50%. He is likely to release for consultation a supplementary planning guidance (SPG) on affordable housing in late November/early December, after the Autumn Statement, so that starter homes can be factored in. Following a Spring consultation it should come into force in early Summer 2017.

Affordable Housing 50% ≥ 35% = “viability light” Two-tier system ≥ 35% = “viability light” reduced / no viability assessment < 35% = “viability heavy” full viability assessment robust scrutiny to justify the “maximum reasonable amount” offered. ?% 50% Proposed Tenure Split It is mooted that the Mayor’s SPG will, however, introduce a two-tier system. Developers offering 35% or more can go “viability light”, with reduced or even no viability assessment requirements. If they offer below 35%, however, they will need to go “viability heavy”, requiring a full viability assessment, subjected to robust scrutiny to justify why the developer’s offer is the “maximum reasonable amount” of affordable housing that their scheme can accommodate. N.B. the “maximum reasonable amount” is the test in the current London Plan which requires a site-specific assessment with no set percentage expectations. Proposed tenure splits to be laid out in the upcoming SPG are assumed at the moment to be: 30% social rented; 30% intermediate and the 40% remainder at the discretion of the local planning authority. There may be exemptions for the build to rent sector, opportunity areas, and the Central Activities Zone, including scope for offsite provision and payments in lieu. Possible exemptions for: build to rent sector opportunity areas Central Activities Zone

Housing and Planning Act 2016 Starter Homes 80% OMV £250k outside London; £450k Greater London First-time buyer 23-39yrs old Permissions in Principle Outline “light” Brownfield and small

Other pressures on “sustainability”… Community infrastructure levy Building Regulation and carbon reduction targets Land availability and price Construction costs

A Commercial Planner’s View… Giles Pink, Berwin Leighton Paisner LLP This document provides a general summary only and is not intended to be comprehensive. Specific legal advice should always be sought in relation to the particular facts of a given situation.