GLA Buy To Let event – 13 Feb 2008 Greenwich’s Best Value Review of the Buy To Let Market Mark Baigent Assistant Director of Neighbourhood Services

Purpose of the reviewPurpose of the review Evidence gatheringEvidence gathering Contacting local stakeholdersContacting local stakeholders Potential solutions and responsesPotential solutions and responses Case studies to watch in GreenwichCase studies to watch in Greenwich Next stepsNext steps Outline

Purpose of the review Local concerns: Specific problems on Thamesmead new-build siteSpecific problems on Thamesmead new-build site BTL in wide range of other new developmentsBTL in wide range of other new developments Impacts on policing, health, education, cohesionImpacts on policing, health, education, cohesionAims: Call in expert witnesses to better understand BTLCall in expert witnesses to better understand BTL Consult wide range of local stakeholdersConsult wide range of local stakeholders Develop multi-agency responses to problemsDevelop multi-agency responses to problems Explore interventions both regulatory and informalExplore interventions both regulatory and informal

Evidence gathering: positives Many economists and market commentators claim that the Buy To Let boom has been beneficial:Many economists and market commentators claim that the Buy To Let boom has been beneficial: Private renting supports labour mobilityPrivate renting supports labour mobility Investment in housing supports the London / UK economy and keeps the housing market buoyantInvestment in housing supports the London / UK economy and keeps the housing market buoyant A good balance of tenure options keeps renting affordable rather than forcing some people to buy “too soon” and then regret itA good balance of tenure options keeps renting affordable rather than forcing some people to buy “too soon” and then regret it

Evidence gathering: negatives There is growing evidence locally and nationally that Buy To Let can create a range of problems:There is growing evidence locally and nationally that Buy To Let can create a range of problems: Concentrations of transient people in a local area undermine a sense of community and belongingConcentrations of transient people in a local area undermine a sense of community and belonging Poor management can allow antisocial behaviour, overcrowding, disrepair and ultimately the risk of homelessness (Thamesmead example)Poor management can allow antisocial behaviour, overcrowding, disrepair and ultimately the risk of homelessness (Thamesmead example) Property prices become inflated undermining affordability for first time buyersProperty prices become inflated undermining affordability for first time buyers

Stakeholders the Council is contacting Buy To Let landlords and tenants Police Schools Lettings agents Health Utilities Developers and RSLs Employers Transport

What are the potential solutions? Council interventions:Council interventions: Selective & Additional Licensing (Env. Health)Selective & Additional Licensing (Env. Health) Problem Solving Processes (Community Safety)Problem Solving Processes (Community Safety) Management arrangements (RSL role?)Management arrangements (RSL role?) Covenants to limit % BTL on new developments?Covenants to limit % BTL on new developments? Developer best practice in marketing and sales?Developer best practice in marketing and sales? South East London / Thames Gateway responses?South East London / Thames Gateway responses? Institutional investment rather than individuals?Institutional investment rather than individuals?

New Haddo / Rubicon Does use of Council land give us the chance to limit Buy To Let sales and ensure proper management is in place?

Greenwich Peninsula Does this joint venture with English Partnerships offer an opportunity to sell Buy To Let more responsibly?Does this joint venture with English Partnerships offer an opportunity to sell Buy To Let more responsibly?

Kidbrooke Vision How can the Council ensure that this is a mixed and sustainable community rather than dominated by Buy To Let?How can the Council ensure that this is a mixed and sustainable community rather than dominated by Buy To Let?

Next steps Explore challenges and costs of potential solutionsExplore challenges and costs of potential solutions Draw up recommendations and action planDraw up recommendations and action plan Final report to Cabinet in AprilFinal report to Cabinet in April Follow up action with key partners:Follow up action with key partners: SE London Housing PartnershipSE London Housing Partnership Police and community safety partnershipPolice and community safety partnership English Partnerships / Housing CorporationEnglish Partnerships / Housing Corporation Local RSL landlordsLocal RSL landlords Private sector developers and agentsPrivate sector developers and agents GLAGLA

Contact us Mark BaigentMark Baigent Assistant Director of Neighbourhood ServicesAssistant Director of Neighbourhood Services Tel Tel E Mail Mail Gill AckrillGill Ackrill Strategy and Development ManagerStrategy and Development Manager Tel Tel