Marsh & Parsons: There can't be a one-rule-fits-all approach to affordable housing in London
Wed 18 May 2016
Comment from Charles Holland, Head of Residential Development and Investment at Marsh & Parsons, on theQueen's Speech: "As home ownership plummets to just 63% of the population from nearly 70% a few years ago,it's vital that the development community is encouraged to build more property in London."
Significantly increasingthe supply of new homes will enable house prices to remain steady rather than becoming more out of reach forfirst-time buyers."Reports that Sadiq Khan intends to appoint a councillor from Islington as his deputy mayor, whohas a history of blocking developments lacking proportionately higher levels of affordable or social housing, is aconcern for the capital and could well be counter-productive in achieving his aim of lower value homes beingbuilt."
We welcome the idea of greater affordability for the city's young professionals but to insist that alldevelopments in London must provide 50% affordable housing will have a significant negative impact on landvalues, which will result in landowners considering alternate uses or withholding the release of landcompletely." For land already acquired by developers / housebuilders, the new 50% affordable housingrequirement will render the majority of new-build projects unviable, thereby stemming the flow of much neededsupply."
Simply, there can't be a one-rule-fits-all approach for such a diverse city, and the mayor and his housingchief must be careful not to stymie house building in London if they hope to reach their ambitious target ofdelivering 50,000 new homes eachyear."