Key Factors Influencing Viability of Desirable Development in Croydon - Term Paper Example

Key factors influencing viability of desirable development in Croydon, and how the local planning ity might mediate them effectively Executive summary I am writing from the standpoint of a planner advising the Croydon council about increase housing provision, especially affordable housing, as the desirable development to meet the local planning strategy and solve the housing issues in Croydon. The report divided into three steps. First is introducing the importance of urban planning process and the reason I set increasing housing provision especially affordable housing as a desirable development based on Croydon local planning policy. Second step is discussing the key factors that influence the viability of this desirable development and how these factors are mediated. Lastly, are my recommendations of policies to the council and justify them. Introduction Urban planning is best defined as a form of state intervention in a development process dominated by the private sector (David, P.2). As David stated, any form of planning including bargaining, negotiation, controlling is in the purpose of producing a better urban environment for people living in the area. It is a means to achieve sustainable development including the use of scarce resources, better social inclusion, long-term economic growth, which ensures better lives for ourselves and a better environment for future generations (NPPF, 2012). Solving the existing physical and social issues by making relevant policies, planning authorities are participating into the market in the role of moderately improving the situation towards a more acceptable position. Croydon Unitary Development Plan was the development plan for the borough until the LDF comes into force in 2012. Croydon, as the largest London borough, has the highest population among all London boroughs. It has a wide variety of residential areas. The residential neighborhoods comprise distinct communities that focus on established centers. Croydon has a significant commercial city center, which is built in the purpose of regional, as well as national importance in the Vision 2020 for Croydon Metropolitan Center. It has a fully developed infrastructure including convenient traffic linking to London and efficient public transportation. UDP (2006) indicates, the development strategy takes the Croydons location, role in the economic activity, and present situation into account. The city needs to grow positively by providing a certain amount of housing to meet the market demand, a series of jobs to meet employment needs, and the implementation of the Vision 2020 for Croydon Metropolitan Centre. Meanwhile, the plan also looks for opportunities for fully development for housing, commercial, and services. Furthermore, the plan encourages the best use of the existing infrastructure for the efficient use of public transportation and connection with the surrounding area. Combining the UDP with my own living experience in Croydon, I think the city has the potential to become a vital place in the area as the plan mentioned. However at present, many aspects are underdeveloped, some prerequisites need to recover from the recent economic crisis. This include the retail issues which related to the vacancy of shops around the city center, employment issues which affected increasing number of jobless people, and housing issues which leave an enormous gap of demand, and supply for housing provision. More notably, Croydon has unclear definition of the city centers future development plan. Among all these conditions, housing issues is the most serious. Housing needs for Croydon was over 30,000 in 2007 (Croydon Council, 2006, p4). Local development plan has listed a series plan to solve this problem. For instance, there are approximately 850 new housing units provided in Croydon until 2016 (UDF, 2006). From the Core Strategy of Croydon (2010), there will be 20,200 new home between 2011 and 2031. Recent news from CROYDON TODAY (2012) says, council is making new plan for building 8,000 new homes in Central Croydon for the next 20 years. Given the shortfall in housing supply, affordable housing is the primary focus. The need for affordable housing is about 11,500. However, the supply was only 1,420 in 2008. The social fact of Croydon is that its lone parent family doubled from 4.3% to 9% in 2007 and is expected to increase further. Single people within the population raised from 33% to 37% (Croydon Council, 2006, p.4). Additionally, the figure for other significant types of people such as single low-income people, people over 65, disabilities, independent people also increased rapidly. However, the government is committed to housing these groups of people (PPS3, 2011) More important to note is the fact that, housing demand for middle-class families is also crucial. There is an additional of 6,200 households from 2001 to 2007 in Croydon. The average annual salary between 15,000 and 50,000 was over 70%. The main housing stock in Croydon is owner- occupied type with approximately 2-4 bedrooms (Croydon Council, 2006, p.6). Owner- occupied 2-4 bedrooms is the type that is mostly appealing to middle class families. The other reason Croydons housing is attractive for middle-class families is the fact that Croydons housing price is only two-thirds of Central Londons, but the traffic linking between two cities is convenient and efficient. The reasons above led me in choosing increased housing provision, especially for affordable housing, as the desirable development, which both meet the local planning policy and solve the social issues. Key Factors Influencing Viability of Desirable Development in Croydon Increasing housing provision especially affordable housing in Croydon is desirable development in this report. It is essential to notice for the housing issues, economic viability is the directly related to the housing market. There are four factors which can influence how viable this development would be in Croydon based on the concern of the housing market, which will directly impact on housing value and cost. 1. Housing value. Housing, selling price is the most obvious factor, which determines the benefit and value of the developments. Housing amount on the other hand determines the price of housing in the market. 2. Land values: Land location and price are always the priority while developing a housing project. The land prices influence the whole developments’ cost. The location determine the new projects value 3. Building costs: These include deciding building quality, size, and density is similar as land value. It affects the cost developments and influences the value of housing. These differences affect the cost of the new housing at first. They also influence price of the new housing in the market later. 4. Price affordability (Croydon Council, 2010, P26): While deciding the price for affordable housing, demand sides affordable price need to be decided. It determines determine the selling amount, which influences the benefit and value of the developments. How the Factors Are Mediated By the Local Council 1. Housing value. Housing and selling price and housing amount arise determined by the market. The council cannot directly intervene on the market. However, council can influence the market by controlling the amount of new housing in the market, this would influence buyers plan of purchasing, which can influence housing price and value. As for Croydon, UDP (2006) indicate that council has made provision for the phased development of at least 17,020 additional dwellings from all sources between 1997 and 2016, equal to an average provision of 850 per year. The provision made will be subject to a plan, monitor, manage, and review process. 2. Land values which include land location and price. Council can determine the future developments location, develop a new site, and redevelop the existing sites. However, the council cannot directly determine lands value, but they can influence it by implementing policies on the plans to affect the land market. Location for the future development is essential and it is actually this is also guided by the local council plan. As for Croydon, UDP (2006) indicate that the Council will permit housing development within the existing built-up area provided this does not conflict with its aim of respecting the character of residential areas and there is no loss of other protected uses. 3. Building cost, which include density, building quality, and size. Different sizes, and quality attract different buyers. The local council can decide the guidance. As for Croydon, especially for affordable housing, the size and density are required by a certain amount. Building quality is intended to be made in a sustainable development purpose as the NPPF guided. Annual monitoring report (2011) propose that 60% of home outside Croydon Opportunity Area to have three or more bedrooms. 4. Affordable housing can be directly decided by the local council while these buildings are made to help solving certain groups of peoples housing problem. Recommendations The Croydons housing issues is an obvious issue. There are many policies have made to solved the problems. Since the factors of housing I listed is mainly determined by housing market. While all the policies I proposed, are the focus on different demand and supply side of housing markets by different means. Demand Side: The UDP (2006) mentioned the local councils housing target is to maximize housing provision for potential households. The policies are mainly about satisfied the needs in different means, including existing site redevelopment, new projects for vacant sites. However, there are still gap between the needs and market supply especially affordable housing. One of the Reasons is that some people who need affordable housing are low income, which are not able to afford. To solve this problem, the policy can be: 1. The council can provide government subsidy for these families. (proposal 1) 2. The council can also provide montages for longer term and lower interest rate. (proposal 2) The above two policies are made in the purpose of helping people get new housing with less difficulty thus increasing the demand for the housing market. Supply side: There are two existing policies which give me the idea to combine a new policy. The existing from UDP (2006) are: SP18 about maximize the re-use of previously developed land and the conversion and re-use of existing buildings and. SP21 encourage mixed use developments. As the city center s office vacancy is high and the rent is only around 15 pounds per sq ft (Greater London Authority, 2004 ). City centers plan focuses more at leisure and retail (UDF, 2006). The proposed policy can be: 1. The council can guarantee the planning permission for changing certain amount of existing offices at city center to mixed-used property, which include housing and retailing. (Proposal 3) This policy is made in the purpose of using city centers properties more wisely, with proper distribution to alleviate the housing shortage situation. 2. The council can apply number limit for housing purchasing per person. (Proposal 4) The policy is used to decrease the demand for housing, which alleviate the housing shortage situation. Suppliers: There are two policies around this aspect 1. The council can grant the developer, encourage them develop in many with different preferential policy. (Proposal 5). For example, developers can have a reduced tax rate or receive a subsidy. 2. The council will give developers priority to attend the new city development. Developers will be guaranteed a first consideration in new projects bid. Especially for the developers attend affordable housing development. (Proposal 6). These two policies are made to encourage the developers help building housing, improve supply amount especially affordable housing. 3. Planning permission will be granted to the affordable housing developments under the requirements. (Proposal 7). The policy is made in the purpose of increase the efficiency of affordable housing developments process. Housing especially affordable housing value The size, quality, density issues have all mentioned at the UDP. As a summary 1. The council should make the requirement for new housing developments supporting facilities to guarantee the housing value. (Proposal 8) 2. By fully using the existing infrastructure, the council can encourage the new housing be built near these public transportation especially ensure the link between new affordable housing development and city center. (Proposal 9) 3. For the future development, Croydon city centers new shopping center is under-construction. This will provide many new employment opportunities after it finished, thus it will benefit these people who have a low-income or are jobless. In conclusion, the proposals for describable development of increase house provision are made based on improve the housing market stay at a proper balance point by adjusting both demand and supply side and the housing value itself. References 1. .Annual monitoring report for 2010-2011 (2011) 2. Croydon Advertiser. (Friday, May 04, 2012). Croydon housebuilding strategy to be scrutinised at seminar. Available: http://www.thisiscroydontoday.co.uk/Croydon-house-building-strategy-scrutinised/story-16000618-detail/story.html. Last accessed 7th May 2012 3. Croydons Core Strategy. (2010) 4. Croydon Council. (2010). Affordable Housing Viability Study, P26 5. Croydon Council. (2006). Croydons Housing Strategy 2006-2010, p4- 6 6. Croydons Unitary Development Plan. (2006) 7. Croydons Unitary Development Plan, housing (2006) 8. David, A (1994). Urban Planning and the Development Process. London: UCL Press. p2. 9. Figure 1, Source: Google Map, 2012 10. Greater London Authority. (2004). Mixed use Development and Affordable Housing Study, p114.Planning Policy Statement 3. (2011) 11. National Planning Policy Framework (2012) 12. Photo 1-4, Source: 100213447 Appendix I am here using the site at Cherry Orchard Street in Croydon. This site is as follows. (figure 1, google earth) (Photo 1-4 by: 100213447) The site is the red area which labeled in figure 1. It is next to the East Croydon Train Station and at the north of the city center with 10-minute-walking.. The site has a extremely convenient transportation linking. The site will develop for affordable housing use. White building in photo 2 will be redevelop in affordable housing use. Red housings in photo 1 will be demolished. Taking the guidance of proposed policy 3, 8 & 9, the area will used to built a 10-floor-building in the purpose of mixed-use. The ground floor and first floor will be used to develop convent shops and other supporting facilities. Other part are designed for housing with high quality and large size which aim to middle-class families. As the proposed policies stated, the redevelopment of the white building will be responsible for private sector developer. The planning permission will be guaranteed if the developer all the affordable development requirement with lower tax. (Proposal 5 & 7) The developer will be considered in advanced in new development at previous red housing bid. (Proposal 6) For the new affordable housing, council will provide the low-income families, lone-parent family’s subsidy, and long-term, low interest rate loan. (Proposal 1 & 2) Meanwhile every family is limited for purchasing one housing only. (Proposal 4) Proposal 1. The council can provide government subsidy for these families. Proposal 2. The council can also provide montages for longer term and lower interest rate. Proposal 3. The council can guarantee the planning permission for changing certain amount of existing offices at city center to mixed-used property, which include housing and retailing. Proposal 4. The council can apply number limit for housing purchasing per person. Proposal 5.The council can grant the developer, encourage them develop in many with different preferential policy. Proposal 6.The council will give developers priority to attend the new city development. Developers will be guaranteed a first consideration in new projects bid. Especially for the developers attend affordable housing development. Proposal 7. Planing permission will be granted to the affordable housing developments under the requirements. Proposal 8. The council should make requirement for new housing developments supporting facilities to .guarantee the housing value. Proposal 9.By fully using the existing infrastructure, the council can encourage the new housing be built near these public transportation especially ensure the link between new affordable housing development and city center. Read More