Authorization granted for domestic residential construction on previously developed sites
The British government has announced a new initiative aimed at accelerating the development of brownfield sites in England's 20 largest towns and cities. This move is part of an ambitious plan to unlock surplus railway land, transforming it into thriving communities with homes, green spaces, shops, and hotels.
A New Development Company: Platform4
At the heart of this plan is the establishment of a new development company named Platform4. This company is set to transform surplus railway land into vibrant communities, delivering up to 40,000 new homes over the next decade, with over 15,000 in the next five years.
Brownfield-First Approach and Housing Crisis Solution
The government's brownfield-first approach aligns with its "Plan for Change" target of building 1.5 million homes to address the housing crisis. This initiative is expected to create thousands of jobs and leverage private sector investment in key urban areas such as Manchester, Newcastle, Nottingham, and Cambridge.
Regeneration Packages and Funding
A substantial £120 million regeneration package has been approved specifically for Newcastle’s last major brownfield site at Forth Yards. This funding is expected to create up to 2,500 homes alongside public realm and commercial space. The funding package will cover vital remediation, groundworks, and infrastructure activities, addressing barriers to development due to complex land issues and accelerating housing construction on disused urban brownfield sites.
Industry Support and Concerns
Industry experts have generally welcomed this government proposal. The British Property Federation, for instance, has praised Platform4 for releasing surplus and underutilized public assets, stimulating local regeneration, economic growth, and aiding housing delivery with transformative community impacts.
However, concerns have been raised about other aspects of the development industry. Clive Holland, a broadcaster on Fix Radio, and Ritchie Clapson, co-founder of propertyCEO, have highlighted the need to address hiring new staff members and encourage landlords and other solo entrepreneurs to take on smaller development projects.
Addressing the Skills Gap
Data from the Department for Education reveals a concerning decline in construction apprenticeships. In 2022, the number of completed construction apprenticeships in England fell from 12,420 to 7,700. With 17,500 people applying for electrician apprenticeships each year, only 2,500 pass their course. The government needs to address this skills gap to build new homes effectively.
The new plans include limits being removed on the kinds of former commercial buildings that can be turned into flats, which could potentially help alleviate the housing crisis. However, Ritchie Clapson believes that the announcement could unlock up to 1.2 million new homes, but it may not solve the housing crisis unless other key issues are addressed.
Consultation and Future Plans
The consultation on the new proposed plans will run until 26 March 2024. Additionally, the government is considering making it easier for homeowners to extend their houses without seeking planning permission, which could further boost housing supply.
In conclusion, the government's package aims to make it easier for developers to build on brownfield sites by providing targeted funding, creating a specialized development company to streamline land release, and focusing on regeneration in key urban areas. While the initiative has received broad support, it remains crucial for the government to address the skills gap and other industry concerns to effectively build new homes and address the housing crisis.
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