Jonathan Parker is development director at framework provider Pagabo
This year’s fiscal events and ongoing policy updates highlight that the government is pushing for the progression of development, which is a welcome move. However, issues surrounding regeneration and how to effectively deliver on development goals remain hot topics – and there is a sense that while support is being offered in some areas, other measures are holding back further potential progress.
“There is never a perfect solution – if there was, it would have been done a long time ago”
The roadmap for delivering 1.5 million new homes has been set and the government has front-loaded initial support for reaching the goal with the establishment of the National Planning Policy Framework, the Social and Affordable Homes Programme and the overarching ‘Plan for Change’.
But what seems to be missing is a thoughtful approach to how these significant changes will be financially supported.
What exists currently is a chicken-and-egg situation when it comes to funding for the big transformational schemes that will make all the difference in hitting targets. With local authorities having to bid on pots of money to deliver a certain number of homes in a certain timescale, the focus is on the type of projects that a former prime minister described as “oven ready”.
Ultimately, the government needs to address how it is allocating money again and the timescales imposed, as greater leniency would mean more viable, deliverable schemes not having their wings clipped before they got the chance to fly.
Funding options
What is key to consider here is viability. Even with recent announcements of fast-track planning consent for mayoral powers, what this looks like in practice, with the planning route being bogged down by workforce issues and supply chain backlogs at later stages, offers a less positive outlook for actual delivery.
While no successor to the previous government’s Levelling Up Fund has been announced, it seems inevitable that some sort of similar funding option will come online in the future, with the Affordable Homes Programme and the improved funding for SME builders being examples of this work underway. With affordable housing especially, support and grant funding are essential if these homes are to be delivered in line with government goals, and in a bid to reduce the big viability gap currently being seen.
Without adequate funding support and a clear, consistent roadmap, the commercial realities of delivering impactful developments mean that affordable housing is going to be a lot lower in the mix than it could be.
It’s important to acknowledge there is never a perfect solution – if there was, it would have been done a long time ago. Ultimately, it’s about making things simpler, and anything that can help achieve that is going to make a difference.
One of Pagabo’s founding principles was focused on simplifying the procurement process, and it’s something we continue to do for major regeneration schemes through the Developer-Led Framework that Pagabo manages on behalf of contracting authority Cumbria, Northumberland, Tyne & Wear NHS Foundation Trust.
The common denominator across all of this is collaboration. The developers we facilitate are those who have collaboration built into the heart of their schemes and see it as a critical process. While a delay from 16 to 24 weeks on planning is a frustration, it’s less of an issue on a four-year scheme that looks to deliver the best possible project in terms of social value for an area than it is for a developer looking at land and a quick return on investment.
Taking the idea of placemaking and putting it at the heart of a scheme is what delivers a much more long-lasting return on that investment – and this is why it needs to be central to the government’s plans.
Read More
Contributor