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Development Land values plunge in SW London...

Under Kingston Borough's Section 106 Planning Obligation, if you build more than 10 units you are contractually obliged to...

1)....make half the units affordable and pass them over to the council.

2)..."pepper pot" these council houses throughout your development.

3)...build the maximum the land will accommodate.

4)...in the case of flats, ensure any service charge is also affordable ("full price" residents subsidise their "council house" neighbours).

...and the same applies to smaller developments wherever practicable.

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Surely nobody is going to be building new homes except Housing Associations?

Reply to
Troy Steadman
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or those developers building 10 or less units?

However how does the subject line square with your post?

Reply to
Colin Forrester

"3.62: The council will also encourage the provision of affordable units on sites smaller than the size threshold where feasible and practicable".

Because there is now an inverse economy of scale - the bigger your development plot the *less* it is worth. You can't split it into smaller chunks. No one will buy it except a Housing Association. Less is more.

Reply to
Troy Steadman

Not sure if they can do this at the moment but they're definately looking at it - private property left unoccupied for 6 months or more can be seconded by the councils anyway and used to house people they pick at council rents?

Reply to
mogga

So how much have they plunged, since say this time last year?

Reply to
Colin Forrester

At least 50%. I live next door to a factory. A couple of years ago they were offered £1.6m to demolish part of it and build 14 flats. Today the best offer for the *whole* factory is £800k.

Reply to
Troy Steadman

At least 50%. I live next door to a factory. A couple of years ago they were offered 1.6m to demolish part of it and build 14 flats. Today the best offer for the *whole* factory is 800k.

======= Seems like a deal. Was 114k per unit (1.6M /14) now its 89k per unit(0.8M/9).

Also, since the units will be bigger you can sell them for more.

Reply to
Tumbleweed

Doesn't work like that:

"4.2 The best use must be made of development sites...The Council will look closely at proposals that fall short of providing 10 or units to make sure the best use of land is achieved..."

Reply to
Troy Steadman

Also your maths is faulty. You'd rather have £0.8m than £1.6m because

9 houses make better accomodation than 14? :)
Reply to
Troy Steadman

[]
800k for *one* *big* *house* now sounds like a good deal to me ;-)

rgds, Alan

Reply to
Alan Frame

Also your maths is faulty. You'd rather have 0.8m than 1.6m because

9 houses make better accomodation than 14? :)

=========== No, I'd rather *buy* it for 0.8M and build 9 houses, than 1.6M and build 14. [hence 'sounds like a deal']

Reply to
Tumbleweed

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