Throughout the run-up to the general election, there were mutterings from many that reform of the planning system was nowhere near high enough up the political agenda…
…but equally a sense that battles needed to be picked and this probably wasn’t one of them.
Now, the dust has settled, however, what Steve Norris refers to as “the elephant in the room” is looming larger than ever. Yet, much to the consternation of the property industry, there remains little indication that reform has risen up the agenda. Rather the reverse.
Over the past week or so, not one, not two, but three stories have thrown the issue into sharp relief. First, Conservative peer and commentator Danny Finkelstein signalled at the RICS Property Leaders’ Summit that there was likely to be a period of stability in planning given that the man who guided the NPPF through the last parliament, Greg Clark, was now secretary of state for communities, something that did not go down well with the likes of Tony Pidgley, who argued that fundamental reform was needed to speed up the system.
Then, ironically underscoring one of the biggest problems with the system he introduced, Clark called in his first planning application since becoming communities secretary - King’s College’s plans to revamp its campus on the Strand - signalling that this scheme is likely to be as subject to the usual delays as any other. And finally, Property Week learned that Hammerson and Ballymore are to submit a revised planning application for the controversial Bishopsgate Goodsyard scheme that responds to the mayor of London’s first-stage report - but will probably still not be enough to prevent a protracted planning battle.
Worryingly, the politicians do not seem to have grasped that speeding up housing supply and speeding up the planning process need to go hand in hand. Clearly, the industry has to step up its lobbying efforts, because let’s face it, if the government can’t be persuaded of the merits of planning reform in relation to housing, what hope is there for other types of development?
More reasons for concern at Morrisons?
Having cut prices on 200 everyday items, new broom David Potts is now poised to sell off eight sites earmarked for new stores. The question is will more disposals follow? Shore Capital’s Clive Black thinks not. Morrisons’ future will be about trading its existing, largely freehold estate more effectively, he argues, predicting that it will remain a freehold-dominant group that continues to capitalise on its low rent roll in a way that others, notably Potts’ alma mater Tesco, cannot. With its share price up 5% on Wednesday - on the strength of Sainsbury’s results and despite its own falling sales - that freehold dominance could prove decisive.
No comments yet