Did mayor Sadiq Khan’s draft London Plan, published last week, answer the capital’s housing needs? “I very much doubt it,” says Bill Hughes, head of real assets at Legal & General Investment Management.
Speaking at EG London Question Time at Derwent London’s White Collar Factory, EC1, he says: “I think there are a couple of really important issues that have been missed by the GLA. I think the powers of the GLA being widened so it can actually buy land would have been an important step forward.”
Hughes’s other gripe is the new rigid space standards, which he says do not encourage build-to-rent.
“We have some plans about modern methods of construction to deliver what we thought would be a very useful contribution to London’s housing supply issue and we are going to have to take those to other cities around the UK,” he says.
New design guidelines in the plan also include stronger policy on housing standards.
Max Farrell, partner at Farrells architects, would like to see more flexibility around the guidelines.
He says: “At the moment, guidelines are applied as rules in many boroughs. Actually, it would be good if the mayor had more of a steer on if design could create quality environments that bend the rules, if you like, then we should think of that.”
British Land’s Emma Cariaga, head of operations, Canada Water, says even if the London Plan “was on steroids” it wouldn’t be able to solve the capital’s affordable housing problem.
“It does need some fundamental changes to the notion of best value to allow public sector agencies to focus on affordable housing – not just selling land to the highest bidder,” she says.
She added she would also like to see a commitment to the expansion of London airports.
“I think we need multiple expansions at all our airports if London is to continue to attract people… and maintain its position on the world stage.”
Derwent London development manager Benjamin Lesser was more positive about the plan.
“I think the London Plan is a positive refinement of the previous version in respect of differentiating between central London and suburbs,” he said.
Prioritising commercially led developments in inner London and residential in outer London boroughs was welcome, he says.
What can we expect from London development in 2018?
Bill Hughes, head of real assets, Legal & General Investment Management: “I think the property market next year will show signs of fragility around the occupier market in a way that we haven’t really seen this year. But I think the capital will continue to see it as an investment destination worth pursuing, and because of all of that, I think there will be a bigger difference between winners and losers than what we have been used to.”
Max Farrell, partner at Farrells: “Hopefully there will be a much bigger focus on collaboration between public and private sector… and also much more intensification of space, mixed-use will be more radical I hope.”
Benjamin Lesser, development manager, Derwent London: “I think there must be a continuous and more acute focus on what it is [landlords] are doing as developers and suppliers of space… because we cannot afford to get it wrong. We have to actually think about it from the user’s perspective, from the occupier’s perspective, about an experience.”
Emma Cariaga, head of operations, Canada Water, British Land: “I would like London to have a seat at the table internationally, advocating for the role we need to play in the Brexit debate and securing a fair deal for the capital.”
Roger Thornton, partner, commercial property, Maples Teesdale: “Political climate is uncertain but there’s a weight of money wanting to invest in the UK real estate market. Clients are saying it’s business as usual. The alternative sector will be interesting and serviced offices market will be very popular.”
David Mann, partner, TFT: “We’re embracing proptech. It’s inevitable but we’re using it to our advantage, driving more efficiencies. Thankfully as a building surveyor I don’t think we’ll ever be replaced by robots, but who knows.”
Matthew Weiner, chief executive, U+I: “From outer London to Manchester, all the way to Dublin, 2018 will be the year new life is breathed into the oldest parts of our cities. Regeneration is not easy. But if developers start listening to local communities and researching places to understand the history, stories and myths that make them unique, 2018 will be a year in which we continue to leave a lasting legacy for the benefit of local communities.”
‘The type of work is changing’
Max Farrell, partner at Farrells, is the architect appointed on ABP’s Royal Albert Dock, E16, a 4.7m sq ft office and retail development designed to attract Chinese companies looking to open UK headquarters.
“They call it the headquarters economy,” says Farrell. “So each of them has – even if it’s a small headquarters – it’s a base, and that very much carries their branding and identity. But they are part of a hub where there are headquarters for other companies.
“A lot of their requirements are different for cultural reasons. They want to have their own buildings and they want to have smaller buildings as a result of their own entrances and lifts; and so we had to think much more creatively about creating efficient small office buildings and how to do that, and I think we have created an entirely new typology that hasn’t been seen in this country before and there’s no reason why we couldn’t do it again.
“It’s certainly something that from a place-making point of view, these terraced office buildings that are street-based, so it has been an interesting journey where we’ve had to think outside the box, and we have enjoyed it.”
Does he expect to see a slow-down in instructions next year? “[The work] is changing and the type of clients are changing. The type of projects are changing, but I don’t think it’s drying up.
“I think there are different opportunities and partnerships and bodies that are forming to take things forward and that includes overseas investors, and also joint ventures with local authorities and housing associations.
“We are seeing a lot of the housing associations do more private development in order to cross-subsidise the affordable and also do their own joint ventures and we’re seeing a lot of contractor-turned-developers…so it’s just a change for us more than things drying up.
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