Can Khan deliver? London mayor’s first 100 days

Following Sadiq Khan’s first 100 days in the role of London mayor, Estates Gazette looks at the former MP for Tooting’s progress on property issues in the capital

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• Click here to read Sadiq Khan’s full manifesto

Khan’s property priority for London

Tackle the housing crisis, building thousands more homes for Londoners each year, setting an ambitious target of 50% of new homes being genuinely affordable, and getting a better deal for renters.

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NEWS

Khan seeks viability experts for Homes for Londoners team

London mayor Sadiq Khan’s Homes for Londoners team started to take shape this week, with the mayor’s office saying the first step was to recruit experts to scrutinise viability assessments

Mayor puts affordability ahead of profitability

Mayor of London Sadiq Khan is willing to have Transport for London take a financial hit on its site disposals to reach his 50% affordable housing target, documents have shown this week

Mayoral team to scrutinise viability assessments

The first task of mayor of London Sadiq Khan’s new “Homes for Londoners” team will be to scrutinise viability assessments, the mayor’s office has said

Khan unlocks Wimbledon regen

Mayor of London Sadiq Khan has overturned a decision by his predecessor Boris Johnson, clearing the way for the regeneration of Wimbledon Greyhound stadium by AFC Wimbledon and Galliard Homes

Khan ups affordable homes at Old Oak

Mayor of London Sadiq Khan has increased the number of affordable homes in the first major section of the Old Oak regeneration in west London by seven percentage points

Khan’s 35% affordable flat rate

City Hall plans to scrap viability assessments for affordable housing contributions by introducing a non-negotiable 35% flat rate for private sector schemes

Khan reboots AFC Wimbledon

Mayor of London Sadiq Khan is expected to drop a public inquiry into AFC Wimbledon and Galliard Homes’ proposed major regeneration of Wimbledon Greyhound Stadium

Mayor’s group to examine property tax devolution

Mayor of London Sadiq Khan has reconvened a group of finance experts which previously recommended wide-reaching property tax devolution for the capital

Khan blocks Garden Bridge funding

Mayor of London Sadiq Khan has blocked an extra £3m for preparatory work on the Garden Bridge, raising further doubts over the future of the project

LREF review: Can Khan hit housing targets?

Sadiq Khan clinched the vote to become London mayor in the month before the London Real Estate Forum, and the conference was abuzz with chatter regarding the problems he faces and how he must deal with them

Affordable and green prompts Khan’s first moves

Sadiq Khan has started to flex his mayoral muscles in the London development world

Khan proposes first dibs for Londoners on new homes

Mayor of London Sadiq Khan has proposed giving Londoners first dibs on new homes as he warned against the city becoming the “world’s capital for money laundering”

Khan’s 50% affordable target ‘strategic’

Three weeks after taking office, London’s new mayor Sadiq Khan and his team is turning on the charm for the property sector and offering reassurance on his campaign claims

Khan’s first Mayor’s Question Time

Sadiq Khan appeared before the London Assembly for the first time this morning at Mayor’s Question Time

London’s deputy mayor for housing announced

Islington councillor James Murray is Sadiq Khan’s new deputy mayor for housing

Can Khan deliver? London mayor’s first 100 days

London mayor Sadiq Khan’s 50% affordable housing target is a long-term strategic target, and will not be required on all schemes, according to a senior city hall source advising on planning.

In the first interview explaining the mayor’s housing plans since taking office, the adviser said that the mayor wanted to work closely with developers, on what he said was the huge amount they have in common, to increase the number of homes built in London. More…

Khan’s challenge and the potential of Plumstead

Robin Cripp: Sadiq Khan has been handed the keys to City Hall with what is the biggest personal mandate in British political history

Can Khan deliver on housing?

Now comes the hard work for Sadiq Khan. London is in the throes of a housing crisis despite increased activity under Boris Johnson. His task – outlined below – is to increase activity again threefold. Is it doable? Nadia Elghamry has gone leaping into the vaults of London Residential Research to find out. More…

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Property agents: Khan must keep London “open for business”

Following Sadiq Khan’s triumph over Conservative rival Zac Goldsmith in the London mayoral elections, agents have been keen to outline what the property sector needs from the winning candidate. More…

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Wrath at Khan?

Residential sector reacts to Sadiq Khan’s mayoral win – by Alexander Peace

Sadiq Khan’s affordable housing targets, rent caps and London first sales policies have come under fire in the aftermath of his election as mayor of London.

While the industry has given his appointment a cautious welcome many remain sceptical about key election pledges, emphasising a need for the consensus view to drive development

The PRS and rent caps

Many wanted confirmation that Khan would not undo much of the work the industry has and the Greater London Authority has done encouraging an institutional private rented sector in London.

They fear Khan’s calls for rent caps could deter development and investment, much as rent caps did in the 1960s.

“Mr Khan’s rent control plans are particularly worrying, as they are likely to force landlords out of the market, reduce housing supply, and deter would-be investors,” said Julian Goddard, head of residential at Daniel Watney.

“There is a real chance that Mr Khan’s policy on capping rents in new housing schemes would stymie development and enshrine the disadvantages in deprived areas of the capital, as well as harming the nascent build-to-rent sector, which will play a key role in providing new homes for Londoners.”

Melanie Leech, chief executive of the British Property Federation, said it wants to see Khan incorporating rental planning policy into the London plan, allocating a quarter of public sector land to rent, and a 7,500 target per year.

Dominic Grace, Savills head of London residential development, was more upbeat though about Khan’s intentions. “A promise to ‘use City Hall as a platform to attract institutional investors, pension and other investment funds to finance homes for long-term, secure rent’ is clear recognition that London needs homes of all tenures and not just homes for sale, as well as a commitment to unlocking public sector land,” he said.

Affordable housing

Khan’s policy of a 50% affordable housing target on all new development has been criticised for the potential effect it could have on development viability.

“A 50% social housing target on all new developments, while fulfilling an obvious requirement for more affordable housing in theory, is unlikely to have a positive effect,” said Michael Goldmann, sales and marketing director at Regal Homes.

“In fact these restrictions will prove counterproductive and may result in pockets of land remaining undeveloped.”

Ken Livingstone had a similar policy during his tenure, though actually, according to analysis by Estates Gazette, delivered a lower amount of affordable homes than Boris Johnson: 10,700 per annum to 13,400.

“There needs to be a serious review of affordable housing definitions as his ‘50% affordable’ target will damage overall levels of delivery unless it factors in discounted market rent, private rent and starter home type products.” Said Mark Farmer, chief executive at Cast.

• Housing applications under Boris Johnson

Londoners first

Khan’s intention to use planning conditions to ensure flats are marketed to Londoners first to combat buy to leave also drew fire.

Adam Challis, head of JLL Residential Research, said that in reality there is little evidence of buy to leave actually happening, while any restriction on demand would compromise the delivery of developments.

“The industry is already signed up to the mayor’s ‘London first’ concordat for sales, which commits to give Londoners first option on new homes in the capital and which we wholeheartedly support,” he said.

“Ultimately domestic demand is not strong enough to drive off-plan sales rates, so the issue here is that action to restrict overseas investors would simply destroy the viability of most schemes, and would reduce, not increase, the level of affordable housing delivery. We should remember that Ken Livingstone had this aim and never got close to implementing it.”

The construction crisis and infrastructure

The consensus was that Khan needs to put more emphasis on initiatives that will increase house building without stalling development.

“Constructions costs alone are increasing by around 8% each year, driven by labour and materials shortages, which makes higher supply scenarios challenging to say the least,” warned Challis.

According to Farmer, Khan should develop a strategy with the Skills Funding Agency to address the construction labour shortage.

“He will also need to look seriously at opportunities for GLA to embrace direct commissioning and delivery, including the possible direct funding or utilisation of off-site manufacture solutions at scale if they are to get anywhere near 50,000 units per annum,” he said.

Leech laid an emphasis on infrastructure to led development: “World-class infrastructure is a fail-safe catalyst for investment, which opens up new opportunities, makes land attractive to develop, and creates accessible places where people want to live. It is the closest thing to a silver bullet for encouraging development in the capital.”

Working across London

As Khan settles into his role the key will be be working with all the different involved parties to drive development.

“The recognition that any solution will need to embrace all parties involved in building homes is particularly welcome,” said Dominic Grace, head of London residential development at Savills.

“In setting up Homes for Londoners, Khan’s stated aim will be to ‘include councils, housing associations, developers, home-builders, investors, businesses, residents’ organisations’.”

Challis added: “Any mayor who can work with the grain of the market to create long-term and lasting solutions will make genuine progress in addressing London’s housing provision problems.”

“Khan has promised to be the most pro-business mayor yet, if he holds to this the development community will play its part in addressing the supply challenge.”

• To send feedback, e-mail alex.peace@estategzette.com or tweet @egalexpeace or @estatesgazette

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LONDON MAYORAL ELECTION 2016

Khan beat Conservative candidate Zac Goldsmith by 1,310,143 to 994,614 votes, ending eight years of Conservative control at City Hall.

• Click here for a full breakdown of London election results

Who would be the most property friendly #London mayor? https://t.co/SFyv9Ai6Lz #PollingDay

— Estates Gazette (@EstatesGazette) May 5, 2016

THE CANDIDATES
Sian Berry Green Party	David Furness British National Party	George Galloway Respect	Paul Golding Britain First	Zac Goldsmith Conservative	Lee Harris Cannabis is safer than alcohol
Sadiq Khan Labour	Ankit Love One Love Party	Caroline Pidgeon London Liberal Democrats	Sophie Walker Women’s Equality Party	Peter Whittle UKIP	Prince Zylinski Independent

• Sword-wielding prince has the solution to London’s housing crisis

John Zylinski believes he is in the running to achieve every property developer’s secret dream

• Michel Heller – Can referendums and mayoral elections undermine fundamentals?

The average house price, measured by the Halifax HPI, has risen by 241% over the past two decades, with London recording growth of nearly 500%

• Experts claim mayoral candidates offer little for housing

Neither mainstream mayoral candidate has shown a clear understanding of the housing challenge or significantly different policies to address it, according to experts

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• London mayor needs to focus on a wider strategy, according to experts at MIPIM

The next London mayor must focus on a wider strategic vision for London and creating the infrastructure for growth, according to experts at MIPIM

• Ten tips for London mayoral hopefuls

The British Property Federation wants the next London mayor to see the public and private sectors not as competitors but as partners

• CBI calls on next London mayor to support build-to-rent

The UK’s largest business group has called on London’s next mayor to support the build-to-rent sector, to release more public-sector land for housing and to create a new housing strategy within 100 days of taking office

• Mayoral hopefuls back devolution

The London mayoral candidates have backed proposals for a devolution deal to London from central government to tackle the housing crisis

• LandAid debate: quizzing the candidates

London’s mayoral candidates put meat on the bones of their housing policies this week, at a LandAid debate attended by industry professionals

• Industry reacts to mayoral candidates

Conservative candidate Zac Goldsmith appeared to edge ahead at the LandAid London mayoral debate last night, as attendees said his policies looked more realistic

• Mayoral hopefuls back devolution

The three main London mayoral candidates have backed proposals for a devolution deal to London from central government to tackle the housing crisis

• London mayoral candidates clash over housing policy at LandAid Debate

London’s mayoral hopefuls clashed over affordable housing and overseas investment during the LandAid Debate 2016 – London’s Mayoral Candidate’s Visions for Housing

 • FROM THE ARCHIVES: Better the devil you know

 After eight years in power Boris Johnson steps down as London mayor. EG goes back to the beginning and looks at  Johnson’s original pitch to be mayor

  “I am absolutely not against commercial property,” says Boris Johnson, the flamboyant and seemingly omnipresent    Conservative candidate for this year’s London mayoral election, and he wants to set the record straight.

• Briefing: mayoral hurdles

Estates Gazette takes a look at the mayoral race – or perhaps obstacle course – that the two front runners are setting up for themselves, and has a look back at some of Boris Johnson’s pledges, and how he managed them

• London Forum: A list for London

Making sure people can get to their offices and their jobs should be top of the new mayor’s in-tray on May 6, according to Nick Lansman, managing director of public affairs consultancy Political Intelligence

• London Forum: Questionable times

The London Forum panel offer their views on how London and its property markets will fare in 2016, including the upcoming mayoral election

• Residential: Housing to dominate mayoral race

Confirmed mayoral candidates – Zac Goldsmith for the Conservatives and Sadiq Khan for Labour – have made housing their top priority

• Comment: Daniel Van Gelder – advice for the next mayor

• LISTEN: EG talks to Ken Livingstone about the housing crisis and the mayoral race

•  Property’s London mayoral wishlist

The London mayoral election may be a year away but the race is already well under way

• LISTEN: Ken Livingstone: “The next mayor of London needs to be a nerd”

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