Richard Burrows Biography
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- Dayna Webster
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1 Richard Burrows Biography Managing Director of:- Director of :- Director of :- Bellway Homes Ltd (Essex) Barking Riverside Ltd Barking Riverside Community Infrastructure Company
2 About Bellway U.K s 4 th Largest House builder Operate from 17 Divisions Last year built:- 7,752 Turnover: billion Market Value In excess of 3billion Bellway Essex: One of the largest divisions in the Group Builds around 850 dwellings per annum (predominantly in Essex)
3 Bellway Essex Current areas of operation:- Chelmsford 3 sites Colchester 3 sites Braintree 3 sites Brentwood 2 sites Basildon 1 site Harlow 1 site Barbergh 1 site Southend 1 site Rochford 1 site Uttlesford 1 site London Borough of Barking and Dagenham
4 Market Context Remember why housing starts are down:- a) We are still emerging from a major recession b) Recovery will take time c) Not all house builders have fully recovered as yet d) Land banks take time to re-establish e) Lead in times for developments are protracted New problems emerging:- f) Labour Skills g) Materials h) Factory gate prices i) Inflationary factors Build cost inflation major issue Uncertainty caused by initiatives such as Starter Homes Initiative and Right to Buy
5 But Underlying strong housing demand - Continuing historically low interest rates - Government initiatives, such as Help to Buy - Growing population - Generation rent - P.R.S
6 The Developers View Housing growth Can it be delivered? How much capacity exists in the system? This is a major question. Challenges to increasing capacity Planning Land Supply Deliverability (Labour skills & Material) Attitude: Local Authorities need to want growth.
7 Planning We are now beginning to see the results of NPPF and the previous coalition approach come together. In many Districts/Borough s planning is freeing up. But in those Districts/Borough s where it is not, you will need to try harder if you want to development. 5 year land supply targets are working, this is a blunt tool to help drive development. If you do not want development/help. O.K. But we will not come chasing you. We will choose where to invest our time, money and resources in those authorities that welcome us.
8 What can be done to help? Land Supply Lazy Assets Vacant Land Estate Regeneration N.H.S H.C.A Local Authorities County Councils Do these bodies have effective strategies for dealing with Lazy Assets
9 Collaborative Approach Bodies such as TGSE provide a forum for improved dialogue between the private and public sector. This approach is also being adopted in Cambridgeshire Also being raised by the County Council and senior officers and members under devolution of powers initiative Generally we welcome any opportunity to share views and ideas
10 Land Supply:- - Greenfield What are the obstacles? - Brownfield:- - Developers are not afraid of brownfield developments - We have considerable expertise to deliver European Procurement Rules - On publicly owned assets this is a real obstacle Lack of personnel at local authorities, County Council, Statutory undertakers all slows up the ability to start on site. This is generally as a result of staff cutbacks and lack of entrants coming to the industry
11 Viability S106 Requirements are becoming overly onerous. - Especially around cash-flow - Uncertainty over affordable housing values - A level playing field would help - Transparency CIL - Will the D.C.L.G. letter help?
12
13 Deliverability Skills Building is not trendy or fashionable We do not bring school leavers into the industry We need improved availability of apprenticeships Does not end at site level Need to make areas such as planning attractive - For example: we have been seeking a planning graduate for 6 months with no success We have given up now!!
14 S.M.E s With improved access to funding there is considerable capacity in sites of units. Generally major housebuilders do not like to develop at these levels, mainly because overhead recovery is not possible against the land value being sought. - Problem is that this area of funding is still constrained and considered too high a risk. - Possible County Council funding - Joint ventures with public bodies - Or pooling of sites to make viable for major housebuilders
15 Solutions - Room for more partnership working, freeing up the public sector assets - More open dialogue - Come and talk to us: we do have some good ideas - Plenty of funding presently available to larger developers
16 Conclusions Underlying housing market continues to be robust Land supply could be improved Planning generally does work in most cases, but advancing local plans would be an additional aid Better dialogue between the public and private sectors.
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