An analysis of the UK development industry's role in brownfield regeneration

Purpose – This study aims to provide a review of brownfield policy and the emerging sustainable development agenda in the UK, and to examine the development industry’s (both commercial and residential) role and attitudes towards brownfield regeneration and contaminated land. Design/methodology/approach – The paper analyses results from a two-stage survey of commercial and residential developers carried out in mid-2004, underpinned by structured interviews with 11 developers. Findings – The results suggest that housebuilding on brownfield is no longer the preserve of specialists, and is now widespread throughout the industry in the UK. The redevelopment of contaminated sites for residential use could be threatened by the impact of the EU Landfill Directive. The findings also suggest that developers are not averse to developing on contaminated sites, although post-remediation stigma remains an issue. The market for warranties and insurance continues to evolve. Research limitations/implications – The survey is based on a sample which represents nearly 30 per cent of UK volume housebuilding. Although the response in the smaller developer groups was relatively under-represented, non-response bias was not found to be a significant issue. More research is needed to assess the way in which developers approach brownfield regeneration at a local level. Practical implications – The research suggests that clearer Government guidance in the UK is needed on how to integrate concepts of sustainability in brownfield development and that EU policy, which has been introduced for laudable aims, is creating tensions within the development industry. There may be an emphasis towards greenfield development in the future, as the implications of the Barker review are felt. Originality/value – This is a national survey of developers’ attitudes towards brownfield development in the UK, following the Barker Review, and highlights key issues in UK and EU policy layers. Keywords Brownfield sites, Contamination Paper type Research paper

A good enough approach to setting planning obligations

In this paper we propose an alternative model of, what is often called, land value capture in the planning system. Based on development viability models, negotiations and policy formation regarding the level of planning obligations have taken place at the local level with little clear guidance on technique, approach and method. It is argued that current approaches are regressive and fail to reflect how the ability of sites to generate planning gain can vary over time and between sites. The alternative approach suggested here attempts to rationalise rather than replace the existing practice of development viability appraisal. It is based upon the assumption that schemes with similar development values should produce similar levels of return to the landowner, developer and other stakeholders in the development as well as similar levels of planning obligations in all parts of the country. Given the high level of input uncertainty in viability modelling, a simple viability model is ‘good enough’ to quantify the maximum level of planning obligations for a given level of development value. We have argued that such an approach can deliver a more durable, equitable, simpler, consistent and cheaper method for policy formation regarding planning obligations.

Green marketing in housing: reality or rhetoric?

All new homes in the UK will be required to be zero carbon from 2016. Housing sector bodies and individual housing developers are championing a transition from traditional marketing to green marketing approaches to raise consumer awareness of the benefits of low and zero carbon homes. On-site sales teams on housing developments form a central interface between the developer and potential buyers. These teams, then, have a critical role in the success or otherwise of the developers’ green marketing strategies. However, there is a dearth of empirical research that explores the actual attitudes and practices of these teams. An exploratory case study approach was adopted. The data collection consisted of reviewing relevant company documentation and semi-structure interviews with the on-site sales teams from six housing developments. The findings from two case studies suggest that the sales teams do have potential to forge a bridge between the design / production and consumption spheres in the way that consumers understand and appreciate, but further work is required. The sales teams’ practices were constrained by the incumbent, traditional marketing logic that rotates around issues such as location and selling price. The sales teams appeared to adopt a strategy of a restriction of information about the benefits of low and zero carbon homes to not disturb the prevailing logic. Further, the sales teams justify this insulating mechanism by the argument that consumers are not interested in those benefits. This rhetoric may be driving a real wedge between the design / production and consumption spheres to the detriment of the consumer and, in the longer term, the house builder itself.

The role of UK development industry in Brownfield regeneration Vol 1

As part of the SUBR:IM work (www.subrim.org.uk) being undertaken at The College, the research team for this project (Tim Dixon, Yasmin Pocock and Mike Waters) has produced the first two of three volumes covering Stage 2 of the research. Volume 1 examines the results from the national UK developer interviews (carried out in 2004-2005); National Land Use Database (NLUD) analysis (1998-2003); and residential planning permission analysis for Salford/Manchester and Barking & Dagenham (2000-2004) using Estates Gazette Interactive (EGi) data and published information. Volume 1 (of 3): Literature Review, National Developer Interviews, Planning Permission Analysis and NLUD Analysis

The role of UK development industry in Brownfield regeneration Vol 2

As part of the SUBR:IM work (www.subrim.org.uk) being undertaken at The College, the research team for this project (Tim Dixon, Yasmin Pocock and Mike Waters) has produced the first two of three volumes covering Stage 2 of the research. Volume 1 examines the results from the national UK developer interviews (carried out in 2004-2005); National Land Use Database (NLUD) analysis (1998-2003); and residential planning permission analysis for Salford/Manchester and Barking & Dagenham (2000-2004) using Estates Gazette Interactive (EGi) data and published information. Volume 2 covers the sub-regional context for Thames Gateway and Greater Manchester, which form the basis for the case studies (these are to be published as Volume 3 Volume 2 (of 3): Sub-regional context (Thames Gateway and Greater Manchester)

The persistence of distance: a gravity model of European cross-border real estate development flows

Purpose – This paper aims to investigate the scale and drivers of cross-border real estate development in Western Europe and Central and Eastern Europe. Design/methodology/approach – Placing cross-border real estate development within the framework of foreign direct investment (FDI), conceptual complexities in characterizing the notional real estate developer are emphasized. Drawing upon a transaction database, this paper proxies cross-border real estate development flows with asset sales by developers. Findings – Much higher levels of market penetration by international real estate developers are found in the less mature markets of Central and Eastern Europe. Analysis suggests a complex range of determinants with physical distance remaining a consistent barrier to cross-border development flows. Originality/value – This analysis adds significant value in terms of understanding cross-border real estate development flows. In this study, a detailed examination of the issues based on a rigorous empirical analysis through gravity modelling is offered. The gravity framework is one of the most confirmed empirical regularities in international economics and commonly applied to trade, FDI, migration, foreign portfolio investment inter alia. This paper assesses the extent to which it provides useful insights into the pattern of cross-border real estate development flows.

Financial viability appraisals for site-specific planning decisions in England

In England, appraisals of the financial viability of development schemes have become an integral part of planning policy-making, initially in determining the amount of planning obligations that might be obtained via legal agreements (known as Section 106 agreements) and latterly as a basis for establishing charging schedules for the Community Infrastructure Levy (CIL). Local planning authorities set these policies on an area-wide basis but ultimately development proposals require consent on a site-by-site basis. It is at this site-specific level that issues of viability are hotly contested. This paper examines case documents, proofs of evidence and decisions from a sample of planning disputes in order to address major issues within development viability, the application of the models and the distribution of the development gain between the developer, landowner and community. The results have specific application to viability assessment in England and should impact on future policy and practice guidance in this field. They also have relevance to other countries that incorporate assessments of economic viability in their planning systems.