Political Bulletin

Week commencing 16th February 2010

Property recovery like a “bat out of hell”?

The Investment Property Forum gave a sunny prognosis this week, citing highly volatile shifts in capital flows which are immediately reflected in extremely favourable yield reversals, flipping from the decade’s most damaging to most beneficial impact in a matter of months.

This is, however, in contradiction of their more general message that this short terms “euphoria” is set to end soon.

This chimes with a recent report from credit agency Moody’s, which predicts a further crunch in property values towards the start of 2011, fuelled by a squeeze on mortgage approvals, particularly from Building Societies, once Government support schemes come to a close.

As the UK head of property fund management at Schroders, Ian Mason, puts it.
"The UK economy is in uncharted waters," he said. "Rents are falling, corporate failures are increasing and there is an election. Yet the property investment market has gone bonkers. It is a definite bubble."

Take your work home with you with property dating
A group called Property Match has sprung up on Property Week’s "Property Network" allowing property professionals "who understand that property can be a 24-hour career (sic)" to flirt, date and talk about property.

Healey shifts contribution focus to communities and infrastructure

Housing and Planning Minister John Healey confirmed this week how councils will be able to raise a new levy from developers to help fund economic growth and infrastructure upgrades.

The Community Infrastructure Levy (CIL) is a new power that allows councils to raise funds from developers alongside new building projects to help build infrastructure, such as new schools, hospitals, roads and transport schemes as well as libraries parks and leisure centres.
From April, Section 106 agreements will only be permitted if they are directly related to the new developments. By 2014 Section 106 agreements will be scaled back further to ensure they operate effectively alongside CIL.

He said "The new levy will be a big improvement to the existing system. It puts an end to site by site deals, which can be lengthy and uncertain. Many councils don't get the contribution to new infrastructure their area needs at present. CIL will bring improved transparencies for communities who will know what infrastructure is needed and how it will be funded, and fairness and predictability for developers."

Whether this means that contributions will "certainly" be greater is yet to be established.

Commons Recess The Commons rose on the 10th February and will resume again on the 22nd.

Lords Recess The Lords rose on the 10th February and will resume again on the 22nd.

Boris finds cash for planning ‘Key Deliverables’

London Mayor Boris Johnson’s latest budget has defined key deliverables for 2010/11 as being:
Opportunity Area Planning Frameworks to supplement the policies contained in the London Plan.

Support for the Assembly to scrutinise the Mayor’s exercise of new powers transferred to him by the GLA Act 2007, including those in relation to planning, housing, waste, health inequalities and climate change.

Focusing on masterplanning and design, enabling the delivery of infrastructure, quality homes, improved public spaces and commercial property.

Conservatives declare war on gypsies.

Bob Neill, Shadow Local Government & Planning Minister has announced plans to prevent abuse of the Planning system by squatters and travelers".

Mr Neill promises to "…introduce a new criminal offence of intentional trespass, which would be enforced by the police, as is already in place in the Republic Of Ireland. This is designed to ensure that landowners don’t have to go through the civil courts to evict travellers and squatters, which is an extremely slow and expensive process."

More interestingly, he has promised to "…curtail the ability to apply for retrospective planning permission. This will stop the practice of people laying down concrete on weekends or bank holidays and then putting in a planning application." Currently, planning enforcement cannot commence whilst an application is pending.

Teather backs backbench Bill

Liberal Democrat Housing spokesperson Sarah Teather has spoken in support of proposed new laws which would protect private tenants in Brent from sudden homelessness when their landlord is repossessed.

Charities such as Shelter, Citizens Advice, Crisis and the Chartered Institute of Housing have been campaigning to close a loophole in the law which is resulting in many people who rent privately, including families with young children being made homeless. She was speaking in support of a backbench Bill in the House of Commons.