GLA Buy To Let event – 13 Feb 2008

Greenwich’s Best Value Review Greenwich’s Best Value Review

of the Buy To Let Marketof the Buy To Let Market

Mark BaigentMark Baigent

Assistant Director of Neighbourhood Services Assistant Director of Neighbourhood Services

• Purpose of the reviewPurpose of the review

• Evidence gatheringEvidence gathering

• Contacting local stakeholdersContacting local stakeholders

• Potential solutions and responsesPotential solutions and responses

• Case studies to watch in GreenwichCase studies to watch in Greenwich

• Next stepsNext steps

Outline

Purpose of the review

Local concerns:Local concerns:

• Specific problems on Thamesmead new-build siteSpecific problems on Thamesmead new-build site

• BTL in wide range of other new developmentsBTL in wide range of other new developments

• Impacts on policing, health, education, cohesionImpacts on policing, health, education, cohesion

Aims:Aims:

• Call in expert witnesses to better understand BTLCall in expert witnesses to better understand BTL

• Consult wide range of local stakeholdersConsult wide range of local stakeholders

• Develop multi-agency responses to problemsDevelop multi-agency responses to problems

• Explore interventions both regulatory and Explore interventions both regulatory and informalinformal

Evidence gathering: positives

• Many economists and market commentators Many economists and market commentators

claim that the Buy To Let boom has been claim that the Buy To Let boom has been

beneficial:beneficial:

• Private renting supports labour mobilityPrivate renting supports labour mobility

• Investment in housing supports the London / Investment in housing supports the London /

UK economy and keeps the housing market UK economy and keeps the housing market

buoyantbuoyant

• A good balance of tenure options keeps A good balance of tenure options keeps

renting affordable rather than forcing some renting affordable rather than forcing some

people to buy “too soon” and then regret itpeople to buy “too soon” and then regret it

Evidence gathering: negatives

• There is growing evidence locally and nationally There is growing evidence locally and nationally

that Buy To Let can create a range of problems:that Buy To Let can create a range of problems:

• Concentrations of transient people in a local area Concentrations of transient people in a local area

undermine a sense of community and belongingundermine a sense of community and belonging

• Poor management can allow antisocial Poor management can allow antisocial

behaviour, overcrowding, disrepair and behaviour, overcrowding, disrepair and

ultimately the risk of homelessness ultimately the risk of homelessness

(Thamesmead example)(Thamesmead example)

• Property prices become inflated undermining Property prices become inflated undermining

affordability for first time buyersaffordability for first time buyers

Stakeholders the Council is contacting

Buy To Letlandlords and

tenants

Police Schools

Lettings agents

Health

Utilities Developers and RSLs

EmployersTransport

What are the potential solutions?

• Council interventions:Council interventions:

• Selective & Additional Licensing (Env. Health)Selective & Additional Licensing (Env. Health)

• Problem Solving Processes (Community Safety)Problem Solving Processes (Community Safety)

• Management arrangements (RSL role?)Management arrangements (RSL role?)

• Covenants to limit % BTL on new developments?Covenants to limit % BTL on new developments?

• Developer best practice in marketing and sales?Developer best practice in marketing and sales?

• South East London / Thames Gateway responses?South East London / Thames Gateway responses?

• Institutional investment rather than individuals?Institutional investment rather than individuals?

New Haddo / Rubicon

•Does use of Council land give us the chance to limit Buy To Let sales and ensure proper management is in place?

Greenwich Peninsula

•Does this Does this

joint venture joint venture

with English with English

Partnerships Partnerships

offer an offer an

opportunity opportunity

to sell Buy to sell Buy

To Let more To Let more

responsibly?responsibly?

Kidbrooke Vision

•How can the How can the

Council Council

ensure that ensure that

this is a this is a

mixed and mixed and

sustainable sustainable

community community

rather than rather than

dominated dominated

by Buy To by Buy To

Let?Let?

Next steps

• Explore challenges and costs of potential Explore challenges and costs of potential solutionssolutions

• Draw up recommendations and action plan Draw up recommendations and action plan

• Final report to Cabinet in AprilFinal report to Cabinet in April

• Follow up action with key partners:Follow up action with key partners:• SE London Housing PartnershipSE London Housing Partnership

• Police and community safety partnershipPolice and community safety partnership

• English Partnerships / Housing CorporationEnglish Partnerships / Housing Corporation

• Local RSL landlordsLocal RSL landlords

• Private sector developers and agentsPrivate sector developers and agents

• GLAGLA

Contact us

• Mark BaigentMark Baigent

• Assistant Director of Neighbourhood Assistant Director of Neighbourhood

ServicesServices

• Tel 020 8921 5638Tel 020 8921 5638

• E Mail E Mail mark.baigent@greenwich.gov.ukmark.baigent@greenwich.gov.uk

• Gill AckrillGill Ackrill

• Strategy and Development ManagerStrategy and Development Manager

• Tel 020 821 5630Tel 020 821 5630

• Email Email gill.ackrill@greenwich.gov.ukgill.ackrill@greenwich.gov.uk