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Decision on £3bn London Canada Water scheme in July

Property developer British Land is hoping for a planning decision in July on its 5.5m sq ft Canada Water scheme in London.

Canada Water masterplan for Rotherhithe

The vast mixed-use scheme, on the south side of the Thames in Rotherhithe, ranks as the London developer’s most ambitious scheme over the next 10 years.

This morning the developer said the vast scheme was set to go before Southwark council planners in the summer.

This will involve a detailed application for the first three buildings totalling 576,000 sq ft and outline planning for the 1.8m sq ft first phase with a development value of £700m.

The first three buildings will provide 265 homes, with around 35% affordable.

Building A1 will provide both residential and workspace, building A2 will be focused on workspace and a new leisure centre, and the third known as K1 will be wholly residential.

Chris Grigg, Chief Executive said: “Our plans envisage the development of a new urban centre for London, including commercial, office and community space as well as around 3,000 new homes, so will represent a core part of our plan to grow scale in residential.”

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Tenant Fee Ban and Reduced Deposits

What are the Tenant Fees Act and the Deposit Cap?

The Tenant Fees Act restricts what money agents and landlords can ask tenants to pay in addition to rent.  Certain fees and charges are ‘permitted payments’. Everything else is a ‘prohibited payment’.

As part of the incoming legislation, the level of deposit landlords and letting agents in England can collect from tenants will be capped at the equivalent of five weeks’ rent for tenancies where the annual rent is up to £50,000.  For those tenancies where the annual rent exceeds £50,000, the deposit will be capped at the equivalent of six weeks’ rent.

 

When does the Tenant Fees Ban and Deposit Cap apply?

The Tenant Fees Act, and Deposit Cap outlined within this legislation, comes into force on 1 June 2019.  It will apply to:

  • Agents and landlords in England
  • New Assured Shorthold Tenancies (ASTs) and renewed tenancies (excluding statutory periodic tenancies for a period of 12 months) that arise after the legislation comes into force.

What does this mean for existing tenancy agreements?

If a tenancy agreement began before 1 June 2019, agents and landlords can continue to charge tenants fees written into that agreement (e.g. check-out or renewal fees) until 31 May 2020. From 1 June 2020 onwards, the tenancy term requiring that payment will become null and void.

Should a tenant make such a payment, it must be returned within 28 days. Failing this, agents and landlords will be treated for the purposes of the Act as having required the tenant to make a prohibited payment.

What are the penalties for taking a prohibited payment?

Trading Standards can order an agent or landlord to repay a prohibited payment to a tenant, together with interest.  They can also impose a financial penalty of up to £5,000 for each breach of the legislation.  Repeated breaches are a criminal offence which can lead to unlimited fines and/or banning orders.

A Section 21 notice seeking possession of a property let on an Assured Shorthold Tenancy cannot be used until any prohibited payments have been returned to the tenant.

How does the legislation affect tenancy deposits?

The legislation does not affect agents or landlords from taking tenancy deposits; they are a permitted payment.  Deposits for ASTs still need to be protected in a government-approved tenancy deposit protection scheme.

There is no requirement to refund deposit amounts exceeding the applicable five or six eek limit where a fixed-term agreement entered into before 1 June 2019 becomes a statutory periodic tenancy.

Where a tenant renews their tenancy by signing a new fixed-term agreement on or after 1 June 2019, any amount of their existing deposit which exceeds the applicable five or six week limit for the new tenancy must be refunded.

Further information: Guidance for Landlords and Agents

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Green light for reworked Paddington Cucumber

Revised plans for the Paddington Basin scheme in London nicknamed the Cucumber have been given the thumbs up.

1 and 6 Merchant Square buildings get planning after revisions for more flats

Plans for the landmark 42-storey distinctive cylindrical tower at the Merchant Square scheme remain largely unchanged from earlier full planning granted in 2011. Several planned hotels floors have been dropped for more flats in the 140m tall building.

Main changes involve a sister building on the same basement podium, which has been raised in height from 15 to 21 storeys bringing it into line with surrounding blocks at European Land’s scheme.

Together the buildings are numbered as 1 and 6 Merchant Square and will offer a total of 426 flats, a double height sky bar and shops on the ground and first floor levels.

1 Merchant Square tower with double floor sky bar

London architect APT designed the buildings with WSP providing structural design and Hoare Lea building services engineering.

The height of 6 Merchant Square has been raised to include more affordable homes

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Cheaper to Avoid Help to Buy, New Research Shows

First-time buyers on the lookout for a new home may find it cheaper to simply avoid using the government’s Help to Buy Equity Loan scheme, according to a survey by price comparison site ReallyMoving.

A first-time buyer using Help to Buy would find themselves paying an average of £303,000 in February 2019 on a new home, compared to £270,000 for a first-time buyer not relying on the scheme.

This disparity results from first-time buyers having had to pay an average premium of 12 per cent when making purchases through the scheme in February 2019, when compared to first-time buyers who never joined the scheme.

Help to Buy is typically sought after by first-time buyers as a means to help them get a foot on the housing ladder, but strong demand for the scheme could actually be making it more costly, and the research raises the question of whether or not developers are charging higher prices on homes enlisted in the scheme.

First-time buyers dominate

ReallyMoving revealed this extra cost, after the government reported that it estimated Help to Buy had helped as many as 400,000 people onto the housing ladder.

First-time buyers were estimated to have accounted for as much as 57 per cent of total homebuyer activity in the UK in early 2019, according to ReallyMoving.

During this period of first-time buyer dominance, the Help to Buy Equity Loan premium also reached a record high, rising from just 7 per cent in August 2018 to an average of 12 per cent by February 2019.

As many as 18 per cent of first-time buyers expressed the intention of building an entirely new home instead of seeking a pre-existing or second-hand one, according to ReallyMoving.

Possible problems selling

Rob Houghton, CEO of ReallyMoving, said: “Help to Buy is indeed helping first-time buyers get onto the housing ladder, but these figures suggest that they may be paying more than the property is worth in order to get the help they need to raise a deposit.”

Explaining the added costs associated with the scheme, he claimed: “This could be either because developers are charging a premium or because first-time buyers are encouraged to buy a more expensive property because the scheme gives them greater spending power.”

Houghton acknowledged that first-time buyers resorting to the scheme could find potential problems when finally deciding to sell, saying: “They may find their property is worth less than they paid for it, made worse by the fact that they could be competing with new developments nearby that are available with Help to Buy, while their own property is no longer ‘new’ and therefore ineligible for the scheme.”

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Government Proposes to Scrap No-Fault Evictions

The government has proposed the scrapping of Section 21, which entitled landlords to make ‘no-fault’ evictions. This move could potentially create indefinite tenancies, according to the National Landlords Association (NLA).

For many years, landlords have been allowed to use Section 21 notices during evictions, which did not require them to state a clear reason for wishing to take possession of property from tenants. Under new proposals, landlords would find they have to give valid reasons for seeking to evict their tenants.

Under the new proposals, landlords would not be able to evict a tenant without reason after a fixed-term tenancy had concluded. Tenants would no longer face eviction at short notice as a result. Landlords currently make use of Section 8 notices to evict tenants for breaching terms of a tenancy.

The proposals come after a campaign calling for the scrapping of Section 21 by pressure group Generation Rent.

Dan Wilson, director of Generation Rent has claimed: “Tenants have a right to a safe home, but can only exercise it if the government stops landlords from evicting without reason.”

New deal for renters

Communities secretary James Brokenshire announced the new government proposal, saying: “The private rented sector has grown rapidly over recent years, with more than four million people now living in privately rented accommodation…yet the housing market has not kept pace with the changes in society and leaves many tenants feeling insecure.”

“The proposed measures will provide greater certainty for tenants”, he added, “and make the housing market fit for the 21st Century, whilst creating a more secure rental market for landlords in which to remain and invest.”

Onus on government

The NLA, who are critical of the moves, claimed landlords are forced to turn to using Section 21, as they have “no confidence” that the courts can handle Section 8 applications “quickly and surely”.

Richard Lambert, CEO of the NLA, commented: “England’s model of tenancy was always intended to operate in a sector where Section 21 exists. This change makes the fixed term meaningless, and so creates a new system of indefinite tenancies through the back door.”

Lambert put the onus on the government, saying: “It’s entirely on the government’s ability to re-balance the system through Section 8 and court process so that works for landlords and tenants alike … if the government introduces yet another piece of badly thought-out legislation, we guarantee there will be chaos.”

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Autumn start for Mount Anvil’s largest ever scheme

London developer Mount Anvil, in partnership with ExCeL London, has secured planning for phases two and three of its Royal Docks development in East London.

The 800-home scheme located on the Western Gateway of the dock adjoins phase one, known as Royal Docks West – a 19-storey tower, which was launched successfully to market in spring 2017 and is now 90% sold.

The two new phases called Royal Eden Docks have been designed by architect SOM with 35% of the homes affordable.

Now construction will start in the autumn and run for over five and a half years, completing in 2024.

Emma Foster, development director at Mount Anvil, said: “Securing resolution to grant planning permission for phases two and three of Royal Eden Docks is a landmark moment for the site.

“The success of phase one demonstrated buyer demand for homes in this part of London, and in a period when the capital is gripped by an acute housing shortage, it’s important that we are working in partnership with the GLA to bolster the delivery of new homes for Londoners.

“Phase one brought substantial investment in the community and surrounding infrastructure, and we look forward to building on that investment with the construction of phases two and three.”

The project will create an estimated 147 new construction jobs every year and Mount Anvil is targeting at least 35% of those to go to local people. In addition, 30 apprenticeships and 10 work experience placements will be created over the duration of the development.

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Plans go in for giant entertainment sphere in Stratford

The Madison Square Garden Company (MSG) has submitted plans for a futuristic sphere-shaped music and entertainment venue in Stratford, east London.

MSG want to build the 90-metre tall scheme on a 4.7 acre former coach park near the Olympic Park.

The 120-metre diameter building will take three-years to construct and will have a capacity of 21,500 people.

The sphere will sit on a four-storey base filling the whole site and its exterior will be clad with triangular LED panels displaying moving images.

Alongside the main venue MSG also plans a smaller music club/nightclub, retail space, a café, and restaurants.

Jayne McGivern, MSG’s Executive Vice President of Development and Construction, said: “This is an opportunity to take an inaccessible coach park and use it to support thousands of jobs, and billions of pounds of economic benefit.

“Our plans make training and local hiring a priority and would create a premier destination that serves as a long-term investment in the future of Newham, London, and the UK.

“If our plans are approved, we believe MSG Sphere will complement London’s existing venues and drive overall growth in the music and entertainment market – benefiting residents, artists and fans.”

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Go-ahead for £600m south London high rise scheme

Landowner Aviva Investors and leading London developer Galliard Homes have gained planning for a new £600m ‘town centre’ development on London’s Old Kent Road.

Cantium Retail Park scheme

The new development will involve construction of the Capital’s fourth tallest residential tower at 48-storeys, shops, offices and over 1,000 new homes.

Situated at 520 Old Kent Road, the 5-acre Cantium Retail Park scheme has been designed by local Southwark architectural practices – Brisac Gonzalez and Alan Camp Architects.

There will be four buildings rising to 37-storeys, two 11-storey and one of nine-storeys surrounding a central podium. The residential element of the buildings will be mixed tenure with separate cores for private sale, shared ownership and social-rented homes.

The new homes will include a mix of apartments, maisonettes, penthouses and townhouses, and 60,000 sq ft of offices, 24,000 sqft of retail space, 25,144 sqft of flexible space for restaurants, café, cinema and leisure premises and 6,415 sqft of space for cultural facilities such as a youth theatre or mini-opera house. The shops, restaurants and cafes are expected to create up to 580 new jobs.

The podium and one of the 11-storey buildings fronting onto the Old Kent Road will provide the majority of the development’s commercial floorspace, with 10 per cent of the space at discounted rent for start-up firms and small and medium-sized entreprises.

The new development will have a six-year construction programme. Existing Cantium Retail Park anchor tenants will be included in the development and the developers are holding discussions with other tenants about making provisions for them within the scheme.

Helen Rainsford, Senior Director at Aviva Investors said: “Aviva Investors is pleased planning consent has been granted for the regeneration of Cantium Retail Park.

“Working with Galliard Homes, we believe we can create a superb residential-led mixed-use development that will transform the site for the benefit of the local area.”

Stephen Conway, Executive Chairman of Galliard Homes said: “The regeneration of Cantium Retail Park will serve to kick-start the wider planned regeneration and transformation of the entire Old Kent Road into a vibrant new high quality commercial, retail and residential destination for South London.”

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£900m Bishopsgate Goodsyard scheme downsized

Hammerson and its development partner Ballymore have dramatically downsized proposals for the £900m Bishopsgate Goodsyard scheme in London.

Developers Hammerson and Ballymore have cut tower heights on Shoreditch scheme

Under local pressure for more housing, the proposed rejigged scheme will now have twice the number of homes at 500 units and a landmark office tower has been cut in height from 46 storeys to 29 storeys.

Overall, the revised proposals for developing The Goodsyard see the removal of the two high-rise residential towers originally proposed for the site in the existing planning application.

The JV is also significantly increasing the size of the proposed public park at the 10 acre, mixed-use urban quarter in the heart of Shoreditch.

Proposals now include 1.4m sq ft of offices and affordable workspace, 175,000 sq ft of shops, a destination building for cultural space on Brick Lane, as well as an elevated park.

The developers, working with master planner FaulknerBrowns Architects, Eric Parry Architects, Buckley Gray Yeoman, Spacehub, and Chris Dyson Architects, consulted on revisions to the existing planning application for the site in November.

Original high-rise plans for Bishopsgate Goodsyard site

John Mulryan, group managing director at Ballymore, said: “Bishopsgate Goodsyard is an incredible site, packaged with a great deal of challenges.

“Thanks to a combination of over five different railway lines and tunnels passing through this site, as well as many heritage assets and structures to be brought back into use, there are a number of site constraints in play.

“The site offers significant development potential that is also capable of being sensitive to the townscape.”

Tony Coughlan, Development Manager at Hammerson, said: “Working closely with the GLA and the local boroughs, we have reviewed our proposals with the aim of further optimising the number of homes, while maintaining a balanced mixed of uses.

“We are excited to bring forward this updated masterplan which we feel realises local ambitions and converts this derelict area into a vibrant new space; bringing a currently unused site back to life in the heart of Shoreditch.”

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Bouygues paid £21m not to build Garden Bridge

Contractors chosen to build the ill-fated Garden Bridge were paid £21.4m before the project was finally binned.

Figures released by Transport for London detail payments to the Bouygues Travaux Publics and Cimolai SpA – Joint Venture.

Consultant Arup was also paid more than £12m in fees among a total of £53.5m wasted on the project.

The documents state the contractors were paid for “mobilising significant resources, systems, labour, supply chain and support networks to further refine the designs, create prototypes and samples, submit designs for approval by Arup, liaison with third parties to secure rights and consents over areas to erect the bridge and submit details to discharge the planning conditions.”

They were paid £5.1m for the Preconstruction Services Agreement period and £13.4m for the period between being awarded the £90m main contract and the project being scrapped.

A payment of £2.1m was also made for the ‘The demobilisation of staff, offices and repatriation of plant and labour upon suspending the contract.”

Alex Williams, Director of City Planning at Transport for London said: “As part of our continuing commitment to transparency, we have published the final financial breakdown for the Garden Bridge project, on behalf of the Trust, as well as all evidence sought as part of this review.

‘This formally ends our involvement with the project.”

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