Sector Focus
Call for bolder housing reforms
Housing association Midland Heart are urging the Government to be more ambitious in reforms to the national planning policy known as the National Planning Policy Framework (NPPF). Midland Heart, which has
33,000 homes across the region, is calling for the new policy to support its mission to tackle the shortage of quality affordable homes across the Midlands. Joe Reeves, executive
director of Growth and Corporate Affairs, said: “The Government tends to think about housing affordability from the perspective of housing markets in the South East, where the shortage of affordable homes is most acute. We understand the reasons for this, but we need a planning system that will help us to deliver more affordable homes in the West Midlands too. “Consultation on the
proposed revision of the National Planning Policy Framework has just closed and we are questioning whether the reforms are bold enough on affordability. “Over the next five years we
will be investing £450m in delivering new affordable homes across the West Midlands region. We are also working with other housing associations in the West Midlands Housing Association Partnership and with the West Midlands Combined Authority to see how, together, we can deliver even more affordable homes but we need planning policies that match our ambition and drive.” In its response to the
Government, Midland Heart recommended a number of changes, including: • A set target for homes that are affordable to rent on major developments
• A housing need assessment model that takes into account the impact of employment growth on housing demand – an increasingly critical issue for the Midlands as HS2 and UK Central grow nearer.
The NPPF sets out policies
for England and how they should be applied at a local level. The Government is expected to publish its final recommendations in July.
70 CHAMBERLINK July/August 2018
Property Brownfield transformation
Bringing brownfield into use (from left): Ian Ward, Jon Robinson, Andy Street, and Nick Oakley of Finance Birmingham
A derelict brownfield site in Birmingham will soon be back in industrial use thanks to a £3.6m investment by the West Midlands Combined Authority (WMCA). The loan is from its Collective
Investment Fund (CIF) to developers Barberry Developments towards a £5.6m scheme to build a 65,000 square foot industrial/manufacturing unit in Aston. The 2.9 acre site is part of the Advanced Manufacturing Hub (AMH) in Queens Road, close to Junction 6 of the M6, and work is expected to be completed this summer. The AMH is a joint initiative
between Birmingham City Council and the Homes and Communities Agency aimed at the manufacturing sector. Mayor of the West Midlands
Andy Street said: “The CIF is making a significant impact across the region’s economy.
‘The AMH has brought much- needed jobs and investment to Aston’
“This latest investment will help
accelerate the development of sites where demand is strong and will therefore generate considerable economic value to the region.” Cllr Ian Ward, leader of Birmingham City Council, said: “The AMH has brought much-needed jobs and investment to Aston and this financial backing from the WMCA is a vote of confidence in the Hub’s continued success. “Birmingham is booming and the
manufacturing sector has a big part to play in delivering inclusive economic growth for people across the city.” Jon Robinson, development
director of Barberry Developments, said the scheme would be a best-
in-class industrial/manufacturing unit built to the ‘Very Good’ rating under the international BREEAM building sustainability standards. “It will provide regional, national
and global occupiers the quality of accommodation needed to expand, create jobs or relocate their businesses within the West Midlands,” he added. “Both the combined investment
of the CIF and Barberry will create an estimated 116 new full time jobs within the region. In addition to this we are indirectly employing around 130 personnel while developing this site providing the much needed employment for the West Midlands construction sector.” The CIF is a £70m commercial
development war-chest set up by the WMCA to stimulate jobs, opportunity and growth. It is aimed at unlocking a further
£1bn in private sector investment over the next 10 years.
GPU dominates office take-up
The Government Property Unit (GPU) leased more office space in the first quarter of 2018 than any other occupier and contributed to the public sector accounting for 30 per cent of all regional take-up. Cushman & Wakefield’s
Marketbeat report, which monitors Central Business District (CBD) office space, revealed that despite the GPU lettings, the regional office market had a moderate leasing performance. Q1 2018 take-up volumes in Birmingham’s CBD totalled just under 148,500 sq ft, which is six per cent below the five-year Q1 average but still ahead of the same period in 2017. The report revealed that while
the supply of regional office space remained stable, there remains an acute shortage of grade A space which has been exacerbated by a lack of speculative development. Of the 4.8 million sq ft of office
space currently under construction, 40 per cent is already pre-let or under offer. The largest transaction this
quarter was to WSP, who leased just over 46,000 sq ft at The Mailbox. Supply of office space continued
on a downward trend, contracting by 5 per cent over the quarter. At the end of March, total supply stood at 1.29 million sq ft, which was down from 1.35 million sq ft at the end of Q4 2017.
There was just 450,000 sq ft of
Grade A space on the market, which equated to less than one year’s Grade A take-up. Scott Rutherford, partner and
national head of offices at Cushman & Wakefield in Birmingham, said: “Occupiers are pushing for greater flexibility which will influence demand in 2018. “We expect the flexible working
sector will continue to grow in core cities this year, as operators turn their attention to new markets.” Cushman & Wakefield’s research
predicts that there will be further growth in headline rents across key regional cities but the level of increase will be at a slower pace than seen recently.
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