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HS2: Government 1 - Derby 0?

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High speed train pic.jpg

It's been something of a rough ride for HS2 this week. Much of the attention was focused on the broadside from the National Audit Office that pranged a few holes in Britain's proposed second high speed rail link, that may or may not see super-fast trains whizzing between Birmingham and London from 2026 (EGi news article)

The kerfuffle partially masked important HS2-related developments in the Midlands. As I reported for EGi News, these included the government's announcement that it will consider extra (and costly) tunnels in both the West and East Midlands to take the railway away from conflicting land uses, and fury from Birmingham MP Liam Byrne that the government won't do something similar for blighted prime industrial land at Washwood Heath. 

What may have been missed entirely though are the ramifications of the government's willingness to reroute HS2 underneath, rather than through, a prime proposed employment site in Leicestershire. Here the (largely Conservative) county council vociferously attacked the government, so the change of tack (or rather track) could be seen simply as a political sop.

But Midlands' transport watchers suggest that the move is far more cunning. They point out that Leicestershire county council had publicly supported calls from Derby for HS2 to be completely rerouted through that city's centre. At present, the proposed line instead will pass between Derby and Nottingham, stopping at neither. Trains will call at an out of town East Midlands Hub station, from where passengers will be shuttled to Derby and Nottingham city centres.

Nottingham is happy with this arrangement but Derby is most definitely not and, as EG reported last month is drawing up a business case to back up its argument that it should be served directly by the super-trains. By agreeing to consider a tunnel in Leicestershire the government might just have taken out Derby's most vocal, and potentially troublesome, ally.

Guest Blog: Growth & Infrastructure Bill

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Nigel Simkin, associate director, planning and development at Jones Lang LaSalle's Birmingham office gives his thoughts on the emerging Growth and Infrastructure Bill.
 



There's never a dull moment in planning these days.  First there was the Localism Bill and now it's the Growth & Infrastructure Bill heading for Royal Assent.
 
The new bill picks up on the current buzzword in planning - viability - as the government realises that development equals economic growth and it is keen to fast-track large-scale business and commercial projects, to allow decisions to be taken within 12 months.
 
Campaigners say the bill, proposing that developers can go direct to the Secretary of  State to bypass local authorities creates a developers' charter.  As with everything, however, the devil is in the detail.  This element is watered down, restricting possible bypassing to councils, which show a consistent failing to determine applications within statutory time limits.  And in reality we'd all rather work in consultation with the local authority than go to battle.
 
In fact the part of the bill for landowners and developers which could make a real difference relates back to a ministerial statement on Housing and Growth (September 2012) which states that, 'it is vital that the affordable housing element of Section 106 agreements negotiated during different economic conditions is not allowed to undermine the viability of sites and prevent any construction of new housing.'
 
At present there is no obligation for Section 106 agreements to be revisited for a period of up to five years, unless local authorities agree to it.   Under the proposed new bill, this would change and 106 obligations relating to affordable housing regardless of their age can be renegotiated if they make a scheme economically unviable.  
 
It's this detail that can really be the deal breaker for developers and landowners trying to unlock land and as the bill heads for Royal Assent, it's time to dust off those 106's.
 

HS2 Phase 2: Trainspotters

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It's been a big day for a small suburb. Unless you're a train spotter you've probably never heard of Toton, a tiny outpost in Greater Nottingham. But the government has put Toton on the map today after it revealed the details of the next phase of the High Speed 2 rail network.

Toton Sidings is a huge marshalling yard and a Mecca for anorak-wearing, notebook- carrying rail lovers. It will also now house the first station after Birmingham on the 211-mile northern phase of the major infrastructure project. Other stations are planned for Manchester, Manchester airport, Sheffield and Leeds.

Nottingham has every reason to be pleased with itself. It had to fight off stiff competition from rival East Mids city Derby which also had its hopes pinned on netting the HS2 station. 

Commenting on today's announcement, Innes England director, Tim Garratt, says: "The decision to create a HS2 station at Toton is, in my view exceptionally good news for both Nottingham and Derby - and the East Midlands as a whole.  Toton is a logical place - with the convergence of the Nottingham tram, the M1 motorway and the A52 all within striking distance."

As evidenced in other major infrastructure rail projects, values increase around stops and most importantly some stalled developments can get kick-started. 

With Toton being largely under-developed until now, it will be interesting to see how the regeneration benefits of HS2 phase two unfold. There is already talk by NET to extend the tram line into the site. 

Next to the proposed HS2 site at Toton, Peveril Homes and UKPP (advised by Jones Lang LaSalle) submitted plans last October for a major urban extension comprising 775 homes and a small amount of commercial space. The scheme is not affected by the HS2 plans, but looks set to benefit from them going forward.

Peveril director James Smith said that having the Toton Sidings site considered for HS2 was a good thing. "We support the political consensus regarding HS2 and firmly believe that this can bring sustainable, long-term benefits to the area," said Smith. "We are seeking a further dialogue with the local authority to see how we can help move this forward."

However, the plans could face delay following the extension announcement.

With construction expected to start in four years time and opening scheduled for 2026 for the first 140-mile London to Birmingham phase, there's still a long way to go before the entire line is operational around 2033 - when a lot people making decisions today will probably be retired.

Still, just the thought of double-decker high speed trains travelling at 220mph into Nottingham are getting those train spotters pencils twitching.



The second phase will dramatically reduce journey times. Passengers will be able to travel from Birmingham to London in 49 minutes, cutting the journey time from one hour and 24 minutes at present, while Birmingham to Manchester city centre will take 41 minutes. A journey to Leeds from London will take 57 minutes, almost halving the existing journey time.

Manchester - alongside Piccadilly station
Manchester airport- alongside the M56 between Warburton Green and Davenport Green 
East Midlands - at Toton, between Nottingham and Derby and one mile from the M1
Sheffield - at the Meadowhall Shopping Centre
Leeds - at New Lane, in the South Bank area connected to the main area by a walkway

EG Regional Awards get makeover for 2013

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As this year starts to draw to a close, EG turns its attention to 2013. As in previous years we shall be recognising the country's best property companies and property advisers in eight English regions, as well as Scotland and Wales.

Next year we have decided to do things slightly differently, with our team of editorial experts deciding on the property company winner for each area. This will be based on activity (actual or construction), investment, funding or space disposal. The winner of the adviser category will be based on EGi data, crunched by our research specialists. Those that have transacted the most space proportionate to the sector shall be victorious.

Another tweak comprises the awards being launched and announced throughout the year - rather than at the beginning. The first region to come under the spotlight is the East of England (see here for more details).

I'll let you know about the Midlands categories well in advance, but we shall be announcing the West Midlands winners at our Birmingham Focus Reception in September - so do make sure you join us. The East Midlands awards will be announced earlier in the year at a venue to be confirmed so watch this space!

Details for how to register to attend our focus receptions will be available on our events page soon.

We will be choosing a company and advisor based in the following areas:

West Midlands
East Midlands
Scotland
London
South East
South West
Wales
East of England
North West
Yorkshire & North East



Guest Blog: Reaction to Boles' call for green belt resi

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Following this morning's announcement that planning minister Nick Boles will tell Newsnight viewers tonight that he wants to boost the amount of land built on in England by a third, CBRE director and residential development specialist Adrian Willet gives his reaction to the news.



Planning minister Nick Boles wants to build on more than 1,500 square miles of open countryside to meet future housing demand. Mr Boles has gone on the record to say that the percentage of England that needs to be built must be increased from the current 9% to 12%. This would mean that the amount of land concreted over will potentially increase from 4,531sq miles to more than 6,000 sq miles. The 1,510sq mile increase is more than twice the 607sq mile area covered by Greater London. 

This is bound to light the blue touch-paper in the shire districts of the Midlands and the Home Counties where land supply pressures are greatest and political and local resistance is most vocal; and in a week where we have seen television footage of flooded, recently built housing developments, today's green belt proposals will undoubtedly bring the environmentalists to the fore. 

Boles on tonight's Newsnight will state "We're going to protect the green belt - but if people want to have housing for their kids they have got to accept we need to build more on some open land. In the UK and England at the moment we've got about 9% of land developed. All we need to do is build on another 2-3% of land and we'll have solved a housing problem".  

My own view is bound to divide opinion, but I believe we have fought against incursion into the green belt for too long now, and selective, sustainable and sound green-belt development is something we have to embrace. About a decade ago, house builders took on the brownfield land agenda with great gusto, and delivered much of Greater Birmingham's housing stock on previously used land. The better quality sites have now been largely taken up, and we simply don't have enough good quality brownfield land coming forward to deliver the housing numbers. The reality is that private house builders will not build on brownfield land in addresses where houses do not sell in sufficient numbers, or at values which fail to make a sensible margin. 

Gues Blog: Planning - Local authorities get in a pickle

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JLL-PETERLEAVER.jpegJones Lang LaSalle planning director Peter Lever discusses the proposals by government to further relax planning laws to encourage development. Lever believes local planning authorities have received a "wake-up call" from the government and will be under increased pressure to deliver more housing. Is Eric Pickles friend or foe?


 

Secretary of State for Communities and Local government, Eric Pickles, has issued a mininsterial statement entitled Housing and Growth. The statement looks at a number of ways which the housebuilding sector could be kickstarted. 

It is clear that planning is seen as a continued obstacle to growth.  Even a more flexible approach to development in the green belt - previously a sacred cow - is now contemplated.

In simple terms, many local authorities are red faced because they have taken too long to produce their development plans and are now finding that the government is taking matters into its own hands to accelerate the delivery of new homes.  Eric Pickles is far from the friend local authorities, particularly in the Conservative heartlands, thought he was going to be when he initiated the Localism agenda shortly after the coalition government took power in 2010, promoting more local involvement in development decisions.

Developers are now more likely to win planning appeals, if local authorities have not got a proper strategy in place and have a record of poor-quality or slow decision making.  This has led to the government deciding where schemes are placed and not the local authorities.  Added to this the appointment of Nicholas Boles as planning minister, who is very pro-development and doesn't think planning works, and we will be seeing a much more emolient approach to development and, crucially, the consideration of green belt land.

West Mids Tory & Labour MP's fly the flag for Birmingham

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plane in flight pic.jpgBirmingham has rather opportunely engaged in the debate that has been raging this week about the UK's air capacity. The unusual bedfellows of Conservative and Labour MPs, along with business and council leaders from the West Midlands, have today united to call for spare capacity at Birmingham Airport to be used to ease congestion in the south-east.

This group of passionate drum bangers are promoting Birmingham Airport as a means of easing congestion at London's Heathrow and in the south east. They believe that in the long-term, the development of Birmingham Airport as a major gateway at the centre of the UK would reduce unproductive surface travel time and leave Heathrow as a gateway for London and the south-east.

The letter published in today's Daily Telegraph (August 30, 2012) says: "A 'hub airport' in the South East favours a small, congested, and already economically strong part of the country. We need gateways close to the manufacturing, research and development of the Midlands and the North, linking these regions directly to emerging markets.

HS2: Trouble on the tracks

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Perhaps spurred on by images of medal-clutching Olympians piling onto Eurostar trains at St Pancras, HS2 Limited last week took a small, but important step forward. After months of radio silence, the government-owned rail company finally appointed a panel of five agents to advise it on property acquisitions, compulsory purchase orders and compensation for the proposed £32bn High Speed rail link between London and Birmingham.

The multi-million pound two year contract that started at the beginning of this month, is certainly good news for chosen firms GVA, Jones Lang LaSalle, Colliers International, Drivers Jonas and Lambert Smith Hampton. But far more importantly, it should allow property owners along the proposed 140 mile route from London's Euston to Birmingham's Eastside to finally engage substantively with HS2.

While HS2 could bring significant benefits to Birmingham in fourteen years time, landowners have become increasingly frustrated with its impact on major development schemes. And a trio of heavily affected landlords have voiced their concerns. Grainger, Development Securities and Quintain all had schemes underway in the city's Eastside regeneration zone, that have been significantly altered by the HS2 proposals.

Guest Blog: NPPF - Planning under emerging policy

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Stuart Andrews Eversheds.jpgStuart Andrews is head of planning and a partner at law firm Eversheds. Based in Birmingham and with a national remit. Stuart sets out his thoughts (below) on the National Planning Policy Framework (NPPF) ahead of the government's announcment on the moratorium arrangements for the NPPF, and how he thinks English council's may react within the time period until implementation?

 

We will apparently learn within the next few weeks that the new compact, faster and more effective planning system will have a momentary pause of a few months to allow local authorities to catch their breath. Some may call for oxygen when they realise what faces them and, no doubt, some will ask for more time. The rumour mill suggest that this will be set before the National Planning Policy Framework (NPPF) is issued and is likely to extend until early autumn.

Whilst the NPPF should be adopted by March, the period of grace will come as small comfort to many local authorities. The fact is that council's throughout England will have to use this moratorium to set about a comprehensive planning policy review - in the absence of regional support; in reliance upon informal cross-boundary arrangements; with limited staff resource; and, the added prospect that DCLG will stop the production of regional statistics.

What will they all do? Well, there are some fairly good indicators. The current response appears to fall into four camps.

DTZ Sale - reaction from the regions

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for sale sign pic.jpgThe potential sale of DTZ has been grabbing the headlines this week and, understandably, much of the coverage has focused on the future of the company's corporate entity. Less attention has been given to the 11 UK regional offices. So I spoke to a number of key agents around the country for a view on what the future holds for these regional offices and their staff?

 

In Birmingham, Simon Robinson, director at independent Midlands' agent GBR Phoenix Beard, called the news of the proposed sale "stunning," saying: "I thought there would be a period of dust settling first. I would expect all major players to be looking at all or parts of DTZ. I suspect that for regional companies it's still too early for a serious bid but the coming days and weeks will be interesting. We haven't sat down yet and talked about DTZ staff joining us."

 

Meanwhile, in Scotland, Ewan Cameron, regional managing partner at Scottish agency Ryden, believes DTZ remains a "very strong outfit" north of the Border. "It is strong, but it has lost some staff particularly in its research and planning teams. However, it still has key people on its transactional side of the business. We're not looking at taking on any parts of the DTZ business. I don't see us buying any additional teams as we haven't the appetite and are of a size and scale where we don't need to at present. I haven't heard of anyone else looking to do this either."

 

Manchester's David Porter, who heads up the city's Knight Frank office, says: "This sale has not come out of the blue at all. It's not a surprise locally, here on the ground it's been expected for some time. I'm sure DTZ has been looking at a variety of options for a while now. In Manchester, it's a large, well respected business and it is doing well. I'm not sure if we'd approach any of DTZ's staff as there's not much churn in the market at the moment and there hasn't been for some time. People are tending to stay where they are."

 

EGI carried out its own survey on Wednesday, asking the industry who it thought might buy the business? CBRE was voted the most likely candidate by EGi readers with just less than 30% of the votes, with BNP Paribas Real Estate in second place with 18.4%

 

What do you think is the most likely outcome for the business? Post your comment below...

 

 

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