Current challenges in the property market

11/8/10

One of these challenges is the delivery of new homes across the whole Island that satisfied need in each local community. Nationally house starts, i.e. houses being built nationally, is now the lowest since 1924. This is well below targets set by the last Labour Government.

The Coalition Government is reducing costs and debt, and also cutting public projects that are currently underway, or in the future. This includes grants which would allow building of projects, in particular public works, and also the public housing association sector.

Both South Wight Housing Association and Medina Housing Association are unable to deliver some of the projects as they have little or no grant.

Although the planning leaders state that with the commencement of works at Pan, along with the continuing development at Whippingham by Barratt, this would cover housing requirements of over 500 units per year over the next 5 years. This in turn would help affordable housing. This is obviously only in the areas of Newport and East Cowes. There is a larger picture which is the satisfaction of needs for communities within the Island as a whole.

It is this challenge coupled with the impending Localism Bill which will provide difficulties, but also allows delivery of providing the right housing for the right people in the right location. Garden grabbing is now dead as indicated and dictated by Mr Pickles, the Government Minister and Mr Murphy, the Chief Planning Officer for the Isle of Wight Council. This historically has delivered 40-60 units per year. The sites which Mr Murphy is now denying means that the building industry as a whole is suffering. This affects local builders, the construction industry, and suppliers, and this will result in employment and losses to the local economy.

The new Localism Bill will concentrate on moving planning being derived from a regional basis to very much a local level, i.e. parish and town level. This will provide nimbyism at its worst, but also could provide an opportunity to deliver housing and development to help rural and town communities based on their exact needs. At Christopher Scott we have been dealing with this over the last 12 months at a project at Brighstone, and now Godshill. We are happy to be able to identify these needs by working with the Local Authority and agencies which would result in a more balanced delivery of housing and community projects which can be delivered hopefully without grant and any lever on the public purse.

Innovative ideas are required for these challenges.