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Bringing together government, the private sector and local communities to create more sustainable placesLocal Government Association Conference 2011NextGeneration/Jones Lang LaSalle and Taylor Wimpey
28th June 2011
18:30 to 19:30
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AGENDA
18:30 – 18:35 Philip Hirst, Jones Lang LaSalle Welcome and Introduction
18:35 – 18:45 Philip Hirst, Jones Lang LaSalleHomebuilding Industry and Localism
18:45 – 18:55 Philip Hirst, Jones Lang LaSalleLessons from the NextGeneration 2010 Sustainable Communities Benchmark
18:55 – 19:05 Philip Hirst, Jones Lang LaSalleHow NextGeneration can help Local Authorities
19:05 – 19:25 Peter Andrew, Taylor WimpeyCommunity Led Planning
19:25 Question and Answer Session
Drinks and Networking
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Homebuilding Industry and LocalismPhilip Hirst, Senior ConsultantJones Lang LaSalle
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Localism’s Impact on Home Building
Increased engagement with local communities e.g. one of the six essential elements of Localism is to “empower communities to do things their way”
New organisations to engage with e.g. Local Enterprise Partnerships, mutuals, co-operatives etc
Greater transparency in planning decisions and process e.g. Enquiry by Design
Greater local benefits from development e.g. Community Infrastructure Levy
Developments that respond to local needs e.g. family housing
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New Roles for Homebuilders?
Homebuilder’s traditional role can be described as a “current trader” (Calcutt Review of Housing)
i.e. sale of freehold, employment of managing agent, short term
How does this role fit with ideas about Localism and the Big Society?
Localism requires individuals, government and businesses to adopt “new roles” e.g. local charities running services
What new roles could/should homebuilder’s adopt?
Energy Supplier? e.g. ESCOs
Estate manager? e.g. Berkeley/Aviva PRSI schemes
Partner? e.g. Community Land Trusts
Landlord? e.g. Willmott Dixon market rent developments
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New Ways to Consult?
Traditional consultation driven by planning guidance e.g. PPS1
Statement of Community Involvement (SCI), public notices, newspaper advertisements, letter drop by home builder/local authority, consultation event in local hall, planning meeting, pre-meetings with planning officers
What new forms of consultation can help deliver increased levels of engagement with local communities?
Electronic consultation e.g. e-mail, websites, Twitter, forums
Best practice tools e.g. Planning for Real, Enquiry by Design
Resident or Design Panels?
Post-occupancy feedback?
Alternative venues e.g. shopping centres, leisure centres, high streets
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Localism and Sustainability
Environmental sustainability issue can generally be managed “top down” e.g. Building Regulations, renewable energy targets etc and have non-local or global impacts e.g. climate change
Social and economic sustainability issues tend to be local in nature e.g. access to amenities, proximity to public transport, employment etc and have local impacts e.g. impact on quality of life
People, not technology, are required to solve these problems
“Sustainability” or an equivalent term is not explicitly mentioned in the Localism literature
However, localism is of direct relevance to resolving sustainability issues, particularly social and economic sustainability issues e.g.
Creation of a sense of community
Local employment initiatives
Increased engagement
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Lessons from the NextGeneration 2010 Sustainable Communities BenchmarkPhilip Hirst, Senior ConsultantJones Lang LaSalle
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Introduction – What is NextGeneration?
Annual benchmark of the top 25 UK home builder’s sustainability performance
Allows investors, government and the public to understand the sustainability of the sector
Allows the sector to understand and improve its performance
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Evolution of NextGeneration
2004/2005Bank of
Scotland/WWF Benchmark
2010 Sustainable Communities Benchmark
2007 Corporate Benchmark
2008 Climate Change
Benchmark
2009 Corporate Benchmark
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Executive Committee, Secretariat and Sponsors
Executive Committee: Homes and Communities Agency, World Wide Fund for Nature
Secretariat: Jones Lang LaSalle
Report Sponsors: National Home Building Council
Initiative Sponsors: Lloyds Banking Group
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Membership
Members: Barratt Developments, Berkeley Group, Crest Nicholson, Lend Lease, Gladedale Group, Galliford Try, Keepmoat Group, Miller Homes, Morris Homes, Redrow, Taylor Wimpey, Willmott Dixon
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Benchmarking process
Public launch
Nov
Phase 1
All home builders public information
May
Criteria Development
Jan-Apr
Phase 2
Member assessment of internal information
Jun-Sept
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Sustainable Communities Benchmark
“Sustainable communities meet the diverse needs of existing and future residents, their children and other users, contribute to a high quality of life and provide opportunity and choice. They achieve this in ways that make effective use of natural resources, enhance the environment, promote social cohesion and inclusion and strengthen economic prosperity.”
The Egan Review: Skills for Sustainable Communities - 2005
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Sustainable Communities Benchmark
When decisions are made about a community, local people are included in the decision-making process. The community enjoys a sense of civic values, responsibility and pride.
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Sustainable Communities Criteria
1. Strategy, Governance
& Risk Management
2. Delivering Sustainable
Communities
Strategy: Approach, Targets, Monitoring, Reporting, Initiatives
Governance: Senior Representative, Working Group, Training
Risk Management: Reporting, Process, Financial Implications
Location & Connectivity: Distance to transport nodes, home office working, cycle storage, travel plans, innovative measures to reduce car dependency
Planning & Design: Public realm, open space, community facilities, Building for Life, Lifetime Homes, Secured by Design, EcoHomes, Code for Sustainable Homes, infrastructure
Engagement: corporate engagement, project engagement, customer engagement, customer care
Management & Legacy: Considerate Constructors Scheme, monitoring and evaluation, job creation, economic development
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Overall results
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Antler HomesBloor Holdings
Cala GroupFairview New Homes
Galliard HomesMcCarthy & Stone
Kier ResidentialStewart Milne
Lovell PartnershipsBovis Homes
PersimmonGladedale Group
BellwayGalliford Try
Countryside PropertiesMorris Homes
RedrowLend Lease
Barratt DevelopmentsTaylor Wimpey
Keepmoat GroupWillmott Dixon
Miller HomesCrest NicholsonBerkeley Group
Phase 1 Phase 2
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Customer engagement
Customer research e.g. focus groups
Voluntary regulation e.g.
Consumer Code
Better customer satisfaction data e.g. HBF survey
Average customer
satisfaction 89%
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16 companiesImproving skills
e.g. apprenticeships
10 companies Working with
local sub-contractors
Local economic development
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Stakeholder engagement
Barratt Developments
Publicly reported KPI of % of developments that plan for community engagement
Willmott Dixon
Standard approach to community engagement, Community Engagement Team and methodology developed with Business in
the Community
KeepmoatCommunity Mark Accreditation & work with Whitburn
Shores Community Land Trust
Galliford TryPlanning for Real with Yarborough Tenant’s Association
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3. Sector strengths
Stakeholder engagement
Despite individual examples of best practice, majority of homebuilders do not have a standard, publicized approach to community engagement based on best practice principles and using best practice techniques
Where examples of best practice were found they tended to be:
a) On the largest projects
b) Where central or local government funding/land has been provided
Initial results of 2011 benchmarking is that homebuiders are responding to the challenge of Localism and looking to standardize and improve their
approach to community engagement
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How NextGeneration can help Local AuthoritiesPhilip Hirst, Senior ConsultantJones Lang LaSalle
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How do local authorities engage with home builders?
Planning
Through Planning Policy: Many Local Development Frameworks (LDFs) and Supplementary Planning Documents (SPDs) include sustainability targets beyond statutory minimum e.g. renewable energy requirements (Merton rule) or minimum Code for Sustainable Homes levels etc
Through the Planning Process: Planning dialogue, s106 agreements etc
Partnering
Through procurement: The sustainability of partner organisations is often assessed as part of Pre-Qualification Questionnaires (PQQs) and Open Journal of the European Union (OJEU) tender exercises.
Through project monitoring and evaluation:
Sustainability targets are also often set as part of these projects.
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How can NextGeneration benchmark help?
Use as an objective, third party assessment of homebuilder sustainability claims
Use report as a source of best practice case studies to refer homebuilders to
Use as a framework to compare potential homebuilder partner performance
Use as a qualification criteria for joint venture partners
Use as a tool to monitor partner performance on sustainability
Use as a planning condition requirement
Access latest thought leadership and research on sustainable home building
Engage with homebuilders at quarterly events
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Community Led PlanningPeter Andrew – Land and Planning DirectorTaylor Wimpey
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Introduction
Taylor Wimpey is one of the largest homebuilders in the UK with national coverage from 24 regional offices
We build around 10,000 homes a year in the UK covering a wide range of homes, from one bedroom apartments to five bedroom houses, with prices ranging from below £100,000 to above £500,000
We build affordable housing across the UK, which represented 18% of our 2010 completions
Market currently stable in terms of buyers and price
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Challenges
We urgently need more housing in the UK
Housing is one of the big social and economic challenges we face
Existing planning system has failed to deliver sufficient land to meet housing demand
Market subdued due to lack of mortgage availability for first time buyers
Mortgage difficulty and money for deposit means 6m non-home owning British adults do not intend to buy a property
Bank of mum and dad does not have unlimited funds and lack of housing supply will only exacerbate situation
Burden of Regulation having effect on viability
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Government Policy and the NPPF
Taylor Wimpey supports the Coalition Government’s Localism agenda and the changes to the planning system
New Homes Bonus Reduction in ‘red tape’ initiative Invitation from Greg Clark MP to be a part of a group of four experts from
local government, industry, planning consultancy, and an NGO to draft a new National Planning and Policy Framework
Our aim was to create a simplified framework which would encourage quicker economic growth but protect environment and heritage
Key points:- Presumption in favour of sustainable development Plan led – Robust evidence base for need and demand Right Land for development Duty to Cooperate Clear intent to deliver more housing 5 year land supply +20% viability
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Government Policy and the NPPF
Our paper was only an informed contribution – the final document will be the Government’s own
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Localism
Taylor Wimpey wants to be part of the housing recovery, and is working with the grain of Government policy
House builders to become more local
Progressing ways of making our regional businesses more open, transparent and accessible
Communities need to see the benefits of localism and understand its implications
Development which is not sustainable in their widest sense will not be acceptable.
But sustainable also means schools, hospitals, GPs, roads
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TW’s approach
Engagement is different to consultation
Developing our people throughout 2011 with the skills needed for effective communication and community engagement
Process map to assist our people
Developing a new Taylor Wimpey website which aims to provide greater understanding of and insight into our business and expertise
Online portal which will provide communities with increased opportunities to contribute to the planning process.
We are also working on forging stronger working relationships with local decision makers and members of local communities
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Conclusion
The industry and Local Authorities must work together to make the new policy work effectively
Local Authorities need to ensure that their planning officials are prepared. It is new to all of us
Sustainable development is paramount
We must look to build communities not simply houses
Taylor Wimpey’s recent development in Worcestershire is a successful example of everyone working together – described by local councillor as “the Big Society working how it was supposed to”
We will work to ensure this becomes the norm, not the exception
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Conclusions Philip HirstJones Lang LaSalle
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Conclusions
Localism’s impact on homebuilders and all stakeholders involved in the creation of new sustainable places is significant
Research suggests that there is a lack of standard approach to community engagement amongst homebuilders, as well as a lack of use of best practice engagement techniques
However, the home builders who participated in the NextGeneration benchmark represent some of the most progressive companies in the sector and have participated in a challenging assessment of their approach in this area
Homebuilders are reassessing their approach to engagement in light of Localism
The results provide a window into homebuilder performance in this area for local authorities and can be used as a tool for new ways of engaging with private sector home builders
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Questions & Answers