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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