INNOVATION IN HOUSING & PLANNING Levvel About Us Private Sector Public Sector Case Studies Testimonials News & Views FAQs Contact Seminars International CURRENT NEWS V Non housing land - new viability study by Levvel ... more     V David Cameron announces plan to end lifetime council tenancies ... more     V Social housing waiting lists could swell by half a million ... more     V Raynsford appointed Olympics homes company chairman ... more     V Anxiety over government's housing revolution ... more     V Further Viability Study Secured by Levvel in Stafford ... more     V Scottish private sector housebuilding at 30-year low ... more     V Cuts threaten housing with arrested development ... more     V Impact of Government spending review on the HCA ... more     V Boris warns Conservatives to maintain affordable housing investment ... more     V Gaining ground - Planning article Levvel's response ... more V Darlington Borough Council appoints Levvel to provide viability appraisal ... more V January Housing Update ... more V Levvel commences work on new sub regional viability study! ... more V Pre Budget Report ... more V Levvel really enjoyed the Cobham half-day seminar ... more V Levvel's approach in Wokingham gets approval from The Planning Inspectorate ... more V Levvel seminar - a big hit with developers and land owners ... more V Levvel launches a series of seminars ... more V Levvel completes study for Fareham Borough Council ... more V Levvel completes study for Waveney District Council ... more V Levvel speak at international housing conference ... more V Funding concerns for affordable housing ... more V Robust viability assessment upheld at recent appeals ... more V Levvel secures major international contract ... more V Levvel selected to advise on viability in Stafford ... more V Levvel appointed for viability study in Manchester ... more V Success for Levvel at Poole core strategy examination in public ... more V Affordable housing planning conditions ... more V Appeal court outlines need for viability assessments ... more V Levvel completes Wokingham affordable housing viability study... more V Local Spatial Planning and PPS12 ... more V Lifetimes homes ... more V CIL ... more V Withdrawal of paper on valuation of affordable housing land in Scotland ... more V Ecotowns ... more V Intermediate Housing and the downturn ... more V Levvel wins Wokingham affordable housing viability study ... more V Levvel opens new London Office ... more     Pre Budget Report December 2009 We have just been through the Chancellor’s Pre Budget Report to see if there is any encouragement for the house-building industry for next year and beyond. Well, there are no ground breaking ideas, as you might expect with the limitations on private and public finances, but housing supply is recognised within the Report as being an essential ingredient to improving the UK’s economy. For existing home owners the government will continue to put pressure on banks to ensure people are protected as best as possible from repossession and for renters it will encourage councils to reduce the increases of affordable rents. However, there appears nothing new for encouraging the sale of new homes. Indeed, the stamp duty holiday for properties up to £175,000 comes to an end on 31st December 2009 [1], increasing costs particularly for first time buyers. However, the government had sought commitments from banks to increase lending to business and we hope this translates to better lending terms for house builders and developers – time will tell. In the meantime the Chancellor recognises that continued lending restrictions to households, coupled with concerns over household income and increased supply as the market recovers, suggests that it is unlikely we will have significant increases in property values for some time [2]. Despite these concerns the Government remains committed to the Zero Carbon Homes strategy as well as implementing a Lifetime Home standard [3]. Lets hope we see the “proportionate approach” the Report suggests! [4] In this uncertain environment, the government appears to be placing considerable hope on the private sector financing £200billion infrastructure over the next 10 years, expecting developers, through PFI/PPP and the introduction of the Community Infrastructure Levy in April 2010, to fund not only internal infrastructure but also to make contributions to external strategic infrastructure. There is an anticipation that Councils will positively identify and prove the viability of developments in a five year land supply – i.e. land value capture will have be used to identify any excess land value increase to be spent on infrastructure and affordable housing. We believe that these expectations are wholly unrealisable, given the struggle that developers will have in just achieving planning gain and some affordable housing. The attached paper suggests likely future scenarios as to possible affordable housing targets and what may be viable over the next few years – the bottom line is without public subsidy the affordable housing needed is unlikely to be provided. Fortunately there is an acknowledgement in the Report that Councils should apply policy in a flexible way [5], through the use of viability assessment, and recognises that planning gain contributions might need to be scaled back to ensure that developments remain viable. 2010 is going to be an interesting year! - - - Read Full Pre Budget Report - Visit HM Treasury website Read Levvel's Pre Budget Briefing - 60k PDF [1] Paragraph 5.56 Pre Budget Report [2] Paragraph A67 Pre Budget Report [3] To be delayed until 2013 [4] Box 5.2 page 92 Pre Budget Report [5] Box 5.2

CONTACT HEAD OFFICE Tel:+44 (0)1202 639444 Email: click here NEWS & VIEWS V Non housing land - new viability study by Levvel ... more >> V David Cameron announces plan to end lifetime council tenancies ... more >> LEVVEL IN THE FUTURE Levvel will be expanding and evolving their services as a response to the economic climate and as a consequence of the changed political situation. We will launch the new services and updated website in the summer. As new housing and planning policies emerge, we will be hosting more regional seminars, starting in the South West. pre-register for seminars >> CAREERS We are always looking for new talent to join our team of consultants ... more >>

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