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GLA Buy To Let event – 13 Feb 2008 Greenwich’s Best Value Review of the Buy To Let Market Mark Baigent Assistant Director of Neighbourhood Services Outline • Purpose of the review • Evidence gathering • Contacting local stakeholders • Potential solutions and responses • Case studies to watch in Greenwich • Next steps Purpose of the review Local concerns: • Specific problems on Thamesmead new-build site • BTL in wide range of other new developments • Impacts on policing, health, education, cohesion Aims: • Call in expert witnesses to better understand BTL • Consult wide range of local stakeholders • Develop multi-agency responses to problems • Explore interventions both regulatory and informal Evidence gathering: positives • Many economists and market commentators claim that the Buy To Let boom has been beneficial: • Private renting supports labour mobility • Investment in housing supports the London / UK economy and keeps the housing market buoyant • A good balance of tenure options keeps renting affordable rather than forcing some people to buy “too soon” and then regret it Evidence gathering: negatives • There is growing evidence locally and nationally that Buy To Let can create a range of problems: • Concentrations of transient people in a local area undermine a sense of community and belonging • Poor management can allow antisocial behaviour, overcrowding, disrepair and ultimately the risk of homelessness (Thamesmead example) • Property prices become inflated undermining affordability for first time buyers Stakeholders the Council is contacting Health Police Schools Transport Buy To Let landlords and tenants Employers Utilities Developers and RSLs Lettings agents What are the potential solutions? • Council interventions: • Selective & Additional Licensing (Env. Health) • Problem Solving Processes (Community Safety) • Management arrangements (RSL role?) • Covenants to limit % BTL on new developments? • Developer best practice in marketing and sales? • South East London / Thames Gateway responses? • Institutional investment rather than individuals? New Haddo / Rubicon • Does use of Council land give us the chance to limit Buy To Let sales and ensure proper management is in place? Greenwich Peninsula • Does this joint venture with English Partnerships offer an opportunity to sell Buy To Let more responsibly? Kidbrooke Vision • How can the Council ensure that this is a mixed and sustainable community rather than dominated by Buy To Let? Next steps • Explore challenges and costs of potential solutions • Draw up recommendations and action plan • Final report to Cabinet in April • Follow up action with key partners: • SE London Housing Partnership • Police and community safety partnership • English Partnerships / Housing Corporation • Local RSL landlords • Private sector developers and agents • GLA Contact us • Mark Baigent • Assistant Director of Neighbourhood Services • Tel 020 8921 5638 • E Mail [email protected] • Gill Ackrill • Strategy and Development Manager • Tel 020 821 5630 • Email [email protected]