Capital Letters by JBP provides an insight into the world of London politics and development.
International Investment in London Land
According to figures from the property services adviser, CBRE, buyers spent £1.8 billion on land for property development in central London in the second quarter of 2015, breaking the record set before the 2008 financial crisis in 2007. Nearly three quarters of buyers were backed by money outside the United Kingdom.
Cash from overseas continues to flood into London despite prices and yields for assets being back near pre-credit crunch levels. Transparency International estimates that one in ten residential properties in Westminster are owned by companies registered offshore. About half of the deals were for the development of land for commercial use, the other half being sold for the construction of homes.
Prime Minister David Cameron cited figures last week claiming that £122 billion worth of property in England and Wales is owned by offshore companies, saying “we need to stop corrupt officials or organised criminals using anonymous shell companies to invest their ill-gotten gains in London property, without being tracked down... There is no place for dirty money in Britain.” He further announced that he had asked the Land Registry to publish data on such properties.
Council plans to halt spread of 'mega basements'
Westminster City Council wants to change its planning policy on applications for basements to ensure they're approved as part of the normal process. This will mean that, if agreed, all basement applications must be approved by the local authority before development can proceed.
The Council’s decision comes after the Royal Borough of Kensington and Chelsea introduced similar measures in 2014. Currently, many basement extensions can be carried out under permitted development, but Westminster City Council aims to be the second council in the capital to put a stop to the ‘mega-basement’.
Basement developments normally involve scaffolding, panel boards and tarpaulin passageways. They are often very intrusive and take up much of the footpath outside people’s homes. New council guidelines aim to put a stop to disruptive development.
Councillor Robert Davis, deputy leader of Westminster City Council, said: “I want to help stop the horror stories of people living next to mega-basement construction.
“All basements will now go before the council’s planning department, allowing neighbours and local communities to have their say and for developers to demonstrate they will not cause undue harm to neighbours or the character of the area.”
Three more housing zones announced
The mayor’s office has announced three more housing zones (link is external) in the boroughs of Brent, Westminster and Sutton. Eighteen of the 20 new zones have now been announced. It has been reported that the two remaining zones will be announced by late summer.
The three zones are set to deliver 5,932 homes collectively. The announcement brings the mayor up to his target of 50,000 new homes for Londoners.
Given the mayor’s poor housing record - many of the affordable homes that he has delivered were started by his predecessor and the number of homes that he was building mid-way through his second term was poor - he will be happy to come to the end of his tenure on a higher housing note.
The housing scheme is said to have been well received by the London boroughs, so it is possible that it may be extended.
Conservative survey places Zac Goldsmith in pole position
Following a lengthy selection process, the Conservative Party has revealed its shortlist of candidates for London Mayor(link is external). The final four up for the coveted position are Zac Goldsmith, Syed Kamall, Stephen Greenhalgh and Andrew Boff.
In its first survey of members by Conservative Home since the shortlist was announced, Goldsmith secured 56% of the vote, with Syed Kamall in second place with 32% of support. Stephen Greenhalgh and Andrew Boff are trailing behind, securing just 8% and 4% of the vote respectively. The results are promising for Goldsmith, who has maintained a consistent high level of support; he also topped Conservative polls last month.
The Party has come under criticism over its all-male shortlist of candidates however. Labour mayoral frontrunner, Tessa Jowell condemned the move, arguing that “it is extraordinary that Tory central office believe that they have no women who are fit even to be considered to be their candidate for mayor of London”.
JBP's Mayoral Watch
- The four major parties (Conservative, Labour, Green and Liberal Democrats) have now announced their shortlisted candidates.
- UKIP deputy chair Suzanne Evans has announced plans to run as the UKIP candidate for mayor.
- Labour had their final official hustings on the 30 July (there was another for the Evening Standard 5 August) and people have until the 12 August to register in order to vote.