bharatbhasha.com
Free Articles  >>  Business And Finance >>  Page 125  >> 

What Are the Cost Considerations For Developing Land into Housing in the UK





Investors in raw land, looking to develop it into much-needed housing, are also responsible for infrastructure development. But to what extent?

For those looking to make alternative investments into UK strategic land, it is worth noting that Conservative MP Nick Herbert raised a few difficult issues - along with unpleasant scenarios - when he published an opinion piece in the Daily Telegraph in late 2012. In it he suggested that some communities are failing to build adequate infrastructure (read: sewers, schools and roads) as they accommodate residential development.

Herbert is quick to acknowledge the pressing need for housing in the UK, as most expressly indicated by Census 2011. But he cites scenarios where inadequate wastewater systems, overcrowded schools and clogged highways show a lack of planning and appropriate resource allocation in the development process. Implicated are, of course, the investor-developer-builder teams who bring about these developments. Herbert introduced an amendment to the Growth and Infrastructure Bill debated in the House of Commons that requires planning authorities to ensure sufficient infrastructure be included in new development.

The costs associated with providing adequate infrastructure in a rapidly-growing population are always a point of debate. Apart from Herbert’s arguments, there are several factors at work in the UK and around the world to consider where it comes to defining what infrastructure entails and how to achieve it:

The UK’s Community Infrastructure Levy (CIL) - Newly created to be faster, fairer and more transparent, the CIL is an option for local councils to charge developers and land owners for the added community costs of new developments. Monies can be used for new roads or road improvements, new health centres and park improvements – per the discretion of local authorities. It also ensures a predictable fund stream that enables effective planning, as well as accountability to local (extant) residents as to how the levy monies are spent. (Note: Herbert is sceptical that this new levy will be sufficient because it carries no mandates for local planning authorities.)

Larger, exurban lots present lowest upfront costs (U.S.) - A paper published in 2009 (Rayman Mohamed, “Why do residential developers prefer large exurban lots? Infrastructure costs and exurban development”) in Environment and Planning B: Planning and Design looks at data from public records of construction costs in South Kingstown, Rhode Island in the U.S. Of course the American approach to development differs and they do not have some of the constraints and levies that exist in the UK. But when the lots are large so too are the prices, while infrastructure costs are only incrementally more. This difference takes on greater contrast when compared to the urban, vertical-built opposite…

… But dense cities offer most sustainable complex costs - The “new urbanism” movement popularized in the UK, Europe and the Americas seeks to reverse the suburbanization and ex-urbanization sprawl patterns with a densification of population, transportation, commercialization and city services such as sewers and all other public utilities. The differences from the South Kingstown study (above) is that this looks at the longer-term resource consumption of development (which nets out in favour of densification). Some argue that it creates a lower quality of life, however that is subjective and open to much debate.

Infrastructure in “community assets” - The Joseph Rowntree Foundation (JRF), which endeavours to support resilient communities, argues that community infrastructure ideally incorporates intangibles such as “social capital” (those things that foster connections between individuals), “social networks” (inter-dependencies between individuals and organizations) and civil society (faith-based organizations, political parties, voluntary and community organizations, etc.). JRF makes policy recommendations relative to the affordable housing, with a focus on house price volatility – a matter that is easily connected to sustainable development.

As Herbert, a Conservative, argues in his Telegraph piece, there ultimately is an ongoing juggling act where it comes to infrastructures and its costs, short-term and long-term. “We should not deny young people the chance we’ve had to own our properties,” he says. “But it also means taking care not to damage the countryside. And at the very least, it means ensuring that where such housing is needed, there is adequate infrastructure to support it.”

Be it for market rate, affordable or social housing, significant questions ultimately find answers in those willing to invest in critically needed development. Any and all building will alleviate the pressure from its current state, but of course quality of life issues must be considered along the way. Investors in market housing need to consider all costs – including those cited above – when determining the risks inherent in those investments.
About Author Chris Westerman :

For those looking to make <a href="http://www.lucentgroup.co.uk/Land-Investment-Alternative-Investments.html" target="_blank">alternative investments</a> into <a href="http://www.lucentgroup.co.uk/Land-Investment-Strategic-Land.html" target="_blank">UK strategic land</a>, it is worth noting that Conservative MP Nick Herbert raised a few difficult issues.


Article Source: https://www.bharatbhasha.com
Article Url: https://www.bharatbhasha.com/finance-and-business.php/483269


Article Added on Monday, September 1, 2014
LD
Other Articles by Chris Westerman

How Land is Purchased at an Optimal Low Price
Purchasing land at an optimal price requires timing and skill from the investor. Several factors can affect the current and future of undeveloped land, not the least of which are specific characteristics of the property itself and the overall economy. The first aphorism of investing is simply this: “Buy low and sell high.” The second may well be, “easier said than done.” Both apply to the business of strategic land investment in the UK. First, understand that investment in land,...

How UK Land is Rezoned
More than ever, rezoning is a key consideration in UK land investing. New zoning laws in the UK have ushered in a different set of land use planning rules. Now land investors work with local authorities to address community concerns. The Localism Act 2011 brought a significant change to how land is rezoned in the U.K. Essentially, town and country planning throughout the U.K. is now under the control of 421 separate Local Planning Authorities (LPAs), a stark change from the regional...

The Role of Property Fund Managers
Good property fund management bolsters the strength of real estate investments. The attraction of historically low land valuation is compelling investors to consider real property as an important complement or even lynchpin of their financial strategies. Because most people lack deep familiarity with real estate and land investing and how to discern a smart acquisition from a poor one, investors depend on property fund managers to guide them in their investment choices. Managers of...

How to Mitigate Risks in UK Land Investments
What are UK land investment risks and how are they mitigated? Three factors improve land investments for housing: Funding for Lending, local planning authorities and splitting risk between investors and builders. The rate of building new homes in the UK should be about 230,000 per annum, and yet the country’s homebuilders are constructing only about half that number. Naturally, that translates into very high housing demand – which to the alternative investor in any form of development...

Joint Venture Land Opportunities in the UK
The joint venture land opportunity of today is to anticipate where post-recession growth will increase demand for housing and businesses. Land investors – especially those interested in investing in strategic land – are currently focused on the UK, where a chronic shortage of housing means demand for land is high – and growing. Global and local economic forces, in combination, are making joint venture land opportunity investing a particularly compelling scenario for investors. Let us...

Understanding Alternative Investment Funds
Real estate land funds are a type of alternative investment that can provide solid and significant returns. Trading in stocks and bonds is by far the most recognised means of investing. But in fact there are alternative investment funds that serve a key investment role for individuals of high net worth and for corporations and institutional investors. Alternative investment funds cover a wide range of categories, from managed futures to hedge funds, private equity funds, exchange funds...

Why Full Scale Land Development is Not Solely Done by Homebuilders
The full range of developing raw land into residential construction is becoming too much a risk for companies that build homes. The task is now split, with good results. Homebuilders in the UK have traditionally functioned as developers. This means they took on everything from buying land to developing streets and utility infrastructure to building the homes. If the homes are priced right for the market – and meet market expectations for what a home should be – they made a good...

Land Planning Tied to Multiple Local Economic Factors
Local planning authorities (LPAs) deal with more than just housing zone changes. New homes are one component of environmental, economic and life-quality considerations. It’s a classic chicken-and-egg question. What comes first, a resident population of workers for companies looking to establish workplaces in a particular locale – or is it the other way around, when employers are the draw to workers who move to be near them? It happens in both ways, of course. But central to both...

Land To Housing in the UK Engineered in Key Steps
What are the key issues in master planning of land-to-housing development in the UK? Buying land, building then selling houses might seem like a simple idea, given the UK housing shortage. But even with cash, you are advised to work with professionals. With the difficult housing shortage in the UK, it might seem that investment in housing development would be a “slam dunk” opportunity for strong real asset growth. Indeed it can be – but it is not a business for amateurs. Master planning...

Local Planning Authorities Follow Dictates But Try to Help Too
The role of the LPAs has increased with the Localism Act. But it’s not all about throwing up barriers. These authorities serve as a valuable resource to investors. The subject of local planning authorities (LPAs) in British development and community wellbeing is often discussed in adversarial terms. Indeed, there is a tug-and-pull historically in all development, with perhaps greater attention to this in the information-rich Internet era. But in fact the charter of LPAs includes a great...

Click here to see More Articles by Chris Westerman
Publishers / Webmasters
Article ID: 483269
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:


276 Users Online!!
Related Articles:
Latest Articles:
 
Business And Finance >> Top 50 Articles on Business And Finance
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts
Aging


Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of bharatbhasha.com and/or its owners.


Copyright © AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

Cheap Linux Server Hosting Provided By AwareIndia







Company IDS