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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

• 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
• 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

                Buy To Let
 Transport    landlords and    Employers

  Utilities     Developers
                              Lettings agents
                 and RSLs
   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
                   offer an
                   opportunity to
                   sell Buy To Let
Kidbrooke Vision

                   • How can the
                    Council ensure
                    that this is a
                    mixed and
                    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

•   Gill Ackrill
•   Strategy and Development Manager
•   Tel 020 821 5630
•   Email

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