Seeking solutions with Government

Despite the devastating impact the credit crunch has had upon the industry generally, Crest Nicholson has re-affirmed its commitment to the core values and design and sustainability ambitions set out within its Mission Statement. Furthermore, Crest Nicholson will not deliver increased numbers of dwellings by reducing quality or reducing its commitment to sustainable development.

Making projects viable

For delivery to increase back to historic levels, projects need to be rendered viable, and during 2009 Crest will:

• review consented designs and, where appropriate, re-plan the higher density schemes into intermediate forms of development.
• seek to secure higher levels of grant towards the provision of affordable housing or re-appraise the achievability of the level and tenure mix of affordable housing.
• renegotiate payments to Government under the Section 106 Agreements obligations to reflect the inability of projects to fund the costs still at pre-credit crunch levels. We will take an open book approach in these discussions and aim to avoid resorting to the appeals mechanism.

Shaping future regulation

The last few years have seen a significant increase in the demands placed upon housebuilding through taxation, policy and regulation. This trend is set to continue with the Code for Sustainable Homes, Community Infrastructure Levy (CIL) and Lifetime Homes. However, given the major fall in land values over the last 18 months the proposed rate of change is virtually unmanageable.

Delivering quality and sustainable housing plus addressing the climate change agenda remain priorities for Crest. In turn, Government policy must have regard to the cost of regulation and its impact upon delivery. To sustain affordable housing at levels of 25 to 30% significant extra grant will be required. To introduce Level 4 of the Code for Sustainable Homes in 2010 (three years ahead of the official timetable) will demand levels of public subsidy at a scale not seen before.

To move forward constructively, Crest has been leading a Home Builders Federation initiative to demonstrate to government, and its agencies, how the cumulative impact of regulation was undermining delivery even before the credit crunch, and how post-credit crunch the trajectory and speed of policy cannot be sustained or funded.

Crest Nicholson will continue to emphasize the need for a more certain, realistic and deliverable policy framework if delivery is to be restored to pre-credit crunch levels, let alone increased to meet housing levels as set out in the Government’s targets.

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Find out more about how we are managing sustainability at Crest.