Legal experts at Knights have welcomed a government announcement which could lead to almost 40,000 new homes built on surplus railway land – but have warned against the potential risks.
Thousands of prospective homeowners are set to benefit from the new “high-quality homes” built on brownfield sites across the country – with focus on Manchester, Newcastle and Nottingham.
This week, saw the Government announce the new company who will look to lead on this transformation. Platform4 will look to introduce thousands of new jobs and drive local regeneration nationwide.
The move comes in support of the government’s Plan for Change commitment to build 1.5million homes in the hope of boosting local economic growth and private sector investment.
Following the announcement, lawyers at Knights supported the intentions of the proposals but have highlighted potential concerns around its implementation.
Jamie Noel, a Partner in the firm’s Oxford-based Residential Property team, said: “This is wonderful news and a much-needed injection of development potential with this sensible use of potentially defunct land to create new community and homes. The introduction of 40,000 new and affordable homes near to railway lines makes it ideal for commuters as well.
“However, given the propensity for Japanese Knotweed to have been used on railway embankments in the 19th century to improve the vistas for travellers could this be a nightmare waiting to happen.
“Japanese Knotweed can be a blight on properties as it is an invasive plant and can lead to properties being unmortgageable if it is found to be present. It spreads so vociferously but is also considered controlled waste with the cost of removal extremely high and time consuming. Treatment plans can be put in place but it could be costly, protracted and an issue for lenders on purchases and re-sales.
“In short take caution buying property close to railway lines. Have a professional assessment to check for Japanese Knotweed on the property or close to it and be alive to the potential costs and implications.”
Jordan Oakes, a Licensed Conveyancer in Knights’ Worcester office added: “The issue of finding suitable land to kickstart this new housing target has led to the creation of the ‘brownfield first’ policies in which local councils will be able to use government funding to declassify industrial and commercial land, which is usually neglected and an eyesore, into new homes for local communities and families.
“The premise of ‘brownfield first’ is a hugely welcomed idea as it reduces the likelihood of large developments on greenbelt/greenfield land which are largely opposed by local communities.
“However, the growing cause for concern is the pressure these targets impose on house builders and local contractors. Many larger corporate outfits are taking on this work but there are significant delays and backlogs – with projects tending to be held up by regulatory requirements.
“More needs to be tackled at a planning and regulatory level to enable house building to really get ahead of the target set by the government, and more needs to be done to make these homes truly affordable for everyone.
“It will be interesting to see over the coming years the investment and dedication required by both the private and public sectors to meeting this target with some critics arguing that the brownfield land alone is not enough.”
Julie Loggenberg is a Partner in the Housing and Regeneration team in Wilmslow. She adds there’s risk and reward when it comes to brownfield development: “This is a welcome move forward in the drive to deliver the new homes urgently required to plug the housing shortage.
“However, developing such sites is not without its risks: high clean-up costs, potential funding gaps, the cost of finance and market conditions all play into whether the site will “stack up”. Factor in infrastructure, planning the delays in getting assessments for high-risk building through the Gateway process, then that 40,000 homes can seem a long way off.
“It’s not for the feint hearted, but by getting good advice from Knights and having all your ducks in row, means the rewards, both in delivering the new communities and creating great spaces and the developer’s return, will inevitably follow.”