Difficult times (From York Press)
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Difficult times
9:05am Friday 5th October 2012 in Letters By Reader's letter
PAUL S CORDOCK said: “The open book negotiation process is unfairly biased in favour of the council, which is why developers avoid it” (Letters, September 27).
It is in fact a standard and fair way to assess viability. Other house builders welcome it as a fair and accountable way to build in costs as part of bidding.
By ensuring developer profit is maintained, it allows schemes to move forward to planning approval. The 20 per cent developer profit is set out in the developer appraisal, along with all other costs.
Unfortunately, planning approval will not ensure houses are built. Lending rules have tightened and developers cannot now access such good financial packages.
On smaller sites, some landowners haven’t recognised the fall in house prices and purchaser difficulties. Mortgage packages have become fewer and more demanding. Deposits required have gone up from nought per cent to 20 per cent in most cases. Potential buyers are worried at the risk of buying given job uncertainty.
These real reasons for the slump can be seen in the hundreds of private sites with no affordable housing, which the council has approved, but building has not been able to start.
Coun Dave Merrett, Cabinet member for transport, planning and sustainability, City of York Council.
Comments(30)
Scarlet Pimpernel
says...
11:33am Fri 5 Oct 12
Merrett doesn't have experience of the process and is mislead by officers.
It's all spin and bluster from this desperate councillor and his failed housing policies.
sharpish
says...
11:58am Fri 5 Oct 12
These statements are misleading because York must be the only Authority in the country that has NEVER adopted a Local Plan and NEVER defined the boundaries of the Green Belt over at least two decades.
The Core Strategy debacle has compounded the problem and made York a laughing stock.
Cllr Merrett should stop blaming the Govt and look to his own failures over many years.
hugohackenbush
says...
12:51pm Fri 5 Oct 12
Well what did you expect Dave, the facts speak for themselves.
Every large housing project proposed exept council controlled ones are at a complete standstill. Entirely due to your failed housing policy.
meme
says...
3:19pm Fri 5 Oct 12
I am afraid your letter is based on flawed understandings of the rules
1. No one wanted the failed prof Fordahams policies adopted. They were flawed from the start and he patently did not understand the minutea of the appraisals himself as he made clear at various presentations. He is now bust which shows how economically aware he was
2. The supposed profit margin would be fine IF it were guaranteed BUT ITS NOT.
Perhaps if CoYC allowed devloppers a guaranteed 20% margin and once that was made paid monies to council that would work. Some schemes are much more successful than others and the good ones subsisise the bad. At least big housebuilders have that luxury. They can blend their margins over various schemes BUT NONE OF THEM TODAY are making 20% margins!! Today they are chasing turnover.Small housebuilders CANNOT/DO NOT HAVE THE LUXURY of being able to do that.
3. There is money to build out there but not in York because of your policies and indeed the attitude of certain officers and councillors to developers where there is total distrust of each others motives.A sad fact but true.
4. Developers feel officers and councillors dont help development progress at all unless it suits them and officers feel developers are all out to destroy the City...It was not like this in the past where peole worked as a team to the benefit of York but in the past we had non political officers with common sense and goodwill who made things happen not penpushers scared of their own shadows
So where do we go from here? Well unforunatly I have given up and intend to pack in and take whatever money i have left and not employ anyone as i feel there is no possibility of the situation changing whilst some officers and councillors are in positions of power in York. It needs a sea change in opinion and vision and a recognition that the world has changed and not politically inspired binoculars with no side vision whatsoever whatsoever
Fat Harry
says...
3:26pm Fri 5 Oct 12
Scarlet Pimpernel
says...
5:04pm Fri 5 Oct 12
1. He wants housing supply to decline and is using policies in York top that end. His hope is that things will become so bad that compulsory powers will be granted to councils to not only steal land for affordable housing as part of private developments, which is how the current system works, but to steal land wholesale at existing values. They will buy agricultural land at agricultural land values and will then grant themselves planning consent and either develop the land for council housing or sell it to housing associations.
How do I know this ?
He admitted it at a meeting in October last year at which there were six witnesses; myself, three other developers, Coun Alexander and Coun Simpson-Laing.
So, his agenda is to cause as much suffering to developers and those needing housing, to attempt to engineer this communist idealogy, where the state will take land by force.
IT STINKS !
Scarlet Pimpernel
says...
5:58pm Fri 5 Oct 12
sharpish wrote:No doubt Comrade Merrett wanted to block any criticism for the spin and bluster he has used to deflect blame onto the government, so asked the Press to disallow any comments.
We are not allowed to comment on today's Green Belt article, where Cllr Merrett states that many other Councils have similar problems to York and seeks to blame Govt Policy for the lack of protection for York's Green Belt. These statements are misleading because York must be the only Authority in the country that has NEVER adopted a Local Plan and NEVER defined the boundaries of the Green Belt over at least two decades. The Core Strategy debacle has compounded the problem and made York a laughing stock. Cllr Merrett should stop blaming the Govt and look to his own failures over many years.
It gets more like China every day, with Moa Tse Merrett !
Scarlet Pimpernel
says...
5:59pm Fri 5 Oct 12
Scarlet Pimpernel
says...
6:03pm Fri 5 Oct 12
This is why we see planning applications for hotels, student accommodation, offices and shops coming forward, but very few for housing, unless they are by housing associations.
Alexander's manifesto was to increase housebuilding in York - where are they ?
Scarlet Pimpernel
says...
6:12pm Fri 5 Oct 12
Coun Merrett writes, "It is in fact a standard and fair way to assess viability. Other house builders welcome it as a fair and accountable way to build in costs as part of bidding."
What happens when the price of the land that the developer needs to pay to make the deal work, will not support the councils affordable target ? Officers either tell the developer to go away and pay less for the land, or they invoke the district valuer who does exactly the same thing. Developers have seen this time and time again, and now don't go to the wasted expense of making planning applications.
'Other housebuilders welcome it.....' really ? Who ? What a complete and utter lie !
Scarlet Pimpernel
says...
6:15pm Fri 5 Oct 12
Usually when his underhand tactics and left wing agendas have been fully exposed, and he cannot stand people to know the truth.
Must be getting close...... ?
Scarlet Pimpernel
says...
6:36pm Fri 5 Oct 12
Coun Merrett wrirtes, "The 20 per cent developer profit is set out in the developer appraisal, along with all other costs."More misleading misinformation. It isn't a 20% profit because they do not make any allowance in the appraisal model for overheads.
The most efficient large housebuilders like Barratt and Persimmon manage their overheads at around 5% to 6%, but, smaller firms like Linden (part of Galliford-Try) and Redrow have overhead costs of around 7.5%. Gleeson, (who's Chief Executive Jolyon Harrison is also Chairman of York Housing Association) have overheads of 20%.
So, please do not be mislead by Coun Merrett, it is not a 20% profit at all.
capt spaulding
says...
6:38pm Fri 5 Oct 12
Viva Zapata !
Buzz Light-year
says...
9:28pm Fri 5 Oct 12
Post here at 5.04pm, 5.58pm, 5.59pm, 6.03pm, 6.12pm, 6.15pm, 6.36pm.
Do the Mao Tse Zapata Trotsky namecall thing and then with no irony at all say
The propaganda put out by Merrett is beyond belief !
Skillz!
TheTruthHurts
says...
9:58pm Fri 5 Oct 12
Scarlet Pimpernel wrote:There have already been some posts removed
When will Merrett instruct the Press to close the comments facility on this thread, or have them removed completely ?
Usually when his underhand tactics and left wing agendas have been fully exposed, and he cannot stand people to know the truth.
Must be getting close...... ?
Scarlet Pimpernel
says...
11:29pm Fri 5 Oct 12
Buzz Light-year wrote:As someone who knows nothing about housebuilding economics, you and the majority of York residents will find it difficult to work out who is bluffing here. Is the reason York's housing output almost ground to a halt because of the economic malaise ? or, is York Council's affordable housing requirements stopping development ?
Yes. Post here at 5.04pm, 5.58pm, 5.59pm, 6.03pm, 6.12pm, 6.15pm, 6.36pm. Do the Mao Tse Zapata Trotsky namecall thing and then with no irony at all sayThe propaganda put out by Merrett is beyond belief !Skillz!
If Coun Merrett is to be believed, then why is the majority of the UK not suffering the same extent of decline in housing completions as York ?
Merrett has said that the Council are dedicated to helping developers in York, but, what good are their efforts doing ? Where is the evidence of this help ? How exactly are they helping ?
It's all empty rhetoric from Merrett.... rhetoric and ostensible excuses.
If houses are not being built here, but are being built elsewhere, there is evidently a problem that is unique to York ?
Scarlet Pimpernel
says...
11:37pm Fri 5 Oct 12
hugohackenbush
says...
8:45am Sat 6 Oct 12
Houses ARE being built just about everywhere except in York.
Merritt you are a disgrace and a traitor to your socialist beliefs.
Scarlet Pimpernel
says...
4:43pm Sat 6 Oct 12
It is now clear that this initiative wasn't designed to help at all, it was to find excuses, not to help.
The language used in Coun Merrett's letter smacks of officer speak. It is clear that an officer has written this and Merrett has put his name to it.
Note: there is no mention about the larger stalled sites; like Hungate, Germany Beck, Terry's, Nestle, Grain Stores and Barbican.
Note also that the leeter does not challenge the other four points that Mr Cordock made in his letter - clearly the council have no defence on the these issues, showing that Coun Merrett was caught out giving misleading statements.
York is NOT Open For Housebuilding Business !
hugohackenbush
says...
5:51pm Sat 6 Oct 12
The real casualties of this debacle are the ordinary folks of York.
There are those who would prefer to live in York because they work here. Not Selby Tadcaster or Pocklington where housing is not only available but cheaper.
Now theres the crux theres more of it so its cheaper. Its not rocket science is it.
Then theres the trades who have to go further afield to find work or go on the dole.
Then theres the apprenticeships that are not happening because no sites are getting started.
Im given to understand that James Alexander champions an apprentice start scheme ? I would really like to know how many apprentices have started with his initiatives and a breakdown of which trades.
Our Leon trotsky lookalike, Clr Merritt hides behind a cloak of deciet and spin simply to score points against the government of the day using our York citizens as cannon fodder.
Coun Merritt you should hang your head in shame.
Scarlet Pimpernel
says...
6:42pm Sat 6 Oct 12
I'm pleased that you too can see through Merrett's deceit and spin.
It is truly shameful that both he and Coun Simpson-Laing, use their positions and policy to make political mischief, by doing as much damage as they can to private housebuilding in York, thus depriving York of houses and growth to it's economy. Their agenda is transparent - blame it on the coalition government, and do sod all to try and help.
Buzz Light-year
says...
9:07pm Sat 6 Oct 12
highhat wrote:
Scarpimp does a job and a half putting facts and etc whatever
Hilariously corporate.
They say if you can picture the meeting then the premise has failed.
"Yeah, look I'm not happy with being called 'Pimp' on the comments, I think it's derogatory or something."
"Scarpimp" indeed! Say hello to my little friend! The world is yours. Make way for the bad guy.
:D
hugohackenbush
says...
10:38pm Sat 6 Oct 12
Scarlet Pimpernel
says...
12:59am Sun 7 Oct 12
Parturient montes, nascetur ridiculus mus ?
capt spaulding
says...
8:29am Sun 7 Oct 12
Buzz Light-year
says...
10:02am Sun 7 Oct 12
Scarlet Pimpernel wrote:Is that from your personal statement pimp ?
Buzz,
Parturient montes, nascetur ridiculus mus ?
Buzz Light-year
says...
10:04am Sun 7 Oct 12
capt spaulding wrote:As presumptuous as ever.
Best not to blog Buzz at 9pm of a Saturday night when your halfway down a bottle
Btw this is a comments facility not a blog.
capt spaulding
says...
10:27am Sun 7 Oct 12
Scarlet Pimpernel
says...
12:30pm Sun 7 Oct 12
Buzz Light-year wrote:No, just an observation.
Scarlet Pimpernel wrote: Buzz, Parturient montes, nascetur ridiculus mus ?Is that from your personal statement pimp ?
I'm more of a 'qui audet adipiscitur' kinda guy ;-)
hugohackenbush says...
9:58am Fri 5 Oct 12