Liverpool council says it is still open for business and talking to developers after a leading city property expert warned the new Local Plan could slow down the pace of development.
The plan, which was signed off earlier this year, aims to shape Liverpool's future for decades by ensuring high-quality development is delivered across the city. It also aims to focus development on brownfield sites while helping to create jobs.
The plan sets out how 35,000 new homes will be needed by the city's growing population - but also aims to increase the supply of affordable homes while curbing excessive numbers of Houses in Multiple Occupation (HMOs). Already this year a number of high profile developments have been the subject of rejections and amendments as a result of the Local Plan.
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Romal Capital's plans for 330 apartments at Waterloo Dock were rejected by the planning committee with failure to meet the Local Plan's requirement of providing more two-bed homes being cited. The Plan also resulted in amendments to a development in Kirkdale on the edge of the city centre, which has now subsequently been approved.
In his latest quarterly report into Liverpool's property market, City Residential managing director Alan Bevan agreed Liverpool needed higher-quality development and said the plan could bring clarity to investors who had been unclear on the council's approach. But he warned that the Local Plan could prove to be the final "nail in the coffin" for many developers if it discouraged property investment.
In response, council cabinet member Sarah Doyle said the plan would boost the quality of development in Liverpool and said the council was regularly talking to potential investors. City Residential's report is widely seen as an authoritative analysis of the city's property market.
In his conclusion to the latest report, Mr Bevan says: "Whilst there are many elements of the (Local) plan that make sense and will no doubt enhance the city as a place to live, work and play, its effect on residential development will be closely watched.
"It comes at a time when many developers have 'given up' on the city and focused their efforts elsewhere across the region and UK. Time will tell whether the local plan resets the agenda for the city or proves to be the final 'nail in the coffin' for many developers."
The report says many developers have been worried about whether Liverpool is "open for business" and whether the planning department wants to encourage development. It says: "The plan itself should drive an increase in quality of what gets delivered and almost everyone in the city wants to see this happen.
"Many of the schemes that have been delivered over the last few years have been of mediocre standards at best and the market is demanding an improvement in quality." It warns new planning requirements and the resulting demand for changes to schemes - such as the proposed introduction of minimum space standards - will drive up overall costs for developers and that land values will have to adjust in order to make some schemes viable.
Co-living spaces could be 'casualties' of the plan
Mr Bevan's report also criticises the Local Plan for suggesting residential schemes should offer more two-bedroom than one-bedroom flats, saying City Residential still anticipates strong demand for one-bed apartments. It says co-living schemes could be "casualties" of the new plan as they would not meet its minimum space requirements.
The report says: "For what it’s worth, we do believe that there is room in the Liverpool residential market for co-living. The success of The James on Victoria Street (a 100 studio co-living scheme) highlights the market demand for such a product if developed and managed correctly. Many tenants do not want the inflexibility and larger spaces found in more traditional schemes.
"The fact that many other cities across the UK (including Manchester) are welcoming co-living may also give support to those who disagree with Liverpool council’s stance."
'The quality of development over the past decade has not been good enough'
Cabinet member for development and housing, Cllr Sarah Doyle, said: “A strong Local Plan which sets out our ambition for the city is a real positive and a good thing for Liverpool residents and businesses. We have to be honest enough to admit that the quality of development in our city over the last decade has not been good enough. The evidence is all around us in the number of stalled sites across the city.
"The Local Plan is a clear signal from the council that we have a new approach to attracting investment and delivering tangible benefits for communities. It underpins our work to improve the quality and type of new developments, to rebalance the relationship between cars, pedestrians and bikes on our road network, meet our net zero carbon commitment and embed social value in every decision we make.
“An important part of our work is talking to landowners, developers and partner organisations to make sure they understand the new policy requirements in the Local Plan and deliver positive outcomes on the ground for Liverpool’s communities. We are already under way with this and have held several forums, as well as attending the recent MIPIM property fair, to send out a message internationally that Liverpool is open for business.
"I’m confident that those who want to deliver projects of a high standard will want to work with us. Schemes such as Paddington Village in the Knowledge Quarter, Festival Gardens and Littlewoods Film and TV studios are all major schemes which demonstrate the council’s ambition to attract and facilitate quality investments that deliver tangible benefits for residents and local communities."
Cllr Doyle said the council's position on co-living was aimed at "ensuring quality residential development in the city". She added: "We want to ensure that all residential accommodation in the city is high quality including in respect of space, light, views and noise to ensure the amenity and health of future residents is safeguarded. The Local Plan policies in respect of residential development seek to ensure this."
