Lender agrees with Sadiq Khan’s plans to limit PD rights

Lender agrees with Sadiq Khan's plans to limit PD rights



Sadiq Khan has been praised for his stance on permitted development (PD) rights by one development finance lender.


The new mayor of London announced earlier this month that he planned to limit the conversion of office space into residential units after becoming concerned that it could mean job losses for Londoners.

Mr Khan’s plans were backed by Croydon Council, which has become a ‘haven’ for property developers under the new permitted development rights laws.

Now the mayor has also received support from Bob Sturges, Head of PR and Communications at Fortwell Capital, who feels Mr Khan’s announcement appeared to contain “more than a grain of common sense”.

"For as long as anyone cares to remember, London has predominantly been a working city.

“Whether through its historic river trade, manufacturing or, more recently, its service industries, people have been attracted to the metropolis for the jobs it provides.

“If we cut essential commercial space too deeply, it's not just London, but the UK economy as a whole that will take the hit.”

Bob admitted that he was no great supporter of Mr Khan, but praised his thoughtful approach towards this matter.

“Too many politicians of late have blindly followed the herd in the housing debate.

“In doing so, they parrot the same worn-out clichés without thinking through the consequences –  just as they did during the credit crunch when our elected elite swung from being ‘extremely comfortable’ about ‘people getting filthy rich’, to a position where they couldn't impose new rules and regulations quickly enough.”

Ashley Ilsen, Head of Lending at Regentsmead, felt that permitted development had been a reasonable success and questioned the impact reducing it would have on house prices in London.

“We can argue long into the night about the subsequent effects on office space in certain areas, but in truth the increase in housing that permitted development has allowed has provided some relief to the huge demand we have around this country.

“Considering Sadiq Khan’s election campaign had such a heavy focus on creating affordable housing, by reducing the amount of stock provided, housing in the capital is going to continue to be anything but affordable.”

Bob agreed that the announcement would test Mr Khan’s housing plans.

"Sadiq Khan is probably right on this point.

“But the devil is in the detail.

“We do need more housing, but it cannot come at the expense of productive commercial square footage.

“Developers and investors with an eye to the long term will understand this, so I would expect broad support for the mayor's balanced approach to this multi-faceted challenge."



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