LDN Weekly – Issue 326 – 25 July 2024 – Euston We Have Several Problems

EUSTON WE HAVE SEVERAL PROBLEMS

Dear Reader,

Earlier this week, the NAO published their latest report on HS2.

For anyone interested in major infrastructure projects and associated development, the report makes for very grim reading, especially for the many residents and businesses living close to Euston station. The summary is only nine pages long. But if you haven’t been up there to look around, it really is a depressing site.

Rather than regurgitate the findings, here are some questions which immediately spring to mind:

At a national level, who will dispose of the 179 parcels of land, bought for £592m, along the Phase 2 route, and how will they do it? Will they manage to recoup it all? (I doubt it) And how will the government renegotiate the existing contracts with the four main construction contractors to ‘better incentivise cost control and achieve greater certainty on costs’? (Good luck with that one).

At Old Oak Common, how well will the HS2 operation work, from a date somewhere between 2029 and 2033 to a date (yet to be confirmed) when Euston will finally be linked up? And realistically how long will this last? At least the government has funded extra Elizabeth Line trains to cope with the extra demand at Old Oak Common.

At Euston, what will a smaller station actually look like and what will it deliver? And what do the government mean when they talk about the ‘wider redevelopment of the area’? What area? Also, what do they mean by a ‘new delivery model’? Is this a sign of another Mayoral Development Corporation?

And if they go down this approach, how many more years will the poor residents and businesses have to live with construction – 20, even 30 years? Then there is the scale of that development – as we know there’s a limit to height in places given the viewing corridors to St Paul’s Cathedral. So even if significant value can be generated from development, surely the project will need some public subsidy?

And finally, one can’t help wondering what £30bn over the last five years might have been better spent on. But that’s long gone.

So good luck to Mark Wild, the new CEO of HS2. There’s no date yet on when he will start (which doesn’t half reflect the status of the project), but with his experience at Crossrail he’s probably better suited than anyone else to improve what is a desperately damaged project. He’s ‘looking forward’ to the new role according to his press release quote, though, this doesn’t quite reflect the real challenges.

Robert Gordon Clark

Senior Advisor & Partner

Tailor Your Experience

At LCA, we believe in catering our insights to your specific interests. Choose the content that aligns with your needs and stay informed about the areas that matter most to you.

HOUSING ROUNDUP

Settling in: With a pledge to deliver 1.5m homes by the end of this parliament, the new Government has placed house building at the core of its mission. In last week’s speech to the Local Government Association, new Housing Secretary Angela Rayner said she is ‘wasting no time’ on addressing the housing crisis, starting with reintroducing mandatory housing targets. These are expected to be included in a revised National Planning Policy Framework (NPPF) which the Government has said will be put out for consultation before the end of the month.

Natural Capital I: Rayner has shown that she’s willing to make tough calls. Alongside Environment Secretary Steve Reed, she has written to environmental groups warning that the status quo on the current nutrient neutrality system is simply ‘not working.’ The pair are reported to be proposing that developers settle mitigating measures during, rather than before, construction.

Natural Capital II: The changes would only allow people to move into new homes when the mitigations are in place, with Labour arguing this would incentivise developers to speed up without compromising the environment. Expect to see this included in the Planning and Infrastructure Bill when it appears.

Sunny-side up: It certainly seems the Government’s pro-development stance has been rapidly deployed. Newly crowned interventionist Rayner issued her first call-in decision this week, signing off Enso Energy’s plans to deliver a 54.6ha solar farm on Green Belt land at Honiley in Warwickshire. This was one of Gove’s call-ins with recommendation to approve from planning inspectors.

Radical dudes: Think tank Policy Exchange has called for ‘urgent’ policies to fix the UK’s ‘broken’ housing market. Recommendations include a full reset through scrapping the Town and Country Planning Act, to be replaced with a model based on area zoning. It also calls for a review of the Green Belt, changes to council tax banding, and a reclassification of hospitals and prisons as Nationally Significant Infrastructure Projects (NSIPs).

Another Everest: These radical proposals are set against disappointing housing delivery numbers. National House Building Council (NHBC) analysis shows that new homes registered for construction fell year-on-year by 23% in the final quarter of last year, but in London this surges to 49%. NHBC Chief Executive Steve Wood argues the Government’s housing targets are a ‘mountain to climb.’

Bold as brass: 12-borough partnership Central London Forward (CLF) has called for more powers to charge developers for failing to build approved plans. CLF recommends councils should be allowed to introduce a levy if developers don’t get spades in the ground by an agreed date, or revoking planning permission altogether if they refuse to build out developments, even when plans have been fully implemented.

Twist and grout: A glance over the regular price indexes shows London’s housing market remains a mixed picture. While the region posted the lowest house price inflation of any region in May at 0.2%, prices for homes in Westminster fell year-on-year by a staggering 22.7%. Land Registry data for May shows Merton topping the regional leaderboard at 4.9% of yearly growth, one of only 11 London boroughs to post prices growing.

Tenant Tribulations I: In grim news for renters, average rents in London rose to a new record of £2,661 per month for the second quarter of this year, more than double the national average of £1,134. Rightmove’s Tim Bannister believes London’s rental market is ‘out of balance’ and needs a stimulus of landlord investment to boost supply of homes, his case being typified by UK Finance’s data on the dramatic fall of new buy-to-let mortgages between the first quarter of 2023-24.

Tenant Tribulations II: If the prices aren’t challenging enough, a high proportion of renters are living in poor quality properties, with Citizens Advice reporting that 45% of private renters are living in homes with poor insulation, damp and mould. The Government is committed to extending ‘Awaab’s Law’ to the private rental market in its Renters’ Rights Bill – it was previously legislated for social housing providers in 2023 requiring repairs to severe hazards in a strict timetable.

My Way: Leading housing association L&Q read the room and has instructed BNP Paribas to sell its £1.2bn private rented sector portfolio, all 3,122 homes across 53 developments in London and the South East. The landmark sale includes a £200m offload of its strategic land arm to Urban & Civic, boosting their own pipeline to 76,000 homes. No flashy spending for L&Q however; it’s all going into their existing affordable housing and building safety funds.

Stark reality: The urgency to deliver more homes has been given an even greater importance following the National Audit Office’s report into the Government’s policies for tackling homelessness and rough sleeping. The spending watchdog found that the Government effectively has ‘no strategy or public targets’ for lowering the number of people experiencing homelessness, despite a record number of homeless households and major strains on council budgets.

Sign of the times: As a statutory consultee, Historic England has sometimes been criticised in the past for opposing housing developments or refurbishment. But in a marked change in its approach to planning, the government agency is issuing new guidance encouraging retrofit and green energy adaptations on listed and heritage properties, aimed at providing ‘greater certainty’ to planners.

Roofs or runways? Residents of west London might want to close their windows, as the question of a third runway at Heathrow Airport has re-emerged. No doubt spurred on by the new Government’s stated desire ‘to get Britain building’, Chief Executive of Heathrow, Thomas Woldbye, says there is enough ‘demand’ for more tarmac and it’s ‘crucial for the UK economy.’

Flyaway: With the Chancellor jet-setting off to the USA next month on an investment drive, her tentative support for airport expansion before the election could be a signal of things to come for households in Hillingdon, Hounslow and Richmond.

In the third and penultimate edition of our roundup of London’s new MPs, we take a look at five from across the capital:

• Liam Conlon, MP for Beckenham and Penge (Labour, Majority: 12,905)
  The first MP for the new constituency of Beckenham & Penge, Conlon is the son of former senior civil servant and now-Downing Street Chief of Staff Sue Gray. After fracturing his hip in a ‘freak accident’ when he was a teenager, Conlon has said that he wants to be a ‘national voice for disabled people’. Since the election, Conlon has been appointed as Parliamentary Private Secretary (PPS) in the Department for Transport. He is also Chair of the Labour Party Irish Society. Going into the election, the seat was notionally Labour by just a few hundred votes but Conlon’s substantial majority illustrates some of the demographic changes taking place across the north of the borough of Bromley.
  
  
• Ben Coleman, MP for Chelsea and Fulham (Labour, Majority: 152)
  Fulham councillor since 2014 and Deputy Leader of Hammersmith and Fulham, Coleman took the Tory Party’s safest inner London seat Chelsea and Fulham from Party Chair Greg Hands after two recounts with a wafer thin majority, now representing the 12th most marginal seat in the UK. At a local level, he has campaigned to save Charing Cross Hospital from closure and previously worked as a business consultant.
  
  
• Natasha Irons, MP for Croydon East (Labour, Majority: 6,825)
  Another politician who has made the leap from local government to the Commons, Irons was a councillor in Merton from 2018 until she stood down to contest the new seat of Croydon East. Raised in South London, Irons has spoken about the ‘stability and dignity’ that council housing provided her family.
  
  
• Margaret Mullane, MP for Dagenham and Rainham (Labour, Majority: 7,173)
  Barking and Dagenham councillor since 2010, Mullane knows her constituency like the back of her hand, having been born and raised in Dagenham and having worked as the office manager for her predecessor Jon Cruddas. She has said that in Parliament she will ‘champion council housing’ and ‘offer a new model of politics for the area’. Mullane significantly increased Labour’s majority from just 293 votes in 2019, in part helped by Reform surging into second place, pushing the Tories into third.
  
  
• Deidre Costigan, MP for Ealing Southall (Labour, Majority: 15,793)
  Deputy Leader of Ealing Council until her election to Parliament, Costigan has been a councillor since 2018. She is originally from Ireland, having moved to London in the 1990s. She previously worked as a UNISON national policy officer. Costigan takes over from long-standing Virendra Sharma, who was one of the late retirements just before the election.

• Canary Wharf Group has unveiled the first images of the proposed redevelopment of the 45-storey HSBC Tower at Canada Square, aiming to repurpose the 1.8m sq ft of office space into a broader use including leisure, education and cultural attractions. Still early in the design process, technical details are unavailable but the concept includes the removal of outer facades to create tiered green terraces, gardens and a new ‘crown’ top-floor section, reducing the overall building footprint to 1.1m sq ft.
  
  
• The City of London Corporation has granted planning permission for two major office building refurbishments. Zeno Capital was granted permission to refurbish its 11-storey, 200,000 sq ft office building at Basinghall Avenue, headquarters of Standard Chartered, by revamping the entrance hall and adding a new rooftop terrace. Deka Immobilien has consent to refurbish eight-storey offices at Old Jewry, creating a larger reception space and adding an extra floor through a new pavilion structure, expanding the total office floor space to nearly 70,000 sq ft.
  
  
• Enfield Council has granted planning consent for its £850m redevelopment of the Joyce Avenue and Snell’s Park housing estates in Edmonton. Residents voted 78.5% in favour of regeneration in 2021, with the phased development including the demolition of existing buildings to deliver 2,028 homes (50% affordable) inclusive of 795 replacement homes, plus a new community centre, nursery, and up to 4,024 sqm of flexible commercial and retail space in 14 buildings up to 26 storeys in height. The plans also include 23,918 sqm of open space and parkland.
  
  
• Places for London (PfL) has appointed Savills as its real estate advisory partner following a competitive procurement process. The agency will support PfL on its plans to deliver 20,000 new homes on sites owned by TfL while targeting a high proportion of affordable housing. Profits made by PfL are to be reinvested in TfL to support transport improvements.
  
  
• Axa IM Alts has launched a public consultation on plans to demolish and redevelop its seven-storey office building at St Mary Axe, replacing it with a new 46-storey mixed-use tower. The plans would deliver 100,000 sq ft of office space and over 80,000 sq ft of mixed commercial and cultural space, including retail and hospitality units, plus a new auditorium for events. 
  
  
• Historic England has rejected the Twentieth Century Society’s bid to list the former London City Hall building in Southwark, owned by St Martins Property. Historic England stated that the Foster + Partners-designed building was not among the ‘best examples of the work by [Fosters] in this period.’ St Martins Property is expected to submit a planning application for its partial demolition and refurbishment into a mixed-use building containing lower-level hospitality space and new office space with balconies.
  
  
• The Reichmann Family has unveiled  plans for the redevelopment of the 19-storey Chiswick Tower in Gunnersbury into a 400-home co-living scheme, replacing 142,402 sq ft of vacant office space. The tower’s two-storey annex building would be demolished to deliver a nine-storey building with 32 affordable homes, while the site’s two car parks would be redeveloped to provide 28 affordable two-storey townhouses. The developer consultation adds that the redevelopment would ‘open the door’ for creating step-free access to Gunnersbury Station. A full planning application is expected in late 2024.
  
  
• A report from the City of London Corporation has found that its iconic Mansion House faces ‘urgent building fabric issues’ and requires ‘immediate attention’ to resolve a range of building safety challenges including water damage and inoperable fire escapes. The City has submitted proposals for investigative works to identify potential options for remediation.
  
  
• Fifth State has submitted an environmental impact assessment for its proposed redevelopment of Ilderton Wharf in south Bermondsey, with plans to deliver a 477-bed purpose-built student accommodation scheme and 80 affordable homes in three buildings of 10, 13 and 27 storeys, along with 23,000 sq ft of light industrial space to replace a Jewson industrial yard on-site.

• Cabinet Member for Climate Change, Environment and Transport on Hackney Council, Cllr Mete Coban, has been appointed Deputy Mayor of London for Environment and Energy. Coban has now resigned from Hackney Council, prompting the council’s eighth by-election since 2022 in his now-vacant seat of Stoke Newington.
  
  
• Camden Council has elected Cllr Richard Olszewski, Cabinet Member for Finance and Cost of Living, as the new Leader of the Council following the departure of Georgia Gould upon her election as MP for Queen’s Park and Maida Vale. Olszewski has represented Fortune Green as a ward councillor since 2014 but previously represented Regent’s Park in the 1990s and is a former special advisor to John Reid, Secretary of State under Tony Blair.
  
  
• Cllr Alex Sanderson, Cabinet Member for Children and Education on Hammersmith & Fulham Council has been appointed Deputy Leader. The ward councillor for College Park and Old Oak retains her portfolio in the role, appointed following Ben Coleman’s election as MP for Chelsea and Fulham.
  
  
• Cllr Aidan Smith, Cabinet Member for Planning, Estate Renewal and Development at Greenwich Council, has stepped down after two years in the Cabinet citing an ‘advancement’ in his career. Smith will remain a ward councillor for Greenwich Park. Leader of the Council Anthony Okereke has appointed ward councillor for East Greenwich, Cllr Majid Rahman, as his replacement.
  
  
• Chief Executive of Richmond and Wandsworth councils, Mike Jackson, is stepping down in the autumn after less than two years in post due to ‘personal, family reasons.’ The bi-borough management has begun recruiting for the post with a replacement announced in due course. His departure comes just weeks after it was revealed Putney’s General Election result had been incorrectly counted.
  
  
• City AM has appointed Christian May as its new Editor-in-Chief, taking over from Andy Silvester who stood down after four years. May previously led the publication from 2015-20.
  
  
• London-based developer Regal has appointed Lord Richard Harrington as its new Non-Executive Chair, leading the board as the company continues its residential-led growth strategy. Harrington is the former Conservative MP for Watford and served as Minister for Refugees in 2022.
  
  
• Director of Corporate Services at Wolverhampton Homes, Julie Haydon, has been elected as Vice President of the Chartered Institute for Housing. She replaces Peabody’s Chief Operating Officer Elly Hoult who will move into the role of President.
  
  
• Former Chief Executive of the Royal Opera House, Lord Tony Hall, has been appointed as Chairman of the Natural History Museum. The former Director General of the BBC replaces Lord Patrick Vallance in the role, who has been appointed as Minister for Science.
  
  
• Loyd Grossman, former Chair of The Royal Parks, broadcaster and writer, is to become the new Chair of the Board of Trustees at the Royal Society of Arts.
  
  
• Chief of Staff at Mace Group, Hannah Vickers, has been appointed as the firm’s new Global Head of Advisory, responsible for leading the group’s advisory consultancy arm.
  
  
• The National Theatre has reappointed Sir Damon Buffini as Chair until January 2027, extending his term by two years to oversee the organisation’s leadership changes. Robert Hastie of Sheffield Theatres is to join in January 2025 as Deputy Artistic Director alongside incoming Director Indhu Rubasingham.
  
  
• Former Director of the British Museum, Hartwig Fischer, has been announced as the new Director of the Royal Arts Complex in Riyadh, Saudi Arabia.
  
  
• Industrial designer Sir Kenneth Grange has died aged 95. A leading figure in product and engineering design, Grange was responsible for the design of InterCity trains, the 1997 London black cab, the Kenwood Chef mixer and Royal Mail post-boxes.
  
  
• Co-owner and Deputy Chair of Laing O’Rourke, Des O’Rourke, has died aged 75. With his brother Ray, O’Rourke led one of the largest private construction businesses in the UK since its creation in 1977.

WE RECOMMEND

• PoliticsHome’s interview with Culture Secretary Lisa Nandy on her new role in government.
• The Museum of the Home’s latest exhibition.
• English Heritage’s new CEO Nick Merriman on the positive impact of heritage in the economy.
• The AJ’s Anna Highfield on the emerging co-living pipeline.
• Lord Mayor of London Michael Mainelli’s mission to attract maritime trade to the City.
• The fate of one of London’s last remaining Italian social clubs.

SUMMER IN FULL SWING AT THE GREENWICH PENINSULA

On Wednesday 17 July, the LCA team supported Knight Dragon’s launch of its Wild Swing Mini Golf in Greenwich to kick off their much-anticipated Peninsula Summer programme. 

The exciting 9-hole course was designed by creative duo Lee Baker and Catherine Borowski of Graphic Rewilding - who are known for their stunning floral and nature-inspired installations. The vibrant mini golf course features playful nods to the wildflowers that once thrived in the pre-industrial waterways near Greenwich Marshes. 

The launch event was attended by 14 lifestyle influencers and so far has featured in Secret London, Metro, City A.M and The Londonist, further putting Greenwich Peninsula on the map as a go-to London destination for the best arts and culture. The course is open from July to September 2024. Visit greenwichpeninsula.co.uk to find out more about Peninsula Summer. 

Photo courtesy of Vivid Squad

LDN CONTRIBUTORS 

LCA prides itself on its intelligence-led approach to PR and communications and our dedicated insight team monitors London politics, news and issues as it happens.

If you would like to know more about LCA or anything in this edition of LDN – London in short please get in touch. 

Nick Bowes

Managing Director, Insight

Robert Gordon Clark

Senior Advisor and Partner

Emily Clinton

Account Manager, Insight 

 Daniel Reast

Insight Executive

Design:  Aroa Maquedano Pulido:

We strive for balance and accuracy at all times; however, if you feel we have made a mistake, omission or have misrepresented a story or issue please alert the team by contacting the LDN team by using the details above.

Follow Us for More 

We hope you enjoy this edition and if you don't already, do follow us on LinkedIn and Instagram. You can also visit our website for more information on LCA’s team, services, and clients.

And finally, a technical note: If you like hearing from us, make sure to add ldn@londoncommunications.co.uk to your contacts or ‘safe sender’ list – this will help ensure LDN lands in your inbox.