Why Colchester doesn't have a land banking crisis

There is too much of it but not enough infrastructure to support it are the most common complaints with some more extreme philosophers slinging conspiracy theories around.

So I started to investigate, including exploring the issue of land banking, where developers acquire plots of land but then do nothing with them for some time.

Is this an issue in Colchester and the cause of the homes explosion?

The answer, simply, is no.

A Colchester Council spokesman said: “As the local planning authority, the council monitors the number of houses completed each year in the borough and updates its housing trajectory, which shows most sites we monitor are underway and not being banked by developers.”

What I learnt is for every site given planning permission and, therefore, listed on the most recent housing trajectory, the relevant parties are contacted annually for progress checks.

This includes checking if they have identified anything which would prevent them from bringing their site forward.

“So if there was a land banking issue that would be identified at this stage,” explained Karen Syrett, the council’s planning and housing manager.

“The biggest delay on a site I would say is probably Lakelands site at Stanway.

“They built phase one quite some time ago now and there was a delay because of the 2008 recession, which was a double dip recession for housing, and they were required to deliver the Western Bypass as part of that housing development so there wasn’t the viability in the market.

“So that’s one where I’d say it wasn’t a case of land banking, it was more to do the economic circumstances.”

Mersea Homes' Chesterwell development on the A134

Housing charity Shelter described land banks best in 2016 as ‘portfolios of land which could be used for housing and are owned or controlled by a single organisation’ - a housebuilder or another type of company interested in retaining the land for development.

As housing demand and local authority targets grew, the spotlight shifted to big name developers such as Taylor Wimpey, which recently announced it would limit the amount of time it holds land to between four and four-and-a-half years - 12 months less than usual.

Its chief executive claimed both the housing market and planning policy is now in a more favourable position, the best it has been in 30 years.

Colchester’s market is buoyant with particular demand for homes on the Chesterwell site at Mile End, and at Severalls, where Taylor Wimpey, Bloor Homes and Bellway are all selling properties.

The truth of the matter is, developers are several steps ahead using land banking as a way to ward off competitors, get the healthiest financial return and directly influence demand, and therefore, house prices.

Not so in Colchester.

Karen said: “Where in other parts of the country demand is high and prices are high, if you haven’t got the supply then people are forced to pay more for those limited units which aren’t coming forward.

“In Colchester we have that balance - there’s demand and sales values are reasonable so that entices people to want to live here.”

Karen Syrett, Colchester Council's planning and housing manager

Generally the length of time it takes once a planning application is given the thumbs up to bricks being put on the ground is misunderstood.

Finalising legal agreements and between different solicitors and landowners finding a buyer for the sites are factors which can lead to what is perceived as a lag in construction, but is not the same as land being kept by greedy developers.

Karen said: “If we think about Chesterwell, it was a broad allocation in 2008 and then went into site allocations which were approved in 2010.

“The council then did some supplementary planning guidance to help inform the design and layout, but they started building probably in about 2015 so it takes a while for a big site like that to go from planning permission to discharge of conditions to doing the initial ground works.

“Whereas we have small sites that can be developed, sold and occupied within a year, it much depends on the size and scale and complexity of each site.”

Looking ahead, within the local plan period until 2033/34, 15,552 homes are due to be built in Colchester.

This includes several existing allocations without planning permission due to be reallocated in the final Local Plan such as the former Essex County Hospital site, Britannia car park, plus the garden communities.

Inside Essex County Hospital, Lexden Road

Given the hybrid and overlapping nature of planning applications, with some partially implemented and then further amendments sought afterwards, this figure is the council’s best guess at this point in time.

Karen said: “One site, regardless of size, will only deliver a certain amount of dwellings per year which is the market dictating that.

“Most developers on a big site work on the basis of one unit sale per week so 50 per site, per year.”

Since 2001, the council has exceeded its housing requirements by 939 dwellings.

Karen said beating target actually gives the council greater control in the long-run, something which other Essex authorities have lost out on with more applications getting approved on appeal.

In terms of the number of homes built between 2001/2 and 2016/17, Colchester peaked at 15,396, compared to Chelmsford’s 9.517 and Basildon’s 5,970.

She said: “It also means not having to meet past shortfalls so our targets will reflect we haven’t under-delivered.

“Planning inspectors usually like to see that shortfall addressed in the first five years. If, for example, you have a shortfall of 1,000, you’d be expected to address that on the basis of 200 extra units per year which is a lot, so it’s much better to have a steady flow.

“Although some people will say we’re delivering too many and other places have got away with it, that isn’t what happens.”

As for the infrastructure to support the homes, that is another debate.

READ MORE: THE REBIRTH OF THE HYTHE IS AN ONGOING STORY