4 minute read
Welcome Back
Thank you for clicking on our second blog from Sigma Strategic Land (SSL). If you missed our introductory post, please click here. To briefly recap, Sigma Strategic Land (SSL) is a strategic land promotion business based in Horsham, West Sussex and we are launching a series of blogs to inform and inspire.
Our blog posts will endeavour to cover news items, opinion pieces drawn from the fast-changing world of planning legislation and case law, as well as Q&As from industry leaders and organisations. We are excited for you to come on this journey with us.
The SSL business and Planning Reform
This time, we continue taking a look at SSL as a business, our typical strategic land requirements and the Government’s clarion call for SME developers to suggest ways they can be supported through the proposed planning reform package.
At SSL, land promotion either through an Option or Promotion Agreement are the main methods of acquiring sites. Our strategic land requirements are as follows:-
Sustainable locations in or on the edge of settlements, commonly with a good number of shops/services;
- The potential to accommodate between 15 – 200 dwellings;
- Land areas of between circa 1 – 6 hectares (2.5 - 15 acres);
- SSL are also interested in mixed use schemes, as well as regeneration opportunities which can be delivered through partnerships and Joint Ventures. SSL does not discount sites purely on the basis of AONB, Green Belt or sites in existing recreational use;
- An expectation for a minimum GDV of £7m+ and minimum average sale revenue of £350 per square metre +.
SSL does not require complicated or delayed board approvals so quick decision-making is a key attribute for our business. Please see our Strategic Land page for a fuller appreciation of what we do and how we do it.
Sigma Strategic Land in 2020
To demonstrate what SSL has achieved last year, we acquired a number of sites in Sussex and Surrey. These have the potential to achieve a planning consent over a range of timescales and with site capacities of between 50 to 200 units. Each site has a bespoke planning strategy in order to unlock its development potential. In earlier posts here, we shared details of our recent acquisitions in Plumpton Green, East Sussex and Hamm Court, in Weybridge, Surrey.
Sigma Strategic Land (SSL) forms part of the Sigma Homes Group which has recently completed construction of a residential schemes on the southern side of Bolney Road in Ansty, West Sussex and an apartment complex in Welland House, Guildford.
Proposed Planning Reform – SMEs and Sigma Strategic Land
Of everything that has been extensively written about in connection with the planning reform packages recently, it was very positive to see that SME developers were given clear consideration and recognition in contributing to the overall housing supply. Not only this but there was an invitation found in Paragraph 83 in the ‘Changes to the current planning system’ for SME developers to comment on ways in which the Government can support them to deliver these vital new homes. What a fantastic opportunity.
Such an invitation raises a number of interesting questions for SSL and the SME sector at large. It suggests that the solution here has not been covered, or is more multi-faceted than initially presented. Perhaps SME developers need to share their experiences including whether the problems are too site and circumstance specific for a ‘one size fits all’ approach. Or maybe it was the Government making absolutely sure of the challenges faced in unlocking the delivery of sites for the SME developer. The consolidated Infrastructure Levy (IL) was referred to as being of much needed help to SMEs in this regard, but it is questionable whether this can potently assist with much needed cash flow and financing a scheme.
Whatever the reasoning, the clarion call remains long after the consultation period has ended and we are running a poll in an upcoming blog to share SSL’s take and experiences on this, as well as identifying potential solutions.
Also of interest to SSL is the largely overlooked recent public consultation into increasing transparency of contractual arrangements used to control land. The stated reason by Government was to provide better information for local communities, promote competition amongst developers and to assist SMEs and new entrants into the sector. But will such ownership transparency actually achieve this? Please look out for upcoming blogs where we seek to cover these issues in more detail.
In the meantime and for our next post, we will be in conversation with the Land Promoters and Developers Federation (LPDF) to understand how One Voice can start to unpack issues around deliverability with a special focus on SMEs…
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