DEVELOPMENT & PLACE

CUSHMAN & WAKEFIELD VIEWPOINT Urban living isn’t a trend, it’s reality. Latest figures (2017) show that over 83% of UK citizens already live in urban areas. And that number is likely to rise annually by around 1%. Every single one of the UK’s 63 cities is forecast to have its population expand by 2036, driven by a diverse range of factors - from increased life expectancy to improved urban infrastructure. How successfully all of our towns and cities will deal with burgeoning numbers of residents isn’t clear, but sustainably meeting the expectations of a growing population in terms of property, services and infrastructure provision will present challenges which are unlikely to resolve themselves. It’s therefore heartening to see that leaders in many towns and cities are already asking how they can provide new urban homes even if the answers aren’t immediately apparent. And it’s equally encouraging that developers are rising to the challenge (see New generation box pg 23). But residential provision isn’t just about building – demographic change has significantly skewed modern approaches to housing types and tenure. Home ownership has fallen steadily from a peak of 71% in 2003 to a current level of around 63% and some believe that it may fall as low as 50% over the coming decades. The impact has been most profound on young people. The Institute for Fiscal Studies estimates that home ownership of 25-34 year olds has halved in the last 20 years – to less than one quarter of that age group. Unsurprisingly therefore, new housing concepts, such as co-living, are initially targeted at career-orientated, young professionals. Well-managed, uber- contemporary living space is the hallmark of the first generation of co-living products to launch in major cities. These include The Collective (three sites in London), Quintain’s Tipi (Wembley Park, London) andWeLive (New York andWashington, with a London site planned). It would be wrong, though, to associate co-living with a particular age group. Rising life expectancy and changes in social norms are resulting in a rise in the number of middle-aged people living alone. The potentially negative implications of social isolation are already being taken into account by developers and occupiers alike. British Land, for example, is exploring how to best facilitate social interaction between all age groups at its proposed Canada Water scheme in south-east London, while a group of women (all aged over 50) have collectively developed their own co-living space in Barnet, north London. Co-living might have arrived as a response to high land demand in capital cities, but the principles (along with those of other, still to be realised, concepts) could well be applicable for a new generation of housing in towns and cities across the UK. Stakeholders with vision should step forward now to make them part of the urban living reality. To identify what type of buildings would be an optimum fit for a town centre, stakeholders should first decide (taking the unique attributes of that particular location into account) which type of occupiers they would like to attract. They might include: • Families – especially where an area has good schools. • Older people (independent) – looking to downsize and be close to cultural offer. • Older people (dependent) – looking to locate close to facilities such as health. • Young professionals (couples) – looking for more space or access to open space including gardens. Establishing who will move into a town centre and the type of buildings they’ll require is half-way towards transforming a town centre. The other half – getting those structures out of the ground – is undoubtedly harder. Sometimes a step change in development can be engineered by successfully challenging perceptions about a place (see Preston box below). A realistic approach is vital. Change is unlikely to happen overnight. Once a new type of product has become available, however, it may well alter local dynamics and create a new momentum, resulting in a positive cycle of gradual property value increases. Local authorities can play a critical enabling role by supporting residential investors and developers with a range of measures including, for example: strong vision, planning expertise (including CPO powers), land provision and links to other relevant public sector partners (sources of additional land and/or funding). One crucial thing to bear in mind, though: new-generation residential isn’t a panacea for failing or under performing town/city centres. If the fundamentals, like easily accessible, affordable parking and good signposting, aren’t in place it will be difficult to attract new occupiers. It’s important to fix the basics first, before even considering ambitious housing projects. The golden rule is that residential buildings should always be appropriate for the particular characteristics of the locality in which they are situated. Above Wembley Park Caroline Baker, Cushman & Wakefield Holly Russell- Kennedy, Cushman & Wakefield Words by: 24 25 CUSHMAN & WAKEFIELD DEVELOPMENT & PLACE