Insights from ATCM Place Management Conference 2024. Part 1
On 28th February, Lisa and I went to London for the ATCM Place Management Conference. I made far more extensive notes than I realised and with the help of our chatty colleague - Graham Patrick Taylor, produced this summary for all our customers, friends and strangers who couldn’t make it. Enjoy.
Session 1: The current state of play
Ojay McDonald, CEO of ATCM.
Ojay highlighted the crucial role of town centres in supporting housing, footfall, vibrancy, and economic activity. He emphasised the benefits of reducing urban sprawl and promoting environmental sustainability by having people live closer to services and economies. However, he also addressed the challenges posed by the shift towards remote work and (historically) out-of-town retail centres, which can disrupt traditional town centre dynamics.
The introduction of permitted development rights (PDR), allowing the conversion of offices to housing without planning permission, is noted as a response to the shortage of housing and underused space in town centres. Yet, Ojay acknowledged some side effects of PDR, including poor quality homes, loss of strategic commercial space, business evictions, and a lack of complementary planning for necessary services.
Ojay underscored that while PDRs are an England-specific issue, the broader challenge of housing shortages is nationwide and even global, with projections from the World Bank indicating significant impacts by 2025. He cited examples such as Manhattan in New York, where there has been a substantial increase in residential development, despite being the epicentre of global commercial activity.
Moreover, Ojay raised concerns about the implications of these trends on funding for place management organisations, which rely on business rates. The potential decline in commercial activity could undermine the provision of essential services and infrastructure in town centres.
Finally, Ojay posed the question of whether these developments represent an existential threat to high streets, commercial centres, and town centres, prompting further reflection on the future of urban landscapes and community vitality
Melanie Leech, CEO of the British Property Federation
Melanie delivered a talk titled "Supply, Demand and the Inevitable Shift from Commercial to Resi," focusing on the evolving landscape of town centres amidst global urbanisation and technological advancements.
Melanie acknowledged the enduring importance of town centers as places where communities come together, albeit in transformed ways influenced by technology. She highlighted the ongoing decline of retail-driven high streets, exacerbated by the shift towards online shopping among millennials and Gen Z, as well as the burden of business rates on commercial businesses.
Melanie noted political promises, such as Labour's pledge to reform business rates if elected, indicating potential changes in policy affecting commercial enterprises. She discussed trends in office occupancy rates, noting an increase but still below pre-pandemic levels, and the emergence of mandatory in-office policies, alongside the popularity and benefits observed with a 4-day working week.
The importance of brownfield development in town centres was presented as an opportunity, if challenges such as pollution and remediation costs could be overcome. A government consultation is underway to gauge local authorities' appetite and capacity for such projects. Melanie also addressed the issue of underutilised spaces within green belts, advocating for their productive use.
Regarding permitted development rights (PDRs), Melanie expressed skepticism, cautioning against their use without proper oversight, as they may result in poor-quality housing. She argued that PDRs alone are insufficient in addressing the housing supply shortage.
Melanie highlighted the role of Build to Rent (BTR) as a long-term investment solution, aiming to increase its capacity with government engagement and support in planning processes. She also underscored the importance of purpose-built student accommodation (PBSA) and housing for older people in town centres, positioning these demographics as key consumers for city centre housing.
Stephanie Pollitt, Programme Director (Housing) at BusinessLDN
Stephanie highlighted the significant shortfall in meeting London's housing needs, as outlined in the London Plan, with only limited progress achieved in addressing this gap. She attributes this failure to various factors, including high costs and debt burdens on house builders, regulatory complexity, and political uncertainty.
The exorbitant housing costs in London, where individuals spending around 50% of their income on housing drives people to relocate outside the capital. This, in turn, impacts businesses' ability to retain talent and undermines London's competitiveness.
Stephanie stressed the importance of addressing London's housing affordability crisis by building more affordable homes and advocating for a mix of tenures and price points. She emphasised that housing should be viewed as essential infrastructure for the capital's prosperity.
Stephanie identified the Mayor of London as a key driver in advancing the housing agenda and suggests that greater synergy between Westminster and City Hall could be facilitated by upcoming general elections.
Furthermore, she advocates for maximising the use of limited land supply in London, through housing densification and a review of the city's greenbelt policies. Additionally, Stephanie emphasises the importance of embracing a variety of housing tenures, including Build to Rent (BTR) and Purpose-Built Student Accommodation (PBSA), to cater to diverse housing needs and preferences in the city.
Cathy Francis, Director of Place, Infrastructure, and Housing Delivery at the Department for Levelling Up, Housing, and Communities.
Cathy began by acknowledging the historical context of housing supply, noting that while 2019 saw the highest number of homes built in the last 30 years at 249,000, but this still falls short of the estimated 350,000+ needed annually. She highlighted the significant council house building programs of the 1960s and 1970s but also drew attention to the persistent issue of temporary accommodation, particularly in London, where a concerning proportion of children are affected.
Emphasising the importance of a coordinated approach, Cathy stressed the need for collaboration across government levels—national, regional, and local—to address housing needs effectively. She underscored that housing is not just about providing a physical structure but about creating communities and places where people can thrive.
Cathy expressed optimism about the prospect of implementing an uninterrupted five-year plan, following upcoming election this year, providing civil servants with a stable framework for action. She invites feedback from stakeholders, highlighting the role of Directors of Place and the High Street Taskforce as channels for providing input on what placemakers need from the Department for Levelling Up.
Session 2: The challenges
Panel Debate
The Harsh Reality of New Housing in Old Commercial Destinations
Chair: Ruth Duston OBE, OC, Managing Director of Primera Corporation, Chief Executive of London Heritage Quarter
Panel: Karen Pengelly, BID Manager, Go Epsom
Michael Kill, CEO, Night Time Industries Association
Tom Evans, Placemaking and Strategic Planning Manager, Swansea Council
James Child, Head of Research, ING Media
Summary
James highlighted a 5x greater presence of housing in public discourse over high street concerns, but admitting that the two are interlinked with 46% of people claiming a vibrant high street would determine where they would choose to buy a new home.
Michael discussed measures to facilitate co-habitation between residential and night time economy spaces. He cites the Nightingale project in Birmingham as an example where developers funded soundproofing measures to accommodate residential units near nightlife venues, promoting harmonious coexistence.
Tom stressed the importance of balance in urban planning, aiming to create cohesive mixed-use environments that enhance the overall experience of town and city centres.
Karen shared concerns about the negative impacts of permitted development rights (PDRs) on local economies. She highlighted 6000 - 9000 job losses in one of the BID areas that she led as a result of a lack of economic assessments during the transition from commercial to residential spaces. Additionally, she noted the financial strain on Business Improvement Districts (BIDs) due to reduced levy income amid increased budget pressures.
An audience member raised the issue of inadequate transport infrastructure for the night time economy, particularly after 11 pm. The gentleman argued that improving transportation services would support employment opportunities, mitigate noise and nuisance complaints, and enhance consumer safety, addressing broader challenges faced by the night time economy.
Overall, the panel debate underscored the complexities and challenges of integrating new residential developments into existing commercial spaces, highlighting the importance of thoughtful urban planning, stakeholder collaboration, and balanced policies to ensure sustainable and thriving communities.
