Land Journal Farming from space Sensors, GPS and software systems are modernising land management PG.
12
Smart cities vision
Making votes count
New ways of living
Dan Byles MP gives his view on the future of smart cities in Europe
How two UK local authorities use modern datasets to plan election registers
An RICS-backed guide to the history and principles behind new communities
PG.
6
PG.
18
PG.
24
May/June 2015
rics.org/journals
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04/03/2015 15:55
RI CS LAND JO UR NAL
C O NTENTS
contents
Front cover: ©iStock
CO N TAC TS
4 From the chairmen
LAND JOURNAL
5 Update
Editor: Mike Swain T +44 (0)20 7695 1595
E mswain@rics.org
Editorial team: James Kavanagh, Fiona Mannix, Tony Mulhall (Land Group) Land Journal is the journal of the Environment, Geomatics, Minerals and Waste, Planning and Development and Rural Professional Groups Advisory group: Tim Andrews (Stephenson Harwood LLP), Philip Leverton (College of Estate Management), Rob Yorke (rural chartered surveyor), Michael Rocks (Michael Rocks Surveying), Tim Woodward (rural chartered surveyor), Michael Birnie (Buccleuch Estates), Marion Payne-Bird (consultant), Frances Plimmer (FIG – The International Federation of Surveyors), Duncan Moss (Ordnance Survey), Kevin Biggs (Royal Bank of Scotland) The Land Journal is available on annual subscription. All enquiries from non-RICS members for institutional or company subscriptions should be directed to: Proquest – Online Institutional Access E sales@proquest.co.uk T +44 (0)1223 215512 for online subscriptions or SWETS Print Institutional Access E info@uk.swets.com T +44 (0)1235 857500 for print subscriptions To take out a personal subscription, members and non-members should contact Licensing Manager Louise Weale E lweale@rics.org
6 Smart cities vision
Dan Byles MP gives his view on the future of smart cities in Europe and how they should work for their citizens
8 A task in hand
Paul Belson explains initiatives under way to meet the rising demand for private rented housing
10 Rise and shine
Faith Clark looks at how geographic data and mapping is being used to harness the maximum potential from solar energy
12 Farming from space
Modern sensors, GPS and software technologies are providing new opportunities for farming and land management, says Davina Fillingham
15 Wising up Published by: Royal Institution of Chartered Surveyors, Parliament Square, London SW1P 3AD T +44 (0)24 7686 8555 www.rics.org ISSN: ISSN 1754-9094 (Print) ISSN 1754-9108 (Online)
Children are learning at first hand where food comes from thanks to a project in Devon that could be a model for other farm estates, claims Ashley Sale
16 Pay attention
Dividing the risks and rewards between landowners and developers needs careful documentation, warns Karen Mason
18 Making votes count
Gayle Gander reports on how two UK local authorities are using modern datasets to plan the smooth running of this year’s general election
20 A mine of information
Selected Coal Authority information is now available to view on a smart phone or tablet, reveals Louise Tipper
22 Blueprint for change
Malaysia is building on its smart eco villages to lift people out of slums into working sustainable communities, reports Datuk Tan Say Jim
24 New ways of living
Sandy Apgar examines the history and principles behind the development of new communities and the lessons for real estate theory and practice
Editorial and production manager: Toni Gill Sub-editor: Gill Rastall Designer: Craig Bowyer Creative director: Mark Parry Advertising: Charlotte Turner T +44 (0)20 7871 5734 E charlotte@wearesunday.com Design by: Redactive Media Group Printed by: Page Bros
While every reasonable effort has been made to ensure the accuracy of all content in the journal, RICS will have no responsibility for any errors or omissions in the content. The views expressed in the journal are not necessarily those of RICS. RICS cannot accept any liability for any loss or damage suffered by any person as a result of the content and the opinions expressed in the journal, or by any person acting or refraining to act as a result of the material included in the journal. All rights in the journal, including full copyright or publishing right, content and design, are owned by RICS, except where otherwise described. Any dispute arising out of the journal is subject to the law and jurisdiction of England and Wales. Crown copyright material is reproduced under the Open Government Licence v1.0 for public sector information: www.nationalarchives.gov.uk/doc/open-government-licence
M AY/J U N E 2 0 1 5 3
RICS L A N D JO U RN A L
C H A I R M E N ’S CO L U MN
FROM THE
CHAIRMEN GEO MAT I CS
Chris
Preston FRICS
In another great issue of the Land Journal, several articles give an insight into ‘applied’ geo-information underlining how ‘geo’ enables and empowers other sectors and initiatives. The Bluesky article on solar energy and urban environments highlights how aerial imagery and 3D modelling are essential to the production of renewable energy in an urban environment, all that unused roof space (see p10). Site selection is key and geo information helps to provide the answer. The Coal Authority shows how extensive use of geographic information and public access can help to de-risk the property market in former coal mining areas – a pretty sizeable area of the UK (see p20). With a UK election looming, GeoPlace underlines how good and effective use of geo information combined with address and people data can encourage as much of the population as possible to use their democratic right to vote. RICS Geomatics has a busy summer ahead with our industry-wide conference and exhibition GeoBusiness 2015 (www.geobusinessshow.com) bringing the UK and Anglophone geoworld together in London. If you would like to find out more about this sector this is the event for you. Hopefully, we’ll see many of you there.
RU RA L
John
Lockhart FRICS
Those of you with an interest in ancient woodlands will no doubt have heard of the work of Oliver Rackham and it was with 4 M AY/J U N E 2 0 1 5
great sadness that I read of his passing in February. We are indebted to him for his works and enthusiasm in the field of forestry, where he was venerated. On a lighter note, I am delighted to bring to your attention our new rural online community, which we have developed for rural professionals. This community provides a network for all professionals with an interest in the rural sector, with the aim of facilitating communication. Members can both commence and contribute to discussions of interest, post questions and receive responses from others and also use the community to highlight anything they feel is relevant. Membership is free and open to members and non-members of RICS. I strongly encourage you to join. Just scroll down to the corporate information section on www.rics.org/rural and take a minute to complete your details to be added. With the successful completion of our south east rural conference in Tunbridge Wells in February, I am now looking forward to seeing many of you at our national rural conference on 18 June at the RAU in Cirencester.
Institute, the Institution of Civil Engineers and the Landscape Institute. You may recall me referring to the Farrell Review (Land Journal July/August 2014) proposal that ‘place reviews’ should supersede ‘design reviews’ and the acronym PLACE be adopted, standing for planning, landscape, architecture, conservation and engineering. I made the case that it should include surveying to make it PLACES. Interestingly, Tony Mulhall, our board P&D land director, heard culture minister Ed Vaizey suggest at a recent Place Alliance meeting that the acronym was indeed to become PLACES. This is good news and underlines our profession’s contribution to place-making. And just a reminder of the RICS European Smart Cities event on 12 May, bringing together RICS leaders, industry innovators and real estate and infrastructure professionals.
ENV I RONMENT & RESOURCES
Andrew
Fitzherbert P L A N N ING & D E V E LO P MENT
Paul
Collins MRICS
APC pathways and associated competencies are currently under review and early indications are that planning and development might fall under a more generic land grouping. One issue that the professional group board has agreed already is that valuation should be assessed at Level 2 instead of the present Level 1. In addition, a new competency in relation to masterplanning and urban design has been proposed. This is an important aspect of many P&D practitioners’ work and crucially puts us in the camp of ‘place-making professionals’ alongside the Royal Institute of British Architects, the Royal Town Planning
MRICS
A change of rules to non domestic rates was put forward in the government’s Autumn Statement so that alterations to rateable values can only be backdated to 1 April 2010 if the ratepayer has an appeal made before 1 April 2015. Ratepayers will be able to appeal a valuation on or after 1 April 2015 but any change as a result of the appeal will only be backdated to an earliest date of 1 April 2015. As I write this, nothing has been put in place to bring this change into action but many appeals will have been lodged to protect ratepayers’ interests. It will be interesting to see if this is to be delayed. Turning to continuing professional development, the board has organised our spring conference at Eastwood Hall in Nottingham on 16 April. Topics include the circular economy, valuation issues, mineral supply, small-scale gasification and land ownership issues.
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UPDATE
UPDATE The speakers are Chris Jonas, Head of Strategic Development at Viridor; Nick Dawber, Managing Director of Energos; Lester Hicks, Consultant and Chairman of the UK Minerals Forum; Darren Herdman, Technical Director – Quarry and Mine Valuation Services at SLR; and Simon Talbot, Managing Director at GGS.
LAND & RESOURCES GLOBAL GROUP
Barney
Pilgrim FRICS
Just over six months since its inaugural board meeting, the group is making significant progress in developing and implementing its plan for the next four year period. The Land Group’s global strategic plan aims to enable RICS to rebuild its historic relationships with many national professional surveying bodies and develop its global potential. The strategy has two elements: the first focused on worldwide market opportunities for the Land Group sectors and RICS, and therefore our members; the second to develop structure and global governance. The primary aim is to fulfil the corporate RICS objective: “To advance and enforce standards in land, property and the built environment, and to promote the usefulness of the profession for the public good.” This is to be achieved by increasing membership growth opportunities, collaboration with other bodies, creating business opportunities and international networks for members and increasing membership numbers outside the UK using globally agreed industry standards such as the International Property Measurement Standard and forthcoming International Land Measurement Standard. As chair, my objective is that by the end of a three-year period the group has members from across all world regions, and delivers our key strategic aims.
Upcoming events RICS land and utilities roadshow Six locations in May and June This roadshow is designed to give a thorough understanding of wayleaves, easements, compulsory purchase orders and the importance of seeking professional advice in cases where formal notices are being given by a utility company. n Visit www.rics.org/landutilities
RICS CPD Day 12 May, Birmingham The programme offers a round up of key regional developments and explores potential business challenges and opportunities. It includes case studies and legal updates relating to planning, regional economic performance, building regulations, flooding, CDM regulations and more. n Visit www.rics.org/ westmidlandscpd
Rural web CPD Since their launch in 2012, RICS rural web classes have attracted more than 500 delegates across 20 subject areas dedicated to the needs of the rural surveyor. For anyone based in a remote location, these classes offer a quick, accessible and reasonablypriced format for completing CPD. A free recording is available on the Online Academy for a week following each session. Classes last one and a half hours and cost £40. New titles are produced every month detailed on the Online Academy or in the Online Academy newsletter. n For more information, visit http://bit.ly/198n60E
Businesses advice The Small Business hub on the RICS website provides toolkits on management and red tape, legal guidance, business advice, fact sheets and networking support. n Visit http://bit.ly/1zTNyXj
RICS Rural Mid-Session Conference 21 May, Perth Scotland’s rural landscape is undergoing major changes that will significantly impact on the work of a rural surveyor. The report on Agricultural Holdings Legislation Review has set a list of recommendations that heralds long-awaited reforms to the sector. This conference will provide an update on the issues and opportunities facing the rural economy in Scotland. It will also cover tax updates, the Wildlife Estates Scotland Initiative and a review of compulsory purchase orders and include a demonstration of mapping technology. n For a full programme, visit www.rics.org/scotlandrural
RICS Rural Conference 18 June, Cirencester The flagship rural conference returns in 2015 with an impressive speaker line up and a range of essential updates for rural professionals. There have been a number of crucial developments over the past 12 months. This conference will delve into those challenges and explore the GIS-based Map of Agriculture project which highlights production yields and financial returns on worldwide agricultural activities, a tool that will be of immense benefit to both farmers and investors. n For a full programme, visit www.rics.org/ruralconference
M AY/J U N E 2 0 1 5 5
RICS L A N D JO URN A L
U R BA N D E V E LO P M E N T
Dan Byles MP gives his view on the future of smart cities in Europe and how they should work for their citizens
Smart cities vision
T
here is a growing momentum – some say hype – behind the smart city concept, and a cursory glance at the statistics shows why. Over half the global population now lives in cities, and the proportion exceeds two thirds in the 28 EU member states (EU28). Urban areas worldwide are growing at a rate of 1.3 million people a week, more than the population of Birmingham. According to McKinsey Global Institute’s Urban world: cities and the rise of the consuming class, by 2025 – just 10 years from now – new urban floor space equating to the size of Australia will have been built. If we want a sustainable planet, we must have sustainable cities. There is simply no choice. The global race is on to be the smartest and the best, to attract limited global capital and talent. This competition is healthy, provided we do not lose sight of why we are developing smart cities. This should not be about technology or even status, but about citizens. Smart cities need to be attractive places to live, work, and do business in. If we get that right, everything else follows. In Europe, we have some real advantages. The EU is the largest and most sophisticated market on the planet, with an educated citizenry and a common regulatory infrastructure. The ability to scale successful solutions gives us a real edge, and we have already seen a strong commitment to investing resources and intellectual capital in smart city solutions. Add to the mix an ecosystem of world-class technology companies and strong city governments, and it becomes obvious why Europe is an attractive place for those seeking to invest in the smart city vision. Having said that, Europe’s very maturity also presents real challenges. We have 6 M AY/J U N E 2 0 1 5
already urbanised to a greater degree than much of the world. Our infrastructure is old and creaky, many European countries look crowded, and some of the smart city projects can appear modest compared with the dizzying schemes for shiny new cities in China, India and Dubai. The problems we are looking to solve in Europe and the US are different to those of the developing world, and smart cities cannot be a one-size-fits-all solution. We have the scope for new greenfield projects in Europe, such as the new UK Garden Cities and PlanIT Valley in Portugal, but to a larger degree we will
“ I do not believe that
we will ever point to a city and say that they have finished, they are now smart be retrofitting smart solutions to existing urban infrastructure. It is in this context that the report Mapping smart cities in the EU was commissioned (http://bit.ly/1FsrrW1). It provides a timely snapshot, and identifies a number of recommendations for the future grouped around five themes. Overall, I found it very useful, although there were elements with which I disagree, principally regarding definitions. The report identifies that over half of all EU28 cities with at least 100,000 residents have initiated or proposed a smart city initiative, rising to almost 90% for cities with more than 500,000 inhabitants. This represents more activity and ambition in the sector than I had realised. However it then characterises all
of these as smart cities: “In this report, a smart city is one with at least one initiative addressing one or more of the following six characteristics: smart governance, smart people, smart living, smart mobility, smart economy and smart environment.”
Journey continues My own view is that there are not yet any truly smart cities in the world. There are cities that are trialling or implementing individual smart city projects, but that is not the same thing. I do not believe that we will ever point to a city and say that they have finished, they are now smart. We are on a journey, a continuum, and there is no finish line to be crossed. This is an important point, because one of the key challenges is how we get from a series of standalone pilot projects, often with bespoke funding mechanisms that are not scalable or replicable, to “this is how we do business.” However, using their definition there are smart city projects in every EU28 country, with the largest numbers in the UK, Spain and Italy. Smart cities are not an end in their own right. The success of a project cannot be judged simply by the successful roll out of a piece of software or technology. There must be a robust end use case. The smart cities approach is not just a technology solution. Smart cities is a mindset. An attitude. Ultimately, it is about people. Most people do not care whether or not they live in a smart city, they care that their services are delivered efficiently and are meeting their needs, their streets are clean and the transport systems work effectively. And most city leaders are not interested in running a smart city. They want an efficient and effective city that is an attractive place to live, is sustainable, and allows for effective and targeted services based on tangible data about the environment and about citizens and their needs. Cities are more than just laboratories for sustainable technologies
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l Living PlanIT's model for a city of the future is being developed with the Municipality of Paredes in northern Portugal
and business processes. They are places where people live and work. The report considers success criteria on two levels: at the project level and against wider, strategic city and country goals. These are sensible definitions, although the second highlights an area of concern regarding Europe 2020 and smart city priorities. The Europe 2020 objectives on employment, innovation, education, social inclusion and climate/ energy all arguably fall within the scope, but the list excludes other pillars such as integrated healthcare and assisted living, security and resilience. The report acknowledges that by far the largest subset of current projects focuses on energy. This highlights the problem with classifying a city as ‘smart’ on the basis of potentially a single project. The report identifies common factors in achieving successful projects as: “Clear objectives, goals, targets and baseline measurement systems in place from the outset.” The six most successful cities were Amsterdam (the Netherlands), Barcelona (Spain), Copenhagen (Denmark), Helsinki (Finland), Manchester (UK) and Vienna (Austria).
Funding gap If there was a glaring gap it was over the challenges of funding, which was
“ The technology now
exists to achieve much of the smart city vision: what is required is a change of mindset identified as the greatest obstacle to the development of smarter cities in the recent Osborne Clarke report Smart cities in Europe: enabling innovation. The same report noted that, while over half of all European cities with more than 100,000 residents are currently planning or implementing at least one smart city initiative, only 28% of this group have fully launched one. The funding challenge is worthy of a report in its own right, but it was heartening to read in the EU report: “Notably, almost all solutions are expected to recover their costs in the short to medium term.” It is essential for smart city projects to produce sufficient return on investment to be ultimately self-financing. The report goes on to distill the findings into three important factors for success: vision, people, and process. It Images © Living PlanIT
is increasingly clear that the technology now exists to achieve much of the smart city vision. What is required is a change of mindset, and some challenging business process re-engineering in both local and national government. Governments are not good at this, and strong leadership is essential if we are to see the sort of changes required. This challenge is not new. Cities have adjusted to changing societies and technology for centuries. We have an opportunity to create cities that are both sustainable and can deliver high living standards. Ultimately, smart cities must offer the best possible quality of life with the lowest use of resources. Getting there will require leadership and vision, and this report shows we are on the right track. C Dan Byles is MP for North Warwickshire and Bedworth and the Founder and Vice-Chair of the Smart Cities All Party Parliamentary Group dan.byles.mp@parliament.co.uk
Related competencies include Planning, Economic development, Sustainability
M AY/J U N E 2 0 1 5 7
RICS L A N D JO URN A L
HOUSING
Paul Belson explains initiatives under way to meet the rising demand for private rented housing
A task in hand
T
k Hub/M&G build to rent housing scheme, North Acton
he private rented sector (PRS) is now England’s second largest housing tenure, making up four million (18%) of households. However, supply is still dominated by small private landlords (see Figure 1). Significantly, it is estimated that only 1% of the residential rented stock is owned by institutions, one of the lowest levels in the international league table (see Figure 2). This type of investor largely retreated from PRS ownership when rent controls and security of tenure were introduced in the 1960s. In comparison, purpose-built student accommodation is now worth an estimated £15bn, with much of it owned by institutions, according to CBRE. In the face of rapidly rising demand, the UK government launched a number of initiatives to encourage large-scale development of flats and/or houses designed for market rental and held by institutional type investors over the long term. After the 2012 Montague Review determined that there was an appetite among institutional investors for build to rent investment, the government introduced the £1bn Build to Rent fund and the £3.5bn private rented sector housing debt guarantee scheme (with a further £3bn in reserve). Both these initiatives are supported by the Private Rented Sector Taskforce, which was charged with kick-starting build to rent.
Figure 1: Landlord types
Feeding demand It is not surprising that institutions are taking note. The private rented sector has low volatility compared to other asset classes, including equities and commercial property. It also has good liability matching credentials, particularly for pension funds. Its performance is lowly correlated to other asset classes and, as a consequence, it offers a good diversification of risk. In total, the taskforce has unearthed aspirations to invest in excess of £10bn in build to rent. A number of pathfinders are paving the way for others. For example, the recently announced joint venture between Hermes Asset Management and Countrywide has been seeded with an initial £95m and has assets already established in Manchester, Birmingham and Nottingham. Hermes will manage the investment side while Countrywide will oversee the management of the properties. Hermes currently holds assets under management totalling £27.4bn, while Countrywide has more than 1,000 branches and manages real estate assets worth £6bn. Meanwhile, Essential Living/M3 Capital aims to build 5,000 homes for rent in London on behalf of a North American pension fund. And Thames Valley Housing Association has secured £200m of equity from the Abu Dhabi Investment Authority for its Fizzy Living brand, which aims to own more than 1,000 rental homes in London. It has just announced the acquisition of its first development site in Finchley, north London. As early movers, Prupim (now M&G Real Estate) described the PRS as being at a ‘tipping point’ and in 2013 acquired a £105m
Figure 2: Institution-owned stock
100% 90%
USA
80%
Switzerland
70%
23% 37%
Netherlands
60%
17%
Germany
50% 40%
France
30%
England
20% 10% 0%
13%
0% Private individuals
Companies
1% 5% 10%
15%
20% 25% 30% 35% 40%
Other organisations
Source: DCLG Private Landlord Survey 2010 8 M AY/J U N E 2 0 1 5
3%
Source: Towards a sustainable PRS 2011
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k Invesco Be:here scheme in Hayes, west London
k CS Capital Partners' Three Towers refurbishment in Ancoats
portfolio of 434 rented homes from Berkeley Group in a deal partially funded by the Homes and Communities Agency. M&G also announced its first forward funding deal for a specifically designed build to rent scheme by Hub for 152 apartments in North Acton. Other funds have followed suit. Invesco, on behalf of a local authority pension fund, has forward funded a new 118-home build to rent scheme in Hayes, west London being developed by Be:here (part of Willmott Dixon).
development by Bellway Homes in Nine Elms. Elsewhere in the country, Derby City Council is keen to use build to rent to help rejuvenate its city centre and is seeking key partners to invest and develop. In South Cambridgeshire, Urban and Civic has secured the development partner mandate for the Waterbeach Barracks scheme, with plans to turn the base into one of the country’s largest private rental housing schemes.
Increasing supply
There is a need to increase the quality of information about the private rented sector and the taskforce is working closely with the property industry on technical aspects including valuation and planning viability. By supporting PRS development and increasing supply, there should be a corresponding increase in competition, which in turn will lead to improved quality and choice. In the USA and Germany, developers have invested time and thought into how to create spaces and communities that people want to live in. The taskforce wants to promote this same culture in the UK. And by facilitating guidance, such as the Urban Land Institute’s Build to rent best practice guide, it hopes to encourage further thinking about quality and innovation in the sector. The taskforce has attracted new funders and investors to support future build to rent schemes. It encouraged to see the number of private rented sector projects proceeding without government finance, with at least 2,500 homes to be built. It is also working with partners to develop university modules and courses on private rent to cultivate and encourage genuinely fresh thinking about the private rented sector. Undoubtedly, the biggest legacy is for local authorities to support the development of build to rent schemes of the future. C
The second main focus in the taskforce’s work is to expand the supply of build to rent schemes. By leveraging the £1bn Build to Rent fund, which provides development phase finance to large-scale private rented sector projects, the aim is to create a stock of up to 10,000 new homes for private rent and investment. The fund was four times oversubscribed and 11 projects are already under contract for more than £150m of finance for around 2,000 new homes. Examples include CS Capital Partners’ 192-home Three Towers refurbishment scheme in Ancoats, Manchester, funded with just under £8m of Build to Rent fund investment. In round two, the shortlist comprises bids to support up to 8,000 units all over the UK.
Housing debt guarantees Launched last December, the private rented sector housing debt guarantee scheme for investors uses the government’s fiscal credibility to reduce the cost of investing in new build across the UK. Discussions are being held with bidders capable of accessing the bond market directly. A delivery partner will do business with any borrower with a project above £10m. Local authority support will be crucial, drawn by the benefits of economic growth, employment and labour mobility. The National Planning Policy Framework enables local authorities to support PRS development through section 106 agreements, while recent revisions to planning guidance, supported by the taskforce, recognise the private rented sector as an asset class. The taskforce has identified 80 or so local authorities as having large-scale market rental housing and investment potential. To date, more than 30 have indicated support. Croydon has secured £20m of round one funding to build 216 private rented sector homes on a council office site, which will ultimately be owned by Essential Living/M3 Capital. Build to Rent will play a part in its drive to build 9,500 homes over the next five years. Wandsworth Council has recently granted planning permission for a 114-home build to rent scheme within a 500-home
Improving quality
More information >
Follow the taskforce on http://twitter.com/PRStaskforce
Paul Belson is a member of the Private Rented Sector Taskforce paul.belson@communities.gsi.gov.uk
Related competencies include Housing strategy and provision, Leasing/letting, Planning
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RICS L A N D JO URN A L
R E N E WA B L E E N E R G Y
Rise and shine
k Solar energy capacity of Milton Keynes was assessed
Faith Clark looks at how geographic data and mapping is being used to harness the maximum potential from solar energy
C
onstruction of the world’s largest solar power plant has just been completed. The Topaz Solar Farm in California spans 24km2 and consists of nine million panels with a capacity of 550MW. Costing $2.5bn (£1.62bn), it is hoped the farm will generate sufficient energy to power 160,000 homes and will reduce carbon dioxide emissions by 370,000 tonnes annually. Meanwhile in the UK, a recent report by the Centre for Economics and Business Research predicted that solar photovoltaic (PV) could create 60GW of generation capacity by 2030 – enough to power the equivalent of 18 million homes (72% of the population). More detailed analysis focused on ground-mounted solar farms like Topaz, suggesting that this had the potential to contribute £25.5bn in gross value added output to the UK economy and put £425m back into consumers’ pockets through reduced energy costs. It is thought that all this could be achieved using less than 0.2% of UK’s land area. 1 0 M AY/J U N E 2 0 1 5
If the impact of solar potential from domestic and commercial rooftops is included, estimates rise by as much as three times. However, realising these potential benefits, without damaging industries such as agriculture or the environment, requires an understanding of not only the technology but the suitability of the locality being used, whether it be a rooftop or field.
Selecting sites A new website has just been launched to help homeowners, solar installers and manufacturers, energy companies and government organisations to assess the suitability of individual properties for solar energy. The result of a three-year, €2.4m EC-funded research project, the EAGLE platform (www.eaglesolar.eu) employs high-resolution geographic data such as aerial photography and LIDAR (light detection and ranging), as well as address records. This information is combined with details of actual energy tariffs, expected consumption, cost of installation and available subsidies to calculate the potential return on investment for solar energy systems. Images © Bluesky
UK-based aerial mapping Bluesky provided technical lead for the development and demonstration of this dynamic rating platform project, which was funded under EC Framework Seven Programme. Other project partners included the UK’s Solar Trade Association, Svensk Solenergi of Sweden, Solar Macedonia, Germany’s Deutsche Gesellschaft für Sonnenenergie, as well as Leicester, Karlsruhe, Stuttgart and Selcuk universities. Two SMEs, SolarTech in the UK and Solimipeks of Turkey, also participated, and the project was managed by the Chartered Institute of Plumbing and Heating Engineering. This ground-breaking research builds on Bluesky’s work to provide independent, evidence-based assessment of the suitability of roofs across the UK for solar panels. By applying automated image processing techniques to LIDAR, aerial photography and solar irradiation data, Bluesky calculates the energy potential to determine the size, aspect and roof slope of individual properties. Since 2010, Bluesky has mapped almost one million properties working
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l Bluesky has mapped a million properties with energy companies, housing associations, local authorities as well as both domestic and commercial property owners and solar panel installation companies.
that would provide the greatest potential return on investment. This intelligence allowed Kier to make initial assessments and decisions at the desktop saving thousands of pounds on site surveys.
Assessing savings
Meeting demand
In one project, Bluesky assessed the potential for solar energy generation at more than 100 London Fire Brigade premises in a bid to address spiralling energy costs and reduce carbon emissions. After an initial assessment, potential energy savings were highlighted and an assessment of how many panels each property could accommodate was provided. A detailed analysis of selected properties, including the production of animated 3D models and a study of local features that may shade a solar installation and reduce energy production was also undertaken. PV systems have now been installed at 23 fire stations. Bluesky has also helped Kier Harlow to implement an ambitious scheme to install solar panels on council-owned properties in the Essex town. Aiming to save residents money on their energy bills, provide a valuable income stream for the council and reduce carbon emissions, the scheme offered free installation for qualifying properties. The project was designed to maximise the government’s Feed in Tariff in place at the time. Rent-a-roof schemes offered Kier the opportunity to recoup the costs of solar panel installation with payments from energy companies for every kilowatt of energy produced. Solar panels would be placed on qualifying properties free of charge with residents receiving savings on their energy bills for up to 25 years. By using Bluesky’s Solar Potential assessment, Kier targeted properties
More recently, Bluesky has been working with technology company Satellite Applications Catapult to map out the renewable energy capacity of Milton Keynes. This work formed part of the MK:Smart project, led by the Open University and funded by Higher Education Funding Council for England. It is anticipated that Milton Keynes will be the fastest growing urban centre in the UK over the next 20 years with the
“ Milton Keynes'
population will rise 50% over the next 20 years creating an increased demand for energy population increasing by around 50%. This will create challenges of increased demand for energy as well as water and space. The objective of the MK:Smart project is to allow the town to meet these challenges. Bluesky mapped existing solar energy infrastructure to calculate current generating capacity. A new automated workflow was also used to identify the citywide potential for additional capacity
while a separate study will identify energy inefficiencies in individual properties. Using a microbolometer thermal camera designed for airborne surveying and ideal for use at night, Bluesky will capture measurements of heat loss from property roofs giving higher precision and more consistent results. The work of organisations such as Bluesky, both through the EAGLE project and on UK projects, shows how important an understanding of the site of renewable energy, for example solar panels, can be. The best system in the world will not perform if it is located in the wrong place, or as simple as it sounds, facing the wrong direction. For large-scale projects, being able to use off-the-shelf data, such as aerial photography and LIDAR, can offer significant efficiencies in the planning process with site assessments undertaken at the desktop. Bluesky is also investigating the use of geographic data and automated image processing techniques for exploration of other renewable energy projects such as wind turbines, micro hydro and heat pumps. C
l It is predicted solar photovoltaics could generate 60GW of power in the UK by 2030 Faith Clark is a marketing consultant at Marketing Edge faithmaryclark@market-it.co.uk
Related competencies include Remote sensing and photogrammetry, Spatial data management
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AGR I CU LTU R E
Farming from space
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Modern sensors, GPS and software technologies are providing new opportunities for farming and land management, says Davina Fillingham
While the commercial world gets to grips with the use of building information modelling (BIM), technologies in the rural land sector are moving equally fast. Advances in GPS, optical sensor and remote sensor technology and software systems capable of dealing with this georeferenced data means that we can be much more informed about the land we are entrusted to manage. Although referred to as precision agriculture, it is clear that these technologies have significant implications for land management too. GPS systems installed to guide or even auto steer modern farm machinery are now commercially capable 1 2 M AY/J U N E 2 0 1 5
of providing georeferenced data up to 2cm accuracy with real time kinematic (RTK) correction signals. The accuracy of these systems also brings the ability to consider land in a 3D as well as the more familiar 2D perspective. 3D mapping allows us to account for aspect, elevation and topography information, which has not been available before without specialist and costly surveys. Tractors benefiting from RTK correction signals are already recording elevation data but it is currently relatively underused. But applied to land drainage, computer systems are now capable of using the elevation data to plan, model, cost, implement, and map schemes. The ability to model such schemes means that their effectiveness can be tested and costed before works commence, and detailed georeferenced ‘as laid’ plans saved as a permanent record of a scheme.
Meanwhile, light detecting and ranging (LIDAR) technologies can also be used from drones, planes or vehicle-mounted systems to model landscapes to give a 3D perspective of the landscape and create a record of environmental features such as hedges, trees and field boundaries.
Soil maps Soils are a major consideration in the assessment of land. As surveyors we have always considered soil maps and land classification as a reflection of the productive potential in the valuation of land. The UK land classification maps have provided provisional information at a scale of 1:250000, since the 1970s. New data generated from the land now recognises the ‘in field’ variation and provides far more detailed site-specific information. Farmers are increasingly instructing specialist companies to conduct electromagnetic conductivity Images © Davina Fillingham
soil surveys on individual land parcels to identify the variability of soil types within a field. At least 22% of the productive arable area of the UK has already been surveyed using these methods. Trailed behind a quad bike, the machine transmits a pulse of current and a receiver measures and georeferences the soil interference to identify variations in soils. Higher electromagnetic conductivity is typical of clay soils and lower conductivity represents sandier lighter soils. Combined with a ground truthed assessment, this data allows production of a soil zone map , which then helps to determine variable seed rate application across a field during drilling or variable depth cultivation techniques. The cost of these soil surveys is around £12.50/ha, making it a sensible investment for land managers wanting to address ‘in field’ variability in arable or grassland production systems. Soil mapping is widely used in Australia to identify
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l Precision agriculture has signifcant implications for land management
variability within paddocks and is even being used as a form of land assessment for corporate farming companies when considering the purchase of land.
Yield mapping Combine harvesters can record crop yield ‘on the go’ and georeference this data, which maps high and low yielding areas of field and provides essential information on crop performance. There is often a correlation between soil maps and yield maps. Yield maps can also be costed to produce profit maps, which again are helpful in determining field performance. Yield and profit maps are increasingly being used to identify land that should be taken out of production or allocated to agri-environment schemes because it is not economically viable to crop. Yield maps provide a tool to surveyors to highlight where yields have been restricted as a result of works over the land such as third party access and crop damage.
Nutrient mapping Nutrient content of the soils also varies across a field and this variation can be identified and mapped. Soil samples are taken at georeferenced locations and the results analysed
and mapped to indicate key nutrients such as phosphate and potash. This data is then used to create nutrient prescription maps enabling targeted input where it is required rather than by blanket applications. Nutrient and yield mapping can provide important information on husbandry for the administration of let land, contract farming or share farming agreements to ensure the nutrient status of land is being maintained and not being depleted.
l Soil mapping machines transmit a pulse of current and a receiver measures the georeferences the interference to identify variations in soils
l The N Sensor assesses crop biomass to allow nitrogen to be applied efficiently
Optical sensors Optical sensors are now becoming common place in agriculture for remote sensing of crop health either via satellites, drones or tractor-mounted sensors. For example, the Yara N Sensor is used to assess crop biomass in a field. Data collected is used to recommend nitrogen applications to the land on the go, at the right place and in the right quantity rather than traditional blanket applications. Optical sensors are also capable of remotely identifying weeds within a field. Drones are used, for example, to identify patches of blackgrass, a weed that is becoming resistant to herbicides and can be very limiting on crop yield. Once
k Tractors benefiting from RTK correction signals can record elevation data (right) which can help in land drainage schemes (above)
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identified, site specific treatment can be used. The latest sprayer-mounted sensors can identify the weed and apply the herbicide in real time, again removing the need for blanket spray treatments.
Drones For large open spaces, drones provide a new tool to assess land quickly and efficiently and create a photographic or film record of land. The footage is increasingly being used in property marketing and is an excellent way of giving potential purchasers a different perspective of large country properties, estates, farms and land.
AGR I CU LTU R E
Sundown Farms Sundown Valley farm provides an excellent demonstration of precision agriculture technology for land management, balancing the production needs of the cattle enterprise with the environment. Located on the northern Table Lands of New South Wales, Australia, the farm extends to 20,000ha, one of four on Sundown Pastoral Company’s total 40,000ha holdings. Approximately 80,000 head of beef cattle are raised there each year, with 1,000 head per week sent to its finishing yards. The farm participates in the Pastures from Space remote sensing scheme, which uses daily satellite imagery to measure pasture biomass cover and predict pasture growth. From this data, agronomists at Sundown Pastoral can determine which paddocks will be grazed and which will be rested to prevent overgrazing that will result in soil exposure and soil erosion. The data is also integrated with soil electro conductivity maps, soil nutrient maps, soil moisture sensors and ground truthed biomass data, together with GPS animal tracking and livestock performance records, to develop a farm management decision support system that ensures better use of grazing and the ability to address ‘in field’ variation.
Environmental challenges The biggest challenge for agriculture and land management is to feed a growing population on a fixed supply of land while also managing the environmental impact. The importance of the advances in technology is that all the data can be brought together and analysed to model potential crop outcomes based on weather, soil moisture, nutrient data and crop health, which can then be used to appraise what inputs are required and carry out a cost benefit analysis. The data also allows us to monitor the impact of land management on the environment. Technologies allowing nutrients to be applied in the right place at the right time can help to reduce the risk of nitrate leaching, for example, while 3D information about land can help to model surface water runoff and flows, and manage risks such as soil erosion. Ecological intelligence and research needs to be improved to understand what land management practices can be used to enhance ecosystem services and protect biodiversity unique to 1 4 M AY/J U N E 2 0 1 5
the environment of that farm in a regional landscape.
Implications for land managers These new sources of information about the land we manage are all going to become relevant in our day-to-day work, whether it is how we assess the value of land, the value of a growing crop or the impact of crop damage. Now is the time for the profession to take these technological developments seriously. Collection, interpretation and management of the data is crucial and we must ensure that this valuable databank is available to current and successive land owners, land managers and occupants, free of commercial copyright. Not only can this accumulated data be used to
identify trends and improve farming practices on the land on an ongoing basis but will also be important information for people considering land purchase, valuation and the productive potential of the land. As land managers, we must embrace the opportunities that new data brings and offer the latest services that use this new technology and information. C
Davina Fillingham MRICS is a Partner at Stephenson & Son davina.fillingham@ stephenson.co.uk
More information >
In 2013, Fillingham was awarded a Nuffield Farming Scholarship. Her study looked at the latest technologies and their applications in agriculture and the land management sector. It involved travel to Europe, Australia, New Zealand and Canada visiting research institutions, universities, farms and advisers within the industry. Her report Precision agriculture: in the field and beyond the farm gate is available at http://bit.ly/1rf6aJZ or to view her presentation on YouTube visit http://bit.ly/1MJ4hil
Related competencies include Agriculture
EDUC ATIO N
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Wising up Children are learning at first hand where food comes from thanks to a project in Devon that could be a model for other farm estates, claims Ashley Sale
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ow in the third year, the annual Farm Wise Devon event brings together more than 1,400 pupils from 30 primary and special schools across the county to showcase the food journey from field to plate. The day draws on the knowledge and experience of tenants from the Devon County Farms estate, which is managed by Exeter-based NPS South West. Held at Exeter’s Westpoint Arena, the event includes practical demonstrations from estate tenant farmers and agricultural businesses with additional support from the Devon County Agricultural Association, Bicton College, the Federation of Devon Young Farmers Clubs and Mole Valley Farmers. The aim is to provide a safe environment where children can find out how food and drink is produced on local farms. In different zones – dairy, beef, sheep, poultry, pigs, fruit, vegetable, arable, forestry, wildlife, food and environmental – farmers are able to pass on their knowledge and expertise by involving children in the key stages of turning raw material into familiar manufactured products. Visitors watch cows being milked before being shown how cheese is made. Likewise, pupils are taught how wheat is grown and harvested before having a go at hand milling and turning the flour into bread. Estate tenants also put on a shearing demonstration to show that sheep are not only reared for meat but also produce wool for clothing. In addition, a wide range of exhibitors demonstrate the versatile and progressive nature of farming in Devon today.
Estate aims
l Grace Hicks collects her award for Excellence in Property Management from ACES president Richard Wynne in London
Devon County Farms estate which comprises just under 4,000ha and 71 residential equipped farms let on both Agricultural Holdings Act 1986 and Agricultural Tenancies Act 1995 agreements. The estate also provides opportunities for those looking to start farming who would otherwise not have a realistic opportunity to do so.
Positive feedback The event continues to go from strength to strength and the most recent day culminated in an award from the Association of Chief Estates Surveyors to chartered surveyor Grace Hicks of NPS South West for her contribution in organising Farm Wise alongside Devon County Council staff and estate tenants. “The future of the County Farms Estate is dependent on winning the hearts and minds of the majority of councillors, senior council officers, the allied farming industry and the public,” explains Hicks. “Evidence of disposals elsewhere in the country suggests that providing farming opportunities alone, although an important function, are not sufficient to sustain a viable and valued estate for the long term. “Delivering invaluable wider aims and objectives such as educational needs and other social objectives may prove to be an important lifeline in the austerity measures challenge faced by Devon and other county councils.” Hicks believes the project could be used as a model for other parts of the
country. “It has increased the profile and awareness of the estate and created invaluable links with the local community. The feedback from children and teachers about last year’s event has been extremely positive,” she says. “We feel the model is tried, tested and honed to a high standard. It is certainly a format that could be readily replicated by other like-minded local authority-owned farming estates elsewhere in the country.” C Ashley Sale is Marketing Coordinator at NPS Group ashley.sale@nps.co.uk
www.farmwisedevon.org www.nps.co.uk Related competencies include Agriculture
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D E V E LO P M E N T L A N D
Dividing the risks and rewards between landowners and developers needs careful documentation, warns Karen Mason
Pay attention
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he size and nature of any development will usually determine who is responsible for infrastructure costs, which can either make or break a greenfield scheme. Access and services costs will always be a significant issue to resolve before the viability of any scheme is considered. It is not unusual for a landowner to deal with these two issues before placing development plots on the market, and if a solution is already in place the value of the development land will usually be considerably enhanced. However, the real impediment to the landowner in resolving infrastructure issues will be the detail of the proposed scheme. Often, they may not have the funds or the expertise to work up a detailed scheme, which would mean front loading costs without a particular end user in mind. The expenditure on infrastructure will also only be worthwhile if the enhanced development value is available to the landowner. There is no point having high-quality roads and services if you do not get planning consent for the projected development.
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Therefore, the negotiations invariably include the developer putting in the infrastructure, with the landowner making a contribution by either a reduction in the price or even delayed payment. Unless the landowner has large pockets they will not be able to fund the infrastructure works without planning consent for the development. The costs that need to be shared relate to access and the provision of services. However, for larger developments amenity costs may also have to be shared if additional elements are required to obtain planning consent. This could be car parking, road works or other improvements to make the scheme viable or attractive to the local planning authority.
Sharing value Overage is a mechanism by which the seller of land can share in the increase in its value by receiving a payment in excess of the initial purchase price from the buyer after completion. Payment is usually triggered by a specified event, for example, obtaining planning permission or completion of the development. From a developer’s point of view, it is also a method of improving the initial cash flow of a proposed scheme and sharing
the risk of developing the land. From a landowner’s point of view it is definitely a case of ‘jam tomorrow’, so they should not get too distracted by the promise of an overage when negotiating the initial price. The biggest risks with overage are policing it, protecting it, and accepting that you may not get any more money at all. You need to make sure this is taken into account in establishing the price. In any agreement containing overage provisions, the parties will need to settle on the regular reporting to enable the landowner to police the provisions. Clear trigger points for payment also need to be agreed to make sure that both parties are clear about when this is due and when it will be made. If you are using a formula, a worked example in the document is always a good idea. There are numerous established methods for securing and enforcing overage agreements that can protect the seller, although none are entirely satisfactory. The drafting should be crystal clear about when, how and by whom the overage payment is to be calculated. Definitions of the land, the sale price, the overage period, the specified trigger events, the obligations
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of the parties and available remedies in the event of a dispute are also vital.
Clawback on development If land is being sold prior to development, the financial outcome of the scheme will probably not be ascertainable at that stage. Until planning consent is obtained, neither party will know for certain the number of units, the rental or sale values and therefore the true development value of the land. The landowner may therefore be happy to defer payment of the full price until this is determined. Equally, the developer will always be happy to take the cash flow advantage of deferring payment on part of the price. While it is common to see overage payable to the seller, it is unusual to see clawback by the developer because most would not pay any part of the price that is uncertain or unascertainable. If overage or clawback is agreed, the key consideration will be how the payments due from the developer can be protected. The best form will usually be a legal charge, but if the developer is borrowing to pay for the land this may not be available. If not, a second charge behind the senior lender may be on offer. Some form of restriction limiting dealings without consent against the title
is probably the most common protection used, although a restrictive covenant or creating a ransom strip are other possibilities. However, whatever method is used, it will have to be monitored and progress checked from time to time. A key area of dispute will also be what costs or deductions can be made to arrive at the overage payable. It is important to agree these in advance and make sure that every head of expenditure that is to be an allowable deduction is agreed by both parties and set out in the provisions.
Deferred payments Housebuilders, in particular, like to defer payments until their unit sales have been completed and they can accurately determine their profit. But remember, the period from negotiation through to completed sales will usually be many years. If acting for a landowner, try to agree a formula that does not require you to wait until the last house is sold to get your money. Some sales will certainly be required but payments can be made on the basis of the first slice with final reconciliation at the end. The developer will, understandably, want to wait until all sales are concluded and all costs are
in. As ever, the final bargain will depend on the negotiating skills and power of both parties and will be a balance of their interests at the time the transaction terms are agreed. The words ‘development risks’ can conjure up images of delayed construction works and misconceived architectural plans. However, it does not have to be fraught with mishaps if both parties set out their positions and these are mapped out in the agreement. There are plenty of challenges facing a landowner in selling to developers. However, with careful consideration of the risks and good planning the arrangement can bear fruit for both parties. Good advice at the earliest opportunity is a must. C
Karen Mason is a Partner in the Property team at law firm Boodle Hatfield kmason@boodlehatfield.com
Related competencies include Development appraisals
XXX xxx srubinsohn@rics.org
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E L E CTI O N
Making votes count Gayle Gander reports on how two UK local authorities are using modern datasets to plan the smooth running of this year’s general election
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ocal authorities are responsible for delivering a consistent, high-quality service for voters. In particular, this means ensuring that voters are included on the electoral register, will be able to vote easily, and know that their vote will be counted in the way they intended. In the run-up to the general election, ensuring accuracy of electoral registers and location of polling stations is a high-profile service that local authorities have to get right. Two key factors are: confirming the completeness and accuracy of electoral registration records; and taking regular reviews of polling districts and polling stations. Some of these issues have become compounded with the move from household to individual electoral registration (IER). Local authorities have needed to ensure they have robust procedures in place for the smooth transition to IER. Huntingdonshire District Council and Northumberland County Council have both used their Local Land and Property Gazetteers (LLPGs), which are an essential part of AddressBase, to facilitate this key democratic duty.
Huntingdonshire Huntingdonshire has maintained a 100% synchronisation between the LLPG, the electoral register and council tax
l A spatial display allows Huntingdonshire to identify that properties are within the correct register
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information since 2005 through cross matching via the Unique Property Reference Number (UPRN), which is used in both systems. The UPRN is the unique identifier for every spatial address in Great Britain, providing a comprehensive, complete, consistent identifier throughout a property’s life cycle – from planning permission through to demolition. The UPRN can link multiple disparate datasets together, both internally or when sharing information with other organisations, for example, local and central government bodies, emergency services, insurance and utility companies. The integration of various datasets has reaped benefits for Huntingdonshire’s voters during the move to IER. As the central hub for address and property information, the LLPG has continuously maintained an up-to-date register of residential properties. The team has also undertaken data mining of other authority datasets, identifying themes and producing workable reports for the electoral service staff. Prior to 2010, all properties were added to the register by the electoral services team from a number of internal sources, sometimes meaning new properties were in the register months or even years before they were occupied. This distorted electoral registration statistics. The system has now been customised to accept only properties meeting specific residential classifications, which are held with the LLPG. Each day’s change only update file is uploaded by the LLPG team, following successful validation by GeoPlace. All new ‘approved’ residential properties go into a holding area, while ‘provisional’ properties are loaded into a future properties area. Any properties that change in the LLPG from provisional to approved are moved to the daily holding area. The LLPG team also manages property address changes, property classification changes and demolished/historic properties and confirm everything remains in sync by a full monthly reconciliation of the LLPG to the electoral register. Having this business process in place has enabled the LLPG to give extensive support to electoral services and ensured that all properties were correctly addressed before the data was uploaded to the Cabinet Office for Department of Work and Pensions (DWP) comparison in the transition to IER. When the match was undertaken by the Government Digital Service, it resulted in an extremely high match rate, with a RAG score of Red 15.63%, Amber 2.16% and Green 82.21%. Images © Crown copyright and database rights
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Northumberland polling districts with active polling stations
This meant there was work still to be done to convert Red and Amber electors to Green by local data matching – an integral part of the IER process recommended by the Cabinet Office. Additional sources of data for local matching were identified from housing benefit and residential social landlords, through the LLPGs joint working with Huntingdonshire’s fraud team. This is where the LLPG, as the central hub of property data within the council, was again extensively used. Additional electoral management matching software was acquired allowing the Council Tax National Fraud Initiative data to be run against Red and Amber electors using the UPRN as the link field. The council tax team was asked to provide the following reports, each including the UPRN to allow for data matching: bb List of occupiers names and occupation dates: this enabled a comparison and report to be produced by names and occupation dates from both systems identifying those that could be ignored as recent occupiers bb Single persons discount: used to compare names and identify additional people bb Empty properties: identified no further work was required by electoral services where properties matched. Huntingdonshire was able to learn much about its local matching processes and verified the methodology that would be used for the transition to IER. It also resulted in the county achieving the overall third best match in the country.
Northumberland Northumberland County Council has a similarly close relationship between its LLPG and electoral registration teams to scrutinise boundary information and ensure that polling stations are situated in the most beneficial location for voters. Previously, six years or so ago, boundary changes were undertaken with an A0 map of the affected boundary area and a pen. Administration of boundary changes was a manual process with staff working for months to ensure accuracy. Significant consideration had to be made to maintaining the reputation of the council, as any inaccuracy would have a critical political impact. By literally tearing up sections of the electoral register, placing it on the map and adjusting the position of where the data sat, the team would keep updating the map and the elections database accordingly until the boundary change was
agreed. There were many iterations and many reviews by senior managers to ensure accuracy. This would include the review by senior managers, directors and the chief executive to ensure errors were minimised. Through linking the LLPG to the elections management system and allowing this data to be overlaid onto Northumberland’s GIS, the council was able to analyse quickly and accurately the data spatially, enabling identification of boundary issues and resolution in real time. This move was essential for the team to view electors’ addresses and see patterns in the underlying data such as polling districts and polling station locations. The team also took into account the distribution of registered postal voters in the consolidation of polling district and polling stations, allowing them to ‘remove’ postal votes from the analysis of location to optimise accordingly. The team measured the average and specific distances people travelled to vote to see whether changes to locations of polling stations needed to be made and note where travel distances were excessive, important in a rural county such as Northumberland. There were many examples where electors within one ward could have voted at five different polling stations outside it. By digitising the polling districts the electoral team has been able to analyse not only historical data flaws with the boundaries they were associated with, but also properties that needed to be moved within boundaries. As well as fulfilling a democratic duty, and identifying 300 addresses that were not listed on the register of electors, the project has yielded a number of savings for the council: bb the number of polling districts has been reduced from 333 to 284 and polling stations from 234 to 226, without having an overall impact on the voter bb the organisation of staff has been improved so individuals do not have to travel so far to run polling stations bb the number of expensive temporary rented buildings used as temporary polling stations has been decreased. All this has resulted in cost savings of over £39,000 for every election. Polling stations are now easier to access for voters helping to maintain engagement with the democratic process. C Gayle Gander is Head of Marketing at GeoPlace LLP gayle.gander@geoplace.co.uk
Related competencies include GIS, Property records/information systems
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M I N E R A LS
A mine of information Selected Coal Authority information is now available to view on a smart phone or tablet, as Louise Tipper explains
T The Coal Authority was established in 1994 to undertake specific duties previously carried out by British Coal Corporation. These include dealing with subsidence damage claims, coal mine entry and ground collapses, and providing access to the coal mining information that the body holds on behalf of the nation. The authority also deals with mine water remediation and preventing new discharges. The authority’s records office houses more than 120,000 abandonment plans, deposited by all coalmine operators since 1872 following
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the end of operations. These cover opencast and deep mining operations, depicting areas of extraction and the point of entry. The information is digitally captured in the National Coal Mining Database, which is used for: bb the production of the CON29M mining reports bb supply of value added products including coal mining interpretive reports and ground stability reports bb coal mining risk maps as statutory consultees in the planning process bb tool to aid internal decision making. The authority continually seeks new innovative methods for making its coal mining information available in user-friendly formats to help people better understand where coal has been worked, what information is available and how mining has affected Britain’s coalfield areas. In August 2012, it launched an interactive map viewer for
Image © The Coal Authority
householders, landowners, researchers, developers, local planning authorities and anyone else interested in information related to the coal mining areas of England, Scotland and Wales. This allows people to check for coal mine entries at or near the surface. It also allows planners and developers to check if a site is in a development high risk area, defined by the Coal Authority using its extensive records. Users can turn on selected data layers to see various coal mining features overlaid on an Ordnance Survey background. Further detailed information can be found by clicking
on any of the features and particular locations can be easily checked by zooming in to view. In the latest development, launched in October 2014, the authority has made the interactive map viewer accessible on mobile devices. At the same time it joined GOV.UK, the single place to find government information.
What’s new? bb Change from iFrame to opening in a new window or tab; this allows data to be viewed on a full screen on a laptop or PC bb a responsive design allows information to display
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l The Coal Authority records office houses more than 120,000 plans
Image © The Coal Authority
“ In the latest development, launched in October 2014, the authority has made the interactive map viewer accessible on mobile devices
optimally on mobile devices bb a streamlined simple data layer view allows faster access to information; the new web mapping services include INSPIRE-compliant data for professional GIS users to stream data directly to their own GIS bb a new section gives summary and technical detail about each dataset to help users understand how it has been derived. The data layers include: Monitoring points: sites throughout Britain at which environmental data is gathered Licence areas: areas relating to any granted licence for the working of coal since the creation of the Coal Authority in 1994. Mine entries: indicating the entrance shafts and adits into mine workings. Mine entry potential zone of influence: the area of the ground that might be affected if subsidence was to occur.
Abandoned mines catalogue: identifies the spatial location and coverage of abandoned mine plans. Development high risk area: areas defined to enable developers and planners to understand and consider the potential for instability or degree of risk from the legacy of coal mining operations. Surface coal resource areas: defines the coal resources capable of being extracted by surface mining methods. Surface mining (past and current): areas of coal extracted by past or current surface excavations. Fissures and breaklines: geological lines of weaknesses at the surface that may have been affected by coal mining. Mine gas sites: sites or properties that have been subject to investigation or remedial works by the Coal Authority to deal with an actual or potential mine gas occurrence. Past surface hazard: a site
or property that has been subject to investigation and/ or remedial works under Coal Authority Emergency Hazard Call-Out Procedures. Past shallow coal mine workings: underground workings whose depth is 30m or less from the surface. Probable shallow coal mine workings: locations and extents of underground workings for which no recorded plan exists, estimated from available records by qualified mining surveyors. Coal outcrops: locations where a workable coal seam is present at or close to the surface. Coal mining reporting area: to determine whether a coal mining report is required for property transactions and the conveyance process.
Web mapping service Dataset layers have also been made available as raster images so coal mining data can be analysed against users’ own data with GIS software. Coal mining reporting areas: where the Coal Authority recommend a mining report is obtained. Mine entries: derived from plans held by the authority. Development risk and coal resource areas: a combination of data layers relevant to planners, planning policy officers and asset managers. Specific risk: more detailed information that together makes up the development risk area data. Abandoned mines catalogue: a geographic catalogue of the plans held by the Coal Authority. INSPIRE Compliant Data (new): comprising Coal Authority monitoring points and licence areas.
Remedial duties The existence of past coal mining does not necessarily mean that the stability of a property will be affected. However, RICS members are reminded that in the unlikely event that a property should suffer damage due to subsidence, the owner would be covered by the provisions of the Coal Mining Subsidence Act 1991 (as amended) which requires the Coal Authority to carry out remedial works at no extra cost to the owner, mortgage lender or insurer. Members should take these statutory duties into account in their valuation, mortgage and insurance advice to potential lenders when advising them in their lending, insurance and/or valuation decisions in coal mining areas. In addition, the authority also provides a 24-hour, seven day a week emergency service to take remedial action in respect of hazards associated with the movement or collapse of disused coal mine entries and other coal mining related hazards. C
More information For details on making a claim for subsidence damage, or to review the interactive map viewer and web mapping services, visit gov.uk/coalauthority To check whether a coal mining report is still needed, visit www.groundstability.com Data on the Interactive Map Viewer is regularly updated with new information on past and present coal mining Louise Tipper MRICS is an Information Manager at the Coal Authority louisetipper@coal.gov.uk
Related competencies include Minerals management, GIS, Inspection
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RICS L A N D JO URN A L
A F FO R DA B L E HOUSING Smart villages provide food security and employment
Blueprints for change Malaysia is building on its smart eco villages to lift people out of slums into working sustainable communities, reports Datuk Tan Say Jim
S
Some 33% of the developing world's urban population live in informal settlements. While there have been many efforts to develop affordable housing options, they can leave impoverished residents little better or worse off without opportunities for sustained employment and food security. However, a new initiative in Malaysia offers a novel approach to the growing problem of squalid city slums with a model community designed to achieve long-term sustainability. The blueprints were presented at the 4th meeting of Malaysia's Global Science and Innovation Advisory Council at the New York Academy of Sciences. Chaired by Prime Minister Najib Razak, the body of distinguished national and international leaders in economics, business, science and technology is guiding Malaysia's sustainable development towards a goal of $20,000 (£12,946) per capita annual income by 2020. The proposed urban community draws on the success of the nation’s
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growing network of smart villages, which on average have tripled incomes for residents. Like the 20ha rural sites, the 2ha urban version provides affordable accommodation with community facilities, including a shopping and commercial centre with a budget hotel, a police beat base, day care, learning and recreational centres. The city model features a complex of four-storey walk-up apartments, prefabricated largely from post-consumer recycled materials. The first such building, with 32 units, was recently assembled in 16 weeks by Malaysia's IRIS Corporation in Pahang, the nation's third largest state (view video at http://bit.ly/1vt4qQ3). Five such buildings on a 2ha site would lift 160 families from extreme poverty into higher income and living standards and a far healthier environment. What distinguishes the blueprint from many others is its incorporation of innovative employment opportunities and food security through, for example, on-site fish tanks and state-of-theart, water-efficient greenhouses and rooftop gardens. Produce harvested not only feeds residents but can also be sold to markets or eateries in the adjacent commercial and shopping centre, providing jobs and side income to families. Rental from letting space within the commercial centre is pooled to subsidise
maintenance and upkeep costs of the site, thus battling inner city degradation and dilapidation. Total development cost of the complex is estimated at US$12m (£7.7m), excluding the land acquisition.
Smart villages Already, Malaysia’s rural smart villages have lifted incomes for several hundred families while promoting environmental sustainability. Three have been completed, four are in progress and 15 more are proposed for the next two years. There are also plans to adopt the model in Africa. Each smart village consists of about 100 affordable, energy-efficient, prefabricated homes. Their high-tech educational, training and recreational facilities and integrated, sustainable farm systems provide villagers with food and employment, on average tripling income to about £323 per month. Thirteen of the villages are in areas settled under Malaysia's Federal Land Development Authority, an agency founded in 1956 to help alleviate poverty and open new settlements with smallholder farms and reduce urban migration. At Sentuhan Kasih, the 1,000sqft homes, also built largely from post-consumer materials, were constructed in just 10 days at a cost of around £20,275.
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Table 1: Survey detail accuracy band table
“ Premium produce
Four-storey walk up apartments in Chini Pahang
Proposed smart urban development in Rimbunan Kaseh
The innovative farming operations include a cascading series of fish tanks. Aquafarmed at the top of the ladder are species sensitive to water quality, next tilapia, then guppies and finally duckweed (algae), the latter two used to feed the larger fish. Filtered fish tank wastewater then irrigates trees, grain fields, and high-value plants grown in autopots – a three-piece container featuring a smart valve that detects soil moisture levels and releases water precisely as required, reducing the need for fertiliser and pesticides. Worms from plants compost are fed to chickens. This system optimises nutrient absorption, minimises waste and enables crops to be grown in previously non-arable land. Premium produce sold at market includes golden melon, butterhead lettuce, Misai Kuching herbal tea, jade perch fish and free range chickens. A community hall, resource centre, places of worship, playgrounds and educational facilities equipped with 4G Internet service support both e-learning and e-health services. Fewer than one in 20 families invited to live and work in a rural smart village decline the opportunity. Rather than live in the shadow of poverty, they are gainfully employed and working on building fully self-supporting rural communities – giving all in these villages and in surrounding populations valid reasons to stay. One settler, Azian Zainuddin, says: “I used to work at a food stall in the village and my family had to live in our relative’s house because we could not afford to be independent. I felt that at any moment we would be thrown out of their house as we
had not enough money even to pay the rent. Then this house was offered to us and now I have a job at the farm. My life has changed; I can afford to pay for my own house and the feeling of uncertainty has gone. I am really thankful.”
Sustainable future Such initiatives are among several in Malaysia in its efforts to create a sustainable future through smart communities. These include a complete smart city, Iskandar Malaysia, under construction on the country’s southern tip. The highly planned, ultra-green development comprises high-rises as well as low-carbon, self-contained townships, villages and neighbourhoods. Incorporating sustainability at the ground level, Iskandar is a centrepiece of Malaysia's sustainable development strategy — an environmentally friendly, socially inclusive haven for people to live, work and play. Iskandar's population is projected to grow to three million by 2025 with a green economy GDP of £63.1bn. In September 2014, Iskandar was one of 10 world cities and regions picked to join the UN Sustainable Energy for All Global Energy Efficiency Accelerator Platform, which aims to double the global rate of improvement in energy efficiency by 2030. The initiative was created to drive action and commitments by leaders at country, city, state, region and sector level, offering a menu of policy options and technical support, leveraging best-in-class toolkits, databases and expertise.
sold at market includes golden melon, butterhead lettuce, Misai Kuching herbal tea, jade perch fish and free range chickens
By building energy efficient buildings, transport, lighting, appliances and industrial sites, communities such as Iskandar will not only help to reduce climate changing pollutants, but stand to reap huge economic rewards — estimated globally at £161-£226.5bn in energy savings every year. Meanwhile, the historic trading crossroads state of Melaka recently joined Malaysia's smart city programme. Using private-public partnership investments, Melaka is creating a state-of-the-art smart urban energy grid and a Green Special Economic Zone to establish research and development centres, creating thousands of highly-skilled green jobs in renewable energy and clean technology. Tan Sri Zakri Abdul Hamid, science advisor to Malaysia's prime minister and joint chairman of the Malaysian Industry Government Group for High Technology (MIGHT) says: "With enterprising public and private sector partners and the counsel of GSIAC experts, Malaysia is in the forefront of the effort to create a sustainable future. C
Datuk Tan Say Jim is Group Chief Executive and Managing Director at IRIS Corporation marketing@iris.com.my
Related competencies include Planning , Housing strategy and provision, Sustainability
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RICS L A N D JO URN A L
D E V E LO P M E N T
Sandy Apgar examines the history and principles behind the development of new communities and the lessons for real estate theory and practice
New ways of living
N
ew communities are a hallmark of urbanisation. Wherever they are built, these novel forms of human settlement achieve a range of social and economic objectives, from improved housing and job choices to resilient, sustainable living environments, to strong, diversified local economies and, more recently, integrated transportation networks to reduce car dependence and energy usage. In a unique collaboration between RICS and the Urban Land Institute (ULI), a guide and appendix entitled Placemaking: innovations in new communities was published in December 2014. Writing in the preface, RICS President, Louise Brooke-Smith and ULI Chairman Lynn Thurber say: “While each organisation has a unique mission and emphasises different areas of study and practice, we share the commitment to close cooperation in addressing the challenges of rapid global urbanisation. In this context, deep understanding of new communities and their contributions to real estate theory and practice is essential for developers, policymakers and planners.” The guide profiles new communities and their major innovations, including a unique business model, the evolving mix of land uses and demographics, and initiatives to adapt the concept to new, unfolding conditions (see panel, p25). It is steeped in my personal experience with new communities (NCs), and draws on findings from a survey of more than 700 UK and US professionals, in-depth interviews with 25 executives and thought-leaders, and three workshops of staff and advisers.
Concept defined NCs are planned, residentially based, mixeduse, urban and suburban settlements, located in semi-rural greenfields with low residential densities and little or no prior development, and in compact, high-density developed neighbourhoods that exemplify the ‘urban renaissance’. They include a range of income groups, housing types and employment opportunities, community and recreational facilities, retail and commercial services, schools, healthcare and other public services and productive, as well as active and passive open spaces. 2 4 M AY/J U N E 2 0 1 5
In the US, NCs are primarily private sector ventures known as master-planned communities such as Columbia, Maryland. In the UK, they are primarily public sector new towns, such as Milton Keynes. In both countries, such developments increasingly are organised through public-private partnerships (PPP), such as the urban regeneration project at London’s King's Cross, and the military housing community at Fort Belvoir, Virginia. NCs differ from conventional single-use property developments in major respects: bb large-scale and comprehensive scope to enable economies, efficiencies and tradeoffs that elude smaller, single-purpose projects bb multiple land uses and financing sources to ensure that sufficient funds are available at each stage of development and that asset performance is monitored throughout the NC’s life bb segmented housing and commercial product types to attract a complementary range of residents, industries and retailers bb unitary organisations, with the focus and expertise to manage complex projects bb partnership structures, spirit and style, enabling them to solve ongoing problems in a collaborative, constructive manner.
Origins of innovation NCs owe their roots to 19th-century entrepreneurs, who created ‘company towns’ for ideological and practical reasons. In the 1880s, US industrialist George Pullman built his eponymous community in Chicago as workforce housing for low-wage, primarily black employees, with attractive terraces and “futuristic” amenities such as indoor plumbing, gas, and sewers. UK chocolatier George Cadbury, appalled by employee housing conditions in Birmingham, established the suburban Bournville in 1893, a far-reaching model of community design, building quality and social integration. Ebenezer Howard originated the Garden Cities model in the 1920s, executed in Welwyn and Letchworth. In the mid-1960s, American mortgage banker James Rouse conceived the twotier neighbourhood hierarchy of Columbia, Maryland, and, contemporaneously with resort developer Charles Fraser, pioneered NC business innovations that are still in use: bb positioning projects as ‘products’, subject to the same marketing rules as major manufacturers
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bb basing economic models on sales of pre-serviced lots, both to builders and to individuals bb replicating successful NC product concepts to drive strategic momentum, leverage team talents, and redeploy asset value from one project to the next bb infusing the mantra of social responsibility long before it became mainstream in business strategies. bb Rouse declared: “Our companies proceed on the assumption that profit, properly understood, is a reward for service well-rendered, not the legitimate purpose of business in its own right.”
In praise of pioneers Innovation signifies improvements to the built environment and/or the processes for planning, financing, developing, and operating it. These run the gamut from simple physical changes, such as greener building materials and dedicated bike paths, to complex organisational reforms, such as residents’ engagement in community planning and management’s oversight of joint public-private partnerships. Innovations embrace the qualities, capabilities and tools applied in creating transformational changes and in enabling new ways for people to live and work. These are management innovations because they are born of the NCs’ unique management characteristics: exceptionally large, complex projects requiring creative vision, business acumen, massive investment, portfolio financing, sophisticated organisation, technical expertise, and collaboration between business and government over extended periods. To achieve results, each stage of development , from inception to completion and ongoing operations, requires policymakers and professionals to innovate. The aim of the RICS/ULI project is to highlight innovations pioneered by British and US practitioners. NC innovators use the broad scope and purposeful discipline of the planning process to produce livable communities. They address unique fundamentals of each project: what they intend to achieve (objectives), who is to be served, now and in future (clients), which client needs are not met (gaps), which products and services will the innovators provide – and how (delivery), and which indicators will they use to judge the results (metrics). NC organisations thus go beyond conventional management practice to exemplify interlocking economic, environmental, and social objectives. Successful innovators not only incorporate the preferences of current residents but also allow flexibility for future needs. Typically, consumers favour traditional residential designs with which they are comfortable – a governing mantra for US and UK NCs. But innovators also create subtle design changes in public spaces – e.g. child-friendly water features, artist-decorated pocket parks, coffee nooks in bookstores – that encourage residents' engagement while increasing profitability.
Unique business model NCs spearheaded a unique PPP business model to integrate the projects' income mix and long time horizons. Using long-term partnership structures, NC developers welcome – and can afford – innovation. They receive more funding than conventional developers for improving the NC's product range and project scope. While return on equity is a measure of the developer’s success, it is less important for many US firms than profits from fee-based services, including planning and development, investment origination, construction management, asset management, property management, and oversight of
Guide summary Innovations Innovations emerge from practical experience in new communities development organisations and research among NC professionals.
Comprehensive plans NCs meet a range of needs and opportunities in their development strategies, set short- and long-term priorities, and marshal the financial and organisational resources for massive projects over long periods.
Portfolio economics NCs use "portfolio economics" to manage the large size, heavy investments and long time horizons that NCs entail, across and among numerous discrete projects.
Integrative business models NCs integrate returns on invested capital with fees from organising and operating large, complex projects in "total profitability" business models.
Public-private partnerships NCs realise public purposes through private enterprise, leveraging government and business assets with experience and ingenuity in collaborative, strategic teams.
Resident-driven services NCs reframe traditional responsibilities of local government – e.g. schools, parks, safety, sanitation – by engaging private for-profit and non-profit organisations.
Initiatives Initiatives extend NCs to new geographies, product types, and processes; and spawn further innovations in NC principles and practices.
Prime movers Promote NCs as generators and organisers of responsible, responsive urban growth through partnerships with business entrepreneurs, knowledge-based institutions, and natural resource-based sponsors.
Information and analytics Elevate management information and deep analytics to the strategic agendas of decision-makers in NC development and management organisations.
Unconventional uses Advocate NCs as venues in which to test, evaluate and apply urban policy solutions, targeting new and underserved markets and investment opportunities.
Community designs Provide platforms for urbanists and architects to create the “sense of place” and to experiment with novel community-level and individual building designs.
Investment fund
n
Seed a private NC Investment Fund with sovereign wealth investors, pension funds, urban-oriented philanthropies, public venture funds, and other opportunistic sources.
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RICS L A N D JO URN A L
D E V E LO P M E N T
Metrics Tell The Story US and UK Survey respondents distinct ranges for land area, minimum population, and minimum density for a successful New Community.
LAND AREA
POPULATION
DENSITY
75%
65%
70%
acreage that is 8X Urban Renaissance.
expect minimum UK New Community population that is 5X US minimum.
RESULTS
RESULTS
Here are the
US Acres
New Community Urban Renaissance
—
10-300
Up to 2,500
UK Acres
—
10-300
200-2,500
US People
expect minimum Urban Renaissance density that RESULTS
UK People
US Ppa*
1,000-10,000 5,000-50,000
—
—
5-20
—
—
—
20-50
UK Dpha*
—
25-90
10-30
* Ppa = persons per acre, Dpha = dwellings per hectare. 1 Hectare = 2.47 Acres. Roughly equivalent measures of density: UK persons per dwelllng = 2.3 (2013); Multiplier to convert Dpha to Ppa = 0.92 (2.3/2.47).
n
income-producing properties. Developers also receive lease or rent payments from existing tenants to help fund the first phase of renovation and redevelopment. Thus, front-end fees and payments substantially reduce the PPP’s risks. The NCs' long time horizon — up to 50 years or more — enables higher upfront spending with longer payback periods, whereas the typical developer is focused on short-term returns and preoccupied with bank lending requirements and procedures. A multi-decade capital structure removes refinancing risks and may even offer refinancing potential to increase funds flows if interest rates and terms improve. Investments in sustainable building products and systems (such as photovoltaics and recyclable materials) are not limited by expectations of immediate paybacks. Finally, multiple economic, social, and environmental objectives enable innovative developers to address community needs even if the short-term economics may be at best break even.
Combining new and old The NCs’ land use mix is a key to survival as well as success. Because of their scale and scope, NCs have the potential to provide a full spectrum of housing types and tenures for owners and renters to trade up as they, and their communities, mature. From the Millennials’ entry into studio apartments and starter-homes, to the Generation X relocation in single family homes, to the baby boomers’ occupancy of condos and townhomes as they age, US and UK residents reflect the strong traditions and clear preferences to remain in or near their home communities. From the 1960s onward, major US companies, spearheaded by giants AT&T, GE, and IBM, decanted from cities to neighbourhood-scale suburban complexes on 80ha or more with a broad range of amenities. By the 2000s, budget constraints and new technologies led corporate owners to repurpose these sites for mixed-use greenfield NCs with luxury condominiums. Similarly, Britain’s National Health Service sold off large, surplus hospital sites within range of core cities which could accommodate multiuse developments. Even dormant alleyways and decaying plant sites can become vibrant marketplaces. Micro-unit apartments are the latest incremental urban innovations. In dense, high-rent, 2 6 M AY/J U N E 2 0 1 5
transit-oriented US cities such as New York and San Francisco, micros range from 250 to 400 square feet. They are especially popular with 18 to 34-year-olds, now 75 million strong and growing, who trade off smaller, sometimes shared, spaces for centrally located settings.
Lessons learned New community innovators seek to improve our built environment. Hence, their innovations change what we see around us and how we plan, finance, develop and operate it. What may be unconventional uses today may become mainstream NCs tomorrow. Innovation speeds up and solidifies that process. New community development is not performed by formula, any more than the communities, their residents, and their stakeholders are formulaic. But the management principles can be codified and decision-makers can apply some or all of them in addressing the challenges of urbanisation. Above all, innovation is not a choice for NC developers, public or private – it is a must. Although the guide and supporting research are not encyclopedic, they Illuminate societal and market forces and professional practices that shape NCs. In a field so often driven by transactional and technical details, NCs bring significant innovations and initiatives that decision-makers can use in tackling real-world problems. C
More information >
The RICS/ULI-sponsored report can be downloaded at http://on.uli.org/1DZXijR
Sandy Apgar FRICS is the author of Placemaking: innovations in new communities and an international authority on housing, real estate and infrastructure sapgar@apgarco.com
Related competencies include Planning, Housing strategy and provision, Sustainability
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