MD2277 Beam Park – Increased affordable housing

In July 2014, MD1365 agreed a package of due diligence prior to advertising the sale of the Beam Park site through the London Development Panel (LDP). Subsequently, following a competitive process, MD1664 (April 2016) approved the appointment of Countryside as the preferred developer for the Beam Park scheme, in partnership with L&Q.

From appointment of Countryside as development partner, GLAP worked with Countryside and L&Q to finalise the Development Agreement (DA) which was signed in August 2017.

Alongside finalising the DA, the teams worked together to agree the submission of the planning application for nearly 3,000 new homes, together with ancillary services, community facilities and infrastructure. As the site crosses the borough boundary the application was submitted to both LB Havering and LB Barking & Dagenham following extensive pre-application discussion, in August 2017.

The original procurement sought financial offers based on a series of assumptions and development obligations. This included the delivery of affordable housing at 35%. Following the publication of the current Mayor’s new Affordable Housing and Viability Supplementary Planning Guidance (SPG) and the subsequent new draft London Plan there is an expectation that public land will support higher levels of affordable housing. The SPG sets a 50% level for referable schemes in order to qualify for a ‘fast track’ approach for planning purposes.

GLA officers have been discussing the opportunity to increase the affordable housing component at Beam Park with Countryside, L&Q, LB Barking & Dagenham and LB Havering. These discussions have successfully led to an agreement with Countryside and L&Q to increase the level of affordable housing delivery at the scheme to 50%.

In order to keep within the delivery milestone requirements of the original DA and ensure that the site proceeds at pace, this MD seeks approval to vary the DA to require 50% affordable homes along with some additional consequential changes to reflect the revised commercial terms necessary to support this new approach. The details of these changes are set out in Part 2.

Additional Agreements

To facilitate the delivery of the scheme generally (unconnected to the deed of variation) it is necessary for GLAP to enter into a number of additional agreements, connected to the DA, for which approval is sought, as the follows:

- S.106 Agreement – A planning agreement that GLAP are required to enter into as freeholder, with Countryside, L&Q, LBBD and LBH. This document will enshrine the usual range of obligations imposed on the developer by the planning authority as part of the planning permission including financial contributions, provisions relating to the delivery of the two schools and new health centre, public transport, and accessibility measures including for the new station;
- Station Agreement – with Countryside and Network Rail to allow for the construction of the station building and platforms;
- Land Transfers - GLAP will be required to transfer a small area of its freehold at the site to NR to facilitate the construction of the station;
- Schools Agreement – to dispose of a long leasehold of land to Countryside and the Education Funding Agency to allow for the construction of two new schools (it may also be necessary for the local authorities to be party) and
- Ancillary Documents - GLAP is also likely to be required to enter into ancillary documents to those outlined above, for example, Deeds of Indemnity from Countryside and Licences for access to land to construct the station and schools.

The key objectives in this matter are:

- To maintain the programme for the start of housing construction in mid-2018 (subject to planning).
- To increase the level of genuinely affordable housing on Beam Park from 35% to 50%.

The affordable housing will comprise 20% London Affordable Rent, 25% London Living Rent and 55% London Shared Ownership, subject to S106 agreement.

Under section 149 of the Equality Act 2010, as public authorities, the Mayor and the GLA are subject to a public-sector equality duty and must have ‘due regard’ to the need to (i) eliminate unlawful discrimination, harassment and victimisation; (ii) advance equality of opportunity between people who share a relevant protected characteristic and those who do not; and (iii) foster good relations between people who share a relevant protected characteristic and those who do not. Protected characteristics under section 149 of the Equality Act are age, disability, gender re-assignment, pregnancy and maternity, race, religion or belief, sex, sexual orientation, and marriage or civil partnership status.

Throughout the decision-making process relating to the approvals sought in this paper to facilitate this significant housing development moving forward to delivery, due regard has been had to the ‘three needs’ outlined above. The housing shortage in London disproportionately negatively affects people with certain protected characteristics. Increasing the supply of housing, and in particular affordable housing will help to achieve positive impacts in line with the ‘three needs’.

The proposed changes to the project are expected to have a positive impact on those with protected characteristics by providing a larger number and a greater range of housing products which will generally improve access to housing across different economic and social groups.

The proposed changes will bring the Beam Park project in line with the new Supplementary Planning Guidance, the draft Housing Strategy and the draft London Plan.

The decision is seeking approval to revise the level of affordable housing from 35% as stated in MD1664 to 50% affordable, in the Beam Park development of 3000 homes. The amendment will be done through a deed of variation.

Section 30 of the Greater London Authority Act 1999 (as amended) (GLA Act) gives the Mayor a
general power to do anything which he considers will further one or more of the principal purposes
of the GLA as set out in section 30(2) which are:

i. Promoting economic development and wealth creation in Greater London;
ii. Promoting social development in Greater London; and
iii. Promoting the improvement of the environment in Greater London

and, in formulating the proposals in respect of which a decision is sought, officers confirm they
have complied with the GLA’s related statutory duties to:

• pay due regard to the principle that there should be equality of opportunity for all people;
• consider how the proposals will promote the improvement of health of persons in Greater London, promote the reduction of health inequalities between persons living in Greater London, contribute towards the achievement of sustainable development in the United Kingdom and contribute towards the mitigation of or adaptation to climate change in the United Kingdom; and
• consult with appropriate bodies.

In exercising the power contained in section 30(1) of the GLA Act, the GLA must have regard to the matters set out in sections 30(3-5) and 33 of the GLA Act, and also the Public Sector Equality Duty in section 149 of the Equality Act 2010 as set out above in section 3.

Sections 1-3 of this report indicate that the decision requested of the Mayor is within the GLA’s statutory powers.