Property industry body calls for a national social value code of practice to help restore trust in the planning system and better communicate the benefits of development.
The London Property Alliance (“LPA”), which represents leading real estate investors, developers and advisers, has published a new study examining the need to better embed, measure and communicate the social benefits delivered through development.
According to the study, Social Value in the Built Environment, the widespread benefits of development that are being delivered are often hidden from view from local communities, despite significant efforts across the property industry to deliver long-term social value. This is exacerbated by the vast range of approaches and standards used, causing confusion and undermining the property sector’s ability to build consensus, collaborate and amplify the social benefits.
The report also urges local councils to do more to address public distrust in the planning process, with a reported £8billion in unspent developer contributions sitting in council bank, accounts1 only adding to scepticism.
The report, which is supported by BGO, Charles Russell Speechlys, Gardiner & Theobald, Grosvenor, Landsec, Savills and The Pollen Estate, sets out five key recommendations, alongside a toolkit for embedding social value in all stages of the development process:
- National guidance: National planning policy, via the National Planning Policy Framework (NPPF), should clearly define social value in a development context and set out how it can be balanced alongside environmental and economic considerations.
- Local governance: The Mayor of London, working alongside industry representatives and local authorities, should lead a comprehensive review to articulate city-wide priorities, outline appropriate methods of evaluation and provide best practice recommendations.
- Developer contributions: Local authorities should clearly articulate the role of the property industry in locally funded projects, as well as time-limited mandates to effectively invest developer contributions.
- Procurement: The method of evaluating social value contributions in public procurement (Social Value Act 2013) should move away from a focus on proxy values and monetisation, giving greater weight to real-life outcomes and place-making strategies.
- Evidence database: A central database should be created as a resource for professionals, containing best practice case studies to enable learning and knowledge sharing around methods, outcomes and KPIs.
Katy Ghahremani, LPA Diversity, Equity and Inclusion Committee Co-Chair, and Partner, Make Architects said:
“Whilst public and private sector organisations across the country are working hard to deliver significant positive impacts for local communities, the absence of a common code of practice is leading to inconsistencies in how we are addressing local needs and measuring results.
“Creating a robust policy framework for delivering social value will not only help local people better understand the benefits created through development, it will support placemaking and ensure we are creating places that are successful, economically sustainable and representative of central London’s diversity.”
James Raynor, WPA Chair and Chief Executive, Grosvenor Property UK said:
“Social value delivered through development is invariably overlooked by the public, and too often the funds it generates are hidden from view, or even worse, unspent. This, combined with the myriad of differing approaches, undermine the property sector’s ability to show the benefits new development and investment can bring.
“A consistent and collaborative approach to delivering social value, in partnership with local councils, will help deliver meaningful change in a way which truly resonates with those communities impacted by new development. We have to win over hearts and minds if we are to restore trust in both the public and private sector’s ability to deliver on this agenda.”
You can read the report in full here
