Nigel Walter speaks on White Paper
A recently released government white paper on property planning will not affect the development of planning sites and could help bolster property returns in the long term, says the provider of the UK’s only early stage land development funds.The white paper, released earlier this week, supported the Barker Report, a Treasury-commissioned review into planning released at the end of last year, which controversially advocated a tax on the appreciation of land values called the planning gain supplement (PGS).
Yet the PGS, which may be introduced in 2009, will not discourage the development of brown- and green-field sites as it will just replace current levies paid to local authorities called Section 106 agreements, according to Connaught Asset Management (CNT), which launched two land development funds in March.
Its Cautious and Diversified funds, which close to new investment on 31 May, will focus on brownfield and greenfield sites respectively. They aim to buy suitable sites for property development outside London and benefit from the capital appreciation after the sites have gained planning permission, before selling them on to property developers.
Connaught Asset Management - Nigel Walter
Nigel Walter, chairman of Connaught Asset Management, said: ‘These recommendations will just involve a movement from one type of charge to another and could even open up more sites for development.
Also stated by Nigel Walter is that ‘The population has increased by 30% in the last 30 years and the rate of house building has decreased by 50%. Very little could stifle the demand for property and land in this country.’
Nigel Walter suggests that Connaught is projecting yields of 8% and 15% on its Cautious and Diversified funds over the next year. Both funds will be available for Sipp and Ssas investment.
