Adding value to land

3.2.2 Creating a place

3.2.3 Reducing development costs

3.2.4 Thinking ahead

Urban design requires investment upfront but can add value to a development in a number of ways. Decisions on how buildings, streets and landscapes are arranged can add value by making the best use of land. Good design can transform perceptions of an area and property markets, and create successful places where people want to live, work and spend time. These places can deliver a range of social and environmental benefits too.

3.2.1 Adding value to land

Recent research by The Prince’s Foundation, English Partnerships (now the Homes and Communities Agency) and Savills1 _{indicates that good urban design can produce a}

more efficient built footprint by making the best use of land and creating value through the appropriate densities, public space, uses and distribution of buildings. By following the principles of the Urban Design Compendium, schemes can create successful places at little or no additional cost. Good urban design adds value. The same floorspace, streets and landscape can be arranged in ways that create attractive or unattractive places. Achieving a high quality of urban design is likely, however, to require a higher level of spending early in the development process than a conventional development route. Research has found that the added value this investment delivers usually more than outweighs these costs.2

Efficient planning

Good urban design can add value to development through using land highly efficiently, and planning and distributing uses and building types to create a sense of place. Density must be appropriate for the location to avoid undermining quality through site-cramming. Research by CABE has found that increased values achieved for higher-density schemes can be far above the increased costs of building

where schemes were well designed.3 _{The most successful}

places are often characterised by density peaks and troughs. Densities should peak in the vicinity of public transport stops or intersections, and around neighbourhood facilities, ensuring that catchment areas have workplaces within walking distance.

The distribution of uses will also have an impact on the values those uses can commend. Commercial uses should be located in places where they are accessible. Locating these near main junctions with good public transport connections will improve footfall and viability. Care should be taken to ensure that sites located in places with high footfall are fully exploited.

Good design can help to reduce the amount of hard surface, and to deal imaginatively with requirements for servicing and car parking.

Making the best of of open space

As well as providing a range of social and environmental benefits, amenity spaces such as squares, parks and waterfronts can add considerably to the economic value of neighbouring properties and the wider area. A garden bordering water can increase the price of a house by 11 per cent, while a view of water or having a lake nearby can raise the price by ten per cent and seven per cent respectively. A view of a park can raise prices by eight per cent, while having a park nearby can raise prices by six per cent.4

The disposition and type of properties that are allocated to these potentially high-value sites should be carefully considered. An active waterfront including a mix of uses, for example, may be able to create a higher overall site value than a scheme that uses the waterfront sites fully for single- use residential development but where adjoining areas gain little benefit.

DELIVERING QUALITY AND ADDING VALUE 3.2

At Adelaide Wharf, Hackney, First Base has been working through the London-Wide Initiative, a partnership between English Partnerships (now the Homes and Communities Agency), CLG and the GLA, to deliver a high-quality new urban block next to the Regents Canal. The scheme, designed by Allford Hall Monaghan Morris (AHMM), delivers 147 high-quality, sustainable apartments around a central amenity space, including 50% affordable. Adelaide Wharf makes an important contribution to the regeneration of the local area by raising confidence through quality and by creating an active new street front which helps improve perceived safety in the area. First Base believes that investing in good design and good designers makes economic sense. Ben Denton, Director of Investment and Management at First Base and a CABE enabler is convinced that any additional costs incurred by employing good designers or additional spending on construction, can be

Offsetting costs to increase values

Adelaide Wharf, London

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recouped through increased value; ‘Great architects generally cost more than average architects; up to 2% more in fee rates. Design fees are calculated on construction works; construction is generally about 40% of total scheme value. To offset the cost of great design we need about 0.8% increase in values. ‘Architect-designed buildings may cost more to build, however, with a strong client it is possible to restrain the architect to keep costs within 10% above the normal 40% of total development value; therefore, we need to achieve a 4% increase in total development value to offset this additional cost. In total therefore we are looking at 4.8%, rising to 6.5% (to cover profit and on- costs) increase in value required to offset costs.’

Ben believes the costs can easily be met from quicker rates of sales, higher values per m2 _{and higher overall values per home.}

‘I have no doubt that good design more than pays, but strong leadership is also required so costs are contained.’

One of the major challenges of the redevelopment of the former hospital site of Hanham Hall, is to achieve a sustainable housing scheme while preserving and making best use of the Grade II* listed Hanham Hall.

The proposed scheme demonstrates how historic assets and the natural context can add value to the creative place-making process, and offers an imaginative solution to the regeneration of the Hall. With minimal intervention to its historic fabric, Hanham Hall will be brought back to life as a flexible community centre which will include a Sustainable Living Centre, crèche and café, and offer a space for exhibitions and a base for a car club.

The Hall has also been used to structure the urban form of the proposed new development on the site. A clear hierarchy of buildings and spaces will be introduced to ensure that the Hall will become the visual as well as the functional focal point of the site. Historic vistas will be preserved and strengthened to establish strong connections with the surrounding urban fabric. Beyond the urban form, Hanham Hall has also inspired the character and typologies of the new development. New buildings positioned in close proximity of the historic building will be more formal and urban in character. This character will gradually transform into a more informal and rural built form in response to the open countryside to the east.

DELIVERING QUALITY AND ADDING VALUE 3.2

Value will be maximised where the landscaping is of high quality. It is important that there is a clear management plan for all public open space.