Once a planning permission has been granted there needs to be someone to actually build the scheme with the permission. In most cases this will be the private sector, and in too few cases the public sector.
With big complex regeneration schemes and large-scale new places such as garden communities, there is likely to be some form of public private partnership. This combines the delivery expertise of the private sector with the statutory powers the public sector holds, to enable development which the private sector can not achieve alone. These projects usually involve the private sector funding the scheme and carrying the risk. This is a key reason why much of the public sector prefers this delivery strategy compared to purely public sector delivery.
If the public sector self delivers a project it carries the risk, so if costs go up and money is lost on a project, then the public sector has to find that money from somewhere else. However, the only times we have managed to build enough homes in this country was when the public sector delivered about as many homes as private entities- in the 1950's, 60’s and 70’s. So the public sector really is key to delivering the homes we need now and in future. We just need the public sector to build to a much higher standard than they did back in the 60's and using what we now understand about designing great places- and some parts of the public sector are starting to do that at scale.
In some cases we may get a partnership between a landowner and a developer to deliver a scheme. As with any public private partnership the structure of the arrangement will share the level of risk and return between the parties. Generally speaking where parties have more control over the development they will also take on more of the risk. However, taking on more risk also usually involves having access to greater share of the return if the risk pays off, but also footing a greater proportion of the loss if it goes wrong.
Before determining the appropriate delivery structure there are many things to consider:
So overall the delivery strategy has to be a compromise between different competing demands and the practicalities of actually getting the thing built.
Time for section 23, almost the end now......
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