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Building homes connected to infrastructure, the benefits of Transit Oriented Developments

What is a Transit Oriented Development

A Transit Oriented Development (TOD) is an urban planning approach that focuses on creating high-density, mixed-use communities centred around public transit hubs.

At its core, TOD integrates transport infrastructure, such as rail, bus, or metro stations, with surrounding land use to create accessible, liveable communities that are well-connected by public transit and complemented by high-quality public spaces.

Over the past few decades, TOD projects have been implemented across the globe, showcasing the concept’s broad appeal and effectiveness in reshaping urban landscapes.

Key Benefits of TOD:

  • Environmental Sustainability: TODs promote public transit use and reduce car dependency, which leads to lower greenhouse gas emissions and a reduced overall environmental footprint.
  • Reduced Traffic Congestion: By encouraging the use of public transport, TODs alleviate road congestion, contributing to more efficient urban mobility.
  • Economic Development: TODs stimulate local economies by fostering vibrant communities, increasing foot traffic for businesses, generating employment opportunities, and potentially enhancing property values.
  • Improved Quality of Life: Residents of TOD communities enjoy reduced commute times, convenient access to amenities, and a stronger sense of community, contributing to a higher quality of life.
  • Placemaking: Through the creation of pedestrian-friendly pathways, non-vehicular routes, and public plazas, TODs prioritize walkability and cultivate dynamic public spaces that enhance the sense of place and community engagement.

Overall, TODs represent a forward-thinking approach to urban development that balances the needs of transport, environmental sustainability, and community wellbeing.

Types of Transit Oriented Developments that will boost Homebuilding

TODs offer a powerful approach to addressing the dual challenges of providing new housing and fostering sustainable urban growth. When considering TODs for housing development, it is essential to examine them at two distinct levels:

1. New Transit Hubs
TODs centered around new transit hubs are typically long-term projects that involve complex planning, substantial investment, and public-private collaboration. In the UK, for instance, the Crossrail project has demonstrated the potential for such developments to transform urban landscapes, both in terms of transit infrastructure and land value.

These types of TODs leverage the increased land value generated by new transit infrastructure, with private developers playing a key role in financing the project over the long term. Although these developments are generally not “quick wins,” they are integral to the delivery of new residential stock and the broader vision of sustainable urban growth.

2. Existing Transit Hubs
TODs developed over and around existing transit hubs offer an opportunity for more immediate impact on residential development. Given the existing infrastructure, these developments can be realised more quickly, at a lower cost, and with fewer challenges compared to new projects centered on greenfield sites. Expanding and enhancing local infrastructure within established areas is typically easier and more cost-effective than building these services from scratch in new neighborhoods.

Furthermore, the higher density typical of TODs allow for more efficient use of land, offering private developers higher rates of return. This enables the leveraging of additional funding for public and social infrastructure improvements, including social housing.

In both cases, TODs serve as a crucial tool for boosting residential housing supply, promoting public transit use, and driving urban regeneration. However, by focusing on the existing transit hub type it is likely that a real difference can be made in a shorter timeframe by potentially utlilising the thousands of transit hubs all over the country.

What can be done to Enable Transit Oriented Developments around Existing Transit Hubs

1. Over-Station Development

One of the most promising forms of TOD is the redevelopment of existing buildings or the construction of new developments directly above transit hubs, known as over-station development. While this approach maximizes land use in high-demand areas, it often comes with high costs, potential disruptions, and safety concerns, particularly if the transit hub must remain operational during construction.

In some cases, the potential value of land created by developing space over transit hubs justifies the complexities involved. A notable example of such a project is the ongoing development at Euston Station, which demonstrates the feasibility of over-station TODs in major transit centres.

2. Land Acquisition and Cost

Redeveloping land or building new developments around transit hubs in densely populated or high-cost urban areas presents significant financial challenges. The cost of land and construction in these areas can be prohibitively high, limiting the scope for TODs. However, Local Planning Authorities (LPAs) can mitigate this by changing zoning regulations to allow for greater density and height in the areas surrounding transit hubs.

In turn, this could help create a market for new residential and commercial properties in areas that are currently underutilised, driving both housing supply and economic growth.

3. Integration with Existing Transit Infrastructure

For TODs to be successful, they must be integrated with the existing transit infrastructure. This often requires significant upgrades to transit facilities or adjustments to accommodate the increased demand generated by higher-density developments. However, such upgrades can be costly and complex.

Through public-private partnerships, developers can help fund necessary improvements to transit infrastructure as part of the overall TOD planning process. By using ‘planning gain’ to ensure that the financial benefits of TODs are reinvested in the public transit system, they can enhance both the transport experience for commuters and the overall effectiveness of the transit network.

4. Equity Concerns and Gentrification

While TODs can bring numerous benefits, they also present the risk of gentrification, where rising demand for properties near transit hubs drives up housing costs, potentially displacing low-income residents. To mitigate this, LPAs can mandate the inclusion of social housing as part of TOD projects. By setting clear targets for affordable housing and ensuring that developments incorporate mixed-tenure communities, the negative impacts of gentrification can be managed.

5. Overcoming Knowledge Gaps

Local Planning Authorities (LPAs) often face barriers due to a lack of expertise in successfully implementing TODs. To address this, government could develop a Best Practice Toolkit for LPAs. This resource would provide planning guidance, showcase successful case studies, and offer insights into navigating public-private partnerships, funding mechanisms, and land value capture strategies.

Additionally, LPAs and LTAs can establish their own development vehicles to spearhead TOD initiatives. A prime example of this is Transport for London’s Transit Trading Limited Properties, which has accelerated the adoption of TOD in the UK by directly managing land development around Transit hubs.

Conclusion

Enabling Transit-Oriented Developments offers a compelling solution to urban housing shortages while promoting sustainable growth and reducing car dependency. By addressing key challenges such as land acquisition, infrastructure integration, and equity concerns, and by providing the necessary tools and expertise to LPAs, TODs can become a cornerstone of future urban planning.

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A plan to boost construction industry capacity to deliver 1.5 million homes

Moving from such a low base in home building to achieve ambitious targets in a relatively short time frame will create challenges in every aspect of how the construction industry operates.

The government must engage with all the key sectors of the construction industry that will have a role in delivering their planned large-scale home building programme and develop a capacity boosting plan. Also, this plan’s success will rely on its alignment with a training and skills capacity boosting initiative

Any proposed capacity boosting plan should include two key aspects:

  • Delivery capacity building – How to structure the overall design and building of homes, neighbourhoods and towns.
  • Organisation capacity building – How to structure the development corporations and other entities charged with developing homes, neighbourhoods and towns.

Delivery Capacity Building

How Development Corporations should be set up

To facilitate the large-scale home building programme, local development corporations will need to be created from new, as happened with the creation of the post-war New Towns. The effort and time to build such organisations simultaneously  should not be underestimated,  and a plan to adopt a ‘lean model’ corporate template set-up should be established.

In simple terms, a ‘lean model’ would mean that development corporations would outsource a sizeable amount of their workload to private sector specialist consultancies, allowing them to focus on their core mission.

Engaging consultancies could  leverage their existing skills base and know-how, and share responsibility for capacity building to the private sector, spreading risks associated with development.. This approach would enable more efficient and accelerated project completions.

How Master Planned Developments should be built out

To build at scale, larger master plan developments will be needed. Whether these will be development corporations or other entities such as housing associations, councils or private developers, an ‘enabler’ approach involving sub-developers for various asset types should be used.

An ‘enabler’ approach would involve the master developer selling on parts of an overall master plan development to sub-developers while still maintaining a level of control.

This will allow for the sharing of the delivery burden and development risks allowing the overall delivery to be expedited while still maintaining overall master developer control.

The key to maintaining overall control of what is designed and built is for the master developer to have a comprehensive design guide for all parties involved to adhere to. A comprehensive design guide provides criteria specific for private sector consultants, construction contractors and sub-developers to work to while still allowing for innovation and a broader range of products and ideas from these other partners.

Some of the master plan developments will be new towns by definition and will be developed in accordance with the planned ‘New Towns Code’.

How Statutory Authorities Involvement should be streamlined

Local authority involvement via planning and building control departments is a critical component of delivering a mass home building programme so it is essential that there is an increase in funding and staffing levels. This was acknowledged in the last budget with a GBP £500m boost in funding exactly for this purpose.

In addition, there should be a plan to significantly increase the volume of developments that can be processed by consolidating local authority workloads. This can be achieved if the current reform of the planning regulations simplifies planning by zoning or other similar proposals.

This entails a designated area being provided with a set of development criteria such as land usage, type, height, set back dimensions, etc. If developments are designed to meet these there should be no need for the local planning authority to assess each development individually.

Why its essential to incorporate Modern Methods of Construction (MMC)

Embracing all of the current Modern Methods of Construction (MMC) on a substantial scale will also enhance delivery capacity by increasing build speed, reducing costs and reducing the need for skilled labour on site. The offsite factory mass production of building components or partially assembled units has mostly worked in the past where a large volume of residential, educational, medical or other assets have been needed.

MMC has faced some difficulties in recent years, partly due to a lack of a steady product supply line, with innovation and choice not at the level of countries where this is more prevalent. The large-scale build program will resolve the supply issue, but the government’s plan should be to reinvigorate the sector with some expertise from countries where MMC is better developed such as Germany. This could be done by creating a centre of excellence or sponsoring partnership L&D programmes for UK companies to learn from foreign companies.

The plan should include ‘modular kit homes’ for self-builds by individuals, small builders or developers. While self-builds would not contribute to public housing, the UK has much potential to develop this sector, offering direct competition to the professional home building developer sector as well as adding overall housing supply.

Organisational Capacity Building

Making Development Corporations centers of delivery excellence and best practice

As noted earlier,’ establishing a wave of new development corporations will be a feat in itself, and the know-how and skillsets required for this in the current market will be limited. In addition to the ‘lean model’ , to attract the best skilled individual people in a competitive market, these new corporations should prioritise becoming ’employers of choice.’

Being an ‘employer of choice’ by having a work environment, benefits and culture that attracts the best new joiners and retains existing employees should be complemented by a substantial training programme for graduates. This should be supported by educational and professional institutions, to cultivate a high ratio of trainees across various business roles. Opportunities for upskilling and training of staff in general should be part of this, and the development corporations should aim to set the benchmark in the industry.

How to effectively monitor and control a large-scale home building programme while its being delivered by many organisations

As part of building capacity, there needs to be central monitoring and control of this large-scale home building program across all delivery entities and all local authority areas to ensure there is a level of uniformity in monitoring metrics across the board in terms of value-for-money, delivery outcomes, good design, timelines, quality products, etc.

A development corporation or any other type of delivery organisation will monitor their development work and pass on collected data to a central overarching body such as a dedicated unit within the Ministry of Housing, Communities and Local Government (MHCLG). This data is used to decide what is and is not working and can be continually assessed to enable strategy updating over the life of the programme.

To achieve this, when development corporations are established, a standardised set-up template encompassing all corporate aspects should be used to streamline the establishment of the many required development corporations and other delivery entities, ensuring synergy, avoiding disruptions, and expediting delivery. Additionally, a best practice residential development delivery template should be used, covering investment, procurement, design and construct stage gates, complete with a Project Management Office (PMO) setup for every delivery entity.