Developers give mixed reaction to Liverpool's new 'one bedroom' rule

Oct 26 2007

The Unity Building in Rumford Place, Liverpool _100x180

DEVELOPERS yesterday gave a mixed reaction to news that Liverpool City Council is seeking to limit the number of one- bedroom apartments in new city projects to around 40%.

Nigel Lee, the city’s planning manager, stressed the 40% limit reported in yesterday’s Daily Post was not yet council policy – but part of guidance the city was giving to those behind potential new projects.

He said: “There is a need to provide an appropriate mix to reflect the housing market, . In doing so we need to encourage developers to provide as many two- and three- bed flats as possible, as part of an appropriate mix. As an informal target, we need to keep the number of one-bed flats to a maximum of 40%. However, this is not a council policy.”

Liverpool-based Vermont Developments has just launched Sefton Street – The Quarter, a £100m mixed use development featuring town houses and a residential tower, where 40% of units are one-bedroom, 58% two- bedroom and 2% three-bedroom.

Mark Connor, chief executive, said: “I understand the city’s thinking and we are seeing quotas elsewhere. We have a big scheme in Salford where the city council has approached this issue from the other end and the requirement is that 10% of apartments have to be three-bedroom units. Most responsible developers would accept there’s an onus on them to ensure a proper balance of tenures.”

City Centre estate agent King Sturge, which handles sales for Vermont and also the St Paul’s Square scheme on Old Hall Street (where the 50 apartments are divided into 40% one-bedroom, 60% two-bedroom) rejects any notion there is a glut of unsold one-bedroom apartments.

Shannon Conway, sales manager, said: “To maximise profitability, developers have favoured two-bedroom apartments as they command a higher price per square foot. This has led to a shortage of one-bed and three-bed apartments in the city. One- bedroom apartments cater for the investor and the first time buyer and are in demand now.

“Thankfully, developers are responding to this demand.” and are providing the market with more one bedroom and three bedroom apartments.” Indeed, initial demand in Vermont’s The Quarter and Grosvenor’s One Park West have centred on smaller, more affordable apartments or larger three bedroom units.”

Phil Rees-Roberts, principal of property law firm Rees-Roberts Solicitors, regards quotas as un- helpful political intervention: “If the market is saying one-bedroom apartments – which it is, thanks to demand from students, first time buyers and investors – it should be left alone. For years we had no development in the city centre. Now that we have a growing market, the council should let it flourish.”

“If the family homes agenda was part of a homogenous plan to encourage city centre living, including attention to infrastructure like schools and parks, then it might be more acceptable.”

Lauren Jones, sales manager for estate agent City Residential, does not believe the quotas will affect prices:

“Setting the 40% ceiling on one- bedroom apartments in new build schemes is no great departure from the norm. It’s a sizeable ratio to satisfy demand, so prices are unlikely to start rising disproportionately and it should still be sufficient enough to create a healthy mix of property sizes on new developments.”

Richard Peel, director of Merepark, the developer behind the £160m Central Village scheme, said: “One-bedroom apartments tend to be purchased by first time buyers, as a means to get on to the property ladder, which in fact encourages a more stable population.

“By reducing the number of one-bedroom homes in the city, this could potentially reduce the degree of affordability.”