Ecobuild latest: Berkeley boss also warns of 鈥榤assive鈥� impact of potential Brexit
The boss of one of the country鈥檚 biggest volume housing firms said the government should require a fixed level of 鈥渁ffordable鈥� housing in every development if it wants to tackle the housing crisis.
Berkeley Group chairman Tony Pidgley said if ministers insisted on a 30% blanket rule developers would just get on with it.
鈥淭he day the government stands up and sets the level, then developers would adjust accordingly,鈥� he told the Ecobuild conference at ExCel in London, which is owned by UBM, publisher of 好色先生TV. 鈥淚f the government sets the level at 30% developers will respond,鈥� he added.
The veteran housebuilder also called for affordable rents to be linked to the average income of a local area and allow the industry to 鈥渨ork around it鈥�.
Pidgley, whose firm Berkeley Group builds about 4,000 homes a year, warned he believed a vote for 鈥楤rexit鈥� at the EU referendum in June would make 鈥渁 massive difference鈥� to Berkeley due to the large number of EU workers in its supply chain.
He said: 鈥淚鈥檓 very British and I believe in Britain and I like to buy British. But 50% of our 14,000 subbies are from Eastern Europe. [A Brexit] would make a massive difference.鈥�
Speaking exclusively to 好色先生TV after the Ecobuild debate, Pidgley attacked Chancellor George Osborne鈥檚 move to raise stamp duty on high value properties, arguing it would put off international buyers.
He said: 鈥淎t the end of the day the Chancellor鈥檚 wrong on stamp duty 鈥� we are an international city that鈥檚 either open for business or closed for business. Driving out rich Arabs, or rich oligarchs, is not the answer to this.鈥�
He declined to comment on reports investors are shorting Berkeley shares amid concerns the London property market has peaked.
He said: 鈥淢y job is not to worry about that, my job is to run Berkeley and to make sure its balance sheet can deliver to my shareholders.鈥�
Pidgley also took aim at City Hall鈥檚 London Design Guide for housing standards, arguing: 鈥淟et鈥檚 have the discussion about space. I think you鈥檒l find that for most people an 11ft2 lounge is fine, with a separate bedroom that鈥檚 10x10 or 10x12 鈥� we only want common sense.鈥�
Berkeley鈥檚 high-profile projects including Simpson & Haugh鈥檚 One Blackfriars, DSDHA鈥檚 Abell and Cleland Houses and Squire鈥檚 One Tower Bridge flats, all in central London.
Pidgley, who picked up a 拢23.3 million pay package in 2014, said a blanket rule would give developers some certainty about their obligations where currently every local authority demands a different level of 鈥渁ffordable鈥� housing.
His comments come as developers have recently been criticised for using viability assessments to try to dodge 鈥渁ffordable鈥� housing requirements.
鈥楬ow the hell do you start?鈥�
Housebuilding veteran Tony Pidgley has said red tape and high costs would have prevented him from making it in the housing sector if he had started out today.
Pidgley, who founded Berkeley in 1976, told 好色先生TV at the Ecobuild conference in London that it was now much harder for entrepreneurs to break into the industry.
He said: 鈥淗ow does a small SME get in? The banks won鈥檛 lend him money, he鈥檚 got a nine month planning process, 12 months in most cases. He鈥檚 got to pay fees for planners to talk to him and that still gives him no guarantees.
鈥淲here鈥檚 he going to find the money? It鈥檚 OK with a big balance sheet like we have. But if you leave college tomorrow 鈥� I left school under-educated and decided to build a housebuilder. You can鈥檛 do that now.
Pidgley urged the government to reduce the barriers to entry for small builders: 鈥淗ow the hell do you start? The hurdles, the jump rates, are so much bigger. The average planning application costs us three quarter of a million pounds. It鈥檚 not the same now and the government needs to address it.鈥�
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