A New Vision of Peterborough

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SUSTAINABLE GROWTH FOR A MORE PROSPEROUS CITY
A New Vision of Peterborough:

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ENDORSEMENT:

“This Government wants to set local people free – to give them the power to
shape their own community. It’s really excellent to see that Stewart Jackson
has taken the opportunity to set out his vision for Peterborough. There is a lot
to build on in such a wide ranging and thoughtful document. I would urge
the people of Peterborough to work with their local MP: you may want to
criticise some of his ideas, you may want to suggest some new ones of your
own. The point is that this Government will give you the opportunity to play
an active part in making Peterborough the place you want it to be. Take it.
Congratulations to Peterborough’s MP for kicking off the debate.”

The Rt Hon Grant Shapps MP

Minister of State for Housing and Local Government

2

FOREWORD:
‘If you build it, they will come.’ These people will not give Peterborough a second
look - and nor will our most talented youngsters
Field of Dreams 1989 wish to remain in the city - unless its culture is one
Peterborough in 2011 is a city, like many in the of aspiration and local civic pride, rather than a
UK, which faces some big economic, financial, "second best" cultural cringe to nearby Cambridge
or a "we've tried it before... and it didn't work"
social and demographic problems.
attitude.
Job losses, low skill levels, pockets of poor health
For too long, national politicians have forced on
and deprivation and lower than average
local housing providers mythical and unachievable
educational attainment have not been
top down housing targets (often flats) and not
ameliorated by unprecedented and unrestricted
quality family homes. Developers have focused on
immigration from the European Union since 2004.
what they could build in the quickest time at the
This has driven down wages, changed beyond
lowest cost rather what might be innovative and
recognition a number of city residential areas,
aesthetically pleasing.
embedded welfare dependency amongst some of
the indigenous population and put significant And local politicians have unfortunately fixated on
strains on the delivery of local public services and "affordable housing"(sic) targets which often

on social cohesion. means social rented properties allocated
proscriptively in a way which does nothing to
That said, Peterborough has weathered the
tackle the scourge of welfarism or help engender
economic downturn better than many areas and
cohesive communities.
is better prepared to emerge from it.
The old way of doing things has failed and will
Our retail offering has suffered less than most
continue to fail.
other sub-regional centres. Many of our key
regeneration projects (such as the South Bank I believe there is a new, more imaginative and
development, North Westgate and station quarter) ambitious way for us to arrange our local housing
are intact and remain financially viable. We can policy; an aspirational quality-focused way which
boast some national examplar projects, such the appeals to hard-working families, ambitious
the PREL waste-to-energy plant and the new City professionals and high-level executives - as well
Hospital which will attract the "brightest and the as a growing pensioner community. A way which
best" to live and work in our area. complements and underpins Peterborough's
collective and corporate desire to meet its full
In addition, these developments are
potential as the Environment Capital and serve the
complemented by (some) excellent schools, a
needs of a growing population without
growing leisure and tourism economy, award
jeopardising the quality of life of current residents
winning parks and specialist expertise in
and future generations.
environmental services, transport and logistics,
food processing, engineering and finance sectors. To that end, when the Leader of the City Council
Commuter links by train and road to both London asked me to articulate my thoughts in a housing
and the North of England are second to none. strategy paper, I readily agreed.
The availability of good quality housing is a major This document is the result.
determinant in attracting people who will create
wealth, provide jobs for others and invest their
skills, experience and intellectual capital in our city,
over the long term.

Stewart Jackson
MP for Peterborough

February 2011

3

INTRODUCTION:
Peterborough stands at a crossroads. The That is not to say that Peterborough should resist all
combination of a new government, with fresh and new development. The new Government’s incentive
innovative ideas centred on localism mean that the scheme, the New Homes Bonus, makes this a good
role of local government must be radically re- time to consider the case for growth, provided that
imagined. The red tape that has stifled local it is sustainable and in the best interests of the city.
democracy and frustrated local people is being
stripped away day by day. Peterborough currently has 76,000 homes. Plans for
more than 20,000 additional units to be built in the
The Local Government Finance Settlement, area over the next 16 years are counter-intuitive and
announced in December 2010, has created a tough unsustainable. Growth of almost a third in the
economic environment for Peterborough City number of households is entirely unrealistic and
Council which has forecast spending reductions of smacks of a compliance with the old way of doing
10 per cent in 2011/12. things.
The old view of local democratic institutions as a This report sets out plans for a reduction in the
conduit for central government policies or a target number to around 8,000 units over the next
delivery agent at the whim of Whitehall mandarins decade, of which 1,000 should be affordable. The
has been consigned to history. Around the country, resulting New Homes Bonus payments and the
local authorities have freed themselves from the increase in estimated disposable income from the

tyranny of more than a decade at the behest of proposed blend of tenures could see a boost to the
minister after minister pulling at the levers of state. local economy of more than £100 million over the
Cumbersome and prescriptive regional strategies six years following implementation.
have been torn up and, for the first time in decades,
local people are being encouraged to shape the
future of their area.
Residents must seize this opportunity to change the
perception of Peterborough for good. Achieving
that goal will require a rethink on the scale and
quality of new development planned for the area
over the next decade. Preserving and promoting
Peterborough should not be sacrificed to meet the
arbitrary targets imposed on the community by a
government that has been so resoundingly rejected
by the electorate.

4

PROMOTING PETERBOROUGH:
Peterborough has a rich and fascinating heritage, The residents of Peterborough rightly demand a
with over 1,000 listed buildings, 60 ancient renewed vision for the city. This vision is based on
monuments and 29 Conservation Areas all within its an innovative and aspirational approach to the built
boundaries. The city also possesses excellent environment and on a vision of growth that is
transport links – with regular services taking sustainable and suitable to promote the economic
commuters to King’s Cross in less than 50 minutes - ecosystem of the area. Such development can play
and one of the most extensive cycle networks in a significant role in solving complex problems of
Britain. long-term economic decline and ingrained social
problems evident in Peterborough and elsewhere in
The responsibility that comes with that heritage the country.
means that it is vital that the current custodians of
the city strike a balance between growth and The City Council and the community it serves stand
quality of life; a balance between preserving our at a crossroads with new freedoms and
history whilst laying out a credible plan for opportunities afforded by the new Coalition
sustainable development that will see the city thrive Government. These freedoms should be taken
long into the current century. It is a plan which must advantage of. These are freedoms that can help
remain ambitious about Peterborough and, in the refocus the wider perspective of Peterborough,
long-term, enable the city to fulfil its potential as a should the council take the chance to shake off the

home for families and professionals and as a centralised target-driven culture that has ignored
destination of choice for investors and tourists. residents to the detriment not just of local
democracy but of the city’s future too.
Recent developments and proposals for growth
have contributed to an image of the city that chimes
with few of those that actually know Peterborough.
Previous strategies based on diktats from Whitehall
have led to a proliferation of one and two bedroom
flats in the city that has served to freeze out
families, threatening Peterborough’s future.
Locally affordability of housing remains high
compared with other similar locations, especially so
close to London. This ought to be one of the city’s
best selling points for aspiring young people
looking to get on the housing ladder. Furthermore,
the negative impact of unpopular ‘garden
grabbing’ and density targets on Peterborough has
been colossal. The ruthless infill of green spaces to
meet arbitrary targets does not help create the
green and sustainable 21st Century city that its
residents deserve.

5

THE OLD WAY OF DOING THINGS:
Peterborough City Council’s Core Strategy aims to Clearly the demise of Regional Spatial Strategies
establish broad policies and proposals for delivering and Whitehall imposed housing strategies has had
a long term vision for the development of the area a transformative effect elsewhere in the country.
to 2026 and beyond.’ Instead, the lack of flexibility Peterborough must act quickly and join these
and responsiveness in the strategy has advocated authorities in breaking off the shackles of
the use of a broad brush, failing to take account of Westminster and begin determining its own future
realistic local needs, capacity and the future free from the interference of civil servants in
prosperity of Peterborough. London.
Ministerial diktats and Whitehall-driven directives These authorities understand the need for the new
are predicated on the old way of doing things. housing necessary to support a growing economy
Many towns and cities are currently tearing up these built on private enterprise. However, they also
anachronistic strategies and targets. recognise that house building can only be
reinvigorated if housing is locally led and residents
In June 2010, South Oxfordshire district council are able to see sufficient benefits in return for new
withdrew from their Regional Spatial Strategy, build homes. Arbitrary targets provide no
rightly asserting that decisions about housing productive basis for development.
numbers are best made at a local level in
consultation with local people. Similarly Telford & A failure to acknowledge the needs and concerns

Wrekin withdrew from the overly-prescriptive of local people was inherent in the old system.
Regional Spatial Strategy for the West Midlands Huge resources were wasted on disregarded
which proposed 26,500 new homes in their town. consultations and legal appeals while unsuitable
homes were thrown up at an alarming rate.
Bristol and North East Somerset Councils have,
between them, reduced their plans for new homes Instead, we should develop a new system by holding
by almost 17,000 from the rather unrealistic targets the government to its stated objective of giving real
set under the previous centrally dictated regime. power to local people. The current government
Meanwhile Exeter City Council has reduced its knows that it is the residents of Peterborough who
headline housing target by 3,000. hold the keenest knowledge of local services, and
therefore it is them who should be prioritised as
Peterborough moves towards a sustainable and
properous future.

6

THE LEVEL OF EXPANSION:
In the five years to the end of March 2010, an To achieve the planned growth of over 20,000
average of 934 dwellings per year were completed homes by 2026, the Core Strategy document says
in Peterborough.1 The figure peaked prior to the “there needs to be a step-change in the rate of
financial crisis with more than 1200 new homes built delivery if provision to the level proposed by the RSS
in 2006/7. This kind of rate would meet the Core is to be achieved.” This is true; figures suggest that
Strategy’s stated aim of growth in the city of 20,000 the ‘step change’ entails more than 1,400 homes per
properties by 2026. year to be built in the city – a significant increase on
the already unsustainable numbers already being
Housing growth of 1,000 a year is unsustainable for churned out even in the midst of credit shortages
Peterborough. The city’s services and infrastructure and a crisis in the construction industry.
are already creaking under the strain caused by
inward migration, new housing and No convincing case has been made for how this level
underinvestment. of development will sustain itself or how existing
local services will cope with an exponential increase
New dwellings in Peterborough 2005/6 to 2009/10 in demand, especially in light of the inevitable
reductions in local government grants announced
1000 at the Comprehensive Spending Review in October
2010. As the Core Strategy itself admits, this is a

“substantial challenge” and it is likely that this
challenge that could not be met by a construction
industry in crisis.
This is not a suitable climate for development of this
kind. Hurried expansion increases the risk of
overlooking wider externalities around standards
and accountability while underperformance on
0
these targets will also be matched by
2005/6 2006/7 2007/8 2008/9 2009/10 underperformance on the quality and scope of
infrastructure. The pressure begat by centralised
target-setting leads to rushed programmes that
blight the landscape and cost a city like
The reductions in funding for local government Peterborough dearly.
announced in the Local Government Finance
Settlement in December 2010 will impact upon
Peterborough’s infrastructure. The City Council is
forecasting a reduction in Year 1 (2011/12) of 10 per
cent with consequences for local transport and
other services. With more than 50 of the area’s 54
schools already oversubscribed, the potential impact
on local services in a tighter fiscal environment is
severe.

1
Hansard, 20 October 2010, col. 732-4W

7

NATURE OF GROWTH:
Over the past few years, the density of new social housing stock should be reduced – in fact this
dwellings has increased exponentially. In 1998, the paper proposes a small increase in affordable
density of new dwellings per hectare in housing provision – but the new vision of
Peterborough was 20. In 2008, this had increased by Peterborough must take into account the changing
70% to 37 per hectare. The Regional Spatial dynamics of the housing market
Strategy in Peterborough set a target of 50
dwellings per hectare and up to 70 in the District Tenure Number Percentage
Centres. This reflects the escalation in the building of units of total
of small 1 and 2 bedroom flats and a retreat from All public 14,786 20
quality ‘prestige homes’ that should be built if the housing
city is to attract the brightest and best capable of
contributing to a dynamic economy. Private sector 60,427 80
There is a justifiable feeling amongst many residents Total 75,213 100
that the City Council, in discharging its obligations
under Planning Policy Statement 3 (PPS3), has
The lack of local strategic oversight is illustrated not
misinterpreted the requirement to use land
just by the proliferation of social housing as directed
‘effectively and efficiently’.2 Interpreting this
by Whitehall, but also the size of the new

guidance as merely maximising the number of
affordable housing units. Around 70% of new
homes on each site is not in keeping with either the
affordable homes built in the area in the five year
letter or the spirit of PPS3. Whilst using land
period to 2010 were one and two bedroom
efficiently, planning authorities have a duty to help
properties. This has the effect of forcing families in
deliver high quality housing. PPS3 instructs
need of housing into the private sector, funded by
authorities to ‘promot[e] designs and layouts which
the state through increased housing benefit
make efficient and effective use of land,
payments. The impact of this has been
encouraging innovative approaches to help deliver
tempered by the Government’s housing reforms but
high quality outcomes.’3
it also has the permanent impact of limiting the use
The development of small homes suitable only for of those properties in the longer term. In general,
individuals or couples is not the answer to Peterborough should grow as a place for families
Peterborough’s needs. The Core Strategy fails to and aspiring people who want to get on and make
realise an obvious fact that in an area of high a mark within a community. Larger family homes
residential density where most adults work, there helps prevent transience and promotes stronger,
quite simply is no-one around during the day to use more settled communities.
retail outlets included within the plan. Most people
realise that areas are best served if they are mixed, New build affordable homes by number of
welcome to young professionals and families alike. bedrooms, 2005-2010
This will give Peterborough the best possible 1 2 3 4 All
opportunity to develop viable communities in a 2005-06 10 50 20 0 80
thriving city.
2006-07 10 70 20 0 110
Currently 20 per cent of homes in the Peterborough 2007-08 20 190 20 30 270
Unitary Authority area are in the social sector.4
2008-09 70 190 90 30 380
The Coalition Government has already announced
far-reaching and radical housing reforms which will 2009-10 70 380 200 60 700
see many households move from public to private Total 180 880 360 120 1540
housing. Under the new system, councils will be able
to offer flexible tenancies and use greater local
discretion to decide on allocations policy. They will
have more flexibility to help homeless families find
appropriate housing and help tenants move from
unsuitable housing or to relocate for a job. It is
therefore sensible to consider a reduction in the
relative proportions. That is not to say that the
2
Planning Policy Statement 3 (Department for Communities and Local Government), page 21,
http://www.communities.gov.uk/documents/planningandbuilding/pdf/planningpolicystatement3.pdf
3
Ibid, page 7
4
Hansard, 19 October 2010, col. 662W
5

8

ASPIRATION:
Starter homes in Peterborough are still relatively The Chief Executive of Barratt Developments, Mark
affordable for those on average incomes. Clare, recently said that Labour’s policy on housing
The community’s leaders should therefore make was to be ‘volume junkies’. He is correct for pointing
a concerted effort to attract young professionals out that there is shortage of family homes, caused
away from London where property prices remain by a fixation on central targets.
too high for most would-be first time buyers and
encourage them to join the 1,639 others who make The new government has rightly abolished
the 47-minute daily commute to the capital from Whitehall density targets set out by the Labour
Peterborough. government, meaning that the appropriate levels
will now be up to local people.
Currently around half of the managers and senior
officials who work in Peterborough live outside the Peterborough should take advantage of this
local authority area. The absence of this section of opportunity to refocus the extreme expansion set
society is detrimental for the long-term prospects out by the Core Strategy. This trend must be
for the city and the City Council should reversed if we are to make Peterborough a place
allocate land for homes suitable for middle to where those that are looking to set up families - but
higher income earners. In the short-term, these also be within commuting distance of London –
properties would likely be more affordable than the would like to move to.

largely rural alternatives. For this approach to succeed the city must establish
Attracting professionals and skilled workers with a new image. It is important for the City Council to
higher than average disposable incomes should be understand that through its many levers and with
a priority in the drafting of any local housing and additional powers, it has the power to contribute to
economic growth strategy. this image enhancement. The use, for example, of
new licensing powers could guard against the
The City Council appears to be exempting the city negative perception of Peterborough in the eyes
centre area from consideration as a location for of ambitious young people looking for somewhere
future developments of good quality “prestige” to lay down roots and build a family.
homes, without supporting evidence for this
decision.

6
2001 Census Figures

9

GARDEN GRABBING & IMMIGRATION:
Infilling of green spaces to satisfy the latest diktat Notwithstanding the Ministerial Statement issued
from Whitehall did not help promote by the Rt Hon Greg Clark MP, Minister for Planning
Peterborough’s credentials as a green and and Decentralisation, issued on 9th June 2010,
sustainable city. Prior to changes implemented by which removed gardens from their previous
the new government, Peterborough was a victim of brownfield designation, officers at Peterborough
the aggressively expansionist practice known City Council appear to have disregarded this advice
‘garden grabbing’. The previous government and seem intent on proceeding as before with a
encouraged planning authorities and land owners loose interpretation of its Development Plan and
to collude in order to ensure developments be built Planning Policy Statement 3 - the effect of which is
on back gardens, spurred by land prices and a to continue to allow inappropriate backland
loophole in the law making them ripe for residential development.
development. In some areas of the country, up to
90% of new development was of this kind. Homes
are often of high density and low quality and were
extremely damaging to Peterborough’s landscape.
The proposal to declassify back gardens as
brownfield sites is welcome, as major developments

on garden land put a large strain on Peterborough
infrastructure, such as parking and drainage. These
moves have been supported by a range of groups
from developers to residents and environmental
organisations who all share a similar concern of
preserving the existing benefits of the local
surroundings. By taking a broad, longer view of the
harm done by untrammelled development we can
work together to achieve common goals. Losing
gardens and green spaces is damaging for
Peterborough and undermines it’s Environment
Capital aspirations.

IMMIGRATION:
One driver of housing demand is immigration. New The old assumptions of housing needs were based
entrants to the country need homes and to an on the previous Government’s immigration policies.
extent the high levels of net migration to Britain A downward revision is therefore required based on
over the last five to ten years have exacerbated the the Coalition Government’s commitment to reduce
housing crisis, especially for areas like Peterborough. overall non-European Union net migration from
hundreds of thousands to tens of thousands, as
announced in the House of Commons in a
Ministerial statement on 22nd November 2010.

10

THE NEW VISION
AVAILABLE LAND:
The Government’s affordable housing agency, the In light of these developments and the hole in
Homes and Communities Agency (HCA) currently public finances caused by a decade of profligacy on
owns 30 sites in Peterborough, totalling more than the part of central government, the HCA should sell
370 hectares. Based on current density levels, the a percentage of the land back to private developers
land could site nearly 13,800 homes. However, this who will be more likely to construct new homes at
is indicative and the actual number could be much a lower density, higher quality and be more suitable
higher. For instance, the Paston Reserve site has for families. A viable percentage might be between
received planning consent for more than 1,000 33 per cent and 50 per cent. Alternatively the
units. This means that the average density level will Government should allow the HCA to develop
be around 135 dwellings per hectare.8 properties on the land at lower than average
densities and then sell the properties at market rate.
Taking into account the Coalition Government’s
policies to reform social housing and the benefits
system, this level of provision of affordable housing
should be reconsidered. The reform of tenure,
housing benefit caps and a reduction in the
percentile at which rents will be paid for out of
Local Housing Allowance means that the demand

for social housing will fall, especially as private
rental prices are reduced.

7
See Appendix A for a full list of sites
8

11

TENURE MIX:
Currently a fifth of households in the city are in the During the final leader’s debate of the General
social sector. National reforms of social tenures for Election campaign on 29th April 2010, David
new tenants and changes to housing benefit would Cameron outlined his support for shared ownership,
make an expansion in this proportion an unwise saying:
commitment before these measures have been
implemented fully. Proposals in this paper to limit “We should build more homes that are part rent,
the overall level of growth and for around 12 per part mortgage – because it gives people - I’ve seen
cent of the new units to be affordable (social this in my own constituency - the chance to get one
rented, intermediate or shared ownership) provides foot on the housing ladder. As circumstances
flexibility whilst ensuring the City Council will be change, they can increase the mortgage and reduce
able to stick to its statutory obligations. the rent.”

Peterborough should remain committed to The Moat Homes Group - a large registered social
providing mixed tenures for its residents. However, landlord based in Dartford, Kent– is particularly
evidence has not been provided to justify the interested in working to develop new and
requirement for more than 6,000 additional social innovative funding schemes in order to assist those
homes in Peterborough. This is an arbitrary figure who cannot access home ownership in the
and is wholly unsustainable. It will have untold traditional way, to do so via alternative models, such
as shared equity and part rent, part buy.

ramifications for the local area if not supported by
residents and local businesses.
Our proposals for a total of 8,000 new homes will
include social, intermediate and ‘prestige’ homes. WEEKLY INCOME by Household Tenure 2009 from
This could still provide 1000 new affordable homes the Office of National Statistics
for low-paid residents to rent or take their first steps Tenure Income Income Expenditure Expenditure
on the housing ladder. (£/w) (£/w) (£/w) as % of
Gross disposable dispoable
income
More manageable developments with a slightly
modified tenure mix would create a useful and Owner
sizeable fund with which to invest in Peterborough’s occupier
future. The Government’s proposal for a New Buyin a 978 778 599.80 77.1
Homes Bonus will finally see local people benefit mortgage
from growth in their area. Owned 598 498 404.80 81.3
outright
Based on average disposable income of households
Private 491 415 442.50 106.6
of different tenures, switching a certain proportion rented
of new homes from social rented to private rented
Social
is likely to generate an additional £40 million in rented
expenditure in the local economy over the course of Council 405 284 250.20 88.1
a decade.
Registered 443 281 253.60 90.2
Furthermore, the Government’s recent Social
Landlord
announcement on tenure reform will create a more
modern social housing sector and give providers
much more flexibility in the use of their stock going
forward.

12

ASPIRATION:
Coalition Ministers have heralded a new ‘age of Council Tax Bands
aspiration’, encouraging home ownership and
A B C D E F G H
ending the previous Government’s belief that
falling levels of home ownership were ‘not such a Estimated 0 250 250 4500 2500 500 0 0
no. of
bad thing’. properties
Peterborough’s new development strategy should
focus on the promotion of aspiration. The city could,
and should, attract ambitious young professionals
who may want to start families and make the city Homes built to this mix of Council Tax Bands with
their own. This document proposes that, as many those in Bands B and C and 500 of those in Band D
have pointed out, there is a limit to the number of properties being affordable, would, according to
new homes the city can absorb. Instead, 8,000 new the Government’s own indicative calculator, create
homes would satisfy the necessity for growth whilst the funding required to give the city a sustainable
ensuring sustainability based on evolving services and prosperous future. Using a figure of 8,000 net
and infrastructure. additions, the provision of 1,000 affordable units
within a tenure mix that is, on the whole, more
The 8,000 new homes proposed in this document aspirational would provide a greater return over the
will be built under this scheme bringing in around six year New Homes Bonus period, than the same

a £80 million windfall under the New Homes Bonus total of new homes built with greater provision of
scheme. Combined with the reworked blend of social and affordable housing. Various options and
tenures discussed in this document and the tenure mixes are detailed in Appendix B. The
associated estimated increase in disposable income preferred option is listed as Option 4.
or households in the city, this will result in
approximately £101 million in additional revenue In achieving the return for residents promised by
for the local authority and local businesses. the New Homes Bonus, Peterborough should be
allowed to invest in the health and wellbeing of the
The New Homes Bonus will replace arbitrary targets city. Even at a time when local government funding
with incentives and concrete rewards for growth. is being reduced, the City Council should ensure that
Councils will receive matched Council Tax funding a tangible legacy is built using all of this funding, or
for a period of six years for every new home built in a significant element of it at the very least. This
the area. Affordable units built will receive an might include protecting and expanding community
additional payment of 25 pence in every £1 in sports facilities or investing in our green spaces so
council tax revenue. families have space to allow children to play.

While it is impossible to predict exactly how much Importantly, residents should be fully consulted on
the community would benefit from the 8,000 new how the money raised by the New Homes Bonus
units proposed by this document, the best estimate should best be spent but it should be used to invest
is that with the right tenure mix, these new in Peterborough’s future and, where possible,
dwellings could see the city receive £77.2 million in secure an economic multiplier effect.
New Homes Bonus payments over the six year
period.9 To engage the community, the City Council could set
up a page on its website to encourage ideas and
discuss existing ones. Local media outlets should
also play a role in giving residents the opportunity
to stake a claim in the future of their city and
actively promote the city.

9
Based on calculations using the Department for Communities and Local Government’s online New Homes Bonus Calculator
(http://www.communities.gov.uk/housing/housingsupply/newhomesbonus/)

13

ASPIRATION OPTIONS:
• Investing in the economic prospects of the city –
using some of the funding to leverage additional
private sector monies to make Peterborough a
regional hub for high speed broadband through
fibre optic installation or WiFi routers
• Investing in jobs – using the funding to invest in
a new or existing retail offering for the city. We
also want to invest in good quality, skilled jobs
that will bring long term benefits to the
community.
• Investing in transport links – using the funding to
leverage private sector investment in the
outdated railway station and increasing its retail
offering. The Government’s early proposals for
non-residential local growth pave the way for the
City Council to use a one-off outlay to regenerate
the area and receive a long-term return on its

investment.10

10
The potential for Tax Increment Financing in Peterborough, as well as what the reforms of the business rate regime could mean for the city are discussed in more detail later in this
document

14

NEW HOMES:
Peterborough should innovate. The new political This is not about NIMBYism. In general, residents are
landscape provides the city with an opportunity to not at all opposed to new developments. In fact,
lead the way in delivering groundbreaking new many will support developments which they see as
developments. Homogeneity in the form of ‘Barratt beneficial to their community. For example, those
Boxes’ should be avoided at every step. living in the smaller villages that surround
Peterborough understand that economic
In Peterborough City Council’s recently published development in their local area is partly dependent
‘Site Allocations Document’, plans were outlined for on the numbers of new homes built. Local
how the city would build 20,185 of the target of businesses, particularly in the retail sector, know
25,500 new homes by 2026. The document also they will not be able to expand if new home
included proposals for a 135 hectare rail-freight building stagnates completely. This is a
interchange at Magna Park, and a number of large reasonable approach, rather than a view of a vocal
business parks around the city. minority.
English Heritage has in the past been critical of However, there has to be a switch from a strategy
Peterborough’s Core Strategy’s plans for the city’s that does not involve local people, and one that
historic environment as lacking “broader does. The ‘Big Society’ vision of civic engagement
perspective” on designated or statutory features. It will be severely damaged if, for instance, the 1274
also concluded that this was more of a prominent

residents of Eye and Eye Green who registered their
issue for the city centre, which has the greatest concern in writing and by attending a number of
concentration of historic features and also the local protest and consultation meetings, over the
greatest opportunity for change. However English Core Strategy, are ignored. Instead, a flexible
Heritage has recently praised the Cathedral Square alternative that serves to remind residents of the
Public Realm especially recognising the reinforcing external benefits of development, is needed.
of character.

15

EMPTY HOMES:
The case for some level of housebuilding is a
compelling one but a full picture of the housing
need in the area must take account of the city’s
unused assets. At the last count, around 4 per cent
of the homes in the local authority area were
vacant.11 This amounts to some 2,680 empty
properties in Peterborough, of which almost 1,000
were classed as long term vacant.12
The full and proper utilisation of these properties
should be explored as a matter of urgency. In the
meantime, the re-introduction of these homes into
the market (or for social housing providers) should
be included in the overall scope of housing growth.
Significantly, through the New Home Bonus, the
Government will also reward communities for
bringing empty properties back into use.

NEW STYLE OF AFFORDABLE HOUSING:

A new vision of Peterborough cannot neglect the Peterborough should follow the lead of other local
all too obvious fact that some families will not have authorities in developing new forms of tenure.
the income to be able to afford to buy a property For instance, Westminster City Council has
but in the interests of social cohesion and the local established a not-for-profit company structure that
economy, such households require support to access provides low cost home ownership and affordable
housing in the city. rental properties as a delivery arm. To ensure it is
tax efficient, the council has set up a charity to
The Housing Minister has announced plans to limit manage the affordable homes once they are
the security of tenure for new social tenants and completed. At a time of financial restrictions for
there is a general movement away from traditional local authorities all over the country, the key
social housing and proposals for a new intermediate innovation in Westminster is the flexibility afforded
form of housing – with rents set at around 80 per by the structure. The company is able to sell a
cent of market rates – would be beneficial for the number of homes at market prices to help finance
city, acting as a step on the road to home ownership the construction of additional units for affordable
for young aspiring couples and individuals. rent. With the introduction of a nationally endorsed
intermediate rental rate, there will be more money
that can be recycled into the upkeep and
improvement of existing affordable homes whilst
constructing more according to future needs.

11
Hansard, 19 October 2010, col. 658W
12
‘Long term vacants’ classed as those which have been unoccupied for a period of six months or longer

16

FAMILY HOMES:
Demand for family homes in Peterborough has
remained stable throughout the economic
downturn. Smaller properties lost relatively less of
their value during the financial crisis, whereas prices
for three and four bedroom dwellings have been
resilient.
This demonstrates the attraction that family
properties hold. These properties typically have a
garden, driveway and space to bring up children.
These are hardly new ideas but they appear to have
been forgotten. The high land prices that have
incentivised developers to build ever small houses
have limited the prospect of there being the kind of
homes that people want. After all, for those that
have them, gardens are the most important of all
the “green spaces” that we as policymakers are
meant to protect and preserve.

The poorly thought out housing policies of recent
years have sent the industry into a vicious cycle
where ugly developments have fermented
opposition to any development at all.
This paper proposes the construction of more family
sized units. This will be achieved through the
scrapping of targets and greater engagement with
citizens on what they want for their city and
villages.
Industry is on board, too. Since targets have been
scrapped, Barratt Developments have pledged to
concentrate on family homes whilst pressures in the
mortgage market have meant banks are lending to
larger properties first. This chance should be seized
upon as an opportunity for those who want decent
homes built to actually get it done. To demonstrate the potential for innovative
development in Peterborough, architects Pitman
Tozer have carried out a study of home density in
Peterborough and the surrounding area and
provided examples of what the new vision of
Peterborough might look like (see Appendix C).
The PRP official Masterplan design for flatted
blocks on the old Peterborough hospital site
allocate an average of 60 flats in blocks per
hectare and the Pitman Tozer option of terraced
houses of the traditional street pattern and
courtyard houses offer 45 dwellings per hectare.
Put in comparison with the current figure of 135
dwellings per hectare, this is a lower and
infinitely more sensible aspiration. Yet, as shown
by the study, this is still an efficient use of land as
it matches or exceeds the density of existing
homes for families in Peterborough.

17

HOMES FOR AN AGEING POPULATION:
Over the course of the next 16 years Peterborough’s
elderly population is expected to increase
exponentially. This includes a forecasted 83%
increase in the city’s over-85 population.
Provision for additional housing suitable for older
people must be properly factored in to
development plans. Whilst consideration should be
given to making more homes compliant with the
Lifetime Homes Standard, the plans should include
a new complex of accessible homes for the elderly.
A good start has been made with high quality
accommodation at Axiom Housing Association’s
projects at Friary Court, Eastgate and The Pavilions
at Alma Road, Millfield, for instance. With the costs
of adult social care expected to rise in the coming
years, the provision of homes that allow people
with care needs to remain in their own homes for

longer will likely bring substantial savings to public
sector organisations in the decades ahead.

18

NEIGHBOURHOOD DEVELOPMENT ORDERS:
In order to maintain the character of the villages Neighbourhood Forums could take control of
and hamlets around the city, local people should be development opportunities, particularly in the
encouraged by Peterborough City Council to outlying areas of the city. Developments of 5-15
develop Neighbourhood Forums and exercise new units per site could prove useful in providing
powers to grant themselves planning permission for affordable starter homes for local families.
small developments under Neighbourhood Leaseholders would therefore find property
Development Orders (NDOs). These innovative new cheaper, potentially allowing hard-pressed young
bodies will empower communities and ensure that families the financial breathing space to build a
development is sustainable and in keeping with the deposit for propulsion into the regular housing
area’s character and the needs of residents. The City market.
Council should consider their Neighbourhood
Councils as a forum for discussing NDOs and use Scoping work should begin immediately. Residents
their Neighbourhood Area Managers as facilitators. in Castor, Maxey, Ailsworth, Helpston and Thorney
should be consulted on the desirability of new
housing for local people and informed of the
opportunities afforded by NDOs. They should be
invited to come forward with ideas for the types of
housing that could be built on a site in their village.

That might mean starter homes for young familiesor
sheltered accommodation for the elderly.

SELF BUILD:
Building a property from scratch can often be a cost
effective means of satisfying housing need,
particularly for first time buyers who may have
more spare time than money. A site should be
allocated for local applicants who would otherwise
not be able to afford to buy their home to construct
their own homes. The experience of St Minver in
Cornwall should be used to inform the
development.

19

MAKING BETTER USE OF THE CITY’S ASSETS:
Peterborough possesses all of the necessary features However, the picture is not an entirely rosy one.
to be a thriving city at the heart of England. Some areas of the city have suffered in recent years
and regeneration is long overdue. Peterborough’s
Nestled in the heart of the region’s beautiful train station is a relic of a bygone era and if the city
fenlands and with excellent links to London by both is to become a national transport hub, rejuvenation
road and rail the city should be a thriving centre for of the station and surrounding area is required.
business and tourism. Peterborough Cathedral,
with its early Gothic architecture, is more than 800 We want to be more ambitious where there is scope
years old and rightly considered one of the country’s for it. A good example of this would be the
heritage crown jewels and should benefit more planning brief set out by the City Council for the
from inbound tourism to London. Peterborough is PDH site at Thorpe Road. There is plenty more that
home to some of the best schools in the region and could be done on sites like this. Residents demand
the green economy is developing in the city with truly innovative and iconic work, more than just a
hundreds of new jobs supported by this emerging quantity of housing and a few retail outlets which is
sector which currently boasts 340 businesses. 13 the kind of development that will emanate from
the current policies in place.


13
Opportunity Peterborough (www.ukenvironmentalcapital.com)

20

A GROWING CITY NEEDS
AN EXPANDING ECONOMY:
This paper has detailed how the construction of a GC GP LEP will undoubtedly be central to the future
sustainable 8,000 additional residential properties economic health of Peterborough, allowing the
could benefit the local area to the tune of more community to benefit from the interests shared
than £100 million but the large majority of the with residents in Cambridge and elsewhere in the
additional revenue is largely borne out in the short sub-region.
to medium term. A truly significant new vision of
Peterborough is reliant on a boost to the wider The Government’s publication of a White Paper on
economic environment in the city. The new Local Growth in late October 2010 potentially
Government’s policies have provided the tools by provides the vehicle to leverage private finance to
which the council can take forward this vision and make this a reality and the upgrade of the train
ensure the bright future for Peterborough that its station could provide the perfect opportunity to test
residents deserve. Tax Increment Financing (TIFs) in England.14 As
opportunities like this arise from the coalition
Unaccountable and democratically illegitimate government, plans like the Core Strategy should be
regional quangos have been disbanded and put on hold so that the best possible deal is secured
replaced with a number of Local Enterprise for residents.
Partnerships (LEPs), in the form of strategic alliances
between local businesses and local authorities. TIFs will allow local authorities to borrow against
future additional uplift in business rate yield and

Peterborough City Council and its partners should
be congratulated for securing a place amongst the then use that borrowing to fund major
vanguard of this movement. LEPs have a infrastructure projects. A transformation of the
tremendous potential to link public sector funding railway station and immediate area, delivering
and professional expertise with private sector additional retail and commercial premises should be
interests to secure growth in the local economy. considered for a potential TIF. The regeneration of
LEPs are based on real geographic and economic the city can only be achieved by a wholesale
entities rather than nebulous regions that group renewal of the wider built environment. Given the
thoroughly incompatible interests together under a 74 per cent reductions in capital funding for the
distant regional bureaucracy. Department for Communities announced at the
Chancellor’s Comprehensive Spending Review on
The Greater Cambridge Greater Peterborough LEP 20th October, the City Council must consider how
(GC GP LEP) should focus on the creation of new infrastructure projects will be funded in the coming
jobs for the two cities and the surrounding areas years. TIFs present an opportunity that should not
whilstsupporting sustainable expansion of the local be passed up without thorough exploration of the
housing stock. It has a major role to play in possibilities of local TIFs pilots in the city centre
attracting new investment and businesses to the shopping area or indeed, in areas most in need
area but must not distract itself by issuing arbitrary ofregeneration, such as the Millfield and New
targets on housebuilding or job creation. Practical England residential and retail areas (east of Lincoln
support for existing businesses and the promotion Road).
of new ventures in the area should be the priority.
The close involvement of private sector partners will
ensure that the focus of the LEP is kept on
promoting the area to visitors and investors. This
will require the protection of the landscape and
heritage that makes Peterborough so special.
Viewing the sub-region as a whole for the purposes
of residential development strategy is useful as it
will allow partners to examine the wider area for
sites on which to expand. New towns should be
considered and more limited and sustainable
growth in existing areas should be a priority.

14
Local Growth: Realising Every Place’s Potential,
http://bis.gov.uk/assets/biscore/corporate/docs/L/PU1068%20-%20Local%20growth

21

A GROWING CITY NEEDS
AN EXPANDING ECONOMY:

The following areas should be considered as As a local authority Peterborough is currently a net
possibly suitable for a TIF application because of contributor to the local government financial
their potential for commercial development: redistribution system. Over the last three years,
local businesses have paid just under £240 million
Cathedral Square in business rates. However, the area has received
Bridge Street the equivalent of just 89% of this amount for
Westgate spending on services for businesses and residents.
Westgate Arcade Peterborough City Council’s net contribution to the
Long Causeway local government funding pot of more than £26
Broadway million over three years could have been put to
Park Road better use locally. The Government’s consultation on
Midgate its business rate incentive scheme and its willingness
Cumbergate to go further in the local retention of rate revenue,
Queen Street presents the city with a superb opportunity to
King Street maximise revenue. This opportunity should not be
Priestgate missed and the council should consider how local
Cross Street

businesses could best be supported through locally
Exchange Street retained revenue.
Church Street
Wentworth Street
Cowgate

22

CONCLUSION: THE COLLECTIVE VISION
OF THE NEW PETERBOROUGH
Despite the obviously difficult financial climate in Officers and City Councillors must now take on
which this paper has been written, there is great board and put into place a proactive policy
cause for optimism. The Government policies recognising the imperative for new homes in
described above provide the city, led by responsible Peterborough (for existing and new residents)
and visionary local leaders, to plan for a successful which reflects a confident, aspirational city and the
future. The proposals contained in this paper fact that private money must drive our growth and
represent the first step on the road to that future. regeneration. Specifically, the development of the
Affordable Rent policy by the Coalition
Together with excellent schools, good quality Government, as part of a strategy of unprecedented
housing is probably the major determinant in welfare reform in housing tenure and a new
attracting people to Peterborough who by their approach which moves away from low quality social
skills, knowledge and, above all, spending power, rent, as well as the New Homes Bonus, which will
will drive the city’s economic renaissance and tackle the disincentive within the local government
emergence from inevitable decline. finance system for local areas to welcome growth,
The new era of localism dictates that this should be must be utilised to deliver a proper balance of
only the beginning of the process. The views of one housing – from executive homes, through medium-
institution, quango or individual are never worth priced open sale, shared equity, key worker and
more than the individuals and collective views of affordable rent.

the people affected by the decisions made by This is a crucial time in the development of the city
politicians or bureaucrats. that means so much to its residents. It is vital that
Any desire to move quickly and begin implementing the people of the city are now given the
plans and strategies should be tempered by the opportunity to critique and debate the proposals set
realisation that decisions made today will impact out by various organisations before directing
upon the view of Peterborough forever. policymakers on the best road to take to secure a
new vision of Peterborough and a successful and
The City Council is now charged with preparing a prosperous future for its residents.
new and comprehensive Housing Strategy for 2011-
14, following on from its recently updated Strategic
Housing Market Assessment and Core Strategy. The
Homes and Communities Agency has now
established a rigorous funding criteria which
militates against a traditional “pile ‘em high, sell
‘em cheap” numbers-based social rent model and
focuses on quality affordable housing.

23

SPECIAL THANKS:
David O’Leary
Housing Expert and Policy Analyst Why Media
Westminster City Council Hanover Square
Mayfair
Luke Tozer London W1S 1HQ
Pitman Tozer Architects
311 Westbourne Studios Growborough
242 Acklam Road 2nd Floor, Midgate House
London W10 5JJ. Midgate
Peterborough PE1 1TN
Caroline Connaughton
Connaught Media Ken Girvan Printers
42a Princes Gardens 90 Peterborough Road
Peterborough PE1 4DP Farcet
Peterborough PE7 3BN
Sarah O’Grady
Property Correspondent of the Daily Express


24

APPENDIX A:
Land owned by the Homes and Communities Agency – area and estimated number of homes based on
current density levels of 37 homes per hectare.15

ASSET_NO ASSET_NAME ASSET_ADDRESS Area (Ha) Homes (based on
current density levels)

3158 Land adj 8 Bathurst Land adj 8 Bathurst Orton Goldhay 0.0334 1
PB00501870 Manor Farm Helpston Road Ailsworth 101.9324 3771
PB00503470 Helpston Road (14 Acres) Helpston Road Ailsworth 5.0417 187
PB07504110 97 Bridge Street 97 Bridge Street Peterborough 0.0069 0
PB10003230 Castor Castor 0.707 26
PB13500262 Stuart House Zone 2 Gf&1st Flr City Road Town Centre 0.0828 3
PB15502190 Cow Lane (12.73 Acres) Cow Lane (12.73 Acres) Castor 5.2056 193
PB15504280 Cow Lane(1.38 Acres) Cow Lane(1.38 Acres) Castor 0.6732 25
PB28502180 Helpston Road(108.84 Acres) Helpstone Road Ailsworth 56.3775 2086
PB36502980 Sub-Station Adj Showcase Cinem Sub-Station Mallory Road Peterborough 0.0012 0
PB37502350 Marholm Road Marholm Road Castor 49.179 1820
PB51004200 East Of Parnwell Way East Of Parnwell Way Parnwell 0.3614 13
PB51502360 Paston Paston Paston 1.9226 71

PB52002100 Paston Reserve, Paston Ridings Paston Reserve, Paston Riding Paston 7.775 288
PB63002650 Stirling Way Stirling Way Bretton 6.4019 237
PB64201840 Sutton(186.61 Acres) Sutton 40.1065 1484
PB70606040 Land At Southern Bridge Landin Rivergate Woodston Reach 0.0541 2
UA90100113 Glebe Court Glebe Road Peterborough 2.1741 80
PB64201850 Sutton (6.07 Acres) Sutton (6.07 Acres) Sutton 2.456 91
PB10001880 Drakes Farm Drakes Farm Castor 53.7053 1987
PB04506110 Peterborough Highway Entire Peterborough Highway Peterborough 2.093 77
PB05506175 Land At Stirling Way Bretton Peterborough 0.0109 0
PB21006380 Land At Eye Road Newark Peterborough 0.151 6
PB10006680 Land At Maffit Road Castor & Ailsworth Peterborough 0.1467 5
PB10006720 Land At Helpston Road Castor & Ailsworth 3.1559 117
PB37506725 Land At A47 Castor & Ailsworth Castor & Ailsworth Peterborough 7.9172 293
PB37506730 Land At Water Lane Castor & Ailsworth Peterborough 4.8111 178
PB07503570 132 Bridge Street (Rear Of) 132 Bridge Street (Rear Of) Town Centre 0.0748 3
PB00503480 Allotment Lane Allotment Lane Castor 18.5235 685
PB00503481 Land At Clay Lane Clay Lane Behind Allotment Lane 1.628 60
372.7097 13,790

15

25

APPENDIX B:
Six Options for Peterborough – estimates of New Homes Bonus Payments over six year period.16

Total number of Estimated total
Estimated net additions by Council Tax Band Total units affordable units NHB payments

A B C D E F G H
Option 1 8000 0 0 0 0 0 0 0 8000 8000 £62.9m
Option 2 2000 2000 2000 2000 0 0 0 0 8000 5000 £68.0m
Option 3 0 0 2000 6000 0 0 0 0 8000 3000 £73.5m
Option 4 0 250 250 4500 2500 500 0 0 8000 1000 £77.2m
Option 5 0 0 0 4000 2400 1600 0 0 8000 0 £79.8m
Option 6 0 0 0 0 8000 0 0 0 8000 0 £84.4m


16
NHB Calculator, Department for Communities and Local Government

26

APPENDIX C:
Thorpe Road Clifton Avenue

Richard Foster Road
Elgin Crescent

Aldermans Drive

Aberdeen Avenue
Percival Street

A Detached houses B Terraced houses C Terraced houses D Courtyard houses E Flatted blocks - overall
Thorpe Road, Peterborough Elgin Crescent, London Percival Street, Peterborough Accordia, Cambridge PRP Masterplan, Peterborough

Density: Density: Density: Density: Density:
Dwelling density: 15 dph Dwelling density: 27 dph Dwelling density: 45 dph Dwelling density: 45 dph Dwelling density: 46 dph
Habitable density: 105 hph Habitable density: 270 hph Habitable density: 225 hph Habitable density: 270 hph Habitable density: 184 hph
People density: 90 pph People density: 162 pph People density: 180 pph People density: 225 pph People density: 184 pph

Overall: Overall: Overall: Overall: Overall:
No of dwellings: 146 dwellings No of dwellings: 262 dwellings No of dwellings: 437 dwellings No of dwellings: 437 dwellings No of dwellings: 446 dwellings
No of habitable rooms: 1019 rooms No of habitable rooms: 2619 rooms No of habitable rooms: 2183 rooms No of habitable rooms: 2619 rooms No of habitable rooms: 1784 rooms
No of people: 873 people No of people: 1571 people No of people: 1746 people No of people: 2183 people No of people: 1784 people

People diagram: (x10) People diagram: (x10) People diagram: (x10) People diagram: (x10) People diagram: (x10)

Options for Peterborough – from Pitman Tozer Architects -
Based on Thorpe Road, Peterborough
Based on Elgin Crescent, Kensington
Based on Percival Street, Peterborough
Based on Accordia, Cambridge
Based on PRP Masterplan

27

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