Cornish Social & Economic Research Group
» News Archive » News - March 2008
_______________________________________________Sale refuels second home debate,
BBC News, 14 March 2008
A two-bedroom semi-detached house which has been put up for sale in a Cornish town has fuelled the debate over holiday lets and second homes. The £1m property is in the holiday resort of St Ives, which already has more than 20% second-home ownership. Estate agent Lillicrap Chilcott said the reason for the high price tag was the property's "mesmerising" views over Porthmeor Beach and St Ives Bay. But many local people fear the house will remain empty for most of the year.
Planning changes
But while estate agent Alex Roads from John Bray and Partners agrees the disparity between wages and house prices in Cornwall has been causing difficulties for local people, he does not believe second home owners are to blame. "There's a structural problem in the market and second homes are only a minute part of the problem," he said. "The imbalance in Cornwall is greater without a shadow of doubt, but it's the same story all over. If you can't afford a house, you can't afford it."
But Rod Stephens, a spokesman for the Porthleven Action Group, said simply building a greater number of affordable homes was not the answer. He said, "There are no short-term fixes, but we're pushing for greater taxation on homes that lie empty. Money should come back locally to re-buy those properties which would then come back onto the market. We don't want ticky-tacky houses built on green sites that would push local people out of their communities, which then become fragmented."
CoSERG comment
The comments regarding this particular sale illustrate both the concern over second homes and reactions to the issue. Obviously estate agents have a vested interest in selling properties, which no doubt accounts for the comments about the impact of second homes. To suggest that the purchase of second homes does not impact on either the supply of dwellings or prices, indicates a lack of knowledge of economics, as does the statement that 80% of Cornwall&s GDP is tourism related.
As for reducing the differential between farming and development land prices, it is a feature of the market that development land prices will rise if more land is sought for development. It is hard to imagine a major retailer selling off land below the market rate, hence other people with assets - home owners or landowners - act in the same way.
For more....news.bbc.co.uk
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Book Company Quits Cornwall,
thisiscornwall, 14 March 2008
There was mounting anger last night after a company leasing a prime £3.5 million warehouse in Cornwall announced plans to quit the county after less than six years, costing almost 100 jobs. Bookshop chain Borders has announced plans to axe its Cornish operation in St Columb Major, near Newquay, by August 29. Ninety-one staff will lose their jobs as the firm, taken over by a private equity group last year, undertakes what it said was a move to slash delivery times and cut costs.
CoSERG comment
News that Borders is to close raises questions about the economic sustainability of current policy. During the recent economic boom across the UK, job creation has increased yet with signs of an economic downturn companies with branches in Cornwall may well seek to close branches to cut costs. The expansion of Borders in 2006, doubling its size by 50,000 sq ft, was highlighted at the time as evidence of the positive effect of -improving- road links by creating a new road at Goss Moor. Yet, roads allow traffic to flow both ways, making it easier to locate premises closer to the main distribution centres.
For more....www.thisiscornwall.co.uk
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Superstore Plan For Helston Is Unveiled,
thisiscornwall.co.uk, 13 March 2008
Widespread changes are needed in the British planning system to help provide vibrant communities, a new report from Cornish MP Matthew Taylor will reveal today. The Taylor Review has been published by the Truro and St Austell MP after he was asked by Prime Minister Gordon Brown to carry out an independent review to look at how the planning system could better support the sustainability of rural communities.
Outline planning consent is being sought for a 55,000 square foot supermarket in Helston. An application has been submitted to Kerrier Council by leading developers Terrace Hill. The company is proposing to build a supermarket on five acres of land next to the Flambards Experience. It follows a bid for expansion by Tesco and the development of a Lidl store in the town. Helston also has a Somerfield. Some people in the town question whether four supermarkets is too many. Duncan McEwan, Development Director at Terrace Hill, said: "There is major public interest in the findings of the Competition Commission's inquiry into food monopolies and it is about time that towns like Helston had a real alternative to Tesco." A spokesperson for Flambards said that tourism patterns were changing and there was an ongoing need to diversify the business in line with market demand.
CoSERG comment
The rush to develop more retail sites at Helston continues with this latest proposal. Developers are adept at exploiting the planning system and finding a rationale for more development. Reference to the Competition Commission's report has provided yet another argument.
Questions need to be asked about the impact of new stores on car use and existing town centres. New stores on the outskirts of Helston may well attract more traffic from other areas and will certainly impact on the town centre. The statement by Flambards indicates the fragile basis of the tourist sector and an increasing dependence on retail as the new means of job creation.
For more....www.thisiscornwall.co.uk
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Kaczmarek Embroiled In Holiday Homes Ad Row,
thisiscornwall, 13 March 2008
A lanner councillor has found himself at the centre of a political row after claiming that affordable homes should take priority over second homes. Mark Kaczmarek, who represents the mining villages, was incensed when he discovered posters at Newquay Airport advertising holiday homes. He thought it was inappropriate for the county council, which owns the airport, to be promoting second homes at a time when many Cornish youngsters cannot get on the housing ladder.
However Andrew Mitchell, the county councillor responsible for Newquay Airport, has responded by accusing Cllr Kaczmarek of being more interested in media coverage than the issue itself. He described Cllr Kaczmarek's comments as "rubbish" and said he had "sold his soul to the media gods". "We have a really serious issue here in Cornwall and I think it's the role of every councillor to try and address it. "Cornwall is so reliant on the tourist industry. People trying to get on the ladder most probably work in resorts like this up and down the county.
CoSERG comment
This row illustrates the conflict between the provision of affordable homes and the increasing demand for second homes. Tourism does encourage people to purchase second homes and investment properties in Cornwall, thus exacerbating house price inflation. The question is how to exploit the tourism market without tourism exploiting Cornwall? Using appropriate policy measures, for example so that use of property as a second home or for investment use would require planning permission, could assist.
For more....www.thisiscornwall.co.uk
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Council Quashes 350 New Homes Rumour,
thisiscornwall.co.uk, 13 March 2008
Rumours of as many as 350 new homes in Mylor and Flushing, including some for released criminals, have been quashed. Around 30 residents packed Flushing Village Club to hear the parish council discuss the issue. Some were also concerned that long-term residents would not be given priority when the houses were built. Nick Marsden, Carrick District Council's housing development officer, quelled fears and outlined proposals for 25 affordable homes likely to be split over two sites, one in Mylor and the other in Flushing. He said the homes will be owned, let and managed by Devon and Cornwall Housing Association and depending on the house, will be available either for shared ownership or to rent. Mr Marsden stressed that no open market homes will be built and said that a legal agreement will ensure that the homes built will always be let or sold firstly to people in housing need who have a connection with the parish of Mylor.
CoSERG comment
It is interesting to note that no open market dwellings are proposed here and that the idea is that the properties would be retained for local use in the future. It does raise the question as to why similar arrangements could not be made elsewhere in Cornwall? Restricting new developments to affordables would assist in meeting local housing need rather than simply building more to attract more people to Cornwall. A change to planning rules, so that all properties when sold or let, gave priority to people with local links would make a significant impact on the housing market.
For more....www.thisiscornwall.co.uk
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New greenfield site development plans revealed,
thisiscornwall, 13 March 2008
News this week that a major greenfield site at Tolvaddon would be developed was released. Most of the land in question - around 30 acres - has been bought by the South West of England Regional Development Agency (RDA) and is earmarked for office and industry use. It was claimed that the proposals would create a landmark development partially fronting the A30 on a key approach to Camborne, Pool and Redruth and link the local Tolvaddon community with Pool via a new pedestrian, cycle and bus route. There would be a range of contemporary office and light industrial units, new planting, green spaces and streets that are pedestrian and cycle friendly. Up to 450 jobs could result from the development. The whole business park would be designed to minimise energy use, both during and after construction, and potentially could be powered by its own wind turbine.
CoSERG comment
Ostensibly, this news appears to incorporate some good ideas – low energy use; linking communities with a route so people can walk, cycle or use a bus; new planting and green spaces. The reality is somewhat different.
The site is a major greenfield site, despite assertions at various stages that Tolvaddon was brownfield land. The fact that greenfield land is being developed undermines the myth that there is a huge area of unused brownfield land in Camborne-Redruth which is being developed. Its location adjacent to the A30 with easy access to the road network suggests that workers will commute by car, thus adding to the number of car journeys. ‘New’ job creation is required to accommodate additional workers who will fill the new houses planned for the area to meet government imposed housing targets. They will not necessarily allow the local workforce to obtain better jobs. As for a community link road, the comment form suggests it could also be for car use, thus adding to traffic levels in the area. Additionally, would there be a purpose in walking or cycling to Pool? The number of shops there continues to decline.
The communities in Pool and Tolvaddon deserve a better, greener future. But this requires an alternative set of policies. Measures are needed to cut car use, thus reducing traffic levels on roads in the area resulting in less noise and pollution. Investment is needed to create an efficient, cheap and sustainable public transport system. Routes linking communities in Camborne-Redruth together and ensuring that people commute to work by public transport instead of by car are essential. Quick and efficient bus routes along the A30 could be an integral element of a new transport system Though the exhibition ended on 13th March the proposals and a comment form can be downloaded from the Regeneration company website....www.cprregeneration.co.uk
News source....www.thisiscornwall.co.uk