North Norfolk Coastal Change Pathfinder
Helping coastal communities adapt to coastal change
Peter Frew
Head of Coastal Strategy
Peter.frew@north-norfolk.gov.uk
www.northnorfolk.org
01263 516180
Beach Road, Happisburgh
How we purchased the houses
History
• Defences
• SMP
1988
2003
Copyright Mike Page
The Problem
• Loss of houses leading to
– Community blight
– Devalued property prices
– Stagnation
• Poor quality environment
Happisburgh
Houses at risk
Temporary
Defences
100 years
50 years
20 years
Failed defences
Photo: Mike Page
The Solution
1.
2.
3.
4.
5.
Planning policies to enable roll back
Acquisition of houses
Planning consent to relocate lost houses
Demolition and clearance of sites
Explore options for buy and lease
Stage 1: Planning policies
• Policies restrict development in erosion
risk zones
• Policies permit relocation of at risk houses
on green field sites by exception
Stage 2: Acquiring the houses
Property
acquisition
for
demolition
Acquiring the Houses
for Demolition
• Valuing the houses
Valuing the Houses for
Demolition
• Must be
– Auditable
– Transferable
– Fair
Valuing the Houses for
Demolition
A. “As seen”, all risks value
Valuing the Houses for
Demolition
A. “As seen”, all risks value
B. Planning relocation value (EN12)
Valuing the Houses for
Demolition
A. “As seen”, all risks value
B. Planning relocation value (EN12)
C. Home loss supplement
Valuing the Houses for
Demolition
Hypothetical example:
A 3 bed house at risk of loss in 5-10 years has “no
risk value of £175,000
It has an “as seen” value of £35,000
The planning opportunity value is £45,000
Add a home loss supplement
(10% of “ no risk” value, discounted
Over 7.5 years =175,000x0.1x0.77) £13,475
Total valuation £93,475
Stage 3: Planning consent
for replacement houses
• Must be in place before other houses are
demolished
• Identify sites
• Reach agreement with current land owner
• Develop / market site
• Set aside monies for re-use
Relocation – the Finances
House purchases
£726,000
Land interest (for redevelopment)
Nil
Total outlay (excluding fees)
£726,000
60% of sale of land with consent
£325,000
Net cost of 10 properties
£401,000
Stage 4:
Demolish vacant houses and clear site.
NB: Demolition can only commence once
planning consent has been granted for the
replacement houses.
Stage 5: Explore Buy to
Lease
• Options currently being explored
• No definitive answer
• Based on
– Investment value
– Repairing lease
– At lease 21 year lease
– Residual EN12 value
Conclusions
• Could not have been done without the
relevant planning policies
• Is capable of transfer
• Needed up front funding
• Delivers resources to extend the project
• The final payback is market dependent
• Taking forward buy to lease will not be
easy