A fine idea

Any feature that both satisfies a local planning authority and increases the viability of town centre development has to be worthy of investigation. Car clubs are gaining increased acceptance from local planning authorities as alternatives to private parking spaces in new developments. Experience is also proving car-free developments to be highly marketable, so long as an alternative is in place.

The use of car clubs is significant for the development industry in optimising the potential of difficult brownfield sites. The need to provide parking has previously restricted the number of units on the site or required expensive basement excavations. In some cases the use of a car club will unlock value on a neglected site.

What is a car club?

A car club enables people to have access to a car when they need one without having to own one. A car club operator typically provides cars to scheme members for short-term hire on a pay-as-you-go basis. Its acceptance means a change of attitude towards the car, viewing it as a service not a product.

In practice the scheme requires dedicated parking spaces, enabling members to find a specific car. After use they return it to the same place for other members to use. For this to work, each car club parking bay must be adequately enforced against unauthorised parking.

Can anyone set up a car club?

To gain local authority acceptance, a car club’s operator will have to be accredited by Carplus – an independent charity that aims to promote responsible car use. Carplus accreditation ensures operators meet minimum standards, are reputable and experienced in running a car club.

A local authority might have its own additional requirements. Wandsworth council, for example, is likely to require vehicles to be less than three years old, with good usability for car club members, accessibility and environmental performance.

At present there are only three Carplus-accredited operators: CityCarClub, WhizzGo and Street Car. For an up-to-date list visit www.carplus.org.uk

Will a car club work anywhere?

Car clubs will be most successful and therefore most viable where:

• Density is high – creating demand and critical mass
• Parking is restricted in the surrounding area – discouraging private car ownership
• A good level of public transport is available – giving residents appropriate options, whatever their journey
• A wider scheme by the same operator and supported by the local authority is available in the surrounding area – adding to the critical mass and flexibility of the service.

Can it save a developer money?

It is not the car club that saves a developer money, but the reduced level of private parking that the car club allows. Financial benefits include:

• Increased density – units built where parking spaces would have been generate additional profit
• Reduced costs and build time, where excavations would have been required by underground parking.
• Separate sale of parking spaces – marketable as an option for home buyers.

Carplus estimates the cost of 100-200 underground parking spaces at between £2m and £8m. Offsite infrastructure improvements, that might otherwise be required under Section 106, could cost as much as £200,000. The potential savings, then, are considerable.

What other benefits are there?

Local authorities see benefits in car clubs: reduced car use, less environmental pollution, less pressure on parking spaces and greater choice of transport for socially excluded groups. Any reduction in congestion – a cost to employers – will strengthen the local economy. For these reasons a car club can provide a key component of a residential travel plan and a very useful tool in negotiating Section 106 agreements.

These benefits are based on evidence that car club members tend to use cars only when other modes of transport are not appropriate, and not as a first resort. The full benefits of social inclusion only apply where the car club is open to affordable housing tenants in a mixed-use scheme.

It is not only the local planning authority that will look favourably on a development with a car club. Neighbouring residents are less likely to oppose new development if they are reassured of the risk of overflow parking in their streets. A car club also adds points to a development’s Eco Homes rating, a highly important component of current and future planning applications.

How much will it cost?

The car club should be designed in to the development from the start, agreed in principle with the local planning authority at an early stage and promoted in the scheme marketing particulars.

The developer is likely to be expected to pay the set-up costs of the car club. It will be necessary to allocate some dedicated parking spaces for car club vehicles and, where the size of the development justifies the cost, or space is at a premium, a mechanical stacking system. The developer might also choose to offer free car club membership or free drive time to residents as an incentive to join the scheme.

Cost estimates vary wildly, but developers cite figures of £15,000 to £30,000 per car. Operator CityCarClub estimates a cost to developers of £100 to £150 per unit, while Islington council estimates a slightly higher figure of £180 per unit.

Is there additional funding available?

The cost of running the car club is likely to be taken from service charges. It is up to developers whether they offer membership and automatically levy charges from residents of affordable housing or residents with private parking spaces. They might also offer membership to the wider community to increase the viability of the scheme and – possibly – subsidise it for the residents of their development.

How will reduced parking affect marketing of homes?

The surprising lesson from recent experience is that homes with no parking can be quite marketable – to investors and owner-occupiers – and that the presence of a car club is seen by some buyers as adding value to the development.

It is likely that high-end apartment owners will still want secure parking places for their prestige cars. At the lower end of the market, the appeal to a buyer might be in the cost of owning and running a car, the perceived cost of a parking space or concern for the environment.