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Everything that's wrong with the British approach to architecture
Although endorsed by Terry F and others, isn't this a bit more of a political issue rather than architecture in general? Even if we/you agreed with the content of this guide, it's not the government's place to establish design standards to such a formal manner... Shouldn't its role be limited to minimum/maximum surfaces, ratios, conservation areas stuff, standards of living etc.. And not whether windows are aligned or not? What's the "legal" value of this guide anyway, if there's any? It's not a "legislation" I hope... (Sorry, I may need to read the article again, I only browsed thru it quickly yesterday...)
No, the other way around. Typically in a mixed development the affordable stuff is bigger, better storage, better layout, lower spec finishes. Private sale is limited by what sells (so put an attractive kitchen unit in and a breakfast bar, but useless layout).