The Greater London Authority’s (GLA) consultation on the document ‘Towards a New London Plan’ is now well underway. Last week we published our thoughts on the theme of office conversions in the Central Activities Zone (CAZ). This week, we are focusing on industrial land in London.
Industrial land plays a key role in supporting London’s economy including the provision of essential services to serve London’s rapidly growing population such as logistics and waste. It supports a range of jobs, sectors and skills levels that are important contributors to inclusive economic growth. However, between 2001 and 2020, London has lost 18 per cent of its industrial land. This presents a huge challenge for a city which is seeing rapid population growth (+1.6m since 2001), and an uplift of 722,500 jobs over the last 8 years.
According to research commissioned by the GLA1, London has already lost 352ha employment land between 2015 and 2020, well above the London Plan release benchmark levels of 232ha over by 2041. At the borough level, only Kensington & Chelsea, Islington, Barking & Dagenham, Hackney and Hillingdon have released less than their 5-year benchmark guidance. All other boroughs had released more.
The loss of employment land is taking place at a time when employment levels in industrial related sectors has actually been increasing. Over the last 8 years, Greater London supported 24,000 additional industrial related jobs, an uplift of 7%. London borough’s which saw the greatest absolute increase in industrial employment over the same time period included:
Hillingdon: +5,500 jobs
Southwark: +4,250 jobs
Bexley: +3,750 jobs
City of London: +3,500 jobs – surprising but true
Conversely, borough’s which saw the greatest fall in industrial employment included:
Westminster: -1,750 jobs
Hounslow: -1,750 jobs
Kensington and Chelsea: -1,000 jobs
Waltham Forest: -875 jobs
The Industrial Land Commission (ILC)2 notes that the loss of industrial land has led to rising land values and rents, squeezing out businesses and causing job losses across large parts of London. Indeed, over one-third of London boroughs have seen a decline in industrial related jobs over the last eight years. It acknowledges that this has happened at a time when the number of jobs that rely on industrial land is actually increasing, with local employment opportunities being created at all levels, and the potential to host up to 12,000 new green jobs.
So, how should the London Plan deal with the challenge of supporting demand for industrial uses at a time when there is an often conflicting need for other uses such as housing, which is also a key Government priority?
We have been involved in projects which are already getting underway across London to come up with innovative solutions to these issues. 75 Bugsby Way in the Royal Borough of Greenwich for example has been backed by the GLA who are seeking a developer partner to bring forward the brownfield site for industrial intensification. Charlton Workstack is a positive example where high density industrial space has been delivered on a compact site through stacking. More than just a technical achievement, WorkStack supports a diverse tenant base and actively fosters social value by supporting local enterprises.
There is no doubt that industrial land will continue to be lost to other uses – particularly housing - over the course of the remaining London Plan period. However, there may be opportunities for this to be achieved whilst re-providing industrial capacity elsewhere (e.g. on London’s grey belt), especially at locations which are less suitable for housing.
We’ve been helping our clients by:
Completing Employment Land Reviews (ELRs) and Economic Development Needs Assessments (EDNAs) for the public sector
Preparing Employment Studies for the private sector to make the case for or against the need for employment sites
Estimating the socio-economic benefits associated with developing employment land
Preparing Sector Studies to identify demand for employment land or specific uses such as logistics
Producing Workforce Assessment Studies on behalf of logistics developers who require data on the employment and skills characteristics of local catchment areas
It is positive to see the document ‘Towards a New London Plan’ recognise the importance of industrial land to the London economy and seek views on innovative ways to accommodate future demand. We look forward to seeing how this discussion evolves over the coming months, and supporting our clients to prepare the evidence they need to inform the debate.
If you would like to talk through development on industrial land or the New London Plan, get in touch with Margaret Collins at margaret.collins@gcinsight.co.uk or Zoe Crampton at zoe.crampton@gcinsight.co.uk
