The delivery of affordable workspaces – essentially premises for local businesses to operate from at a below market rent, similar to affordable housing in the residential sector – is an issue increasingly rising up the agenda.

Some local authorities have already introduced planning policies which determine that such spaces must either be provided in new commercial developments or else contribute a levy for such spaces to be delivered off-site if viability calculations don’t add up, while others have signaled their intention to do so.

Both approaches to delivery have merit: including space for new business and community enterprises in new development can often bring vibrancy and character to a scheme which otherwise may be lacking, helping to attract other occupiers and contributing to a healthy business ecosystem.

On the other hand, providing space off-site, particularly when repurposing other buildings, is often more sustainable and has the effect of giving life back to vacant properties, bringing additional benefits to local communities.

Another consideration is that sometimes new-build commercial space may not be the right fit: a ‘corporate headquarters’ type building and atmosphere isn’t always suitable for or attractive to the local, creative and cultural businesses and uses that an affordable workspace policy should be targeting.

The most innovative local authorities are partnering with affordable workspace providers to deliver spaces that meet their community’s needs, whether that’s on-site working directly with the developer, or off-site, using the levy received. In some exciting cases, local authorities are using their power as  landlords to harness the absolute maximum positive return for their communities.

Brixton, for instance, contains the largest example of affordable workspace in the UK. Until early 2018, International House was used by 600 Brixton council staff, but after they were relocated, the building (which remains under Lambeth Council ownership) was put out to tender to be run as an affordable workspace for a five‑year period with a focus on safeguarding Brixton’s cultural and social ecosystem.

Now managed by provider 3Space, International House is operated on a ‘BuyGiveWork’ model – when space is paid for, space is given away. Five floors are let on commercial but affordable terms to freelancers, start-ups and scale‑ups; five floors are let rent-free to people and organisations at risk of displacement from the local area – young people, artists and makers, local non-profits and community groups – and the remaining top two floors are set to be a free-of-charge hospitality and workspace hub.

The project is helping achieve key council objectives around the delivery of new workspace, as set out in the Brixton Economic Action Plan and Creative and Digital Industries Strategy, and strengthen Brixton’s bid to become a Creative Enterprise Zone.

At a time when we’re potentially going to see more buildings vacated and in need of a new lease of life – redundant department stores, for instance – projects such as International House demonstrate the role that affordable workspace can play as an alternative use, and how the public and private sectors can work together to deliver truly sustainable development.

Further information

Contact Clare Bailey

Savills/BCO affordable workspace report on Savills website