Why it’s time for new permitted development rights to unlock UK R&D and lab space

The Savills Blog

Why it’s time for new permitted development rights to unlock UK R&D and lab space

UK sciences are in the spotlight with the Oxford, Cambridge and London triangle one of the most renowned global locations for scientific discovery and research.

But while the last few years have seen a rise in R&D and life sciences clusters, it is widely acknowledged that there’s a shortage of lab space across the UK. Many schemes are stuck in the planning system which is accused of being too slow to deliver. 

Proposed planning reforms

Planning was a key plank of the 2023 Autumn Statement. Announcements included financial incentives to encourage take-up of Local Development Orders (LDOs) and a "premium planning service" for commercial applications. Details are awaited, but early indications are that this service may be aimed at large-scale regeneration schemes. 

In June 2023 Jeremy Hunt, the Chancellor of the Exchequer, announced a Life Sciences Growth Package that proposed consulting on factoring R&D considerations into planning decisions; and working with local authorities to encourage proactive planning tools, such as LDOs and Development Corporations, to bring forward development in England. 

Rachel Reeves, the Shadow Chancellor, announced in October 2023 that Labour reforms would include fast-tracking the planning process for priority growth areas of the economy, such as battery factories, laboratories, and 5G infrastructure. She also proposes raising the stamp duty surcharge on non-UK residents to appoint 300 new planning officers. 

The planning system is no stranger to planning reform and there is much more to come in 2024. 

The development pipeline 

Savills has recorded around 20.2 million sq ft of science-related projects in the planning pipeline today. Of this, 62 per cent is subject to planning so still in the system and 10 per cent, or just under 2.1 million sq ft, is under construction. Against this increase in the number of planning applications being submitted, an analysis by the Royal Town Planning Institute in May 2023 showed a 25 per cent loss of public sector planners between 2013 and 2020, whilst the private sector experienced an 80 per cent increase over the same period. Faced with such stark facts, placing more targets on local planning authorities to process planning applications more quickly will never deliver, if there is no one there to process them.

 


Unlocking lab space

Many of the schemes that are locked in planning are relatively small scale and may not benefit from many of the changes to the planning system that are aimed at larger-scale developments. This particularly applies to the conversion of existing buildings to science-related uses.

There is a compelling case for the introduction of a new General Permitted Development Right (GPDR) for the conversion of commercial buildings into R&D use. This would require government to adapt the existing Town & Country Planning (General Permitted Development) Order, which government has already done to facilitate the conversion of commercial buildings to housing.

Why not adopt the same approach for labs and R&D space and add a further option for delivering space more quickly and where it is most needed? A new GPDR for R&D/life science development would help reduce the number of planning applications requiring processing by local planning authorities, even if the GPDR was to be subject to a prior approval process for matters such as flood risk, heritage and noise. This would reduce the length of time required for planning, reduce the costs of preparing technical reports and drawings and help to encourage more landowners and developers to commit resources to converting buildings into labs. 

Moreover, introducing a new GPDR would enable the planning system to focus on the most significant planning applications. Perhaps the premium planning service referenced in the Autumn Statement will also apply to science schemes to help them move through the planning system more quickly.

 

Further information

Contact Emma Andrews

 

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