Industrial intensification and multi-storey

In spite of strong policy support from The London Plan 2021 and early optimism about the potential for intensification to increase floorspace capacity, there are only a handful of completed projects. Local Plans, however, rely increasingly on the concept as a means to demonstrate they have sufficient industrial land capacity to meet their identified needs. The next London Plan needs to be realistic about what industrial typologies are deliverable and where, so that boroughs in turn can realistically meet their land requirements.

Safeguarding core industrial land

The London Industrial Land Supply Study 2020 shows that Greater London’s store of core industrial land continues to contract at a rate of more than 1% per annum (about 50 hectares). And yet there is desperate need for more industrial capacity to support primarily logistics supply chain activity, particularly if housing delivery is to be increased. Will the London Plan strengthen protection of core industrial land and premises?

We often see Local Plans which rely on historic rates of take-up to plan for future industrial land requirements, with little or no appreciation of the current and future drivers of demand which is a requirement of Paragraph 32 of the National Planning Policy Framework (NPPF). Will the London Plan require local authorities to use more market-facing methods of identifying need? And how else could the next London Plan expand capacity? Could it require local authorities to engage with neighbours beyond the London boundary to take on unmet need?

R&D clusters

The government’s Industrial Strategy recognises the role of place in ensuring growth sectors have the right environment to support sectoral clusters. Whilst sector-based policies have a role in encouraging R&D activities, could the next London Plan identify areas where growth drivers like AI, tech, healthcare and creative industries are explicitly supported?

Data centre growth

Data centres have now been designated critical infrastructure. London dominates the UK’s data centre sector, with key concentrations in the Docklands and around west London. How will the next London Plan recognise the status upgrade? There is now a need to plan positively for new data centre delivery, so what interventions could we expect?

Repurposing old offices

Many London offices don’t meet the requirements of modern occupiers. This is not to say Grade B/C offices aren’t needed – they perform an important role for some sectors of the economy. But in spite of permitted development rights, some local authorities are very resistant to the loss of old offices. Will the next London Plan recognise the changing role of offices, particularly since the Covid-19 pandemic and the increase in hybrid work patterns? Companies use modern offices to recruit and retain workers by providing work environments that are more amenity-focused and accommodating. Also, companies are reducing their footprint and returning floorspace to the market. Will the next London Plan require local authorities to take a more flexible approach towards retaining old offices?

We look forward to seeing what the Greater London Authority has in store. 

Further information

Contact Nick Green, Mark Powney, Emma Andrews, Alex Cole or Dave Wasserberg