Savills

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The London Land Challenge; Balancing residential and industrial

Introduction

The London mayor introduced the new London Plan in 2016, and adopted it in 2021. When the ‘beds and sheds’ policy, supporting the co-location of residential and industrial uses, was written in 2016, there was a vast shortfall of new homes (and still is), but delivery was steadily increasing.  

Now, however, it’s going the other way. A number of sites previously earmarked for residential development are now remaining as industrial, representing a new dynamic in the land market. Our three new research articles explore the tension between residential and industrial land in London and provide a perspective on how policy can balance these competing demands for land.

The Residential Land Market


London residential land values face downward pressure from rapidly increasing build costs, weaker house price growth and lower affordable housing values, particularly in Outer London.


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The Industrial Land Market


The rise in industrial land values is for the most part being driven by strong investor demand and the anticipated increases in rent being paid by occupiers of warehouse space.



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Balancing Residential and Industrial

9% of the residential pipeline coming forward in London is at risk of being lost to industrial. With demand rising for both residential and industrial land, policy needs to balance these competing demands for land.


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Articles within this publication

3 article(s) in this publication