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Capital’s shed owners call for planning clarity

SEGRO and Prologis are among the industrial owners in London calling for greater recognition of the sector’s economic contribution, as part of a major consultation into land and uses.

The consultation, which closed last week, called for views on draft guidance from the mayor’s London Plan team. The guidance aims to support planning authorities and applicants by providing “clarity and consistency” in assessing industrial supply against demand.

The Greater London Authority also seeks to consider “intensification” and co-location opportunities on designated industrial land; set out clear definitions for terms relating to industrial development; and establish guidelines for developing, assessing and determining industrial schemes.

Industrial players praised the GLA’s core objectives but raised concerns that some of the draft guidelines do not go far enough in spelling out the sector’s potential as a growth driver for the capital.

Owners said the GLA should endorse opportunities to create more supply to deal with demand, for example by focusing on greenfield sites that can provide sustainable developments or by encouraging greater engagement with public agencies or utilities companies to release excess operational land.

A bigger focus on upping productivity through investment in industrial properties and infrastructure was urged, with some pointing out that this should be a stated aim for planners and decision-makers.

Participants also posited that the GLA’s design guidance for new schemes was restrictive, with some calling either for the section to be scrapped entirely or for it to apply solely to co-location schemes. Contributors warned that rigid criteria could be used to change or refuse a strong proposal in favour of a weaker one, and that agreeing designs could slow down the planning process.

Draft definitions relating to co-location and “intensification” were flagged as constricting. Some owners suggested expanding the definition of “intensification” to factor in aspects such as building heights and operational flexibility to ensure land use is as efficient as possible.

Additionally, there were reservations about the guidance’s focus on class E uses, such as maker space and creative industries, and the dilution of B2 and B8 industrial land, which risks undermining the latter’s role in boosting economic growth.

Bonnie Minshull, head of London at SEGRO, said: “The industrial and logistics sector plays a vital role in London’s economy by creating jobs, driving the transition to net zero, supporting business growth and delivering a resilient supply chain for the city.

“SEGRO fully supports the GLA’s primary aims of ensuring that identified industrial needs are met by new development and increased efficiency of land used for industry. However, we do have some concerns that the diminishing supply of industrial land in London won’t be addressed sufficiently.

“Furthermore, although well intended, some of the draft guidelines misunderstand business needs, which could result in further constraints for industrial businesses, delayed private sector investment, slower processing of planning applications and additional pressures on already constrained planning resources.”

Minshull said SEGRO had made a number of recommendations through the consultation process in relation to: safeguarding existing and creating additional supply; recognising increased business productivity in decision-making; expanding the definition of “industrial intensification”; and being “realistic” about the role of multi-level development.

Caroline Musker, head of planning at Prologis UK, said the business supported the overall aims of the new guidance. It has provided the GLA with “overarching commentary” and “detailed inputs” relating to specific areas within the guidance, to “ensure that the growth of the industrial and logistics sector is not undermined and that policy expectations are clear for both developers and planning authorities across the capital”.

Musker added that the team was encouraged to see references made in the London Plan guidance to “raising the bar” in the industrial and logistics sector in terms of the environment, amenity, public realm and sustainability, as these are areas Prologis has “long championed” within its developments.

All feedback will now be reviewed, with the guidance set to be adopted and published this autumn.

 

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