Good morning. Here’s your daily round-up of the latest news and views from EG and a collection of industry-relevant headlines from the nationals, all perfectly curated to set you up for the day ahead.
The London Property Alliance has urged the new government to adopt a growth-oriented planning policy, estimating that 407,000 jobs and 55.7m sq ft of commercial floorspace could be unlocked in central London by 2045 – the equivalent of 39 new Shards and a £101bn boost to the economy.
The trade body’s Good Growth for Central London report, produced with consultancy Arup, said a more development-friendly approach would reverse 54% fall in office planning applications in London’s central activities zone between 2013 and 2024.
Charles Begley, chief executive of the LPA, said: “It is highly encouraging that the new government is putting planning reform at the heart of its agenda for growth. Our analysis lays bare the profound impact of planning decisions on growth, particularly in relation to attracting investment to ensure buildings are sustainable and fit for purpose.”
The LPA was just one voice of support for new chancellor of the exchequer Rachel Reeves as she outlined Labour’s planning priorities yesterday. Reeves’ plans to build 1.5m homes over the next five year, rewrite the NPPF and appoint 300 additional planning offices across the country was widely supported by the industry.
British Property Federation chief executive Melanie Leech said: “It is very positive to see the new government hit the ground running on planning reform. Housebuilding targets are a clear statement of intent and will help accelerate delivery.”
And the industry is ready to invest in housing. Exclusive figures shared with EG from Savills show investment into operational build-to-rent housing is set to boom over the next decade.
Over the next decade, Savills expects total BTR investment to grow to more than £12bn per annum. And while development will continue as the primary route to market in the short term, operational deals will steadily increase their share of the investment volumes.
It predicts that some £20bn in be deployed into operational BTR over the next 10 years, representing some 30% of total deal flow in the asset class.
Strong figures for the Thames Valley market were released this morning, with Knight Frank recording a 55% increase in take-up year-on-year for the first half of 2024. Almost 1.8m sq ft of leasing deals were completed during the period, with some 83% of those for new and grade A space.
The agent said there was a growing trend across the South East and Greater London region of global occupiers targeting new regional HQs in the area.
Elsewhere, Big Yellow has finally got consent for Camden’s first purpose-built storage unit, just three years after seeking planning, housebuilder Vistry has said it is “uniquely positioned” to help the government on its fresh housebuilding targets, while Majestic has set its sights on making sure the nation is never too far from a bottle of plonk, targeting 125 new stores throughout the UK.
All of the news from EG, plus a selection of headlines from the nationals:
Real estate calls for ‘balanced’ policy to unlock £100bn+ growth
Majestic uncorks expansion plans
Vistry ‘uniquely positioned’ for key role in government housing pledge
Tri7 and Fusion secure green light for Wood Green student digs
Whitbread seeks help to refine Norwich hotel plans
Patience pays off as Big Yellow finally gets consent
Evri signs for delivery hub in Sheffield
Greater London take-up booms as global giants target regional HQs
Aviva checks out of South West Sainsbury’s store
Operational BTR to draw in £20bn in next decade
Wavensmere Homes to invest £50m for Midlands site acquisitions
Camden set to approve tunnels
Cheshire Homes reveals plans for Manchester PBSA scheme
Dublin’s office market sees ‘significant turnaround’
CBRE appoints e-commerce expert to board
Fiera provides £77m for south-east London PBSAs
Industry supportive of Reeves’ ‘clear statement of intent’
Chancerygate and Bridges cleared for €40m Dublin logistics park
National deals round up
Dismal weather takes toll on retail sales (£)
Store openings help Superdrug to a healthy profit (£)
Where Rachel Reeves is about to give Nimbys the biggest shock (£)
UK pension plans over pay £1.5bn in fees to fund managers (£)
How Labour will try to unlock Britain’s planning system? (£)
UK hotel dealmaking hits highest level in almost a decade (£)
Chinese property developer receives winding-up petition (£)
Oaktree’s Marks sees opening in real estate pain (£)
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