Comment

“Beds on sheds” model could deliver over 23,000 new homes and 325,000 sq m of industrial floorspace

Our new analysis, released today, shows that as much as 325,000 sq m of modern employment floorspace alongside 23,377 new homes could be brought forward as part of co-location schemes in the capital.

We have reviewed all co-location planning applications and masterplans referred to the Greater London Authority (GLA) from January 2019 to January 2022. Our findings are that co-location could provide an uplift of nearly 100,000 sq m of employment land in total and an average of 487 new homes per scheme, based on the schemes currently going through the planning system.

Co-location in London: Is it stacking up? unpicks the current delivery of schemes using this new “beds on sheds” model. The report highlights that co-location could help ease pressure on the overall London property market by making use of brownfield land to create both homes and industrial space.

Currently, many areas of the capital have industrial vacancies as low as 2% and boroughs are struggling to identify suitable land for residential delivery. With 23,377 homes currently planned as part of these schemes the model could also provide a significant portion of the 52,287 new homes London needs annually.

A key benefit of co-location defined by the report is its ability to bring forward more affordable homes. The strategic co-location schemes reviewed are set to make a substantial contribution to the capital’s supply of affordable homes, with over 40% of the homes reviewed being offered under affordable tenure.

Meanwhile, schemes also offer affordable workspaces that can support small businesses and entrepreneurship in the capital. Accessing quality space is currently a challenge that is a constraint on business growth for many SMEs.

Catriona Fraser, Director, said: “Co-location provides part of the answer to two of London’s biggest property challenges. Industrial space is in short supply and housing delivery needs to meet significant targets.

“The data shows the significant potential of optimising existing brownfield land, even though it has currently only been adopted by a handful of London Boroughs. The key next step to growing the opportunities to deliver co-location will be showing how these current schemes work in practice.

“The industry will need to work together to evolve it into a product that more industrial operators, housebuilders and investors will want to deliver and to help ensure it is viewed favourably by Boroughs. Part of this will be working hard to ensure that perceptions of this type of development are viewed positively – for instance utilising urban greening, and ensuring that the Mayor’s Agent of Change principle is adequately reflected. Currently schemes have achieved great inroads in this, and ensuring it continues will be critical to the success of co-location.”

15 March 2022