The need for housing in the UK has never been greater, according to a recent report by the Industrial Committee of the BPF and planning consultant Turley. The knock-on effect to this is that the need for land for logistics is being pushed further down the agenda.
Whilst this happens, the UK will need to provide jobs and services for all of the government’s planned 300,000 new houses a year. Logistics should be a central consideration when planning for sustainable communities. To achieve this, the planning system needs to plan holistically.
More houses, more problems
Turley’s report says that there’s currently 69 sq ft of warehouse floorspace for every home in England. If this ratio of warehouse space to homes were to continue, we’d need 21 million sq ft of additional warehouse floorspace each year to match the government’s annual target of new homes.
It’s worth bearing in mind that the distribution of housing and warehousing isn’t uniform. The West Midlands delivered over 1 million sq ft more of warehouse floorspace than its ratio would suggest, reflecting its role as a location for national logistics functions. The South East also delivered around double its ratio.
The government failed to meet its new homes target over 2017/18, when just 222,190 new homes were delivered across England. According to the report, this resulted in a ratio of 69 sq ft of warehouse space per dwelling. If the government was to continue to build at this rate, the report concludes that we’d require 15.2 million sq ft of warehouse floorspace. But it’s simplistic to think that there’s a linear relationship between current logistics floorspace per home and the floorspace needed for new homes. Building homes doesn’t itself increase the population, but provides for their housing needs. The current population, and their spending power, already exist. As logistics become more efficient, the same floorspace may cater for a greater catchment. But where that space needs to be provided may be affected.
Securing more space
Developers and strategic land promoters will typically wait longer to see investment returns than occupiers.
When considering investment decisions, some developers consider what’s in the housing pipeline within a 45-minute drive, whilst others will specifically consider where new affordable housing will be, as this can strengthen the labour force in the future.
In the report, the BPF Industrial Committee made recommendations to secure the strategic promotion of more logistics space. It says:
1. National planning policy should fully consider logistics requirements to support housing growth. It should set out robust mechanisms so policy makers can holistically plan for logistics needs.
This statement might sound obvious, but the newest iteration of the National Planning Policy Framework (NPPF) doesn’t even mention the word “logistics,” – and “warehouse” is only brought up in a retail context (warehouse-clubs).
2. The National Planning Practice Guidance (NPPG) on assessing Housing and Economic Need should specifically require Local Planning Authorities to consider the location, as well as the site needs of the different components of the sector.
At present, uses are generically described at national and local allocation levels, such as the very broad “employment need” or “employment zones.” This generally covers all of the many different B use classes (as well as a collection of undefined sui generis uses).
Most manufacturing spaces will be some form of B1(c) or B2 (B3 – B7), and could benefit from this more structured approach. It would also highlight that once something is manufactured it needs to be transported to the end user. The need for both facilities to be properly planned in conjunction with each other is high.
3. A need for greater application of the Duty to Cooperate in Local Plan making between local authorities.
There’s a call for a standardised approach, given that the research shows large regional areas to be meeting or failing their overall requirement. The NPPG acknowledges that functional economic market areas can overlap several administrative areas.
The government has recently launched standard method guidance for assessing local housing need – could the same be adopted in respect of employment and logistics floor space? Or does this all repeat an argument for reflecting back to regional plan making?
The construction of floor space is only half the equation: we need to look at what happens to the floor space it replaces and what is lost. For instance, permitted development rights to convert into housing mean that some logistics floor space has been lost to residential uses. When large suppliers consolidate their national distribution system, they’ll usually do it by building enormous warehouses. This isn’t necessarily new space or a net increase until the end use of the redundant warehouses (being consolidated) is considered.
4. Customer parcel collection points should be planned into urban areas and town centres, recognising the role logistics can play in supporting vibrant and viable high streets.
This isn’t just about the proper planning of logistics but also about the revitalisation of our town centres. The research suggests that where click-and-collect functions are hosted in-store, the knock-on effect is more purchases.
Is this a business diversification idea for those with trade counters? Overall, there’s a clear need for those in logistics, as well as those who occupy land for employment uses, to be heard. We also need to plan holistically so we can ensure that we’re servicing the needs of the communities we’re creating when building new houses.
The Irwin Mitchell Planning team can advise on all aspects of the manufacturing pipeline, from creation of a product until its arrival with the end user. Get in touch to find out more.
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