Ahead of the election, our planning team led by Alistair Watson, UK head of planning and environment, worked with developers and investors to navigate how changes to planning reform could impact the future landscape of real estate. The team looked at the Shadow Chancellor and the Leader of the Labour Party's vision for planning reform, and examined how expressive and permissive policy support could impact the sector.
Al Watson was interviewed by James Lumley of Estates Gazette about the team's findings
The results of our the team's observations showed the enactment of policy support could bring about much-needed advancements in the logistics, data centres, residential housing, and life sciences sectors, driven by the speed of planning permissions, investment appetite and funding certainty. In particular:
Logistics: a sustainable future
- The growth of middle and final mile facilities which will enhance sustainability efficiencies.
- The popularity of 'sheds and beds' as an asset class will continue to rise.
- Large-scale EV charging hubs for commercial fleets will proliferate, supporting the transition to electric vehicles.
Data centres: digital Infrastructure driving levelling up
- The expansion of edge and hyperscale data centres will not be confined to the Southeast but will spread across the UK.
- New policies will facilitate quicker grid connections, aiding the delivery of these critical infrastructures.
- Advancements in water and energy efficiency needed for data centre growth will have broader economic benefits and stimulate related infrastructure development.
Residential: addressing the housing emergency
- A national emergency declaration for housing will prioritise the supply of diverse housing types, including market, social, affordable, and build-to-rent options.
- The real estate supply chain will experience growth, benefiting professionals from site agents to landscape gardeners.
Life sciences: investment and innovation
- Global companies will increase investment in labs and headquarters, particularly around Oxford, Cambridge, and London.
- Land use zoning will attract development to regions and educational institutions.
- The construction workforce will upskill through advanced and sustainable building methods.
Pathways to success
However, for these policies to truly transform the development landscape, several actions are necessary:
- A new National Need paragraph in the revised NPPF to recognise the housing emergency.
- Swift local decision-making with pre-application advice as a material consideration.
- Costs Awards to discourage unwarranted committee refusals that are overturned on appeal.
- A skilled workforce, potentially supplemented by skilled international workers, to expedite development and enhance local skills.
A link to Al's interview with EG can be found here.
