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City Space Race Anthony Breach September 2018 Balancing the need for housing and office space in cities
City Space Race
Anthony Breach September 2018
Balancing the need for housing and office space in cities
Economic activity is not randomly or evenly distributed across space
Northern Powerhouse
Some places are more attractive to businesses than others
Source: VOA, 2017
And to residents
Source: HM Land Registry, 2018. MHCLH, 2017
Firms are willing to pay a large premium to be in city centres
Commercial prices by degree of urbanisation, 2015
Source: VOA, 2017
Resident also pay a premium for a city centre location, but smaller
Residential prices by degree of urbanisation, 2016-17
Source: HM Land Registry, 2018. MHCLH, 2017
So city centre are likely to experience competition for land use
Commercial prices Residential prices
Source: VOA, 2017. HM Land Registry, 2018. MHCLH, 2017
Planning policies intensify the issue
3 types of regulation: 1. Permitted development rights 2. Restrictions on building outward 3. Restrictions on building upward
Permitted development rights (PDR)
Permitted development rights flip land into residential use
Source: VOA, 2017. MHCLG, 2018
Unless cities obtain an exemption Office to residential conversions through PDR in Manchester city centre, 2015-17
Source: Manchester City Council
Restrictions on building outward
Building outwards is constrained Net additional houses built, by local authorities
Source: MHCLG, 2017
Which leads to more pressure within cities Green Belt and PDR conversions in Slough
Source: Slough City Council
Restrictions on building upward
And building upwards can be challenging
Source: The Economist
London’s protected views
And building upwards can be challenging
Source: Oxford View Cones Study, Oxford City Council
Oxford’s protected views – nothing above 17.8 metres allowed
Protected views in Oxford 1
Source: Oxford View Cones Study, Oxford City Council
Protected views in Oxford 2
Source: Oxford View Cones Study, Oxford City Council
Summary
1. City centres are increasingly popular areas for businesses and residents. While this is a good indicator of prosperity we think that office space should be prioritised in city centres
2. Specific planning policies are making it more difficult for local authorities to manage this pressure
3. You can’t have it all – more houses, more high quality office space, more music venues and no changes to your existing urban structure
What should be done
Some recommendations: • Offer PDR exemption power to every
city centre • Relax development restrictions • Devolve ‘missing’ co-ordination powers
to big cities
