Knight Frank has identified that there is 328 hectares of industrial land with strong public transport connections in and around London, that could offer the potential for residential redevelopment.
The London Plan consultation document suggests the de-designation of poorly performing sites zoned for industrial use, including out-of-town retail parks and land currently operating under other use classes, to unlock residential development sites.
Claire Williams, Head of UK and European Industrial Research at Knight Frank, said: “While the proposed land swapping and intensification policies present opportunities to provide additional housing while ensuring the industrial and logistics sector is adequately provided for, there are significant implications which need further consideration. Some poorly located or obsolete sites may be suitable for alternative uses, but others, even if sub-optimal, provide a location/cost profile that can’t be replicated elsewhere. Protecting and repositioning the right industrial land in the right places will be key to ensuring the capital remains liveable, productive, and globally competitive.
“As housing pressure intensifies, policy must not ignore the integral role of industrial and logistics functions in supporting London’s economy, infrastructure, and communities. A data-led, site-specific approach, that is guided by occupier demand patterns, alongside infrastructure connectivity and accessibility, is essential to strike the right balance between residential delivery and industrial resilience.”
The next London Plan, due to be published in 2026, will map out the delivery of ten years’ worth of supply (880,000 homes), a significant scale-up of housing delivery which also necessitates the delivery of new employment space and infrastructure to support London’s economic growth.
Oliver Knight, Residential Research Partner at Knight Frank, said: “Nationwide housing delivery has routinely fallen short of government-designated targets, and the goals outlined in the forthcoming London Plan will require a significant ramping-up of housebuilding. While the proposed planning policies around industrial land may offer up new sites for residential development, policy alone will not be enough to bring forward these developments.”
