Iceni Projects Southwark
Planning and Political Engagement: Investment Report | March 2021
Executive Summary
Southwark is an important inner-city borough, with various Major, District and Local Town Centres. The borough contains unique Central London destinations that typically attract millions of visitors and is home to leading National and International headquarters.
High density development gravitates towards the river frontage along Blackfriars Road, Bankside and London Bridge. Tall buildings are also clustered around major transport hubs in Elephant and Castle, Town Centres such as Peckham and Canada Water, and the Old Kent Road Opportunity Area.
This report highlights the transitional nature of the development plan, exploring the emerging policies within the New Southwark Plan. This provides details on the ambitious new housing and employment targets outlined within the recently adopted New London Plan (March 2021), along with the defined employment floorspace capacity for each of the recognised Opportunity Areas.
Southwark’s development management team have been identified as a pro-active and collaborative group experienced in managing complex commercial development proposals. Iceni have benefited from a strong working relationship with the officers profiled within this report. The team’s performance in 2020 was generally ‘good’ in terms of determination timescales, with 89% of major proposals determined within the acceptable statutory timeframes. The team achieved an approval rating of 93% for all major proposals in Q3 2020, a sign that the council has responded well to the implementation of virtual procedures.
The council’s financial performance has been brought into greater focus in recent months due to the continuing impacts of Covid-19 on service delivery costs and the depletion of various income streams. A significant budget gap for 2021-2022 is in place, which has led to proposed resource efficiencies within the planning team.
Southwark remains a Labour controlled authority with a Lib Dem minority. Key political prioritises centre on affordable workspace provision in supporting SMEs and small businesses, the council’s broader response to the climate emergency and the delivery of 11,000 new council homes.
Great Portland Estates is well placed to help support Southwark in meeting its strategic targets for developing business. The council has set bold targets for creating new jobs over the next 20 years, providing at least 460,000sq.m of new office floorspace in the Central Activity Zone (CAZ) and Town Centre locations.
In considering the findings of this report, we have ranked Southwark’s planning landscape as favourable. Given the adoption of the New London Plan (March 2021), coupled with the advanced stage of the New Southwark Plan; there is now a high level of certainty in terms of key strategic policies. This will facilitate significant investment and commercial growth within the borough.
Area Overview
Southwark is home to over 314,200 people; its population is relatively young and culturally diverse. The borough’s population is increasing at a faster rate than the national average, up by 22% since 2001, with the rest of England experiencing 12.5% growth in the same period.
Growth has been concentrated in the north of the borough, with Bermondsey and Borough & Bankside having seen the greatest increases in their population.
Over half (54%) of the borough’s population identifies as White ethnicity, with 25% identifying as Black, 11% Asian and 10% from other ethnic backgrounds. =
The borough has the ninth highest population density in England. The eight local authorities with higher densities are all inner London borough’s.
The overall population is expected to grow by 20% by 2030, this will predominantly take place in areas to the north of borough where significant new development is planned in Elephants and Castle, Canada Water and on the Old Kent Road.
Southwark remains one of the most deprived boroughs in England, with deprivation particularly high through the centre of Southwark, from Peckham through to Camberwell and Elephant and Castle. While poverty is concentrated in these areas, hidden pockets also occur in the south.
The indices of deprivation score by ward are mapped out above.
Employment Snapshot
In total, 79% of the Southwark population are in employment with 85% economically active (September 2020).
Employment in Southwark is located predominantly in the north of the borough, with over 70% of all employment and over 90% of office employment located in the wards which make up the Southwark Central Activity Zone (CAZ).
The borough is predominately home to clusters of professional services, scientific, and technical sectors. Finance and insurance businesses tend to be grouped along the Thames in the north of borough, as an extension to the main cluster north of the river. The education sector is focused within the Elephant and Castle area. Health employment is located across the borough, however, there is a particular focus around Guy’s and St Thomas hospitals.
Southwark’s Employment Land Review (2016) shows growth in demand for office space, with slow delivery of appropriate floorspace. This has resulted in a low supply, and therefore a narrower choice of options for occupiers, low availability rates and high take up. The Employment Land Review identifies a need for 460,000 sq.m of net additional floorspace by 2036.
New commercial floorspace is prioritised within the CAZ, requiring the re-provision or additional provision of the existing employment uses on all site allocations within the New Southwark Local Plan. A significant quantum of employment floorspace will also be provided within the Old Kent Road Opportunity Area and the Canada Water Masterplan.
Housing Delivery
Housing Target – 2,511
Housing Delivery – 1,299
Measurement – 72% delivery 2020 with the presumption in favour of sustainable development.
The Housing delivery Test 2020 shows that Southwark’s performance against housing delivery has dropped below 75%. From 2020, where delivery falls below 75% of the required amount set out in the five-year housing land supply target over the previous three years, the presumption in favour of sustainable development set out under paragraph 11 of the NPPF will apply.
Southwark’s delivery measurement is likely to drop further once the implications of the pandemic are fully accounted for, this could see Southwark subject to the presumption in favour of sustainable development for some time.
Financial Performance
The Covid-19 pandemic has had a significant impact on Southwark, requiring an unprecedented response to mobilise council resources into local services. Like all authorities across London the economic impact has been significant, with substantial losses arising across the council’s various income streams.
For the year 2019-2020, a new budget of £290 million was approved by the Southwark Council Assembly in February 2019. This budget outlined savings of £19.6million through a combination of efficiency savings, income generation and service reviews.
The Place and Wellbeing department brings together the council’s portfolio on planning, regeneration, community, voluntary sector and engagement. The department’s budget was cut from £929,000 to £840,000 (2019-2020); this was pre-Covid-19, and at the time, this was not anticipated to have a profound impact on service delivery.
Southwark have been proactive in building up their general reserves and financial risk reserves over the last couple of years. This has provided a degree of financial resilience compared to like for like authorities within London.
The Government has pledged to support local government through the pandemic, providing £7.2 billion of additional expenditure funding for authorities across the country between 2020-2021. This is designed to ensure councils receive support for Covid-19 related losses, including the array of usual fees, charges, and local taxes. A further £3 billion of funding for Covid-19 pressures was set out for 2021-2022 within the Spending Review 2020. This includes £1.55 billion of additional grant funding and a compensation scheme for 75% of lost council tax and business rates.
It remains difficult to fully quantify the financial impact of the pandemic within the third national lockdown.
However, Southwark has outlined that they are under considerable financial pressure, even after accounting for the emerging Central Government funding. Despite the latest spending round being at the more optimistic end of Southwark’s planning scenarios, a budget gap of £9.5 million remains for 2021-2022. The council are in the process of reviewing their budget, at this stage they have set out £13.4 million of savings through a combination of efficiencies and other savings.
Proposed efficiencies of resourcing are likely to impact Southwark’s planning team in the coming months, with the reorganisation of staff leading to the reduction of one full time employee post.
However, we also note that planning income generation is anticipated to rise as a result of increased planning fees and the extension of post approval Planning Performance Agreements on all strategic developments. Collectively this is estimated to earn £435,000 for the department in 2021-2022.
Political Overview
Control
MPs
Rt Hon Harriet Harman (Lab)
Camberwell and Peckham
Neil Coyle (Lab)
Bermondsey and Old Southwark
Helen Hayes (Lab)
Dulwich and West Norwood
Council
Leader of the council: Cllr Kieron Williams (Lab)elected September 2020.
Having previously held the housing management and modernisation portfolio, Cllr Kieron Williams became leader at a time when Labour had its strongest electoral position on the Council and will oversee the major projects started by his predecessor (£4bn, 15-yr regeneration of Elephant & Castle).
The previous Leader, Cllr Peter John OBE, lead the Council for over a decade and was pro-development, defending the much discussed Elephant Park scheme (which Iceni Engagement have been involved in for its duration).
Deputy Leader
Cllr Jasmine Ali (Lab)
Chief Executive and Key Officers
Chief Executive Eleanor Kelly was appointed in July 2012 having previously worked at local authorities and KPMG.
Cabinet Members
Cllr Evelyn Akoto (Lab) Public Health & Community Safety
Cllr Stephanie Cryan (Lab and co-op) Jobs, Culture and Skills
Cllr Helen Dennis (Lab and co-op) Social Support and Homelessness
Cllr Rebecca Lury (Lab) Finance & Resources
Cllr Alice Macdonald (Lab) Communities & Equalities
Cllr Leo Pollak (Lab) Housing
Recently resigned given controversy over his management of a twitter account that discussed Council housing projects and opposition groups. Position currently vacant.
Cllr Catherine Rose (Lab) Leisure, Environment & Roads
Cllr Johnson Situ (Lab)
Climate Emergency, Planning & Transport
In October 2020, Councillor Johnson Situ discussed:
Workspaces to support SMEs and small businesses
Climate emergency energy and carbon off-setting
The importance of developing strong relationships with the community and engaging at the earliest opportunity
The development of the Consultation Charter and community review panel (Old Kent Road)
Stressed the need to have the ability to be practical and flexible in light of the planning system and planning lag.
We do not expect any significant changes politically, particularly given the recent Leadership competition. The only expected update/ change will be around Leo Pollak’s replacement, with a new cabinet member for housing yet to be decided. Cllr Williams is yet to make a decision and oversees the housing remit himself in the interim.
Planning Committee
Councillor
Martin Seaton (Chair)
September 2020 - Martin Seaton ran for council leadership against Cllr Williams but was defeated.
In October 2020 he said ‘Applicants who are receptive to local desires and local priorities who respond positively to local priorities are likely to be more successful in navigating the planning process’
Has a focus on regeneration in the central and northern part of the borough and also on tall buildings which will be a feature of regeneration schemes in Southwark.
Developments must be of excellent design, with appropriate amenity space for both private and wider amenity space and fall in line with the council’s climate change policies.
He noted the planning committee were sometimes asked to make decisions that were a slight compromise on some of the council’s policies but satisfied core policy targets.
The planning committee have improved, becoming less susceptible to lobbying, with more focus on the full planning process. This is in part a result of the community becoming more vocal around planning issues, particularly the lack of affordable housing, planning enforcement issues, the infill of open spaces on estates.
In terms of voting record, on large redevelopments, there is a general vote for acceptance on both residential and office space, looking back through meetings to June 2020.
In July 2020 Southwark Council’s Planning Committee refused permission for CIT to build its St Thomas Street scheme. The scheme included a 20-storey block with basements and piazza on the Vinegar Yard site on St
Thomas Street. The Old Bermondsey Neighbourhood Forum led the objections, supported by Cllr Humaira Ali. The scheme was refused on the grounds of excessive height, scale and massing, and damage to the Bermondsey Street Conservation Area. Mayor of London Sadiq Khan has used his powers to ‘take over’ the planning application and replace Southwark Council as the local planning authority.
In addition, the Biscuit Factory, a large build to rent scheme led by Grosvenor was refused at a local level but approved earlier this year, following changes to the level of affordable housing, by the deputy Mayor, Jules Pipe.
Key Planning Committee Headlines
We have reviewed recent headlines and provided an overview below:
“With the council now on track to see well over 2500 new council homes complete or on site by 2022, and an emerging pipeline taking us to over 6000 of our 11,000 target, it’s no surprise that Southwark’s overall stock of council housing grew last year for the first time in over thirty years”.
Southwark will be given nearly £10m to ‘revitalise’ the Old Kent Road.
According to Government statistics published in November 2020, and compiled by the charity Action on Empty Homes, 3,630 homes in Southwark are no longer listed as primary residences, up from 523 in 2019. This is a massive rise of almost 600 per cent – the highest recorded in London borough.
Southwark Council says it is halfway to its target of building at least 2,500 new council homes by 2022 as it now ‘builds quicker than we lose through
right to buy’-Several are controversial – with the council now applying to build where possible on disused roads or streets phased out in regeneration projects, on top of its existing plans to ‘infill’ in estates; such as the work proposed in Nunhead’s Priory Court and Bermondsey’s Elim Estate.
An appeal against the Elephant and Castle regeneration scheme’s planning permission will be heard in March 2021.
Housing association Peabody has sold the ‘Borough Triangle’ site - where Mercato Metropolitano currently operates - to developers Berkeley Group.
New research from @knightfrank & @FruitionProp reveals Southwark has potential for 2,000 rooftop homes - with a quarter of viable sites owned by council.
Investment manager and developer Fabrix has exchanged on 55 Great Suffolk Street in Southwark, adding to its portfolio of developments in the Bankside area.
Fruition properties are designing and implementing ‘airspace development’ which adds light-industrial space onto existing buildings. Achieved on Crimscott St.
Workspace providers - The council wants all major developers to consider the provision of workspace in new developments and to do this as early as possible in the application process: https://www.southwark.gov.uk/business/ workspace-provider-list
Cllr Darren Merrill (Vice-Chair)
Cllr Radha Burgess (Reserve)
Cllr Victor Chamberlain (Reserve)
Cllr Jon Hartley (Reserve)
Cllr Nick Johnson (Reserve)
Cllr James McAsh (Reserve)
Cllr Margy Newens (Reserve)
Cllr Richard Livingstone
Cllr Damien O’Brien
Cllr Cleo Soanes
Cllr Damien Whitehead
Cllr Kath Whitham
Cllr Bill Williams
Cllr Jason Ochere (Reserve)
Cllr Catherine Rose (Reserve)
Application Record 2020
In 2020, Southwark had a total of 39 major planning applications decided, with 82% granted planning permission. This is slightly down on the national average approval rate of 88% for planning applications between 2019-2020.
In terms of determination timeframes, 11% of all major applications were determined over the 13-week target (or agreed time limit). The national average is 12% for major applications.
In the same period, 19% of minor applications were determined over the 8-week determination target (or agreed time limit). This is above the national average of 15%.
Southwark’s planning team have significantly improved determination timeframes in line with statutory guidance. The number of decisions issued within the statutory timeframes is up from a 57% low in Q2 2013 to 84% in Q2 2020 (all application types).
Planning services during the Covid-19 crisis have largely operated as usual with council meetings and site visits now run virtually. Public consultation periods have been
extended to a minimum of 28 days, rather than the usual 21 days. In Q3 2020, 93% of all major applications where approved. This is an indication that the council have managed the challenges of the pandemic well, reaching positive resolutions on major development proposals.
Policy Overview
The current Local Plan is made of Saved Southwark Plan (2007) and Cores strategy (2011). These documents are scheduled to be superseded by the New Southwark Plan (2020-2035) once finalised and adopted.
The New Southwark Plan has been submitted to the Secretary of State and an independent Inspector has been appointed to examine the plan. The Examination in Public (EiP) commenced in Q1 2021 with the first hearing session held on 23rd February 2021. These hearings focused on examining the proposed strategy and policies of the New Southwark Plan. A second set of hearings are schedule to take place from 20th April 2021,
considering the proposed sites in the Plan, together with policies for the delivery of the plan. With live EiP hearing sessions taking, policies outlined within this section are subject to potential modifications.
Vision Areas
The majority of new development within Southwark is planned to take place in the designated Opportunity Areas and Action Area Cores. These areas have been identified as significant locations for delivering growth with substantial development capacity for new housing, commercial development and integrated infrastructure.
London Bridge, Borough & Bankside
The area is a considered a globally significant Central London business district, home to several international headquarters. The Opportunity Area is a focus of the commercial and cultural life within London, benefiting from excellent transport infrastructure with Blackfriars rail and underground station along with Borough and London Bridge stations. The area is projected to have a combined capacity to delivery 77,882 sq.m of new employment floorspace with the New Southwark Local Plan.
Development within the Opportunity Area should seek to consolidate London Bridge, Borough and
Bankside as a destination for business headquarters, small businesses, and transport infrastructure. There is a desire to increase or improve the number and quality of local open spaces, including enhanced routes along the Thames. In total, 3,151 sq.m of new open space is anticipated to come forward on proposed new site allocations within the Opportunity Area.
Elephant and Castle
The ambition for the Opportunity Area is focused on creating an attractive destination, stimulated by 440,000 sq.m of new development with up to 45,000 sq.m new shopping and leisure floorspace
and 25,00-30,000 sq.m of commercial floorspace. New proposals within the area are encouraged to support the major town centre function, capable of attracting global business, research, teaching, retail, flexible business spaces and dynamic cultural activities.
The target delivery of new homes in the area is 5,000 and minimum of 1,400 affordable housing units. Southwark targets the creation of 10,000 new jobs by encouraging more office, hotels, small businesses and further developing the evening economy. The regeneration of Elephant and Castle has created a highly integrated and efficient public transport hub, including improved Northern line and Thameslink stations.
Development within the area is encouraged to help improve step free access to the station, while delivering a new ticket hall for the Northern Line and the Bakerloo Line extension. Southwark will seek development proposals within the area to contribute towards the growth of the proposed Low Line, a new public realm corridor adjacent to historic railway arches.
Old Kent Road
The New London Plan identifies Old Kent Road as an Opportunity Area situated within two major growth areas, Central London and the Bakerloo Line Growth Corridor. The Mayor of London’s Transport Strategy seeks to support growth in Opportunity Areas through significant investment and planning. The proposed Bakerloo Line Extension from Elephant and Castle to Lewisham is estimated to cost £4.8 billion. This is considered a game changer for the area, playing an important role in driving growth southwards from Central London, providing better connectivity to the wider London economy.
The Old Kent Road Opportunity Area contains the last remaining significant areas of Strategic Industrial Locations (‘SIL’) situated within proximity to the CAZ and it is now the only remaining SIL within Southwark.
The emerging Old Kent Area Action Plan sets out how the Bakerloo Line Extension will enable significant residential and employment growth. The area has a defined capacity for 20,000 new homes and 10,000 new jobs over the next 20 years. Development coming forward will be phased based on the delivery of the Bakerloo Line extension, its anticipated 9,500 homes will be committed in phase 1 (2018-2023). The new document identifies how industrial land can be intensified and provide space for businesses that need to relocate from any SIL outlined for release. Areas that are released from SIL should seek to colocate housing with a wider range of commercial uses within designated town centres.
Canada Water
Canada Water is defined as an Opportunity Area within the New London Plan, with significant potential for mixed use regeneration and intensification of existing commercial sites, focussed on the transport interchanges. The area has a suggested capacity for 20,000 new jobs, it should be highlighted that this is significantly higher than previous London Plan (2016) targets for the Opportunity Area which outlined capacity for 2,000 new jobs. Further the area has a minimum capacity for 4,000 new homes, up from the previous target of 3,300 new homes.
The area has been classified as a Major Town Centre within a strategic area for regeneration, with high potential for residential growth and medium potential for commercial growth. It is also considered to be an area with a significant night-time economy. As a designated Opportunity Area and an area of high
transport accessibility, it is a location that has been identified as suitable for tall buildings.
The table below provides details of Southwark’s targets for each vision area with the New Southwark Plan. In meeting these targets Southwark will need to work closely with developers to ensure that the delivery of regeneration can be achieved. These targets are subject to potential modifications as part of the live EiP.
Key Diagram
Key Diagram
Emerging Policy
Office and Business Development
Southwark has seen growth in employment over the last decade. The New Southwark Plan sets a series of strategic targets for the Borough, in developing business, the council are seeking to create at least 58,000 new jobs between 2020-2035 (including 35,500 office jobs). While aiming to provide at least 460,000 sq.m of new office floorspace, directing growth to the Central Activity Zone (CAZ) and Town Centres.
New office development will help supply new and adaptable workspaces across the borough to accommodate demand. The delivery of new office and business led developments will continue to be prioritised within the CAZ, town centres, opportunity areas individual development plots within site allocations. Within these areas, development must promote the successful integration of homes and employment space in physical layout and servicing in areas that will accommodate mixed use development.
Where employment re-provision is required, proposed developments are required to retain or increase the amount of employment floorspace currently on site.
All proposals are required to provide a marketing strategy for the use and occupation of the employment space. This is to be delivered to demonstrate how the proposal will meet current market demand within the area.
The delivery of employment floorspace within the borough is focused within the Blackfriars Road, London Bridge and Bankside and Borough vision areas.
Affordable Workspace
A key focus for the Southwark is the delivery of affordable workspace. London Plan Policy E2 requires the provision of a range of low-cost business space to meet the needs of micro, small and medium sized enterprise and to support firms wishing to start up and expand.
Southwark require new development proposals to take the needs of existing occupiers into account to support the ongoing success of small businesses and local employment opportunities. This manifests itself within Southwark’s emerging affordable workspace policy (P30) which requires all developments proposing 500sq.m (GIA) or employment floorspace to deliver 10% affordable workspace at a discounted market rent. This space needs to be secured for a period of 30 years and should be prioritised for existing small and independent business that are at risk of displacement. In our experience, officers are already giving this policy significant weight in their decision making on commercial development proposals.
Town and Local Centres
Southwark aims to expand shopping spaces in town centres, focusing on growth areas in Elephant and Castle, Wandsworth Road, Canada Water, Old Kent Road and Peckham. These areas are also a focus for investment in terms of office, community facilities and cultural uses.
As part of the emerging policy position (P34), developments within town and local centres must be retained as retail floorspace or replaced with alternative uses that provide a service to the public.
For large schemes within these centres (1,000sq.m or more), Southwark will seek to provide free public toilets, public drinking fountains and public seating areas. This is seen to benefit wellbeing by encouraging more walking within centres, while enhancing the broader planning benefits of town centre proposals.
Sustainability Standards
The New Southwark Local Plan (Policy P68) requires all non-residential development and non self-contained residential development over 500sq.m to achieve a BREEAM rating of ‘Excellent’.
Development must achieve a BREEAM rating of ‘Excellent’ in non-domestic refurbishments or conversion,
extension and change of use of non-residential floorspace over 500sq.m.
Proposals must reduce the risk of overheating, this should be informed by climate change predictions over the lifetime of the building, in accordance with prioritised measures set out in the cooling hierarchy.
Energy Requirements
All development proposals must minimise carbon emissions on site in accordance with the energy hierarchy. The energy hierarchy sets a framework for how development should approach carbon reductions.
Firstly, saving should be maximised at the ‘Be lean’ stage (energy efficient design and construction). Proposals should seek further savings through the ‘Be clean’ stage (low carbon energy supply), this can include decentralised energy networks. Finally, once all savings have been maximised, proposals should seek to ‘Be green’, incorporating on site renewable energy generation and storage.
Further, Policy P69 of the New Southwark Plan requires major development proposals to meet the following energy targets to reduce carbon emission within the borough:
100% on 2013 Building Regulations Part L standards for residential development;
A minimum of 40% on 2013 Buildings Regulations Part L and zero carbon (100%) for non-residential developments;
Any shortfall against carbon emission reduction requirements must be secured off site through planning obligations or as a financial contribution.
Planning Officer Profiles
Simon Bevan is a very well-established officer and has been Head of Planning at Southwark since 2008. Simon is a provocative leader of the planning department who plays a pivotal role in navigating challenging planning matters. He has represented the Council on a number of high-profile matters including the redevelopment of the Heygate Estate. He is well versed at overseeing and managing complex proposals with various stakeholder group. Simon is a reasonably accessible Head of Planning, Iceni’s COO Andrew Gale has a particularly strong working relationship having negotiated several high-profile matters with him in recent years. Simon has a good reading of the ‘political climate’ at the Council, and can be trusted to gauge the levels of Member interest and controversy ahead of larger applications being reported to committee. He is pragmatic, has a good appreciation of the commercial imperatives, and generally seeks to encourage new developments, providing they are making genuine efforts to meet political priorities, be that the requisite level of affordable housing, or the provision of affordable workspace.
Simon is engaged in the work of the RTPI, and plays an active role in speaking at events, and representing both Southwark Council, London and the planning profession.
Martin Mckay has been the Design and Conservation Team Leader for the last 5 years. Iceni have a good working relationship with Martin, who played a critical role in substantiating the planning merits of the Tower Bridge Court proposal at committee. As an experienced officer, Martin is typically allocated major development proposals with significant heritage / townscape constraints.
Martin is personable and transparent in his decision-making. He manages major applications with a collaborative style, providing opportunities to discuss development proposals at every stage of the planning process. In our experience, Martin requires a high degree of support in his report writing, seeking assurances from the consultancy team on varying matters before reaching a definitive resolution.
Michael Tsoukaris is an experienced Design and Conservation officer. He is a qualified architect and has worked at several practices including Aukett before moving into the public sector, first with the Heritage Lottery Fund, and since 2008 working at Southwark. Iceni have first-hand experience of working with Michael on the Tower Bridge Court approval. He joined the Council at a similar time to Simon Bevan, and they work very collaboratively together, and draw on each other’s skills, experience and diligence. Michael is naturally very design-led in his approach, and for major projects will take an active early role to ensure that key parameters and approach is established. He often has a firm view on design matters, and can be difficult to convince otherwise, but equally he clearly enjoys the professional ‘sparring’ involved in developing major and complex design proposals. He is quite accessible, and if he believes in what the project is seeking to deliver will be a ley advocate in the planning application process.
Approach to Class E
The use class change came into effect from 1st September 2020, the core changes include a recalibration of the classification of uses of property. The new Class E encompasses commercial, business and service, replacing Classes A, B1 and D1. The Town and Country Planning (Use Classes) (Amendment) (England) Regulations 2020 amend the Town and Country Planning (Use Classes) Order 1987 and introduce significant changes to the system of ‘use classes’.
The Town and Country Planning (Use Classes) (Amendment) (England) Regulations 2020 amend the Town and Country Planning (Use Classes) Order 1987 and introduce significant changes to the system of ‘use classes’.
The main driver of change is focused on providing greater flexibility for repurposing of buildings on our high streets and in our town centres. The Government have introduced Class E to allow for a mix of uses to reflect changing retail requirements, supporting ongoing adaption and diversification, to meet consumer needs. This reflects the changing demands of market and the structural shifts within the wider retail sector, which has been accelerated by the Covid-19 pandemic.
Changes to another use, or mix of uses, within this class will not require planning permission. Allowing commercial buildings to operate flexibly with several uses taking place concurrently or by allowing different uses to take place at different times of the day. Changes have sought to limit the ability of local planning authorities to manage town centre uses or take a prescriptive approach to the management of the scale of employment and retail floorspace.
However, Southwark has prepared a procedural note on the introduction of Class E seeking to achieve ‘planning stability’ as part of the broader flexibility.
The council have confirmed that they generally favour existing use offers over alternatives within Class E. This is due to the uncertainties and the time involved in changing the planning designation of a property.
Southwark has stressed that new Class E uses may still require planning and building control consent to change the layout of a property. They request that any proposed change should be reviewed by the Duty Planner. It’s our understanding that Southwark intends to use conditions and planning obligations to secure uses on planning applications where there is a clear justification. This would need to meet all the relevant tests of conditions within the NPPF.
We expect Southwark to use conditions to restrict Class E to control unwanted non-retail commercial uses along existing active frontages. This will be possible in scenario’s where a proposal is applying for a new permission. However, very few existing planning permissions are likely to contain restrictive conditions that control the Class E changes now permitted.
Community Infrastructure Levy (CIL) Rates
Southwark is a CIL collecting authority having introduced a revised CIL charging schedule in 2017.
The revised schedule responded to changing land values within the Old Kent Road Opportunity Area. The council revised the boundary of CIL zone 2 so that developments in the southern part of the Opportunity Area pay the same rate as those in the north, to maximise the funding for new infrastructure.
Increased CIL rates in the Old Kent Road Opportunity Area are critical to helping fund the infrastructure needed (including the Bakerloo Line extension) to achieve the level of growth envisaged in the area over the next 20 years.
The following CIL rates apply across Southwark.
There is a sperate charge for Central London, which includes the northern part of the borough where the following rates apply.
Southwark Council have committed to spend 25% of its CIL receipts on priorities that are to be agreed by the local community in areas where development is taking place.
Mayoral CIL
Development proposals within the borough are also subject to Mayoral CIL. The Mayoral CIL2 (MCIL2) rates apply to all planning permissions granted from 1st April 2019. Southwark is within MCIL2 zone 2 where a flat rate of £60 per sq.m applies.
Tower Bridge Court
Southwark
Iceni have recently secured a resolution to grant planning permission from Southwark’s planning committeeon behalf of Landid and Fore Partnership for proposals to extend and refurbish the existing buildings of Tower Bridge Court to provide circa 30,000 sqm of flexible commercial floorspace alongside active ground floor uses.
This has followed an extensive engagement process with the London Borough of Southwark, Historic England and a number of local amenity groups of the Shad Thames area. Iceni worked closely with the architects, Stiff & Trevillion, on the distribution of massing across the site and the approach to design.
This work has included the use of visual analysis and Vu.City 3D modelling to demonstrate that the proposal would sit comfortably within the existing riverfront environment, utilising contextual materiality and adopting the local warehouse aesthetic through a contemporary architectural approach.
Key Iceni Projects
Iceni Projects have significant experience of advising on development sites across Southwark and projects that we have advised on include:
RUBY TRIANGLE | OLD KENT ROAD
We advised Greystar on the purchase of part of this major site in the heart of the Old Kent Road Opportunity. We undertook a full due diligence review of the permission and advised on a number of potential amendments to the consented scheme.
SNOWSFIELD | LONDON BRIDGE
We advised Mayfield Property Group on the redevelopment of this site with a 10 storey building comprising 500sqm of commercial floorspace at ground floor with 35 residential units above. The site was within the Bermondsey Street conservation area and sat on the edge of the emerging tall building area.
CHAPTER SOUTHWARK | BANKSIDE
We are currently advising Greystar on a 20 storey student housing scheme. The emerging proposals will deliver approximately 240 student bedrooms and we are currently discussing the proposals with the Council at the pre-application stage.
BLACKFRIARS ROAD | BANKSIDE
Currently advising Gryphon Property Partners on the redevelopment of a site on Blackfriars Road to deliver a new 21 storey commercial building providing 13,000 sqm of office floorspace.
ROTHERHITHE NEW ROAD | CANADA WATER
Currently advising Aitch Group on the redevelopment of this site with a 10 storey development comprising retail at ground level with 45 residential units on the upper levels.
HAWKSTONE ROAD | CANADA WATER
We advised RAA Developments on the redevelopment of the former Red Lions Boys Boxing Club. The site sits on the edge of the British Land Canada Water masterplan area and the proposals comprise a 20 storey building with retail at ground level and residential above.
CAMBERWELL MAGISTRATES COURT | CAMBERWELL
We advised Balfour Beatty on the comprehensive redevelopment of this prominent site on the edge of Camberwell Green for 155 residential units and 2,000sqm of commercial floorspace, set within a number of buildings rising to 16 storeys.`
FORMER SOUTHWARK TOWN HALL | PECKHAM
We advised Alumno Development on the redevelopment and refurbishment of this site for a mixed use scheme comprises student accommodation, flexible workshop space and a 200 seat theatre.
CONOCO HOUSE | BLACKFRIARS ROAD
We advised on the redevelopment of this prominent site on Blackfriars Road for a comprehensive, high density, mixed use development including buildings up to 17 storeys.
FORMER TOYS R US STORE | OLD KENT ROAD
We are currently advising Toys R Us Properties (UK) Ltd on the redevelopment of the 760 Old Kent Road with a major new above station mixed use development.
The site represents a unique opportunity to bring forward an iconic development in the heart of one London’s most important regeneration areas. The site occupies a strategically important and prominent position within the Old Kent Road Opportunity Area and is surrounded by several high-profile development sites, that either have planning permission or are in the planning pipeline. Through these new developments and regeneration, the area will be transformed from an isolated former retail and industrial thoroughfare into one of London’s new thriving mixed use communities.
ELEPHANT PARK | ELEPHANT & CASTLE
Iceni have supported Lendlease through multiple Reserved Matters Applications on Elephant Park, the challenging redevelopment of the Heygate Estate in Elephant & Castle.
BLACKFRIARS CROWN COURT | BOROUGH
We are currently advising Langland Estates in relation to a major new commercially-led mixed use redevelopment of the former Blackfriars Crown Court.
The Sustainable Development Scorecard
The National Planning Policy Framework (NPPF) has running throughout it the ‘golden thread of sustainable development’. In spite of this, there is no clear-cut, NPPF-based assessment criteria to consider a site or project’s sustainable development credentials, making current assessment processes both tricky and subjective.
The Sustainable Development Commission was established to address this recognised issue with our planning system. Made up of a balanced cross-section of industry professionals, the Commission has debated the issues and found solutions, culminating in the creation of the Sustainable Development Scorecard.
The Scorecard website is free to use and accessible to anyone with a vested interest in development, including developers, architects, planners, community groups and members of the public. By crystallising the NPPF’s guidance into a simple, online analysis tool, the Commission aims to provide a more consistent approach to sustainable development, leading to a more sustainable built environment. www.thescorecard.org.uk
Edinburgh: 11 Alva Street, Edinburgh, EH2 4PH
Glasgow: 177 West George Street, Glasgow, G2 2LB
London: Da Vinci House, 44 Saffron Hill, London, EC1N 8FH
Manchester: This Is The Space, 68 Quay Street, Manchester, M3 3EJ
www.iceniprojects.com