The market for strategic and consented development land was strong throughout 2021 and remains strong into 2022. Over the last 2 years we have noticed peripheral locations increase, and sought after by land promoters and housebuilders reflecting the increase in home working. The market in general is underpinned by the demand for housing, outstripping supply and more than ever we have seen an undersupply of consented land. Varying reasons include a reduction in the number of consented planning permissions and delays to Local Plan progression across the country. These factors contribute to increased supply of housing demand to deliver the growing development sector to meet national housing targets. This has contributed to competitive bidding on consented development land and the need to replenish new land in strategic sites to bring through the planning system. Throughout the past 2 years we’ve noticed a movement in trends to more home working, making peripheral locations more sought after by land promoters and house builders.
The logistics and commercial sector has strengthened significantly over a number of years with an increasing demand to secure new strategic sites for the expanding industry. This shift has accelerated during the pandemic fuelled by e-commerce and providers reacting to increases in consumer demand, leading to an immediate need to expand networks and secure new strategic sites. Locations are driven by key transport hubs and corridors to distribute and the ability to deliver larger units for the major occupiers. Similarly to the residential development sector, some Local Planning Authorities have under delivered on employment land in their Local Plans over the years, resulting in a lack of supply and presenting an opportunity to consider new strategic sites for a logistics use.
Rebecca Cox