Report

Elmbridge Employment Land Review

415.00

365.00

315.00

265.00 £ per sq m

215.00

165.00

Q1 1998 Q1 1998 Q4 1999 Q3 2000 Q2 2001 Q1 2001 Q4 2002 Q3 2003 Q2 2004 Q1 2004 Q4 2005 Q3 2006 Q2 2007 Q1 2007 Q4 Epsom Staines Woking

Prepared for: Elmbridge Borough Council

Prepared by: URS Corporation Limited

July 2008 49315904

Elmbridge Borough Employment Land Review July 2008 Final Report

Issue No 3 49315904

Elmbridge Borough Employment Land Review Final Report

Project Title: Elmbridge Borough Employment Land Review Report Title: Elmbridge Borough Employment Land Review Project No: 49315904 Report Ref: Status: Final Report Client Contact Name: Client Company Elmbridge Borough Council Name: Issued By: URS Economics and Development St. George's House 5 St. George's Road SW19 4DR

Document Production / Approval Record Issue 3 Name Date Position

Prepared by Albane Gaspard July 2008 Regeneration Consultant

Prepared and Gregory Openshaw July 2008 Project Manager checked by

Approved by Rory Brooke July 2008 Project Director

Document Revision Record Issue No Date Details of Revisions 1 December 2007 1st Draft

2 May 2008 Draft Final

3 July 2008 Final Report

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Elmbridge Borough Employment Land Review Final Report

LIMITATION

URS Corporation Limited (URS) has prepared this Report for the sole use of Elmbridge Borough Council in accordance with the Agreement under which our services were performed. No other warranty, expressed or implied, is made as to the professional advice included in this Report or any other services provided by us. This Report may not be relied upon by any other party without the prior and express written agreement of URS. Unless otherwise stated in this Report, the assessments made assume that the sites and facilities will continue to be used for their current purpose without significant change. The conclusions and recommendations contained in this Report are based upon information provided by others and upon the assumption that all relevant information has been provided by those parties from whom it has been requested. Information obtained from third parties has not been independently verified by URS, unless otherwise stated in the Report.

Where field investigations have been carried out, these have been restricted to a level of detail required to achieve the stated objectives of the services. The results of any measurements taken may vary spatially or with time and further confirmatory measurements should be made after any significant delay in using this Report.

COPYRIGHT

© This Report is the copyright of URS Corporation Limited. Any unauthorised reproduction or usage by any person other than the addressee is strictly prohibited.

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Elmbridge Borough Employment Land Review Final Report

CONTENTS

Section Page No

ABBREVIATIONS...... III

EXECUTIVE SUMMARY...... 1

1. INTRODUCTION...... 9

1.1. Context and Purpose ...... 9 1.2. Study Area...... 10 1.3. Report Structure...... 10

2. APPROACH...... 12

2.1. Introduction...... 12 2.2. Policy Review...... 12 2.3. Employment and Business Profiling...... 12 2.4. Employment Land Survey and Appraisal...... 13 2.5. Consultations...... 15 2.6. Assessment of Employment Land Supply ...... 16 2.7. Employment Land Demand Projection ...... 16 2.8. Gap Analysis ...... 16

3. POLICIES...... 18

3.1. Introduction...... 18 3.2. National Policies...... 18 3.3. Regional Policies...... 20 3.4. County Policies...... 24 3.5. Local Policies, Strategies and Studies...... 25

4. SOCIO-ECONOMIC STRUCTURE ...... 32

4.1. Introduction...... 32 4.2. Population ...... 32 4.3. Workforce ...... 33 4.4. Local Economy and Businesses ...... 35 4.5. Commuting and Balance of Workforce and Local Employment ...... 39

5. EMPLOYMENT LAND SURVEY RESULTS ...... 42

5.1. Introduction...... 42 5.2. Surveyed Employment Areas...... 42 5.3. Employment Areas and Condition...... 45 5.4. Employment Areas Accessibility ...... 47 5.5. Potentially Contaminated Sites ...... 48 5.6. Sui Generis Activities ...... 49 5.7. Developable Land ...... 51 5.8. Employment Areas and Intensification...... 53

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Elmbridge Borough Employment Land Review Final Report

CONTENTS

Section Page No

6. TOWN CENTRE SURVEY RESULTS...... 56

6.1. Introduction...... 56 6.2. Survey Results ...... 56 6.3. Net Floorspace Gain Through Intensification...... 59

7. COMMERCIAL PROPERTY MARKET ASSESSMENT ...... 62

7.1. The Employment Land Market...... 62 7.2. Office Market Demand ...... 69 7.3. Industrial (B2 and B8) Market Supply ...... 74 7.4. Conclusion...... 81

8. EMPLOYMENT LAND PROJECTIONS...... 83

8.1. Introduction...... 83 8.2. Employment Analysis...... 83 8.3. Employment Forecasts ...... 85 8.4. Floorspace Analysis ...... 90 8.5. Synthesis Forecast...... 92 8.6. Floorspace Frictional Vacancy...... 96 8.7. Land Frictional Vacancy...... 99 8.8. Summary...... 100

9. GAP ANALYSIS ...... 101

9.1. Introduction...... 101 9.2. Demand for Employment Land ...... 101 9.3. Supply of Employment Land ...... 101 9.4. Likelihood of Development...... 104 9.5. Comparing the Quantum of Employment Land Demand and Supply...... 105 9.6. Summary of Gap Analysis...... 106

10. RECOMMENDATIONS...... 109

10.1. Introduction...... 109 10.2. Recommendations ...... 109

APPENDIX 1: ODPM GUIDANCE CRITERIA

APPENDIX 2: CONSULTEES

APPENDIX 3: EMPLOYMENT AREAS SURVEY QUESTIONNAIRE

APPENDIX 4: EMPLOYMENT AREAS SURVEY RESULTS

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APPENDIX 5: TOWN CENTRE SURVEY QUESTIONNAIRE

APPENDIX 6: TOWN CENTRE SURVEY RESULTS

ABBREVIATIONS

ABI Annual Business Inquiry AMR Annual Monitoring Report DCLG Department for Communities and Local Government DPD Development Plan Document EBC Elmbridge Borough Council ELR Employment Land Review GWE GWE Business West Research IER Warwick Institute for Employment Research LDD Local Development Document LDF Local Development Framework LDS Local Development Scheme ODPM Office of the Deputy Prime Minister ONS Office for National Statistics PPG Planning Policy Guidance PPS Planning Policy Statement REBLP Replacement Elmbridge Borough Local Plan RES Regional Economic Strategy RSS Regional Spatial Strategy SCC County Council SCI Statement of Community Involvement SEL Strategic Employment Land SIC Standard Industrial Classification SPD Supplementary Planning Document SPG Supplementary Planning Guidance VOA Valuation Office Agency

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EXECUTIVE SUMMARY

Introduction

URS was commissioned by Elmbridge Borough Council to undertake an employment land review to assess the quantity, quality and suitability of employment land throughout the borough, and identify demand for employment land over the planning period to 2026.

The need for such studies has been emphasised by Planning Policy Statement 3 that suggests local planning authorities should review their non-housing allocations when reviewing their development plan.

The employment land review provides a tool, based on sound methodology and robust analysis, for Elmbridge Borough Council to plan for the future provision of employment land across the Borough. The overarching aim of this study is to support the Council in the development of its Local Development Framework (LDF). The findings, conclusions and recommendations will be used to inform the forthcoming Core Strategy Development Plan Documents (DPD) as well as the future Land Allocations and Environmental Protection DPD.

Approach

The approach conforms to the requirements of the Office of the Deputy Prime Minister (ODPM) Employment Land Reviews Guidance Note (December 2004).

The definition of employment land is in use classes B1a (Office), B1b (Research and Development), B1c (Light Industry), B2 (General Industry), and B8 (Storage and Distribution). For this study the Council was also interested in identified sui generis uses – land uses which, though they may be employment generating, are not considered to be of the B1, B2 or B8 use class order, but are nevertheless associated with B2 and B8 employment.

The review was structured around the following elements:

• Policy review

• Employment and business profiling

• Employment land surveying and appraisal

• Consultations with key stakeholders

• Employment land supply assessment

• Employment land demand projection, and

• Gap analysis (comparison of the demand and supply of employment land).

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Based on the findings of research recommendations on the retention and release of employment land across the Borough were then put forward.

Employment and Business Profiles

An assessment of socio-economic characteristics, such as population, labour force, and industrial structure was set out. This helped to develop better understanding of the factors that influence employment land development now and in the future.

• In 2006, 61% of the Borough’s population were of working age and of these 79% were considered to be economically active. For that year, the unemployment rate was 3.5%, which is well under the Great Britain rate (5.3%).

• The workforce is employed in a range of occupations with 41% of people being employed in higher and intermediate managerial, professional occupations and administration.

• There is evidence of a significant wage disparity between residents’ earnings and workplace jobs (jobs in Elmbridge): in 2005 the average gross weekly earnings per residents was £1,112 whereas by workplace the average gross weekly earnings per resident was £663. The large wage disparity in part drives a high rate of out-commuting (of 8,000 residents per day).

• Sector analysis shows that Elmbridge has witnessed an absolute decline in its traditional manufacturing base and overall economic growth has not kept pace with regional or national growth, due to comparatively weaker growth in services. However, given the proximity to London and the primary road network (, A3, amongst others) the distribution sector in Elmbridge has a major presence and provides a significant source of employment. Transport and communications, and food and drink manufacturing sectors, which also rely on good location and accessibility, have performed strongly in recent years.

Employment Land Surveying and Appraisal

The review covered the entire geographical extent of the Elmbridge Borough. In total 32 Employment Areas were identified for review: 15 policy designed employment areas ‘Strategic Employment Land’ identified in the Borough’s Replacement Local Plan, and 17 significant non-policy designated areas, which were identified through consultation with the Council.

Each Employment Area was visited and surveyed against a set of strategic site appraisal criteria such as land use, including vacancy; physical site constraints; accessibility; and neighbourhood issues and environment; and the potential for redevelopment.

The total stock across the 32 Employment Areas is 126.9 hectares. The results of the survey indicate that generally Employment Areas are of good environmental quality; that road accessibility is good, though only nine out of 32 Employment Areas are considered to have very good or good access to public transport.

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In terms of development opportunities, the survey identified 5.94 hectares of developable land (derelict or vacant land) and 6.85 hectares of land could be considered for intensification.

11 Employment Areas were found to have sui generis activity.

Town Centre Survey

In addition to the 32 Employment Areas, five town centres centres (Cobham, East , , Walton-on-Thames, and Weybridge) were surveyed to identify sites and buildings that could be more intensively developed or redeveloped and therefore focused on vacant sites, empty/underused buildings and land, and poor quality/older office stock. URS conducted these site appraisals with Council Development Control officers.

In total 34 sites for intensification were identified and assessed. In total it is estimated that these sites represent a potential net gain of 159,000 sq.m office floorspace. Under a mixed-use scenario (for instance retail at ground floor and above office space and residential), it is estimated that potential net gain would be 117,000 sq.m of office floorspace. Walton-on-Thames and Weybridge are the town centres that have the more potential for office development. The main constraint to the development of the town centre sites is considered to be their limited accessibility to public transport.

Consultations with Key Stakeholders

To develop an understanding of demand and supply characteristics, consultations were undertaken with key public organisations, local business organisations, major employers and commercial agents active in the Borough. Consultations focused on the strengths and weaknesses of Elmbridge as a place to do business, transport, labour, costs and quality of life; local demand and supply characteristics, such as the suitability of premises and land and any site specific issues; linkages with and influence of the surrounding areas; and inward investment.

The findings were used to inform the gap analysis and recommendations.

Commercial Property Market Assessment

Property market specialists Knight Frank undertook an assessment of the supply of employment land across the Borough. This included an assessment of the office, industrial and warehouse markets in their corresponding property market areas, in terms of floorspace availability, demand, rents and take up rates, vacancy rates and developments in the pipeline (consent given, construction yet to finish). The assessment provided a picture of supply and was used to inform the gap analysis.

Offices and industrial activities do not have the same location requirements. Therefore, property market areas are different according to the activity considered. The assessment identified that Elmbridge belongs to the South West quadrant of the M25 office market, and the Industrial property market area encompasses a wider area, covering the whole of Surrey and .

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Headline findings were:

• Demand for office accommodation within the Borough has remained broadly healthy and constant in recent years. In Weybridge (the principle office centre in the Borough) steady letting activity has led to an erosion of new accommodation. Take-up rates in Weybridge, the key office market within Elmbridge Borough, have proved relatively constant and healthy since 1998. The majority of lettings have been for new accommodation between 460 to 930 sq.m in size. The vacancy rate for Elmbridge office market stands at 7.6%.

• Demand for industrial accommodation since 2002 has changed markedly. Although letting volumes were high in the Borough between 2002-2004, demand for B2 units dropped significantly in recent years focusing instead on B8 floorspace. Average transaction sizes across the region have remained constant at circa 840 sq m since 2002, though the overall volume has decreased.

• Demand for warehousing, logistics and distribution accommodation however has increased considerably in recent years reflecting the trend in the broader market. Although the volume of space let has increased, demand has remained focused on smaller freehold units of circa 840 sq.m. Take-up activity within the Borough was also boosted by the completion of new industrial accommodation at , which has now almost been entirely eroded, demonstrating a certain degree of pent up demand within the market as well as broader occupier preferences. Demand within the market remains largely localised with few regional and national HQ companies attracted to the area, due to land cost and availability.

Employment Land Demand Projection

URS was asked by the Council to revisit the demand projections of the Employment Needs Assessment (GWE, November 2006) following a review of the GWE reports methodology and conclusions. This included extending the demand projections to 2026.

Future employment land demand was projected using a synthesis approach based on:

• Property Market Area employment forecasts based on macro-economic forecasts published by SEERA and SEEDA; and

• Property Market Area floorspace trends.

The synthesis approach examines the historical relationship between employment and floorspace and translates the employment forecast into a spatial requirement to 2026. Frictional floorspace vacancy is then examined before translating floorspace demand into land using appropriate plot ratios.

The results indicate that employment land demand over the period 2006 to 2026 is:

• Land for B1 (office) = 3.9 hectares

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• Land for B8 (warehousing) = 4.4 hectares, and

• Land for B2 (industrial) = -0.1 hectares (i.e. no additional requirement).

Gap Analysis

The Employment Land and Town Centre surveys provided information on current land stock, the quantum of developable land and land with intensification potential. This allowed the total supply of employment land by employment land use class to be calculated and compared with the land demand projections. The results of the gap analysis inform the recommendations of employment land retention and/or release.

Three ways to cater for employment land demand were assessed:

1. Using developable land identified during the Employment Area survey (vacant and derelict land).

Of the 5.63 hectares of vacant and derelict land, 2.0 hectares are considered to be more suitable for B1 use and 3.63 hectares are more suitable for B2/B8 uses. By this method alone total demand projections is not met.

2. Potential employment land/floorspace gain through the intensification of selected Employment Areas.

Considering the lower land values of B2/B8 land uses, the operational requirements of industries and warehousing, and the likelihood of fragmented patterns of land ownership, we do not anticipate that significant increases in floorspace could be achieved through intensification of Employment Areas.

There is potential to achieve a maximum net gain of office floorspace of 15,000 sq.m at certain Employment Areas, although this would be coupled with a loss of 25,000 sq m of B2/B8 floorspace.

3. Potential office floorspace gained through the intensification of the Town Centre sites.

Under the ‘all office floorspace scenario’, Town Centre sites offer a potential net gain of 159,000 sq.m; under the ‘mixed-use scenario’ there is the potential net gain is 117,000 sq.m.

The balance of employment land demand and supply and the proposed approach to catering for the projected demand for employment land up to year 2026, is presented in the table overleaf. The aim is to have an approximate balance between demand and supply over the plan period, i.e. to have a zero surplus by the end of the plan period. It is considered that by a combined method of utilising developable land, estate management and intensification of land and sites in Town Centres projected employment land demand can be met.

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Gap Analysis of Employment Land Demand and Supply

Supply Developable Demand Land Demand (Developable Land1 to meet Shortfall Shortfall in Land Demand met by Use (ha) Land)1 (ha) Demand (ha) (ha) B1 +3.9 2.0 1.9 Intensification of Town Centre sites

B2 -0.1 0 -0.1 N/A

5.94 1. Estate Management of B2/B8 land use in Employment Areas; B8 +4.4 3.63 0.77 2. Consider replacement of sui generis by B8 land use 1: Vacant and derelict buildings on Employment Areas

Recommendations

Recommendations are based on:

• an appreciation of the constrained supply of employment land across the Borough

• the importance of protecting existing employment land for employment use

• extending the designation of and protecting significant employment land

• the prospects to bring into use vacant and derelict land for B class use activity, and

• the potential for employment land demand to be met by the intensification of Town Centres (to a greater extent), and Employment Areas (to a lesser extent).

These recommendations pay due regard to the concept of smart growth, in particular: the promotion of higher density, office-orientated employment uses in the town centres; the protection of industry and warehousing uses; and better utilisation of existing Employment Areas.

In conclusion, five recommendations are put forward. They are:

R1 Protection of all designated Strategic Employment Land (SEL)

All land and premises currently in B1, B2/B8 land uses in designated Strategic Employment Land should remain designated or allocated for B1, B2 and B8 business uses only. Sui generis activities should not be allowed on designated SELs.

All vacant land and derelict premises within Employment Areas should be retained for B1, B2/B8 development (as per the proposed designations presented in Table 9.2) and not released to non-employment land use.

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R2 ‘Significant’ Employment Areas to be protected for Employment (B1, B2 and B8) uses only

All ‘significant’ Employment Areas should be recognised as important contributors to the Borough’s total stock of employment land. The Council should consider identifying and defining these significant Employment Areas in policy. This could mean ‘significant’ Employment Areas being designated as SELs or protected by a lower/sub-division of SEL status. The designation would need to protect them from erosion of non-employment land uses.

R3 Improved Estate Management at key Employment Areas, with the intention of intensifying B2/B8 land use and improving environmental quality

Due consideration should be given to improving land use management for those Employment Areas which have poor/very poor grade premises and land.

Management should also look to improve the environmental quality of land, premises and services.

Intensification of premises and land currently in B class uses should be encouraged where appropriate.

R4 Encourage office (B1) development in Town Centres

Potential development sites located in the five Town Centres of Elmbridge to be redeveloped where possible to accommodate office (B1) demand. Mixed-use schemes on these sites could be acceptable and beneficial, for example including elements of office, retail/leisure and residential. It may help the development if the Council approaches individual landowners at an early stage of the plan period to ascertain their plans for sites and buildings and encourages/ facilitates development proposals.

R5 Monitoring of Employment Land Development

The Council should monitor the take up of land and premises across Employment Areas (SELs and Significant Employment Areas), and the development and intensification of land and premises on all Employment Areas. Monitoring will ensure the correct type of land use is comes forward and sufficient land is available for economic growth.

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1. INTRODUCTION

1.1. Context and Purpose

URS has been commissioned by Elmbridge Borough Council to undertake an employment land review to assess the quantity, quality and viability of employment land throughout the Borough.

The need for such studies is emphasised in the Department for Communities and Local Government’s (DCLG) Planning Policy Statement 3 Housing (PPS3), November 20051. PPS3 suggests that local planning authorities should review all their non-housing allocations when reviewing their development plans and consider whether some of this land might be better used for housing or mixed-use development.

The mounting pressure to increase the supply of housing, emphasised in PPS3, coupled with the need to allocate land for commercial and industrial growth, set out in Planning Policy Guidance (PPG) 4, make it essential for local authorities to take account of available land and assess the likely future demand for employment generating land.

Paragraph 41 of PPS3, with regard to employment land and employment land review, states that:

‘When considering planning applications for housing which are received in advance of the relevant development plan document being reviewed (particularly the first development plan document), local planning authorities should take into account the policies in this statement as material considerations, as they may carry greater weight than the relevant policies in the development plan. In these circumstances, or for sites not allocated in the development plan, local planning authorities should consider favourably planning applications for housing development:

• where there is evidence of an imbalance between housing demand and supply, having regard to affordability issues and housing market conditions;

• if the site is suitable for housing development (including land allocated or previously used for industrial or commercial use, which is no longer needed for that use – as demonstrated by an up-to-date review of employment land); and

• the planning proposal makes efficient use of land, offers a good housing mix, is of high quality design and does not have an unacceptable impact on the environment.’

This employment land review provides a tool, based on sound methodology and robust analysis, for Elmbridge Borough Council to plan for the future provision of employment land across the Borough and provide sustainable economic development. The process

1 PPS3 replaced Planning Policy Guidance 3 (PPG3).

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conforms to the requirements of the Office of the Deputy Prime Minister (ODPM) Employment Land Reviews Guidance Note (December 2004).

The overarching aim of this study is to support the Council in the development of its Local Development Framework (LDF). The findings, conclusions and recommendations will be used to inform the forthcoming Core Strategy Development Plan Documents (DPD) as well as the future Land Allocations and Environmental Protection DPD.

In parallel with this review, a Housing Land Availability Assessment is being prepared, which identifies the capacity of the Borough to deliver future housing needs. The Assessment will provide an evidence base for the LDF and inform the production of the Core Strategy DPD, in particular an Elmbridge housing delivery plan. To ensure consistency in approach and recommendations of land designation, the Employment Land Review has been developed in conjunction with the Housing Land Availability Assessment.

1.2. Study Area

The study area covers the Borough of Elmbridge in Surrey. The Replacement Elmbridge Borough Local Plan published in 2000 designated 15 Strategic Employment Land (SEL). These SELs are spread across the Borough, but have a stronger representation north of the A3 where there is better accessibility and closer proximity to London. As well as these strategically important areas, there are 17 business sites considered to be of significant value2 but which are not designated by policy. Combined, 32 strategic and significant business sites were identified. These 32 locations hereinafter will be referred to as Employment Areas.

The Borough of Elmbridge has five town centres: Cobham, East Molesey, Esher, Walton- on-Thames and Weybridge. As part of the search for sites, which could accommodate employment growth, sites within these five town centres and peripheral to their town centre boundaries were assessed.

See Appendix 4 for maps of all Employment Areas and Appendix 6 for all maps of the Town Centres.

1.3. Report Structure

This report sets out our findings and policy recommendations for employment land in Elmbridge Borough. Following this introduction, the remainder of this report is structured as follows:

• Section 2 gives details of our methodological approach to the review

2 There are no specific criteria for defining which employment sites are ‘significant’. The 17 sites were identified through discussions with the Council and are either significant in terms of their size or provision of industry, i.e. clustering.

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• Section 3 describes the national, regional and local policy context of particular relevance to employment land and related issues in the Borough

• Section 4 sets out the socio-economic baseline of the Borough relative to Surrey and Great Britain

• Section 5 presents the results of the employment land survey

• Section 6 presents the results of development prospects of the Borough’s five town centres

• Section 7 sets out the analysis of the commercial property market of the Borough

• Section 8 presents the employment land projections between 2007 and 2026

• Section 9 presents the gap analysis on the quantum of employment land demand and supply, and

• Section 10 presents the recommendations for Employment Areas and Town Centre sites with respect to demand and supply balance and site characteristics.

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2. APPROACH

2.1. Introduction

There are a number of research elements informing this study:

• Review of relevant policy

• Employment and business profiling

• Employment land surveying and appraisal

• Consultations with key stakeholders

• Employment land supply assessment

• Employment land demand projection, and

• Gap analysis (comparison of the demand and supply of employment land).

They are outlined in detail below.

2.2. Policy Review

An overview of relevant national, sub-regional and local policy was undertaken to provide the context to employment issues in the Borough of Elmbridge. At the national level Planning Policy Guidance Notes and Planning Policy Statements provide a national guidance and policy framework; at the regional and sub-regional levels key documents are Regional Planning Guidance for the South East, The Draft South East Plan, the Regional Economic Strategy for South East , and the Surrey Structure Plan; and at the local level the Replacement Elmbridge Borough Local Plan and the emerging Local Development Framework and supporting documents.

2.3. Employment and Business Profiling

An assessment of socio-economic characteristics, such as population, labour force, and industrial structure, helps to develop better understanding of the factors that influence employment land development now and in the future. To situate the Borough in context it is useful to compare these socio-economic characteristics against other local geographies such as the county (Surrey), region (South East) and country (England).

The socio-economic analysis presented in this report draws upon information presented in the ‘Employment Needs Assessment’, November 20063. The analysis uses data from the 2001 Census, the Annual Population Survey, the Annual Business Inquiry and the Labour Force Survey.

3 Employment Needs Assessment, GWE Research (November 2006).

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Using this information and other literature sources, an employment and business profile of the Borough was developed which presents:

• A review of characteristics impacting on employment, including population, workforce, economic activity, occupation, earnings and commuting patterns

• A review of the local industrial structure and business start up / stock trends, and

• Identification of destination of inward investment and growth sectors.

2.4. Employment Land Survey and Appraisal

Survey of Employment Areas

In keeping with OPDM Employment Land Review guidance4, employment land surveyed in this review primarily refers to land in use classes B1a (Office), B1b (Research and Development), B1c (Light Industry), B2 (General Industry), and B8 (Storage and Distribution). The survey also identified sui generis uses. Sui generis classifies a range of land uses, which though they may be employment generating do not fall in the B1, B2 or B8 use class order, are nevertheless associated with B2 and B8 employment. Throughout this report employment land use is referred to as office (B1a/b/c), industrial (B2) and warehouse (B8). Sui generis activities are identified separately.

In order to develop a list of potential employment locations for survey, employment land was firstly identified through a desk-based review of the Replacement Elmbridge Borough Local Plan (published in 2000), which designates 15 locations considered as Strategic Employment Land (Policy ELE9 in the Local Plan). Added to this list were 17 other significant areas of employment land (non-designated employment land), which were identified through discussion with the Council, giving a total of 32 separate areas. These 32 areas will, hereafter, be referred to as Employment Areas.

Having identified all areas of designated and non-designated employment land, GIS mapping was used alongside the Council’s Local Plan proposals map to identify the likely boundaries for these Employment Areas. These boundaries were checked during survey and redrawn where necessary.

Strategic Site Appraisal Criteria

Each Employment Area was then visited and surveyed against an agreed set of strategic site appraisal criteria. The criteria used are based on the 2004 ODPM Guidance (see Appendix 1) and our own experience of similar studies. They include:

• Strategic access (road and public transport)

• Existing employment use / activity

4 Employment Land Reviews: Guidance Note, ODPM (2004)

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• Neighbourhood issues (i.e. noise and air pollution, smell, HGV traffic etc)

• Amount of vacant and derelict land (including mapping relevant sites)

• Physical site constraints (i.e. access, incompatible land-use, layout issues)

• Policy context (e.g. land use designations, greenbelt, key sites)

• Access to amenities and facilities, and

• Possibility for intensification / redevelopment.

Some criteria are difficult to obtain as part of the survey process and were not collected as part of this study, such as:

• Floorspace in use

• Floorspace for sale and vacant, and

• Ownership issues.

The surveyors used a pro-forma questionnaire along with a map of each Employment Area to record information about each Employment Area. The questionnaire included a series of tick-box style with space for additional comments, and open-ended questions. This approach allowed for qualitative and quantitative records to be collected and later interpreted. For two sites access was limited (due to security measures) and for these Employment Areas, the surveys details are more limited5. The strategic site surveys were completed in September 2007. A copy of the strategic site survey questionnaire is held in Appendix 3, and a full set of survey results held in Appendix 4.

Town Centre Survey

Given the limited quantum of developable land identified in the assessment of Employment Areas, it was agreed with the Council that URS would conduct walk around site appraisals of town centres in Elmbridge to ascertain their potential for intensification and development. The five town centres of Elmbridge are (as defined in the Local Plan, Chapter 6):

• Cobham

• East Molesey

• Esher

• Walton-on-Thames, and

• Weybridge.

5 Employment Area 9 (Air Products, ) and Employment Area 10 (GlaxoSmithKline, Weybridge)

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This exercise sought to identify sites and buildings that could be more intensively developed or redeveloped (particularly B1) and therefore focused on vacant sites, empty/underused buildings and land, and poor quality/older office stock. This walk round was undertaken with Council’s Development Control officers who provided expert knowledge and contributed with comments on the potential floorspace generation (building footprint and storey height / relationship to surrounding areas), the likelihood of development coming forward and policy implications.

Of the categories listed in the 2004 ODPM Guidance Note, the following set of criteria was considered most relevant to town centre sites:

• Presence and quantity of other uses on site including residential, retail, leisure, etc. (to inform ease of site assembly)

• Age and condition of buildings (i.e. if it has reached the end of its life span)

• Potential gain through redevelopment/ intensification (number of storeys, site coverage)

• Image

• Single or multiple ownership

• Physical or policy constraints, and

• Proximity of site/ building to train station or bus services.

The questionnaire used during the town centre survey comprised a series of open-ended questions that allows for a more site-specific capture of information such as potential development density and storey height (assessed together with the Development Control officers).

Town centre boundaries were mapped using GIS. Overlaid on these maps were sites identified as previously in the Elmbridge Retail Study (2006)6 and sites identified and assessed during the Strategic Housing Land Availability Assessment being undertaken in parallel. The five town centre surveys were carried out in October 2007. The survey questionnaire is held in Appendix 5 and Appendix 6 holds the Town Centre maps and results survey results.

2.5. Consultations

To develop an understanding of demand and supply characteristics and issues of employment land consultations were undertaken with key public organisations, local business organisations, major employers and commercial agents active in the Borough. Consultation took the form of semi-structured interview over the telephone around topics such as:

6 Elmbridge Retail Study, Final Addendum Report; Roger Tym and Partners (December 2006)

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• Elmbridge as a location to do business: strengths, weaknesses opportunities and constraints with respect to premises, location, transport, labour, costs, quality of life, drivers of local economic growth

• Characteristics of local demand and supply (provision characteristics, suitability of stock, requirements, match between demand and supply, shortfall, changing nature of demand/supply)

• Linkages, competition, and influence of surrounding areas / centres, and

• Opportunities for inward direct investment.

The full list of consultees (of successful completions) is set out in Appendix 2.

2.6. Assessment of Employment Land Supply

Property market specialists Knight Frank undertook an assessment of the supply of employment land across the Borough. This included an assessment of the office, industrial and warehouse markets in their corresponding property market areas, in terms of floorspace availability, demand, rents and take up rates, vacancy rates and developments in the pipeline (consent given, construction yet to finish). The assessment provided a picture of supply and was used to inform the gap analysis.

2.7. Employment Land Demand Projection

URS undertook an exercise to project the additional demand arising for employment land between 2007 and 2026. URS was asked by the Council to revisit the demand projections of the Employment Needs Assessment (GWE, November 2006) following a review of the reports methodology and conclusions7. Chapter 8 outlines the methodology undertaken to develop the projection and total additional demand required.

2.8. Gap Analysis

The Employment Land and Town Centre surveys collected information on current land stock, the quantum of developable land and land with intensification potential. This allowed the total supply of employment land by employment land use class to be calculated. The supply of employment land is therefore made up of three elements:

• Developable land in Employment Areas

• Sites for intensification in Employment Areas, and

• Sites for intensification in town centres.

7 The reasoning for revisiting the employment land demand projection is set out in a letter from URS to Alison Booth, Senior Planning Officer – Strategy and Policy, Elmbridge Borough Council, 18th March 2008.

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The supply of employment land was compared with the projection of employment land demand calculated in Section 8 – a process called gap analysis – which quantified the difference between the additional employment land required 2007 to 2026 and the potential capacity of land supply to meet this land requirement. The results of the gap analysis are key to informing the recommendations of employment land retention and/or release.

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3. POLICIES

3.1. Introduction

This section provides an overview of national, sub-regional and local policies, which influence employment and employment land in Elmbridge.

3.2. National Policies

Planning Policy Guidance Notes (PPGs) and the emerging Planning Policy Statements (PPSs) provide a national guidance and policy framework setting out a range of planning principles and objectives on specific topics.

PPS1 (Delivering Sustainable Development, 2005) emphasises the important role that the planning system has in the delivery of sustainable development. PPS1 encourages local authorities to recognise wider sub-regional, regional or national benefits of economic development and consider these alongside adverse local impacts.

PPG2 (Green Belts 1995, amended 2001) identifies the benefits that Green Belts bring to communities and the importance of preventing inappropriate development from harming the Green Belts. It makes it compulsory for local authorities to take long-term conservation requirements of the Green Belt into account in their Local Plans.

PPS3 (Housing November 2006) has five key objectives:

• Securing high quality housing

• Achieving a mix of housing in terms of tenure and price according to the needs

• Providing a sufficient quantity of housing that gives choice to the people

• Promoting suitable locations for housing developments, and

• Encouraging a flexible and responsive supply of land.

The statement promotes the efficient use of land for housing development through re-use of previously developed land and empty properties and the conversion of non-residential buildings for housing to meet housing demand and minimising the amount of green field land being taken for development. It provides advice on the provision of affordable housing as a means of creating mixed and balanced communities.

The updated PPS3 puts the onus on local authorities to assess and plan for employment land. Paragraph 44 states that local authorities should consider ‘whether sites that are currently allocated for industrial or commercial use could be more appropriately re- allocated for housing development’.

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At a local level:

‘Local Development Documents should set out a strategy or the planned location of new housing which contributes to the achievement of sustainable development. Local Planning Authorities should, working with stakeholders, set out the criteria to be used for identifying broad locations and specific sites taking into account […]

Options for accommodating new housing growth (or renewal of existing housing stock), taking into account opportunities for, and constraints on, development. Options may include, for example, re-use of vacant and derelict sites or industrial and commercial sites for providing housing as part of mixed-use town centre development, additional housing in established residential areas, large scale redevelopment and re-design of existing areas, expansion of existing settlements through urban extensions and creation of new freestanding settlements’ (paragraph 38).

PPG4 (Industrial, Commercial Development and Small Firms, 1992) notes that policies within the development plans should provide for choice, flexibility and competition in allocating land for industry and commerce. The guidance recommends that planning authorities should encourage mixed used development, i.e. the location of small-scale businesses within rural and residential areas in order to create a local of source of employment.

PPG4 is due to be replaced by PPS4. Draft PPS4 (Planning for Sustainable Economic Development, 2007) builds on the aims of PPS1 to provide regional planning bodies and local authorities with the tools necessary to plan for sustainable communities. PPS4 emphasises that economic growth and a high quality of the environment must be pursued together. Local authorities should plan for the differing needs of businesses and the expected employment needs of the local community, whilst remaining responsive to a changing economy.

PPS6 (Planning for Town Centres, 2005) focuses on ways to promote town centre vitality and viability, by:

• Planning for the growth and development of existing centres

• Promoting and enhancing existing centres, by focusing development in such centres, and

• Encouraging a wide range of services in a good environment, accessible to all.

The PPS highlights the need to make efficient use of land and encourages well-designed, higher density, multi-storey development within and around existing centres. It also encourages local authorities to make better use of existing land and premises and suggests the need for redevelopment where appropriate.

PPS6 also states that an assessment of the need for new office floorspace over the development plan document period should be carried out as part of the plan preparation

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and review process, and updated regularly. The physical capacity of centres to accommodate new office development and the town centre’s role in the hierarchy should also be relevant to planning for new office development.

3.3. Regional Policies

Regional Planning Guidance for the South East (RPG9)

RPG9 is produced to provide a regional planning and development framework for county, unitary and district authorities in the South East of England and as such is considered part of the development plan for Elmbridge Borough. It covers the period up to 2016.

The RPG9 sets out a vision for the South East and key development principles aimed at achieving that vision. The vision is one of encouraging economic success throughout the region, ensuring a higher quality of environment with management of natural resources, opportunity and equity for the region’s population and a more sustainable pattern of development.

The main development principles used throughout the guidance, which are particularly relevant to this study, are:

• Urban areas should become the main focus for development through making them more attractive, accessible and better able to attract investment

• The pattern of development should be less dispersed with more sustainable patterns of activity, allowing home, work, leisure, green spaces, cultural facilities and community services to be in closer proximity; and

• Access to jobs, services, leisure and cultural facilities should be less dependent on longer distance movement and there should be increased ability to meet normal travel needs through safe walking, cycling and public transport which reduces reliance on the car.

RPG9 states that ‘industry and business development should be sustainable, both in the ease of access by walking, cycling and public transport, and in the layout and design of development.’

The Borough of Elmbridge, as part of Surrey County, forms part of the Western Policy Area referred to in RPG9. The economy in the Western Policy Area is relatively buoyant, with a strong representation in a range of high-tech industries, but is constrained by tightness in the labour market, housing and property markets and by transport issues. Growth in this area needs to take place in a sustainable manner, minimising pressure on limited labour and natural resources, while building on the area’s economic strengths.

RPG9 policies important to employment and employment land are:

• Policy RE1: Local Development Plans should support the regional economy in line with the Regional Economic Strategy and identify land for inward investment and growth business

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• Policy RE3: Use of a long term and holistic approach to economic development activities

• Policy RE4: Principles of sustainable development should be integrated in Development Plans’ policies towards businesses

• Policy RE5: Better use should be made of existing employment land resources. Sites for industry and commerce should be developed particularly in urban areas and in places that are accessible by environmentally friendly modes of transport. Precedence should be given to the re-use of developed land over the release of new land and wherever possible the intensification of use on existing sites should be encouraged

• Policy RE8: In the Western Policy Area positive strategies should be developed for areas where congestion or labour or land shortages are constraining economic growth. ‘Hotspots’ should be identified and specific policies developed to tackle local problems

• Policy RE9: High value activities should be fostered and grouped in adequately located clusters

• Policy RE10: A diversity of firm size and economic sectors (including manufacturing), should be encouraged; and

• Housing will continue to put pressure on employment land allocations as RPG9 sets out housing targets for the sub-regions and the target for Surrey County is 2,360 additional homes per year throughout the plan period up to 2016.

Draft South East Plan

The South East Plan is a full revision of RPG9 to cover the period to 2026. It includes recent partial reviews as already published or with proposed minor amendments:

• Regional Transport Strategy

• Renewable Energy

• Tourism

• Minerals and Waste

• Milton Keynes Growth Area, and

• Ashford Growth Area.

The South East Plan is to be published in its final form in 2008. It will supersede RPG9 as the RSS for the South East of England and provide a statutory framework for development up to year 2026. The Plan brings together policies for development and land use with other policies and programmes that influence the nature of places and people.

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There are a number of relevant cross-cutting policies:

• Use of Public Land: There are extensive areas of property and land in public ownership in the region. The land holdings of the Ministry of Defence are particularly substantial. In some cases the current use of the land is under review and may provide opportunities for development/redevelopment. Where such sites are of regional significance, a programme of action should be agreed with the Assembly

• Urban Focus and Renaissance: Development will be focused in urban areas, with a target of at least 60% of new development in the region to be on previously developed land

• Sustainability: Broadly, policies relate to sustainable development (social, economic and environmental), mitigation and adaptation to climate change, sustainable design and construction, better use of natural resources; and

• Greenbelts and Strategic Gaps: The existing Green Belt will be retained and the opportunity will be taken to improve management and access. Part 3 of Section D2, regarding the supply of employment land, states that Local Development Documents (LDDs) will need to ‘ensure that there is an adequate quantity and high quality of employment land to meet the current and future requirements of the local economies.’ The plan emphasises that changes in the productivity/profitability of different sectors will affect the amount of space and location of premises demanded by businesses. LDDs will work towards ensuring that there is an adequate quantity and quality of employment land to meet the future requirements of the local workforce (Policy RE2, Employment and Land Provision).

Policy RE1 asserts the importance of developing regionally significant sectors and clusters and to make sure that enough land and premises are available to meet the needs of these clusters.

Policy RE2 ask the local planning authorities to carry out an assessment of the employment needs in preparation of their Local Development Documents. It gives a list of criteria for providing employment land, namely:

• Locations that are accessible to the existing and proposed labour supply

• Efficient use of existing and underused sites and premises

• Locations which intensify the use of existing sites

• Focus on urban areas

• Promotion of mixed use development where appropriate and subject to replacement of land and premises lost to non-employment uses, and

• Locations that promote the use of public transport.

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Policy RE3 addresses Local Development Documents and the importance of taking into account the employment needs of the local economy and workforce. It promotes the idea of using criteria based policies to provide a range of sites and premises based on the following:

• Locations that are accessible to the existing and proposed labour supply

• Efficient use of existing and underused sites and premises

• Locations which intensify the use of existing sites

• Focus on urban areas

• Promotion of mixed use development where appropriate and subject to replacement of land and premises lost to non-employment uses, and

• Locations that promote the use of public transport.

Policy RE5 (addressing intra-regional economic disparities) deals with promoting ‘smart growth’, the development of international transport hubs and the take-up of the economy of knowledge. It also stresses the growing importance of work from home.

The Draft South East Plan identifies Elmbridge as part of the London Fringe Area. The strategy for this region is:

‘To support sustainable economic growth and meet as far as possible the pressing housing needs of the sub-region, taking into account considerable and the area’s critical relationship to London.’ (South East Plan Statement of Strategy)

The policies relevant to employment land include LF1 (Core Strategy), LF6 (Economic Development) and LF7 (Town Centres). LF1 calls for growth to be moderated to a level that can be managed by the local labour market and infrastructure. LF6 states that ‘Employment related development will take place primarily on land already in employment use or available for such use.’ At the same time LF7 asks that ‘mixed use development offering both jobs and housing […] be encouraged to offer opportunity to access jobs, services and facilities and reduce the need for longer distance travel.’

The Panel Report on the South East Plan was published in August 2007. This document reviews the Draft South East Plan and makes a number of remarks on the policies it advocates. It states that policy LF1 (Core Strategy) fails to combine the necessity of protecting the environment and generate economic growth at the same time. The report calls for this policy to be amended (Recommendation 20.1). With respect to employment land, it points out that ‘even assuming a large role for smart growth in reconciling economic pressures and demographic growth, it is almost certain that some new or substitute employment land will be needed’ (para 1.15). The report thus recommends that Policy LF6 (Economic Development) be amended in that sense (Recommendation 20.8).

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The Panel Report expresses its concern that the district level is too small to capture some of the components of Employment Land Reviews (as, for instance, strategic sources of demand) and calls for joint Employment Land Review works.

Regional Economic Strategy for 2006-2016

The current Regional Economic Strategy (RES) for South East England covers the period 2006-2016. RES 2016 sets up a programme that combines global competitiveness, sustainable prosperity and smart growth. Smart growth draws upon the concept of sustainable development as ‘growth driven by productivity gains, not by resource intensive and low value added activity’.

The RES sets out three headline targets to reach by 2016, which will enable the region to meet the ultimate goal of smart growth:

• To achieve an average annual increase in Gross Value Added per capita of at least 3%

• To increase productivity per worker by an average 2.4% annually, from £39,000 in 2005 to at least £50,000 by 2016; and

• To reduce the rate of increase of the region’s ecological footprint (from 6.3 global hectares per capita in 2003, currently increasing at 1.1% per capita per annum), stabilise it and seek to reduce it by 2016.

The RES recognises that the South East of England comprises some diverse sub-regions and that different regions will be able to contribute a different mix of objectives. The Borough of Elmbridge is located in the Inner South East sub-region. The priorities relevant to Elmbridge for this sub-region are investment in the skills needed by global knowledge business and in high-growth of the globally competitive sector.

3.4. County Policies

Surrey Structure Plan 2004

The Surrey Structure Plan adopted in 2004 provides the vision and overarching strategic policies for managing and facilitating development and planning throughout the County, during 2004-2016. The Structure Plan will be replaced by the South East Plan in 2008.

The Structure Plan considers that the region has a ‘significant competitive advantage over other areas of the UK’ and that the prospects for the Surrey economy are good, led by the development of financial and business services and strong forecasted growth in retailing, health, wholesaling and education. Based on the concepts of sustainable development – the effective protection of the environment and a prudent use of natural resources - the County aims to grow with development principally taking place in , Woking and Redhill.

Key challenges to further economic expansion include tackling Surrey’s skills shortage. The Plan thus seeks to prevent the inflow of inward commuters, and as a result:

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‘Local planning authorities will have to consider whether some employment sites should […] be used for housing, to help increase labour supply to meet the demands of the local economy’.

The Plan proposes to generate growth without increasing the stock of employment land: Structure Plan Policy LO7 ‘Employment Land’ states that ‘the development needs of sustainable economic growth will be met primarily through the re-use of suitably located land already in or available for employment use’ and that ‘suitably located land will be safeguarded’. It places responsibility on local authorities to ensure opportunities are available for development of small and medium-sized enterprises, and for business clusters.

3.5. Local Policies, Strategies and Studies

Replacement Elmbridge Borough Local Plan 2000 (Amended 2003)

The Replacement Elmbridge Borough Local Plan (REBLP) sets out the Council’s proposals for the development and use of land in the Borough. The Local Plan was adopted in August 2000. This, in due course, will be replaced by the Local Development Framework.

The Planning and Compulsory Purchase Act 2004 provided for the saving of the Local Plan policies for a period of three years from the commencement of the Act, which was 28th September 2004. Therefore after 27th September 2007 all of the Local Plan policies expired apart from those that the Secretary of State agreed to be extended beyond that date. Of the original 203 REBLP policies, 110 have been saved. These provide for continuity yet reflect the principles of the Local Development Framework in that they are consistent with, but do no replicate, national or regional policy.

With respect to employment land and premises the Council acknowledges the needs of the firms, but also:

‘… wishes to limit new development to specified areas, in order to keep the Borough’s countryside and open spaces free from unacceptable development, and to protect the amenity and character of the urban area, particularly in residential areas.’ (REBLP, page 55)

Key objectives set out in the Local Plan related to employment land are thus:

• To maintain and renew the local economy through the development of existing firms and small scale ones that meet the local needs

• To maximise existing opportunities rather than allocate new land for development in order to maintain the Green Belt, and

• To contribute towards meeting the employment needs of current and future Borough residents while preventing an inflow of new workers that would exert pressure on transport and housing facilities.

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Specific employment development policies work towards achieving the above objectives:

• ELE1 seeks to encourage the maintenance and renewal of the local economy, within the context of sustainable growth and commensurate with the Borough’s environmental and infrastructural limitations. (This policy expired on 27 September 2004 as this is to be addressed within the Core Strategy DPD)

• ELE2 deals with the granting of planning permission to small and medium sized businesses and to new businesses that contribute to the local economy provided they are in a suitable location and compatible with the locality

• ELE3 and ELE5 deal with the location of employment land and state that development will be permitted provided it is compatible with ‘environmental, infrastructural and other material considerations’ and reasonably accessible by public transport

• Policy ELE6 focuses on warehousing developments and restricts their floorspace to 5,000 sq m and in locations that are environmentally suitable and are easily accessible from the county primary road network

• Policy ELE7 seeks to prevent any employment development that would result in a net loss of other types of land such as housing, community or leisure. (This policy expired on the 27 September 2007 as the key principles of this policy are covered by national policy)

• Policy ELE8 details the criteria that needs to be met in order for permission to be granted fir working from a dwelling

• Policy ELE9 identifies 15 Strategic Employment Sites and states that ‘development resulting in the loss of Strategic Employment Land […] will not be permitted’, and

• Policy ELE10 prevents any employment development around Brooklands Strategic Employment Site unless any resulting intensification or use fits into the current environment and infrastructure. (Policy ELE10 expired on the 27 September 2007 as the Brooklands site has now been redeveloped and the policy is no longer of relevance).

Some Strategic Employment Land lies within conservation areas identified by Policy HEN9. Within conservations areas all new development has to preserve or enhance the character or setting of the area (Policy HEN11).

Some Employment Areas also lie within areas of high archaeological potential. Policy HEN17 controls development within such areas and asks for an assessment of the archaeological value of the site to be submitted as part of planning applications.

In addition to the employment land development policies, the Local Plan aims to control development within the Green Belt. Policy GRB2 prevents the construction of any

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employment building in the Green Belt. (This policy expired on the 27 September 2007 as the key principles of this policy are covered by national policy).

Policy GRB27 deals with development of land adjoining the Green Belt and states that any new development on that land will not be permitted unless its form, scale and design are compatible with the Green Belt.

Specific policies are also developed regarding the . Policy RTT3 deals with land use and development within areas liable to flood. New developments or intensification will not be permitted if it increases the risk of flood on site or in the surroundings areas. If the development is permitted, appropriate mitigation will have to be provided.

Regarding town centres, the Local Plan defines five areas as town centre: Esher, Weybridge, East Molesey, Walton-on-Thames and Cobham. Policies STC5 and STC6 aim to control non-retail development in town centres in order to preserve their role as shopping areas. The Local Plan states that its strategy is to reinforce the multi-purpose role of the Borough’s town centres. (Policy STC5 expired on the 27 September as the key principles of this policy are covered by national policy).

Elmbridge Local Development Framework

Elmbridge Borough Council is currently preparing its Local Development Framework (LDF). In accordance with Section 15 of the Planning and Compulsory Purchase Act 2004, the Council has adopted a Local Development Scheme (LDS). This current LDS sets out the Council’s project plan for the production of Development Plan Documents and Supplementary Planning Documents for the period 2007-2010.

The LDF will be a portfolio of Development Plan Documents (DPDs) and Supplementary Planning Documents (SPDs), including a Statement of Community Involvement (SCI) and Annual Monitoring Report (AMR), which assesses the progress of the preparation of documents and the performance and effectiveness of policies. The Core Strategy DPD lies at the heart of the LDF and will set out the long term vision for Elmbridge as a whole, and the strategic objectives, and core policies for the development in the Borough for the next ten years, from 2010 to 2020. It will also include broad locations for development whereas site-specific locations will be identified within a future Land Allocations and Environmental Protection DPD. The Core Strategy has already been the subject of consultation on Issues and Options and Preferred Options, and was originally programmed in the LDS for adoption in Autumn 2008. However, having regard to changes in Government advice it was decided to revisit a number of issues in relation to housing, affordable housing and climate change. These will be covered in a revised Issues and Options Consultation due to take place in Spring 2008. This has a number of advantages in that its allows the Council to take account of the requirements of new Government guidance and also to commission further studies to support a robust and up- to-date evidence for the Core Strategy DPD.

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Issues and Options Paper for the Core Strategy

As part of the preparation of the Core Strategy an Issues and Options Consultation Paper was published in September 2005. The paper identified two spatial objectives relating to the economy:

• To maintain a thriving local economy by ensuring the availability of land and a mix of business uses and opportunities, and

• To secure and develop the roles of our town and village centres.

Questions regarding surplus land or buildings, the location of future employment development, working practices and protection of the Green Belt and the diversification of the Green Belt economy were posed. With reference to the Borough’s town and village centres, questions were raised as to the role they should play and whether they are suitable locations for office and retail development.

Preferred Options Paper for the Core Strategy

As part of the preparation of the Core Strategy and according to PPS12 the Council published in June 2006 a Preferred Options Paper. The document presents the results of consultation with the community and stakeholders over the various options proposed by the Council. A number of Preferred Options are particularly relevant to employment land:

• The ‘Supply of employment land and employment opportunities’ Preferred Option aims to ‘ensure an adequate supply of a suitable mix of sustainably located buildings and land for employment uses’, and the ‘promotion of sustainable and flexible working practices and the encouragement of ‘smart’ growth.’ This is in line with the Draft Regional Economic Strategy for South East England, which seeks to promote smart growth and flexible working practices

• With reference to the Borough’s Town and Village Centres, the Preferred Options seek to ‘protect and enhance the multi-functional role of town and village centres’ ‘encourage appropriate development to reinforce the role and function of town and village centres’ and ‘encourage appropriate development, including a diversity of uses, to promote the enhanced role and function of Walton Town Centre.’ They recognise the opportunities for a diversity of uses within these locations, including for example, office development

• The Preferred Option ‘Location of Development’ stipulates that ‘all new development, including the encouragement of mixed used development, [should focus] on previously developed land in sustainable locations in the existing urban areas, ensuring the efficient use of land and re-use of buildings’

• According to the Preferred Option ‘Climate Change’, new development should also take into account identified flood risk areas and thus should not take place in such places unless appropriate mitigation is provided. It should also avoid pollution and not have an adverse impact on exiting amenity (Preferred Option ‘Amenity’); and

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• In terms of the Green Belt, its boundaries, character and appearance have to be maintained and no harmful development should take place directly adjacent to it.

Elmbridge Sustainable Community Strategy 2006-2015

The purpose of this Strategy is to improve the quality of life for the communities of Elmbridge. Representatives from across the public, private, voluntary and community sectors along with residents and stakeholders have informed and assisted the Elmbridge Community Partnership in the preparation of this Strategy, which sits above all other Council strategies.

The vision provides the overarching aim of the Sustainable Community Strategy. The vision is of an Elmbridge:

• with safe and healthy communities, vibrant town centres and a strong local economy

• with better transport connections, plenty of community facilities, affordable housing and efficient public services

• with a thriving and intensive borough which integrates all sectors of the community

• where those with extra needs of whatever kind can better access support from their communities

• where there are reducing inequalities and people are able to make the most of the opportunities open to them; and

• which retains its attractive, green and unique character and where the communities work together to reduce the impact of modern day living on our environment.

In order to assist in the delivery of the vision, there are five themes within the Sustainable Community Strategy and one overarching theme for Partnership Development. One of these themes is ‘Enhancing the Local Economy’ and includes aims for the local economy to remain strong with low unemployment, for the towns and villages to have an increased vibrancy and for there to be better access to low cost support services.

Annual Monitoring Report (2006-2007)

The Annual Monitoring Report, 2006-2007, sets out the progress made by Elmbridge Borough Council in producing its Local Development Framework.

The report identifies 4,102 sq m of employment land lost to other uses in 2006-2007, of which 2,840 sq m were lost to residential uses. However, total employment land has increased during the same period – an indication of a strong local economy – with all developments taking place on previously developed land. Table 3.1 presents a breakdown of estimated land use change by B1, B2 and B8 use class.

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Table 3-1 Changes to Employment Land by Use Class, 2006 to 2007

Use Class Office (B1) Industry (B2) Warehousing (B8) Total

Additional amount of land developed 1,673 2,376 1,941 5,990

Loss of employment land to other uses 1,741 1,508 853 4,102 Source: Elmbridge Borough Council, Annual Monitoring Report 2006-2007

All employment development took place on previously developed land i.e. brownfield. The target of employment development to be provided on land previously used for employment is 80% for Surrey. Furthermore ‘at least 80% of additional commercial development each year [should] be located within town centres or at other sites within the urban areas, which have good access by public transport, cycling and walking’. The target for Elmbridge has not being specified yet. Only 25% of commercial developments were built in town centres during the monitoring period. This is due to the increasing popularity of edges of town centres for offices.

Commercial and Retail Monitor 2006-2007

Elmbridge Commercial and Retail Monitor 2006-2007 presents details of planning permissions granted to commercial and retail developments and historic trends in commercial floorspace. It stresses that caution must be taken when drawing trend-based conclusions because the 2006 data does not compare with previous years ‘due to lack of completions data for the years 2001 and 2002, and the change to monitoring the financial year.’

The report also presents estimates of total floorspace for each use class. However, it states that ‘the estimates of total stock are based upon the 1985 Inland Revenue figures which are probably an under-estimate of the true quantity of floorspace.’

Elmbridge Retail Study (2006)

The Elmbridge Retail Study assesses the retail capacity of town and village centres across the Borough. The initial study was published in June 2006 with an update published in December 2006. It states that none of the Elmbridge town centres are well located in relation to railway stations and that traffic congestion is a common problem throughout the Borough. It identifies possible development opportunities in each town centre area. East Molesey aside8, the main recommendations are that no changes should be made to the boundaries of the town centres and that additional retail development should be encouraged in Walton-on-Thames.

8 The study recommends expanding the town centre boundaries in order to include one site identified outside of the boundaries.

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Elmbridge Employment Needs Assessment (2006)

The Employment Needs Assessment was published in July 2006, with an update published in November 20069. It forecasts employment growth in Elmbridge to the year 2019 and assesses implications of this growth for employment land demand. It concludes that future demand for employment land is expected to be between 32 and 65 hectares, depending on different growth scenarios, the majority of will be for office use (B1). The report also stresses that the availability of suitable land and premises is the main constraint on Elmbridge’s economy. Intensification, rather than development of new sites, is thus more likely to occur. For this reason site surveys assessed the possibilities of intensification on current Employment Areas.

Additionally, the report states that there should be no need for releasing new greenfield sites since there will be a slower rate of future economic growth and adequate levels of development opportunities coming forward to meet land demand.

9 Employment Needs Assessment; GWE, November 2006

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4. SOCIO-ECONOMIC STRUCTURE

4.1. Introduction

Creating sustainable communities includes providing for employment suitable to the local workforce. It is helpful to consider current demand and future provision of employment land in the context of the socio-economic structure of the area. This section analyses the socio-economic structure of Elmbridge and makes some comparisons with the rest of Surrey, the South East and Great Britain (or England and Wales where data for Great Britain was unavailable). The ‘Elmbridge Employment Needs Assessment’ (GWE, November 2006) presents a detailed study of the socio-economic structure of Elmbridge and much of the information presented in this chapter draws on this work, with updates where possible and relevant.

4.2. Population

The total population of Elmbridge Borough was estimated to be 129,500 in 2006. This represents 12.1% of Surrey’s population. The Borough has a similar age structure to that of the County and Nation. Table 4.1 shows the age structure of Elmbridge’s population benchmarked against Surrey and England.

Table 4-1 Population Age Structure in 2006 (% of Total Population)

Age Band (Yrs) Elmbridge (%) Surrey (%) England (%)

0-14 19 18 18

14-60 61 60 61

Over 60 21 22 21 Source: (SCC) 2007, ONS 2007

Table 4.2 shows the population forecast to 2026. Forecasts show that Elmbridge will grow almost twice as fast as the County average.

Table 4-2 Population Projections

2006 2011 2016 2021 2026 Growth 2006-2026 (%)

Elmbridge 126,88410 133,459 141,303 149,183 157,168 19.3

Surrey 1,083,227 1,111,095 1,444,041 1,176,896 1,210,351 10.5 Source: Surrey County Council interim 2001 based Population and Household Forecasts

10 The population estimated by SCC in 2007 for 2005 exceeds the SCC 2001 projection for 2006.

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4.3. Workforce

Working Age Population, Activity Rate and Unemployment

In 2006 there were 67,800 economically active residents in Elmbridge Borough. 61% of Elmbridge’s population were of working age and of these 79% were considered active. This activity rate is marginally below the rates for Surrey and the South East (respectively 83% and 82%), but slightly above that of the UK (79%).

For that year, the unemployment rate11 in Elmbridge was 3.5%. Although unemployment is higher than for Surrey and the South East, it is well under the Great Britain rate (5.3%).

Skills and Training

Working age residents of Elmbridge present a higher skilled qualification profile than the South East average. In 2001, 34% of Elmbridge population was educated to degree level or higher (NVQ412 or above) compared with 22% for the South East, and 20% for England and Wales. Table 4.3 provides a breakdown by qualifications.

Table 4-3 Qualifications

Qualification Level Elmbridge (%) Surrey (%) South East (%) England and Wales (%)

NVQ4 and above 34 27 22 20

NVQ3 and above 45 37 31 28

NVQ2 and above 65 59 52 48

NVQ1 and above 78 74 69 64

Other qualifications 5 6 7 7

No qualifications 17 20 24 29 Source: Census 2001

Occupations

Elmbridge’s workforce is employed in a range of occupations with 41% of people being employed in higher and intermediate managerial, professional occupations and administration. This proportion is significantly higher than for the South East Region,

11 The number of unemployed working age people expressed as a percentage of the economically active working aged population. 12 NVQ 4 equivalent and above: e.g. HND, degree and higher degree level qualifications or equivalent NVQ 3 equivalent: e.g. 2 or more A levels, advanced GNVQ, NVQ 3, 2 or more higher or advanced higher national qualifications (Scotland) or equivalent; NVQ 2 equivalent: e.g. 5 or more GCSEs at grades A-C, intermediate GNVQ, NVQ 2, intermediate 2 national qualification (Scotland) or equivalent; NVQ 1 equivalent: e.g. fewer than 5 GCSEs at grades A-C, foundation GNVQ, NVQ 1, intermediate 1 national qualification (Scotland) or equivalent; Other qualifications: includes foreign qualifications and some professional qualifications; No qualifications: No formal qualifications held.

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where only 29% of the population is employed in these professional occupations. Table 4.4 provides more details.

Table 4-4 Socio-Economic Class of Population (Aged 16-74)

Occupation Elmbridge Surrey South England (%) (%) East (%) (%)

Higher and intermediate/ administrative/ professional 41 36 29 24

Supervisory clerical junior managerial/ administrative/ 32 31 29 27 professional

Skilled manual workers 9 12 15 16

Semi-skilled and unskilled manual workers 9 12 15 19

On state benefit/ unemployed/ lowest grade workers 9 10 11 14 Source: Census 2001

Earnings by Residents

In 2005 the average gross weekly earnings for Elmbridge residents was £1,112 per resident. This represents an increase of 42% since 2002. It is significantly higher than that of the South East (£577) and of Great Britain (£520). This is due to a high proportion of Elmbridge residents commuting to work in comparatively high paid jobs in London.

It is interesting to compare residents’ earnings with workplace based average gross weekly earnings. Such comparison is presented in Table 4.5. Although workplace based average gross weekly earnings grew by 23% between 2002 and 2005, they remain significantly below resident based average gross weekly earnings (£663 as opposed to £1,112 for the resident based economy). For Elmbridge, the significant difference between local earning potential and the earning potential of jobs-based elsewhere (London) is a driving factor behind the daily net out-commuting from Borough.

Table 4-5 Average Gross Weekly Earnings, 2005

Resident based (£s) Workplace based (£s)

Elmbridge 1,112 663

Surrey 734 627

South East 577 539

Great Britain 520 519 Source: Annual Survey of Hours and Earnings, 2005

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4.4. Local Economy and Businesses

Introduction

This section presents a profile of the prevailing economic and employment characteristics of the Borough.

Employment

Broadly, across all sectors, employment in Elmbridge grew between years 1995 and 2000. More recently, however, between 1998 and 2004, employment in Elmbridge in nearly all sectors is shown to decline in actual terms. The number of people employed in workplace employment has decreased from 51,670 to 49,000 between 1998 and 2004. This represents a decrease of 5% when the number of employee jobs increased by 6% in the South East during the same period.

Textile, utilities, engineering and manufacturing (other than chemical) are the sectors that have seen the largest downturn in actual employment. Professional services - the second largest provider of employment - also saw a contraction in employment numbers (decline by 16%) in Elmbridge, whereas across Surrey and the South East the sector grew by 9% and 27% over the 1998 to 2004 period. The employment by industry sector in Elmbridge is presented in Table 4.6.

Overall, Elmbridge has witnessed the expected decline in its traditional manufacturing sector and economic growth has not kept pace with regional or national growth in other sectors. This is because it has not offset the manufacturing losses with growth in services and particularly professional services as experienced across England and the South East region.

The distribution sector in Elmbridge has a major presence and provides a significant source of employment. In terms of employment provision, this sector has remained relatively constant during 1998-2004. The strength of this sector is due to Elmbridge’s locational characteristics – its proximity to London and the linkages with the South East’s primary road network (M25 motorway, A3, amongst others).

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Table 4-6 Employment in Elmbridge by Industry Sector (1998-2004)

% Growth in Employment 1998-2004 Sector 1998 2004 Elmbridge Surrey South East

Agriculture, forestry, fishing 250 200 -19.4 0.6 -14.1

Mining and quarrying 0 0 -100.0 -79.6 -11.1

Food and drink manufacturing 1,080 1,040 3.4 -43.3 -26.5

Textiles and clothing manufc 30 100 -68.4 -46.2 -44.8

Chemical manufacturing 1,290 800 -37.9 12.5 -16.0

Metals and mineral products 450 460 1.5 13.4 -23.5

Engineering 1,430 740 -48.2 -47.9 -27.2

Other manufacturing 1,470 770 -47.6 -39.1 -13.6

Utilities 70 0 -100.0 -69.4 -18.5

Construction 2,430 2,090 -14.1 -1.6 3.9

Distribution 16,300 16,610 1.9 4.1 8.8

Transport and communication 1,620 2,260 39.6 -51.0 -0.9

Finance and Banking 5,460 5,360 -1.8 24.6 8.8

Professional services 8,510 7,180 -15.7 8.6 26.7

Other services 3,490 3,230 -7.4 9.7 15.9

Public admin and defence 880 590 -33.1 -4.9 -14.8

Health and education 8,320 7,600 10.5 14.9 21.3

TOTAL 51,670 49,000 -5.2 -0.1 6.4 Source: Annual Business Inquiry 2004 (figures are rounded to the nearest ten units)

Changes in employment by sector hide the comparative significance of sectors within the local economy and compared with other surrounding geographies. For example, though Elmbridge has seen an absolute fall in the total number of employees in the professional services and other services sectors, the sector is well represented above the South East average. This is explored further in the following section and Table 4.7 below.

Location Quotient and Sector Change

The location quotient is a measure of how strongly different industries are represented in the local economy compared to the wider region. Table 4.7 shows Elmbridge data benchmarked against the South East.

A location quotient larger than 1.00 indicates that there are proportionally more employees in this sector in Elmbridge than would be expected in comparison with the South East. A location quotient smaller than one indicates that this sector is under-represented comparison to the region. Table 4.7 provides an analysis of location quotient in Elmbridge benchmarked against the South East Region. The grey cells highlight the sectors which have a larger than anticipated representation.

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Table 4-7 Location Quotient Analysis: Elmbridge Benchmarked Against South East

Sector Employment in 2004 Benchmarked against South East

Agriculture, forestry, fishing 200 0.37

Mining and quarrying 0 0.00

Food and drink manufacturing 1,040 3.18

Textiles and clothing manufacturing 100 0.51

Chemical manufacturing 800 1.06

Metals and mineral products 460 0.83

Engineering 740 0.41

Other manufacturing 770 0.70

Utilities 0 0.00

Construction 2,090 1.03

Distribution 16,610 1.29

Transport and communication 2,260 0.79

Finance and Banking 5,360 0.89

Professional services 7,180 1.33

Other services 3,230 1.32

Public admin and defence 590 0.28

Health and education 7,600 0.77 Source: Annual Business Inquiry, 2004

Proportionally, the Elmbridge economy hosts significantly more food and drink manufacturing jobs than the rest of the South East region and also has a high representation in distribution, professional and ‘other’ services. These sectors can be considered as having a potential advantage for operating in Elmbridge.

Business Stock

The number of VAT registered businesses in Elmbridge has increased from 5,200 in 1994 to 6,005 in 2004. Table 4.8 shows the evolution of registration and deregistration over the period.

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Table 4-8 Number of VAT Registered Businesses in Elmbridge, 1994-2004

Year Registrations De-registrations Net Change Stock (Year End)

1994 625 605 20 5,200

1995 590 545 45 5,245

1996 615 490 125 5,370

1997 715 460 255 5,625

1998 690 495 190 5,815

1999 605 545 60 5,875

2000 615 525 90 5,965

2001 585 555 30 5,995

2002 585 570 15 6,010

2003 670 600 70 6,080

2004 555 625 -70 6,005 Source: VAT registrations, de-registrations and stock of businesses, NOMIS

The increase in the stock of VAT registered businesses up to 2003 highlights a growing economy. However, the jobs created by new businesses were not enough to offset the loss of employee jobs since 1998.

Size of Businesses

Business size provides a useful indication of the make-up of firms operating in Elmbridge. Table 4.9 presents a size band analysis of work places in Elmbridge. The size band refers to the number of employees at each data unit (not the size of the parent company). Small companies in Elmbridge appear to be a proportionally well represented and an important element of the business community and could indicate a dynamic entrepreneurial environment. 45% of the workplaces are micro units. This figure is similar to the figure for Surrey and the South East.

Table 4-9 Size Band Analysis of Work Places (Percentage)

Size (number of Elmbridge (%) Surrey (%) South East (%) employees)

1-10 (micro) 45 43 43

11-49 (small) 54 55 56

50-99 (medium) 1 1 1

100+ (large) 1 1 1 Source: Annual Business Inquiry 2003

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Inward Investment

During the 2005-2006 period SEEDA registered six foreign direct investments in Elmbridge Borough13. They have the potential to create over 100 jobs over the next three years. One of these investments was the expansion of an existing business. Half of this investment was in the information and communication technologies sector, half were knowledge-driven and 66% were headquarters. Half of them came from the Asia-Pacific region and 33% from the United States.

According to SEEDA the main factors that attracted these companies to the South East in general were:

• An attractive physical location

• Connections

• Labour force

• Proximity to customers and suppliers, and

• Existence of business sectors or clusters.

4.5. Commuting and Balance of Workforce and Local Employment

One aspect in planning for sustainable development is to achieve a balance of local jobs and local workforce, and match between skills and opportunities. This helps optimise opportunities for residents to choose to work locally. This section looks at statistics on commuting patterns and the ratio of workforce to local jobs.

Travel to Work

Table 4.10 summarises commuting patterns in and out of Elmbridge. The figures show that there are more than eight thousand people commuting out of Elmbridge than people commuting into the Borough. Whereas the residents of Elmbridge commute to London workers commuting to Elmbridge mostly come from other parts of Surrey.

13 Personal Communication with the Business and International Division of SEEDA, 2007

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Table 4-10 Commuting Patterns, Elmbridge

Year/change Living and Living in Working in Commuting % working in Elmbridge Elmbridge Residents (‘-‘ denotes net Elmbridge and working and living working out-commuting) elsewhere elsewhere locally

1991 24,040 28,770 19.710 -9,060 46

2001 25,515 33,271 25,079 -8,192 43

Change ’91-‘01 (%) +6.1 +15.6 +27.2 -9.6 -2 Source: Census 2001

Between 1991 and 2001 gross out-commuting increased by over 15% and gross in- commuting increased by 27%, resulting in a net fall in the numbers of out-commuting. This according to the Elmbridge Employment Needs Assessment Report, is due to local labour shortages: ‘as the local jobs in Elmbridge and Surrey grew over this period, labour shortages occurred locally and businesses had to source labour from further afield’ (Employment Needs Assessment, Paragraph 11.4).

The movement of people between where they live and where they work has implications for sustainability – high out-commuting places demands on transport infrastructure for instance. Consultation with local stakeholders carried out for the Employment Needs Assessment suggests that further increases in commuting would be constrained by transport infrastructure capacity and fuel costs. The report states that it is likely to see a reversal of the commuting pattern in the next years. Furthermore, for Elmbridge, there is a growing trend for people to work from home: 11% of people surveyed in the Housing Needs Survey carried out by Elmbridge Borough Council declared that they worked from home.

Ratio of Workforce to Local Jobs

Details comparing the ratio of workforce to local employment for Elmbridge and a number of near by local authority areas are presented in Table 4.11 below.

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Table 4-11 Workforce and Local Employment, 2001

Epson and Elmbridge Woking Spelthorne Runnymede Ewell Guildford

Total workforce 58,766 46,253 46,941 39,026 39,192 33,230 67,099

Working in the 25,519 21,759 18,105 16,864 20,359 12,837 36,462 borough

People working and living in the 43 47 39 43 52 39 54 Borough1 Source: Census 2001, Figures may not add up due to rounding 1: As a % of employment in Borough

The total number of jobs and the job density (the number of job per resident of working age, 1 indicating that there is one job per resident) both decreased in the last five years. Figures are presented in Table 4.12. This suggests that the number of jobs in the Borough is not enough to accommodate demand from residents. Furthermore, as indicated by Table 4.5 previously, it is likely that the jobs created in the Borough do not correspond to the demand of residents since they tend to be less well paid than the average resident-based earnings.

Table 4-12 Total Jobs and Job Density in Elmbridge, 2000 - 2005

Year Total Jobs in Borough Job Density (per resident of working age)

2000 72,000 0.96

2001 64,000 0.86

2002 65,000 0.87

2003 62,000 0.81

2004 59,000 0.76

2005 62,000 0.80 Source: NOMIS 2007

Given discrepancies in datasets, it is only possible to compare the economically active population and the number of jobs for 2004 and 2005. In 2004, the number of economically active persons in Elmbridge was 67,300, and the number of jobs was 59,000, giving a ratio of 0.88. In 2005, the ratio was 0.89, which 69,300 economically active residents, and 62,000 jobs. For both years in which the data is available, the ratio was below 1.00, which means that there were not enough jobs in the Borough to match the demand from economically active residents.

The analysis suggests that a wider strategy for the Borough would be the promotion of a greater number of local jobs. This point is considered further in the final section.

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5. EMPLOYMENT LAND SURVEY RESULTS

5.1. Introduction

This chapter sets out the headline findings from the employment land survey, which assessed the 32 Employment Areas across a suite of strategic criteria. Summary tables are presented below and the full results are set out in Appendix 4.

During the latter stages of this study, planning permission was granted for non- employment activities for Employment Area 22, Crest Nicholson Plc in Weybridge. For this reason Employment Area 22 is not included in the totals for developable land and derelict buildings.

5.2. Surveyed Employment Areas

Table 5.1 overleaf lists the 32 Employment Areas in Elmbridge that were surveyed. As clarified in Section 2, the 32 Employment Areas comprise 15 designated Strategic Employment Lands (SEL) (Policy ELE9 in the Local Plan)14 and 17 additional non- designated Employment Areas.

In total 127 hectares were surveyed. The three largest Employment Areas, Molesey Industrial Estate (4), Brooklands Industrial Park (12a) and the Heights Business Park (11b), make up over half of the land surveyed.

Figure 5.1 shows the geographical distribution and location of the designated and non- designated Employment Areas across the Borough. The main road that connects the Borough with London is the A3. Only one of the Employment Areas surveyed is located to the south of the A3. Of the 32 areas surveyed, 17 are located in the north east of the Borough, north of the A309 / A244 / A 317 roads which delimit the area with the most rapid connection to London. The majority of areas surveyed are therefore in proximity and have easy access to London.

14 The numbers of the SELs presented here do not correspond to the numbers of the SELs in the Local Plan. Two SELs that were geographically close one to each other were given the same number, with subdivision (11a and b, 12a and b).

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Figure 5-1 Employment Areas in Elmbridge

Source: URS

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Table 5-1 Employment Areas Surveyed in Elmbridge Borough

Area No. Name of the Employment Area Policy Designation Size (Ha)

1 Kingston House Estate, Road, SEL 3.61

2a The Pavillion, , SEL 1.01

2b Telephone Exchange, Thames Ditton N/A 0.47

2c Royal Thames House, Portsmouth Road, Thames Ditton N/A 0.23

3 House, Littleworth Road, Claygate, Esher SEL 1.49

4 Molesey Industrial Estate, West Molesey SEL 14.69

5 Imber Court Trading Estate, Orchard Lane, East Molesey SEL 3.08

6 Lyon Road/North Weylands, Walton-on-Thames SEL 7.16

7a Station Avenue, Halfway, Walton-on-Thames SEL 3.96

7b Mayfield Road, Walton-on-Thames N/A 1.08

7c Hersham Road South, Walton-on-Thames N/A 0.92

7d Hersham Road North, Walton-on-Thames N/A 2.10

8 Riverdene Industrial Estate, Molesey Road, Hersham SEL 1.16

9 Air Products, Molesey Road, Hersham SEL 4.18

10 Glaxo Smith Kline, St Georges Avenue, Weybridge SEL 2.59

11a Locke King Road/Brooklands Road, Weybridge SEL 6.56

11b The Heights Business Park, Brooklands Road, Weybridge SEL 21.21

12a Brooklands Industrial Park, Weybridge SEL 30.90

12b Wintersells Road Industrial Park, Byfleet, Weybridge SEL 5.38

13 Portsmouth Road, Cobham SEL 1.20

14a Business Park/

14b Sandown Industrial Park/ N/A 4.60

14c The Cookie Man Ltd, Royal Mills, Esher 15 Century Trading Estate, Summer Road, Thames Ditton N/A 0.96

16 Ferry Works, Summer Road, Thames Ditton N/A 0.72

17 Elmbridge Borough Council, Civic Centre, Esher N/A 3.12

18 Monument Hill, Weybridge N/A 0.68

19 Horizon Business Park, 1 Brooklands Road, Weybridge N/A 1.45

20 BT Telephone Exchange, Claygate, Esher N/A 0.72

21 Esher Road/Molesey Road, Hersham N/A 0.64

22 Crest Nicholson Plc, 39 Thames Street, Weybridge N/A 0.66

23 Octagon Developmts, Weir House, Hurst Road, E. Molesey N/A 0.38

Total employment land across the Borough N/A 126.91 Source: URS Elmbridge Borough Employment Land Review Field Survey, September 2007

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5.3. Employment Areas and Condition

This section presents the results of the qualitative assessment of the Employment Areas. It looks at the quality of the environment and building condition. The quality of the environment and the condition of buildings were assessed by a five-point range: very good, good, average, poor or very poor.

Quality of the Environment

The visual assessment of the environment, within and surrounding the Employment Areas, only recorded Employment Areas with a reasonable environment or above. This means that the quality of the streets and the public realm was considered as good at the very least, that there was adequate public lighting and no perceived safety issues along routes of public access. The Employment Areas that had particularly good (or very good) environment are listed in Table 5.2 below15.

Table 5-2 Employment Areas with Very Good or Good Environment

Area No. Name of the Employment Area

1 Kingston House Estate, Portsmouth Road, Long Ditton

3 Claygate House, Littleworth Road, Claygate

7a Station Avenue, Halfway, Walton-on-Thames

7b Mayfield Road, Walton-on-Thames

7c Hersham Road South, Walton-on-Thames

7d Hersham Road North, Walton-on-Thames

10 Glaxo Smith Kline, St Georges Avenue, Weybridge

11a Locke King Road/Brooklands Road, Weybridge

11b The Heights Business Park, Brooklands Road, Weybridge

12a Brooklands Industrial Park, Weybridge

12b Wintersells Road Industrial Park, Byfleet, Weybridge

13 Portsmouth Road, Cobham

15 Century Trading Estate, Summer Road, Thames Ditton

16 Ferry Works, Summer Road, Thames Ditton

17 Elmbridge Borough Council, Civic Centre, Esher

18 Monument Hill, Weybridge

19 Horizon Business Park, 1 Brooklands Road, Weybridge

23 Octagon Developments Ltd, Weir House, Hurst Road, East Molesey Source: URS Elmbridge Borough Employment Land Review Field Survey, September 2007

15 Listed in the order of their Employment Area number.

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Building Conditions

Employment Areas with Sites in Good Condition

To receive a positive rating for the condition of buildings, Employment Areas had to have a majority of buildings (more than 50%) in good or very good condition. The following criteria were used to make this judgement:

• Very good - buildings of high quality, no sign of paint flaking or pealing off walls, windows and window frames likewise, immediate surrounding/grounds well kept.

• Good – building in good conditions, small areas where paint might come off, etc., grounds in reasonable state.

Table 5.3 below lists the Employment Areas that were considered to be in good or very good condition based on the above factors. The Horizon Business Park (19) and Octagon Developments (23) are recently built developments.

Table 5-3 Employment Areas in Very Good or Good Condition

Area No. Name of the Employment Area 2a The Pavillion, Giggs Hill Green, Thames Ditton

3 Claygate House, Littleworth Road, Claygate, Esher

7a Station Avenue, Halfway, Walton-on-Thames

19 Horizon Business Park, 1 Brooklands Road, Weybridge

21 Esher Road/Molesey Road, Hersham

23 Octagon Developments Ltd, Weir House, Hurst Road, East Molesey Source: URS Elmbridge Borough Employment Land Review Field Survey, September 2007

Employment Areas with Sites in Poor Condition

Of the 31 surveyed Employment Areas, three were recorded to have poor or very poor quality sites. To receive this rating, Employment Areas have to have more than 50% of buildings in poor or very poor condition.

• Poor – paint cracked, flaking or pealing, some cracks in building structure, windows in poor state, surroundings are poorly kept.

• Very Poor – building still in use but clear evidence of neglect, paint loss from walls in large areas, windows may be broken.

Table 5.4 overleaf summarises the Employment Areas with sites that were considered of poor or very poor condition.

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Table 5-4 Employment Areas in Very Poor or Poor Condition

Area No. Name of the Employment Area

4 Molesey Industrial Estate, West Molesey

6 Lyon Road/North Weylands, Walton-on-Thames

12b Wintersells Road Industrial Park, Byfleet, Weybridge

22 Crest Nicholson Plc, 39 Thames Street, Weybridge Source: URS Elmbridge Borough Employment Land Review Field Survey, September 2007

Employment Areas not identified above in Table 5.3 and Table 5.4 were considered to be of average quality.

5.4. Employment Areas Accessibility

The accessibility of Employment Areas was assessed by way of two considerations: proximity to trunk roads and ease of access to public transport (proximity to train stations or bus stops providing a frequent bus service16).

Road Accessibility

Good or very good strategic road access means that Employment Areas have direct access to routes of national importance catering for the movement of long distance traffic. For Elmbridge this includes access to all-purpose roads (A-roads) (i.e. trunk roads) or indirect access to these trunk roads that do not pass through residential areas. 26 of 32 Employment Areas are considered to have a good road access, as they are located in close proximity to trunk roads (500m). Road accessibility was constrained in for four Employment Areas (see Table 5.5).

Table 5-5 Employment Areas with Poor and Very Poor Road Access

Area No. Name of the Employment Area Comment on road accessibility

3 Claygate House, Littleworth Road, Small (B or C class) roads within a residential area Claygate, Esher

10 Glaxo Smith Kline, St Georges Avenue, Small (B or C class) roads within a residential area Weybridge

14 River Mole Business Park, Mill Road, Small (B or C class) roads within a residential area Esher

16 Ferry Works, Summer Road, Thames A 309 within 1km, small road (B or C class) to get Ditton to the site Source: URS Elmbridge Borough Employment Land Review Field Survey, September 2007

16 This includes the provision of any dedicated commuter bus route. The Heights Employment Area (11b) is served by a commuter bus link from Weybridge Rail station every 8 minutes during peak hours.

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Parking Facilities

All Employment Areas have, to a variable extent, dedicated vehicle parking within their boundaries. Three Employment Areas also have the prospects for on street parking (Molesey Industrial Estate - West Molesey (4), Imber Court Trading Estate - East Molesey (5) and Wintersells Road Industrial Park – Weybridge (12b)).

Access for Disabled Staff and Visitors

For the majority of the areas special arrangements for disabled access were not clearly identifiable. However, the more recently built business parks (areas 11b and 19) have dedicated parking spaces and alternative access routes to buildings (i.e. wide ramps with hand rails). Elmbridge Borough Council Civic Centre (17), as a place of public interest and access, also has dedicated parking space and wide footpaths.

Public Transport Accessibility

Access to public transport is measured through the proximity of a bus or train station. Good access involves a bus stop or a train station within a 10 minutes walk. The bus services in Elmbridge were found to be of a low frequency and the network coverage poor: one per hour on the main roads (471 or 515 services for instance), which detracts from bus use, particularly as a way to commute. As a result only nine out of 32 Employment Areas are considered to have very good or good access to public transport. This is mainly due to their proximity to train stations such as Walton-on-Thames (nos. 7a, b, c and d), Weybridge (10) and Hampton Court (15 and 23). They are presented in Table 5.6.

Table 5-6 Employment Areas with Very Good or Good Access to Public Transport

Area No. Name of the Employment Area

6 Lyon Road/North Weylands, Walton-on-Thames

7a Station Avenue, Halfway, Walton-on-Thames

7b Mayfield Road, Walton-on-Thames

7c Hersham Road South, Walton-on-Thames

7d Hersham Road North, Waton-on-Thames

10 Glaxo Smith Kline, St Georges Avenue, Weybridge

12b Wintersells Road Industrial Park, Byfleet, Weybridge

15 Century Trading Estate, Summer Road, Thames Ditton

23 Octagon Developments Ltd, Weir House, Hurst Road, East Molesey Source: URS Elmbridge Borough Employment Land Review Field Survey, September 2007

5.5. Potentially Contaminated Sites

The visual assessment of all 32 Employment Areas identified no potentially contaminated sites. This involved walk over of the site and sighting / identification of uses that might

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result in contamination, such as tanks, stored chemicals etc. In the Brooklands Industrial Park (12a) the survey team identified some small-scale storage cylinders, the contents of which are unknown. The cylinders looked to be well stored and controlled.

5.6. Sui Generis Activities

As requested by Elmbridge Borough Council, the survey also recorded the presence of sui generis17 activities. Sui generis activities include a range of industries which, though they may be employment generating, do not fall in the B1, B2 or B8 use class order but nevertheless are often associated with B2 and B8 employment sites in particular. They cover, amongst other things, petrol filling stations, premises selling and/or displaying motor vehicles, taxi businesses, scrap yards and retail warehouse clubs18.

The survey discovered that sui generis activities make up a significant proportion of land uses at some Employment Areas, even those designated as Strategic Employment Land. In particular, car-related activities (showrooms, rental depots) are present in seven of the 11 Employment Areas that recorded sui generis activities (see Table 5.7).

17 See Planning Portal website: www.planningportal.gov.uk

18 Sui generis also include laundrettes, dry cleaners, nightclubs, amusement centres, casinos, theatres, houses in multiple paying occupation, and hostels (those providing no significant element of care).

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Table 5-7 Employment Areas with Sui Generis Activities

Proportion of Area Designation Name of the Employment Area Employment Area Sui Generis Activity No. (SEL?) (% Estimation)

Kingston House Estate, Portsmouth Road, 1 SEL 50 Car showroom Long Ditton Gym 4 SEL Molesey Industrial Estate, West Molesey 5 Van hire Vehicle Hire Lyon Road/North Weylands, Walton-on- 6 SEL 15 Pet retail shop Thames Builders Yard

Fire station 7c No Hersham Road South, Walton-on-Thames 50 Ambulance Petrol filling station

Builders Yard 7d No Hersham Road North, Walton-on-Thames 35 bus Depot Warehouse Retail Riverdene Industrial Estate, Molesey Road, 8 SEL 5 Car hire Hersham Bus depot Wintersells Road Industrial Park, Byfleet, 12b SEL 30 Car showroom Weybridge Waste activities

14 River Mole Business Park/ (a, b, No Sandown Industrial Estate/ 30 Waste activities c) The cookie man Ltd Mill Road, Esher

Century Trading Estate, Summer Road, 15 No 5 Car hire Thames Ditton 16 No Ferry Works, Summer Road, Thames Ditton 10 Boat hire

Car showroom 21 No Esher Road/Molesey Road, Hersham 90 Interior design showroom

Source: URS Elmbridge Borough Employment Land Review Field Survey, September 2007

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5.7. Developable Land

Land is considered developable if it meets one of the following conditions:

• Vacant land. In order to be considered as developable, a vacant land site has to be large enough to be built on. This might include: open land not landscaped, underused car parks, under-used yards and under-used land behind buildings.

• Derelict buildings. Not all sites with vacant buildings are considered developable. Some buildings may be only temporally vacant. It is also acknowledged that vacant floorspace enables the local market to perform more smoothly. To be considered developable, a building must be both vacant and in very poor condition (according to the criteria presented previously). Buildings of poor condition, which can still be used, are not considered to be developable19.

The following section considers these two components of developable land.

Vacant Land

Table 5.8 shows that, in total, there are approximately 2.40 ha of vacant land across the 32 Employment Areas (approximately 2% of the 32 Employment Areas surveyed). Where the development of this vacant land is likely to be constrained, the specific reason is indicated in the table.

The survey identified 0.09ha of developable land at Employment Area 22 (Crest Nicholson Plc); however this has not been included in the total of 2.40ha since the Employment Area has been granted planning permission for a non-employment use.

19 Buildings that are in poor condition which are still marketable play will provide the market with lower priced rental space, which performs an important economic role for businesses less able to afford higher market rates.

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Table 5-8 Employment Areas with Vacant Land

Area Name of the Employment Vacant % of Constraints on No. Area land (ha) Area Type of vacant land development

Telephone Exchange, Accessibility 2b 0.09 19 Empty land behind the building Thames Ditton (exit/entrance)

Footprint of existing Claygate House, Littleworth 3 0.13 9 Underused car park building presents Road, Claygate, Esher difficulty.

Imber Court Trading Estate, 5 Orchard Lane, East 0.24 8 Underused car parks None identified Molesey

Nelson House building now demolished. Developable land Mayfield Road, Walton-on- 7b 0.42 39 can extend to include PGS None identified Thames House car park, which is underused

Located in a Village Hersham Road North, Underused space behind 7d 0.12 6 Centre (Policy Waton-on-Thames houses Constraints)

The Heights Business Park, Landscaping of the 11b Brooklands Road, 0.65 3 Green space Employment Area Weybridge (spacing of buildings)

Brooklands Industrial Park, Green space, empty land next 12a 0.22 1 None identified Weybridge to the rail track

Wintersells Road Industrial 12b 0.21 4 Demolished area None identified Park, Byfleet, Weybridge

13 Portsmouth Road, Cobham 0.15 13 Underused car park None identified

BT Telephone Exchange, Vacant land at the rear of the Accessibility 20 0.16 22 Claygate, Esher building (entrance/ exit)

Total 2.40 Source: URS Elmbridge Borough Employment Land Review Field Survey, September 2007. Note that figures may not add up due to rounding.

Derelict Buildings

The information on vacant properties needs to be treated with care since the survey was only based on an external visual inspection, which limits accuracy. Employment Areas with derelict buildings are presented in Table 5.9.

The survey identified one building in very poor derelict condition of 0.23ha at Employment Area 22 (Crest Nicholson Plc); however this has not been included in the total of 3.23ha (see table below) since the Employment Area has recently been given planning permission for a non-employment use.

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Table 5-9 Employment Areas Containing Sites with Derelict Buildings

Area Site with Derelict Name of Employment Area No of units/properties Condition No. Building (ha)

Royal Thames House, Portsmouth 2c 1 Very Poor 0.23 Road, Thames Ditton

Molesey Industrial Estate, West 4 9 Very Poor 2.20 Molesey

Lyon Road/North Weylands, Walton- 6 4 Poor 0.27 on-Thames

Hersham Road North, Walton-on- 7d 1 Very Poor 0.28 Thames

Riverdene Industrial Estate, Molesey 1 (outside the 8 Very Poor 0.10 Road, Hersham boundaries)

Wintersells Road Industrial Park, 12b 2 Very Poor 0.15 Byfleet, Weybridge

Total 3.23 Source: URS Elmbridge Borough Employment Land Review Field Survey, September 2007. Note that figures may not add up due to rounding.

Total Developable Land

In total the survey found 2.40 hectares of vacant land and 3.23 hectares of derelict land providing 5.63 hectares of developable land across 32 Employment Areas20. This figure does not take into account development constraints and the area of land available for development is likely to be lower.

5.8. Employment Areas and Intensification

National, regional and local planning policies stress the importance of efficient use of land and how intensification can reduce pressure on greenfield sites. Intensification should be considered for underused areas and areas that contain sites that have the potential to accommodate higher employment densities. This includes non-vacant, low-density buildings in poor condition, or non-vacant, good condition buildings with a footprint that does not use the site area effectively.

The site survey identified ten Employment Areas that have the potential for intensification. They are presented in Table 5.10. The total area of land capable for intensification is approximately 6.6 hectares.

20 Figure do not add due to rounding.

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For each of these areas, the loss of office, industrial and warehouse floorspace was calculated. Table 5.10 presents the office and industrial/warehouse floorspace currently on site21.

Plot ratios of buildings designed and used for industrial (B2) and warehouse (B8) activities are not liable to change over time. For this reason no significant net gain in B2/B8 floorspace is likely to result from the intensification of these activities. Net gain in employment floorspace can come about however if industrial or warehouse floorspace is replaced by office space for this is of a higher density.

Table 5.10 lists those Employment Areas identified during from the site survey with prospects for intensification. The table presents the maximum potential net gain in floorspace that could come about through intensification if industrial/warehouse space were to be replaced by office space. In this situation intensification would result in a net gain in the quantum of floorspace but a net loss of industrial/ warehouse floorspace.

21 This was calculated using the footprint of the buildings on site (sq m) measured on a map and the number of storeys identified through the site survey. Since it is not always possible to visually differentiate between B2 and B8 activities, the two uses have been calculated together.

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Table 5-10 Employment Areas with Sites to be considered for Intensification

Employ Name of the Employment Area of land Potential Potential Gross gain if Net gain if ment Area for potential Office Industrial/ area is area is Area intensification Floorspace developed developed Warehouse Number Loss for offices for offices Floorspace Arising Loss Arising

(ha) (sq. m) (sq. m) (sq. m) (sq. m)

Molesey Industrial Estate, 4 3.06 N/A 14,800 10,000 10,000 West Molesey

Imber Court Trading Estate, 5 0.20 N/A 4,000 600 -3,300 Orchard Lane, East Molesey

Lyon Road/North Weylands, 6 1.11 N/A 5,800 3,600 3,600 Walton-on-Thames

Hersham Road North, Walton- 7d 0.42 N/A 1,300 1,400 1,400 on-Thames

Brooklands Industrial Park, 12a 0.08 3,200 N/A 300 -1,300 Weybridge

Wintersells Road Industrial 12b 0.81 N/A 3,200 2,600 2,700 Park, Byfleet, Weybridge

13 Portsmouth Road, Cobham 0.44 17,500 N/A 1,400 -7,300

Elmbridge Borough Council, 17 0.26 N/A N/A 900 900 Civic Centre, Esher

BT Telephone Exchange, 20 0.20 7,900 N/A 600 -3,300 Claygate, Esher

Total 6.58 7,000 25,000 21,000 15,000 Source: URS Elmbridge Employment Land Field Survey, 2007. Note that figures may not add up due to rounding.

In particular, the survey identified Molesey Industrial Estate (4), Lyon Road (6) and Wintersells Road Industrial Park (12b) as Employment Areas that have a number of land and premises in poor and very poor condition and would benefit from regeneration and estate maintenance and management.

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6. TOWN CENTRE SURVEY RESULTS

6.1. Introduction

The Elmbridge Core Strategy Preferred Options states the preference for employment development to take place on previously developed sites and to focus on urban centres that are more easily accessible by public transport22. Therefore, it is consistent with policy to focus the search for new sites on town centres, which due to their environments, locations and neighbouring uses, are most suitable for B1 land use.

All five town centres of Elmbridge as defined in the Local Plan were surveyed: Esher, Weybridge, Cobham, East Molesey, and Walton-on-Thames. Their geographical locations are presented in Figure 5.1.

These five town centres were assessed against strategic criteria (see Appendix 5) to determine their suitability for intensification of employment use. Elmbridge Borough Council Development Control officers worked alongside URS to identify and survey sites and provide a view of the local factors, which could influence the extent, type and likelihood of development. In total 34 sites for intensification were identified and assessed across the five town centres. The results are set out in Appendix 6.

The aim of the assessment was to determine the potential of each town centre for office development. For the aggregate figures of all five town centres the maximum potential net gain of office floorspace through intensification was calculated.

6.2. Survey Results

This section presents the results of the town centre survey. It first gives a brief description of each town centre, focusing on population size, accessibility, number of sites available for intensification and local factors and policies.

Cobham

• Population in Cobham: 11,670 inhabitants23.

• Accessibility: The town centre is well connected to the M25 via the AA245 and A3. There are poor connections to the train and bus network. The train station (Cobham and Stoke d’Abernon train station) is approximately 2km from the town centre and the bus service to the station is not frequent (the 515 line runs once an hour).

22 Some town centres are not easily accessible by public transport, so the further development of offices within these areas should be accompanied with development of public transport including bus services from the stations.

23 ONS, 2005

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• Availability of sites for offices development: Six sites were identified for possible intensification or redevelopment. In particular, the site where the community facilities owned by Surrey County Council are situated has a strong potential for redevelopment as a mixed-use scheme. Appendix 6 shows the location of the sites identified for redevelopment or intensification in Cobham town centre.

• Local factors and policies: Cobham is the town centre that is the furthest from London and it is recognised that demand for offices is not high there. Part of the town centre lies within a conservation area (Local Plan policy HEN9).

East Molesey

• Population in East Molesey: 6,265 inhabitants24.

• Accessibility: East Molesey is the only town centre not located on an A road. However it is within easy reach of the A308 to Kingston-upon-Thames and the A3050 to Walton-on-Thames. This town centre has a better connection to the train than the other town centres in the Borough. Hampton Court station is approximately 0.8km from the town centre. Bus route 411 connects the town centre with Kingston and runs approximately every 12 minutes at peak hours. It is the town centre that is the closest to London and could benefit from this favourable location.

• Availability of sites for offices development: Seven sites were identified for possible intensification or redevelopment. Amongst them one is an underused car park that belongs to a single occupier, EBC, which the Council could bring forward for redevelopment. One site was identified outside of the town centre boundaries. Some of these sites were also identified as retail or housing opportunities, which again highlights that mixed-use development may be preferred rather than office-only buildings.

• Local factors and policies: Part of the town centre lies within a conservation area (Local Plan policy HEN9).

Appendix 6 shows the location of the sites identified for redevelopment or intensification in East Molesey town centre.

Esher

• Population in Esher: 6,475 inhabitants25.

• Accessibility: Highly congested with traffic at peak travel times on the main road (A307). Access to public transport is poor - Esher train station is approximately

24 ONS, 2005

25 ONS, 2005

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1.5km from the town centre and the bus services to the station are not frequent (lines 218, and 471 run once an hour).

• Availability of sites for intensification: Five sites were identified for intensification, as shown in Appendix 6. An additional site for potential intensification was identified outside of the town centre boundaries along the A307, within 500m of the Esher train station.

• Local factors and policies: Part of the town centre lies within a conservation area (Local Plan policy HEN9), which significantly limits prospects for intensification.

Weybridge

• Population in Weybridge: 8,221 inhabitants26.

• Accessibility: Road connections are good (the A3050 links Weybridge to Walton- on-Thames and the A317 provides easy access to the M25). The nearest train station (Weybridge Station) is approximately 1.3km from the town centre and bus 451 to the station runs once an hour.

• Availability of sites for intensification: Six sites were identified as shown in Appendix 6.

• Local factors and policies: Part of the town centre lies within a conservation area (Local Plan policy HEN9).

Walton-on-Thames

• Population in Walton-on-Thames: 23,509 inhabitants27 in Walton-on-Thames as a whole.

• Accessibility: The town centre is easily accessible by car via the A3050. However parking is an issue in the town centre. Public transport connexions are poor, since Walton station is not within walking distance of the town centre (1.3 km). Bus links to the station run approximately three times an hour (bus route 555-556 is the most frequent one).

• Availability of sites for offices development: 11 sites were identified for possible intensification or redevelopment. Walton-on-Thames is currently the major focus of development in Elmbridge. The survey identified a fair amount of developable sites. However some of these sites were already identified as retail or housing opportunities. Given competition between different uses in the town centre, mixed-use development may be appropriate. A site was identified at the fringe of the town centre boundaries.

26 ONS, 2005

27 ONS, 2005

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• Local factors and policies: Walton-on-Thames is the main focus of development amongst Elmbridge’s town centres. The area identified as ‘The Centre’ in the Local Plan is currently undergoing a major refurbishment with retail redevelopment. Additionally, part of the town centre lies within a conservation area (Local Plan policy HEN9).

Appendix 6 shows the location of the sites identified for redevelopment or intensification in Walton-on-Thames town centre.

6.3. Net Floorspace Gain Through Intensification

This section presents the potential net gain in office floorspace across for the five town centres. For those sites identified with potential scope for intensification or redevelopment, two development scenarios were considered:

1. All office: All net floorspace gain is dedicated to office use.

2. Mixed-use: For those sites considered suitable for mixed-use development, floorspace is split between office and retail/residential. The likelihood of mixed-use development for each site was assessed in collaboration with Elmbridge Borough Council Development Control officers. For those sites not suitable for mixed-use development, net floorspace gain was quantified for office use only. The sites that are more likely to be developed as mixed-use are presented in Table 6.1.

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Table 6-1 Sites Identified for Mixed-Use in the Town Centres28

Town Centre No Name of the site

Esher E1 Junction Esher Green/ High Street

E2 Public car park on Claremont Street and Waitrose car park

E3 High Street 1

E4 High Street 2

Weybridge W1 In grounds of NHS centre car park, off Church Street and rear service areas of retail functions fronting High Street.

W2 Elmgrove Rd. Rear building fronting high street, service yard & 'Red Cross Shop'

W4 Monument Hill

W5 Baker Street (with frontage on the High Street)

Walton-on-Thames WT1 Church Street 1

WT2 Church Street 2

WT3 Off Church Street

WT4 Church Street 3

WT5 Junction High Street/ Church Street 1

WT6 Junction High Street/ Church Street 2

WT7 Junction Church Street/ Bridge Street 3

WT8 New Zealand Avenue

WT9 High Street

WT10 Churchfield road

Cobham C1 Car park to the south of Hollyhedge Road, and WC to the north.

C2 Sandwiched between High Street western side and Longboyds Road 1

C3 Sandwiched between High Street western side and Longboyds Road 2

C4 At rear of 31 High Street

C5 Cedar Road

C6 Oakdene Road

East Molesey EM1 Spencer Street

EM2 Off Walton Road 1

EM4 157-169 Walton Road

EM5 Manor Road

EM6 Off Walton Road 2

EM7 Matham road Source: URS 2007

28 Sites identified through consultation with the Development Control Team.

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In order to calculate the potential gain from the intensification of the town centre sites the following assumptions were formulated:

• The likely number of building storeys was assessed for each site (in many cases intensification of land would result in different storey heights, so the average number of storeys was used for floorspace calculations); and

• The proportion of land to be developed (site area to footprint ratio was assessed for each site individually with due regard to site context, location, relationship to other land uses in the immediate vicinity and commercial attractiveness).

Table 6.2 below presents the maximum net office floorspace gain in each town centre under the two scenarios considered (all office development and mixed-use development).

Table 6-2 Maximum Net Office Floorspace Gain

Number of sites All office scenario Mixed-use scenario identified through Town Centre survey Net gain (sq m) Net gain (sq m)

Cobham 6 20,000 12,000

East Molesey 7 12,000 8,000

Esher 5 10,000 8,000

Walton-on-Thames 10 75,000 57,000

Weybridge 6 42,000 31,000

Total 34 159,000 117,000 Source: URS Calculations 2007. Note that figures may not add up due to rounding.

The 34 potential development sites in Elmbridge town centres have a total capacity to yield between 117,000 sq.m of net office floor space gain for the mixed-use scenario and 159,000 sq.m of net office floorspace gain for the all offices scenario.

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7. COMMERCIAL PROPERTY MARKET ASSESSMENT

7.1. The Employment Land Market

South East Office Market Overview

The M25 office market is one of the most important regional office markets within the UK and comprises a total of approximately 11.2 million sq m. Given the size of the market it serves as an excellent barometer to UK market performance and, for the purposes of the Elmbridge employment land review, a sound indicator of the position of the current commercial property market within the South East. Furthermore activity within the market also helps demonstrate the level and quality of take-up activity, trends in availability, vacancy and occupier demand. Figure 7.1 illustrates the M25 office market which for the purposes of analysis is divided into quadrants as marked by the different colours.

Figure 7-1 M25 Employment Land Quadrants

Source: Knight Frank

Overall availability across the South East at the end of Q4 2007 showed 864,000 sq m, reflecting a vacancy rate of 7.3% and a marked fall compared to 8.1% in Q4 2006. This

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decline in the vacancy rate during 2007 underlines the steady letting activity in the occupational market.

As well as falling vacancy rates over the last 12 months, M25 take-up in 2007 was 334,400 sq m, in line with the previous year, which was the highest annual total take-up since 2000. Furthermore with healthy levels of unsatisfied demand and a limited amount of new accommodation in the market, this trend of steady letting activity should continue in 2008.

Over the past 24 months availability in the South East has been characterised by a steady erosion of new and good quality accommodation. Although there has been no surge in development activity as witnessed in the late 1990s, even following the return of significant pre-lets, the market has recorded incremental progress. While no dramatic surge in activity is forecast, exogenous shocks withstanding, the market appears set to continue with this steady performance moving forwards. In terms of exogenous shocks it would appear that while the market fundamentals remain positive the downsides to risk are becoming ever greater.

Key concerns in the current UK market over the short to medium-term include the fall out of the “Credit Crunch” on the Financial & Business Services sector and how this may impact on the broader economy. Furthermore, the implications of a possible recession in the US may also have a knock-on effect on the occupational market in the UK and based on historic evidence most notably the M4 corridor. Within the UK market, while the fundamentals remain positive there are concerns within the economy with inflation pressures lingering which in turn is affecting the pace of monetary policy loosening. Although the majority of forecasters are projecting that the UK will avoid a technical recession there is consensus that activity will slow and again this is likely to impact on activity in the occupier market.

Despite sustained letting activity over the last 12 months, the decline in the vacancy rate has been hampered due to the amount of poorer quality second-hand accommodation entering the market. This has, to a certain extent, reduced the impact of the improving letting activity and masked the bias shown by occupiers towards new and Grade A second-hand accommodation. It is in this type of accommodation that occupiers are most interested. During 2007 new and good quality second-hand Grade A accommodation accounted for 82% of total take-up. The majority of the poorer quality accommodation that was acquired in the market was for a change of use, most commonly for residential.

Since 2003 there is evidence of the slow re-emergence of the pre-let (from plan and pre- practical completion), which had been absent from the market for some time but accounted for a high proportion of take-up between 1998 and 2000 (36%). The return of the significant pre-let in the market is a clear indication of improving market sentiment and a lack of large, good quality product in key centres.

South West Quadrant of the South East Office Market

The Borough of Elmbridge is located in the South West quadrant of the M25 office market. Within the South West quadrant of the M25 office market availability generally witnessed a

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decline since 2004, as illustrated in Figure 7.2. In Q4 2003 availability in the South West quadrant reached 431,000 sq m. Availability rates fell over the next 12 months to 361,000 sq m and following a brief rise up to 417,000 sq m in Q4 2004 have since steadily fallen on a quarterly basis to 321,000 sq m. From Figure 7.2 below it is clear that since Q2 2003 the amount of new accommodation in the market has been steadily eroded from 163,000 sq m to 60,000 sq m in Q4 2007. Availability for Grade A29 accommodation has also been eroded in the market since Q2 2006 totalling 181,000 sq m down to 140,000 sq m in Q4 2007.

Figure 7-2 South West Quadrant Office Quarterly Availability

45,000 40,000 35,000 30,000 25,000 S/Hand B S/Hand A

Sq m Sq m 20,000 New 15,000 10,000 5,000 0 Q1 1998 Q1 1998 Q4 1999 Q3 2000 Q2 2001 Q1 2001 Q4 2002 Q3 2003 Q2 2004 Q1 2004 Q4 2005 Q3 2006 Q2 2007 Q1 2007 Q4

Source: Knight Frank N.B. Upwards of 929 sq.m (10,000 sq.ft.)

Overall activity within the South West quadrant of the M25 office market appears demonstrative of the whole M25 market. This is most clearly demonstrated with the erosion of new and Grade A accommodation in recent years. Moving forwards take-up levels are expected to remain constant and continue to focus on better quality accommodation.

Availability (Size and Quality) across sub-markets of Elmbridge Borough

Although Elmbridge is part of the mature South West quadrant of the M25 there is only one major office centre within the Borough, Weybridge. There are a number of other smaller markets, Walton-upon-Thames, Esher, East Molesey, Thames Ditton and Cobham which have a much smaller more localised office markets. Overall the Borough

29 Second-hand floorspace has been sub-divided into A and B grade accommodation, reflecting high and low quality respectively. Whilst subjective, this categorisation is based on an assessment of each property’s age, specification, location and overall attractiveness. New buildings are those defined as being less than two years old.

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is characterised by localised activity with occasional major transactions. Availability levels within the market have also been affected by a small number of larger units. It is also important to note that the office market analysis is based on availability and take-up of units of 930 sq m or above.

Figure 7-3 Weybridge Office Availability by Quality

50,000 45,000 40,000 35,000

30,000 S/Hand B 25,000 S/Hand A Sq m Sq m 20,000 New 15,000 10,000 5,000 0 Q1 1998 Q1 1998 Q4 1999 Q3 2000 Q2 2001 Q1 2001 Q4 2002 Q3 2003 Q2 2004 Q1 2004 Q4 2005 Q3 2006 Q2 2007 Q1 2007 Q4

N.B. 930 sq m Upwards

Source: Knight Frank

Figure 7.3 illustrates the changing levels of availability within Weybridge since 1998 and demonstrates the significant change that occurred in the market at the beginning of 2003. Before 2003 availability levels within the market remained low with a quarterly average of just 3,700 sq m with availability based on a small number of units of varying quality. However, there was a major shift at the beginning of 2003 following the completion of five new buildings at Brooklands (units A to E) which resulted in an additional 33,000 sq m of new accommodation entering the market, the largest unit, Building E, totalled 11,000 sq m. Since the beginning of 2003, availability within the market has been slowly eroded both for new and Grade A accommodation and at the end of Q4 2007 availability within the market totalled 22,000 sq m, consisting of seven separate units.

Given the quality and quantity of office accommodation available within the market it is not surprising that there are currently no schemes under-construction in Weybridge or any proposed developments within the pipeline.

Office Availability Elsewhere in the Elmbridge Borough

Within Elmbridge there are several office sub-markets in addition to Weybridge including Walton-upon-Thames and Cobham. These sub-markets demonstrate substantially lower levels of availability than Weybridge although it should be noted that the unit sizes appear relatively large compared to many other office centres within the region albeit that there are currently no new units available.

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In addition to the 22,000 sq m of accommodation available in Weybridge there is a further 10,000 sq m of accommodation available in the sub-markets of Walton-upon Thames and Cobham, with an average unit size of 2,000 sq m, compared to the Weybridge average of 3,000 sq m. Also notable is that as well as being smaller on average the quality is not as good in the sub-markets with no new units available. Furthermore, there are currently no office units available (above 930 sq m) in Esher, East Molesey or Thames Ditton. Table 7.1 presents the local office market centres availability in Elmbridge.

Table 7-1 Elmbridge Local Office Market Centres Availability

Address Size (sq m) Grade Munro House, Portsmouth Road, Cobham 1,300 A

Glashaus, Portsmouth Road, Cobham 2,000 A

Walton Reach, Walton-upon-Thames 1,300 A

Balfour House, Walton-upon-Thames 2,600 B

Hersham Place, Walton-upon-Thames 3,300 B Source: Knight Frank

Figure 7-4 Weybridge availability compared with other local centres

45,000 40,000 35,000 30,000 25,000

Sq m Sq m 20,000 15,000 10,000 5,000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Weybridge Epsom Leatherhead Staines Woking

N.B. 10,000 sq ft Upwards

Source: Knight Frank

Figure 7.4 above provides a useful insight into the different patterns of development across Weybridge and it’s neighbouring centres. Across all of the selected centres average availability between 1998 and 2002 remained broadly constant. However, availability levels in several of the centres rose markedly in 2003. This is most likely a result of completion of speculative development activity within the area following the

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upturn in the office market during the late 1990s. However, by the time many of the new buildings had been completed in late 2001, demand in the market had fallen. Following the completion of the new units A to E at The Heights, Brooklands, Weybridge recorded a notable increase in average availability. Staines also witnessed a sharp increase at the same time due to new development. However, from the graph it is also clear that while other centres have seen availability rates remain broadly static in recent years, Weybridge has seen a continued decline.

Table 7-2 Office availability in Weybridge and Comparative Centres

Towns Stock Average Availability Q4 2007 Pipeline Quarterly Availability 1998-2007 New Second Second Under Type A2 Type B2 Hand A1 Hand B1 construct sq m Sq m -ion Sq m Sq m Sq m Sq m

Weybridge 424,000 19,000 19,000 2,900 - - - -

Epsom 117,000 5,000 - 4,300 5,200 - - -

Leatherhead 240,000 10,000 2,500 1,000 4,000 *14,000 3,200 -

Staines 251,000 21,000 12,000 20,000 5,600 2,800 29,000 -

Woking 270,000 15,000 - 18,000 4,300 - 10,300 - Source: Knight Frank 1. Second Hand A = high quality, Second Hand B = low quality based on an assessment of age, specification, location and overall quality 2. Type A and Type B refer to the likelihood of the site being successfully developed, Type A being more likely to proceed. *Pre-let to Unilever Annual average of quarterly availability over 929 sq m (10,000 sq.ft.)

Table 7.2 above reveals that on average availability in Staines is most comparable with Weybridge with Epsom offering the lowest level of available accommodation based on an annual average of quarterly availability. Alongside Weybridge, Staines is the only other centre with a substantial amount of new accommodation available in the current market, while Leatherhead offers just 2,600 sq m. Woking and Epsom currently have no new accommodation available. The vacancy rate for Weybridge currently stands at 5.2% compared to 8.1% in Epsom, 3.2% in Leatherhead, 15% in Staines and 8.6% in Woking.

Although there is no new accommodation in the development pipeline for Weybridge it is important to note that there is a considerable amount of accommodation in the development pipeline in the surrounding centres totalling 60,000 sq m (14,000 sq m of which is already pre-let to Unilever in Leatherhead).

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Office Pipeline Surrounding Centres

Table 7.3 gives an overview of the office development pipeline, those schemes that have sought or been granted planning permission of office development in the key surrounding centres. There are currently no schemes within the development pipeline for Elmbridge.

Table 7-3 Office Pipeline Surrounding Centres

Address Application Consent Size Type1 (sq m)

Leatherhead Leatherhead Office Park FULL 14,000 U/c Baydell House FULL 1,300 A Former Seeboard Site FULL 1,900 A

Staines Skylink House FULL 3,000 A Studios FULL 2,800 U/c Causeway FULL 10,000 A 5a/7 Fairfield Avenue FULL 1,500 A

Woking Brewery Road FULL 10,300 A

1Type A and B refer to the likelihood of the site being successfully developed, Type A being more likely to proceed. Source: Knight Frank

A total of some 31,000 sq m of office space is likely to be developed in the future in neighbouring centres in addition to the 17,000 sq m currently under-construction (of which 14,000 sq m has already been pre-let). The majority of the scheduled development is located in Staines.

Overall supply of office accommodation in the main office centre within Elmbridge remained limited until the completion of the new units at the Heights in 2003 which introduced a significant amount of new accommodation to the market. Following the completion of The Heights availability has been slowly eroded within the town on an annual basis. The vacancy rate currently stands at 5.2% in Weybridge and 7.6% for Elmbridge as a whole. Another important point is that availability within the Weybridge market is characterised by new accommodation, a limited amount of Grade A space and no Grade B units. Given the volume of new accommodation that remains available in the market this is a strong indication of why there are currently no schemes within the development pipeline within Elmbridge.

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7.2. Office Market Demand

Office Rents

Comparing office rents between the neighbouring centres provides an indication of the relative demand for office space and attractiveness of the different centres. Figure 7.5 below demonstrates the rental levels achieved in Weybridge and the surrounding centres since 1998. Although each centre reveals a similar trend with rents increasing towards the peak of the market in 2000 and then each experiencing a downturn in 2001 which continued until the beginning of 2004. While a broad trend is evident it is also clear that the rents vary across each of the centres. Rental levels in Staines demonstrate the greatest volatility of all the markets, having achieved the highest rents in 2000/01 of £366 per sq m, following the decline in the market rental levels fell markedly to a low of £247.60 per sq m at Q4 2004. By contrast rental levels in Weybridge have demonstrated a more constant performance and currently stand at circa £317.50 per sq m. This will be largely due to the amount of new accommodation that has been available in the market since 2003. Other neighbouring markets have followed a similar trajectory, although it should be noted that Woking recorded a significant upwards shift in rents during 2007, rising from £253.00 per sq m to £285.00 per sq m.

Figure 7-5 Comparison of Town Office Best Rents

415.00

365.00

315.00

265.00 £ per sq m

215.00

165.00 Q1 1998 Q1 1998 Q4 1999 Q3 2000 Q2 2001 Q1 2001 Q4 2002 Q3 2003 Q2 2004 Q1 2004 Q4 2005 Q3 2006 Q2 2007 Q1 2007 Q4 Weybridge Epsom Leatherhead Staines Woking

Source: Knight Frank

Overview of take-up rates

Take-up rates in Weybridge, the key office market within Elmbridge Borough, have proved relatively constant and healthy since 1998. Supply has dictated that take-up has focused on new accommodation, particularly in recent years. Since 2003 new accommodation has accounted for 71% of all letting activity. In contrast, since 1998 there have only been three-quarters which have seen Grade B lettings.

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Annual take-up within the Weybridge market since 1998 has averaged 3,900 sq m. the two highest annual totals were achieved in 2006 and 2007 with totals of 7,700 sq m and 7,300 sq m. This is perhaps another indicator of the supply affecting take-up levels. Based on evidence of the broader market performance one would have expected take-up to have peaked in 2000/2001 however, at that time there was only a limited amount of accommodation available in the market, which arguably will have constrained demand.

Reviewing the whole of the Elmbridge district take-up since 1998 has totalled 57,000 sq m, of which Weybridge lettings accounted for 70%, 39,500 sq m. Across the whole district the average transaction size has been 1,400 sq m. The largest transaction to complete in the Borough over the time period was in Q3 2006 when Gearbulk acquired totalled 3,500 sq m of new accommodation at Building E, The Heights, Brooklands.

Table 7.4 lists the transactions completed in the Elmbridge Borough since 1998.

Table 7-4 Elmbridge District Office Market Take-up

Quarter Address Sub-market Grade OCCUPIER

Q3 1998 Esher House Esher A Venson Group

Q2 1999 205 Brooklands Road Weybridge A Bacardi-Martini Beverages

Q3 1999 De Ville Court Weybridge New Uni-Chem

Lima, Bourne Bus. Richard Lawson Auto Q3 1999 Weybridge Pre-let Park Logistics Ltd

Q2 2000 Aviation House Weybridge New Abbey Business Centres

Q3 2000 Fairmile Place Cobham New Open Capital

Q3 2000 Quebec Weybridge New Heeler Financial

Q4 2000 India Weybridge New Michael Page

Q1 2001 House Walton on Thames Pre-let KBC Process Technology

Q2 2001 Persimmon House Weybridge B Unknown

Q2 2001 Sierra Weybridge New Centura Foods

Q2 2002 Bravo Weybridge New Thales

Q3 2002 Cedar House Cobham A Mundays Solicitors

Q4 2002 Wyndham Court Cobham B Berkeley Group

Q4 2003 Brooklands Weybridge New KIA Motors

Unit C, St Georges Q4 2003 Weybridge B Sirocom BP

Q1 2004 Munro House Cobham A Willmott Dixon

Q3 2004 The Heights Weybridge New Alliance Unichem

Q4 2004 Alliance House Weybridge A Verity Systems

Q2 2005 ChurchField House Weybridge A Idis

Wolseley, Wilmott Dixon, Q3 2005 Munro House Cobham A Rushman Homes and Reda

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Quarter Address Sub-market Grade OCCUPIER

Q3 2005 The Heights Weybridge New Daikin

Q3 2005 Sierra Weybridge New Centura Foods

Unit 12, Horizons Q4 2005 Weybridge New Unknown Business Village

Unit 13, Horizons Q4 2005 Weybridge New Unknown Business Village

Unit 14, Horizons Q4 2005 Weybridge New Unknown Business Village

Q1 2006 Nelson House Walton on Thames B

Q1 2006 Unit 9 Weybridge BP Weybridge A Cochler

Building E, The Q1 2006 Weybridge New Proctor & Gamble Heights, Brooklands

2nd Flr, Blding A, The Select Service Partner UK Q3 2006 Weybridge New Heights, Brooklands Ltd

2nd Flr, Blding E, The Q3 2006 Weybridge New Gearbulk Heights, Brooklands

DHP Property Consultants Q4 2006 243 Brooklands Road Weybridge A Ltd

Q1 2007 Milbourne House Esher B Royalton

Q1 2007 Crest House Weybridge B Sold F/H

Q1 2007 The Heights Weybridge New Proctor & Gamble

Q2 2007 Benchmark House Weybridge A Elliott Advisors/Xilinix

Building 1, The Q2 2007 Weybridge New BP Heights

Q3 2007 Munro House Cobham A Creston

Q3 2007 205 Brooklands Road Weybridge A Holden Pearman Research

Building 5, The Q4 2007 Weybridge New Samsung Heights Source: Knight Frank

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Figure 7-6 Elmbridge Borough Office Take-up

12,000

10,000

8,000

6,000 Sq m Sq m 4,000

2,000

0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Weybridge Local Markets

N.B. 930 sq m Upwards

Source: Knight Frank

Take-up activity within the market has been dominated by lettings of new and good quality accommodation in Weybridge since 1998. Although it could be argued that take- up activity was constrained before the completion of The Heights development, Brooklands, it is clear that take-up levels within the Borough have improved over the last three years. It is interesting to note that by taking account of just the recent history (last three years) average annual take-up has totalled 9,800 sq m compared to an average of 5,400 sq m per annum since 1998.

Based on recent years transactional evidence and the underlying performance of the broader market, letting activity in the district should remain constant at circa 9,300 sq m per annum provided new accommodation continues to remain available in Weybridge. Should the volume of new accommodation be eroded and not replenished take-up levels are likely to fall well below even the 5,400 sq m per annum. The key for the take-up forecasts is the recent transactional evidence with evidence of a broad range of occupiers acquiring space (which has not just been the result of one or two large transactions). Furthermore, trends across the broader South East office market reflect the performance of Weybridge, with steady letting activity having continued over the last two years with the focus strongly based upon new accommodation.

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Figure 7-7 Annual Office Take-up for Elmbridge and Comparative Centres 98-07

25,000

20,000

15,000

Sq m Sq m 10,000

5,000

0 ‘98-’07 ‘98-’07 ‘98-’07 ‘98-’07 ‘98-’07

Epsom Staines Woking Weybridge Leatherhead

N.B. 930 sq m Upwards

Source: Knight Frank

Figure 7.7 above illustrates the different volumes of letting activity recorded in Weybridge and it’s neighbouring centres. Leatherhead, Staines and Woking all demonstrate a more pronounced cyclical pattern of demand than Weybridge, with take-up activity rising during the late 1990s, falling at the beginning of the 2000s and then strengthening again from 2004 onwards. Epsom represents an exception to this trend with take-up levels following a broadly downward trend since 1998. Also clear from the graph is the different volume of take-up activity recorded in the markets since 1998. Leatherhead, Staines and Woking each recorded higher peaks of take-up in the market due to a small number of significant transactions e.g. letting activity in Leatherhead in 2006 was boosted considerably by the Unilever pre-let totalling 14,600 sq m.

Table 7-5 Take-up Activity (sq.m) in Weybridge and Comparable Markets 1998-2007

Weybridge Epsom Leatherhead Staines Woking Total Take-up 39,500 18,500 57,000 86,000 80,300

Average Annual Take-up (sq.m) 3,900 1,850 5,700 8,600 8,000

Average Quarterly Take-up (sq.m) 990 460 10,300 2,100 2,000

Largest Single Transactions (sq.m) 3,500 2,900 14,600 9,300 9,800

Proportion of that years annual take- 46% 85% 73% 56% 57% up (sq.m) Source: Knight Frank

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Table 7.5 provides further evidence of the range of transaction volumes in different markets, with Leatherhead, Staines and Woking all demonstrating much greater levels of activity. The size of the most significant transactions is also indicative of the different types of office centre, with Leatherhead, Staines and Woking each attracting major occupiers.

Overall take-up within Elmbridge, most importantly Weybridge, changed following the completion of the new units at The Heights. Letting activity has been varied both in terms of size and occupier type although almost all has involved new accommodation. The strength of letting activity within Weybridge and the surrounding markets (as noted in the table above) underlines that there is demand within the market and this has been focused on pre-lets, new and good quality second-hand accommodation.

7.3. Industrial (B2 and B8) Market Supply

Surrey and Hampshire Industrial Market Overview

The analysis of the industrial market is different to that of the office market as the areas involved are often substantially greater. As such the review of the industrial market covers a much greater geographical area compared to the office market and spans across Surrey and Hampshire rather than the South West M25 quadrant.

The Surrey and Hampshire market starts inside the M25 with the A3, to eventually reach Basingstoke on the M3. The amount of warehouse stock appears relatively low compared to many other regions within the UK. Within the region as a whole the relatively low level stock is the result of a limited land supply, high land values and expensive labour which have combined to constrain the amount of development in the area. Of the built stock within the Surrey and Hampshire region the majority is located in Weybridge, Camberley and Basingstoke and is relatively small.

Government statistics show that total industrial space in the Surrey and Hampshire region is circa 45m sq ft. According to a survey completed by Gerald Eve just under 5m sq ft of this stock is logistics space under 50,000 sq ft. Almost a quarter of distribution warehousing stock is occupied by retailers, such as Sainsbury’s, Tesco, Bentalls, John Lewis and Boots. Manufacturers occupy a further third, with occupiers including machinery manufacturers, Linde and Andreas Stihl, and publishing and printing firms, such as Gazette Newspapers.

There are just seven units in the Surrey and Hampshire region over 23,200 sq m, most of which are clustered in and around Basingstoke and Weybridge. Just over 40% of floorspace are units of 4,600-14,000 sq m, although in terms of the count of units, these represent almost three quarters of the total. Similar to the office market, a high proportion of the warehousing stock within the region is considered good quality.

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In terms of development activity within the region there has only been a limited amount of large-scale units completed in recent years, again reflecting the combination of a lack of available land and high land values.

Elmbridge Industrial Market

Although Elmbridge has a relatively large industrial stock it is not regarded as a warehouse market. This is largely the result of high land values and a limited amount of land available within the market. The most significant concentration of industrial accommodation is situated at Brooklands Industrial Estate. The estate is located just off the A3 and near the interchange with the M25 and therefore has good access to key transport routes. Brooklands Industrial Estate is one of the few industrial locations within Surrey inside the M25 with large-scale warehouses. Access to the park is somewhat constrained as the roundabout at the entrance is shared by traffic for the adjacent retail park and the A245 link road to the A3 is also used by local residential and commercial traffic.

Table 7.6 provides an overview of the industrial market supply.

Table 7-6 Industrial Market Supply

Building Name Sub-market Size (sq m) Grade Tenure Vanguard, Brooklands Bpark Weybridge 3,500 Second Hand Leasehold

Brooklands Weybridge 2,100 Second Hand Leasehold

A303 Brooklands Ind Park Weybridge 1,000 Second Hand Leasehold

23 Trade City Brooklands Weybridge 300 Second Hand Leasehold

14 Trade City Brooklands Weybridge 420 New or Refurbished Leasehold

11 Horizon Business Village Weybridge 460 Second Hand Leasehold

10 Horizon Business Village Weybridge 460 Second Hand Leasehold

Unit 5 Molesey BCentre Walton On Thames 350 Second Hand Freehold

106-108 Down Street Walton On Thames 300 Second Hand Leasehold

16-18 Island Farm Avenue Walton On Thames 500 Second Hand Freehold

Hersham Trading Estate Walton On Thames 400 Second Hand Leasehold

B Hersham Trading Estate Walton On Thames 100 Second Hand Leasehold

Hersham Trading Estate Walton On Thames 900 Second Hand Leasehold

140 Molesey Avenue Walton On Thames 500 Second Hand Freehold

67 Thames Street Weybridge 600 Second Hand Freehold Source: Knight Frank

Total availability of industrial accommodation within the Elmbridge Borough stands at 13,000 sq m, with the majority of accommodation available located within Weybridge (76%). The average size of units across the market stands at 720 sq m. While the largest unit currently available for occupation within the Borough is Vanguard, Brooklands

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Business Park which totals 3,500 sq m. Of the accommodation available within the borough the vast majority (91%) is second-hand. This may provide an explanation of why vacancy rates within the market appear high.

Table 7-7 Industrial availability in Elmbridge and Comparative Centres (sq.m)

Towns Total Stock (B8) Stock (B2) Availability Q4 2007 Pipeline Industrial Stock New Second U/c Type A2 Type B2 Hand A1

Elmbridge 390,000 200,00 180,000 1,000 12,000 - 25,000 -

Epsom & 100,000 56,000 45,000 - 1,000 8,600 - - Ewell

Mole Valley 230,000 110,000 120,000 1,500 11,000 11,000 - -

Spelthorne 330,000 230,000 13,000 500 9,000 - - -

Woking 300,000 130,000 170,000 7,000 26,000 - - -

1 Second Hand A = high quality, Second Hand B = low quality based on an assessment of age, specification, location and overall quality 2 Type A and Type B refer to the likelihood of the site being successfully developed, Type A being more likely to proceed. Source: Knight Frank, Glennigans

Comparative centres to Elmbridge were selected from the major neighbouring including Epsom & Ewell, Mole Valley, Spelthorne and Woking. Table 7.7 above reveals that Elmbridge has the greatest industrial stock, including both B2 and B8 uses. However, in terms of available accommodation there is only a limited amount of new space on the market, totalling just 1,200 sq m in three separate units all located at Trade City, Brooklands. Availability in Spelthorne appears the most comparable with Elmbridge, with a limited amount of new stock available, with just one new unit totalling 500 sq m at Gartside House. The vacancy rate within Elmbridge for industrial accommodation stands at just 3.3% (it should be noted that available industrial accommodation is not always specified as B2 or B8 use and hence the vacancy rate is demonstrative of the all industrial space in Elmbridge.

There are currently two schemes within the development pipeline in Elmbridge which have the potential to deliver 25,000 sq m of industrial accommodation. Further details of the schemes are outlined in Table 8.8.

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Table 7-8 Elmbridge Industrial Development Pipeline

Address Application Consent Size (sq m) Type1 Kingston House, Portsmouth Road *FPPG 6,800 A Silverblade Site Avro Way FPPG 18,000 A 1 Type A and B refer to the likelihood of the site being successfully developed, Type A being more likely to proceed. * FPPG – Full planning permission granted. Source: Knight Frank

Kingston House, Portsmouth Road

The scheme comprises of demolition of the existing Kingston House and construction of a 4-storey storage warehouse with office facilities. The scheme will include works on an access road, infrastructure, sewer systems, landscaping and enabling. Detailed planning permission has been granted by Elmbridge Borough Council.

Silverblade Site Arvo Way

The scheme comprises construction of 2 bays of high bay warehouse and offices totalling 6,000 sq m. This includes conversion of the remaining high-bay warehouse to form three storage and distribution units of 4,800 sq m with Mezzanine floor. In addition the development includes the construction of 25 terraced warehouse/industrial units totalling 13,300 sq m. Works will include loading bays, industrial doors, dock levellers, 225 surface parking spaces, sprinkler tanks, access roads, hard and soft landscaping, sewer systems, infrastructure and enabling works. Detailed planning permission has been granted by Elmbridge Borough Council.

The two schemes combined have the potential to offer a considerable amount of industrial accommodation within the Borough. However, to place this in context the following section reviews take-up of industrial space within the borough in recent years.

Industrial Take-up in Elmbridge

Figure 7.8 below illustrates the changing patterns in letting activity within Elmbridge both in terms of volume and use type. Clearly visible is the change in demand within the market with a shift from B2 to B8 use over the last three years. Since 2002 annual take- up for B2 land use has averaged 16,000 sq m and totalled 96,000 sq m over the last five years. In contrast, the volume of transactions involving B8 accommodation over the period totalled 240,600 sq m with an annual average of 40,000 sq m. Although there is a marked difference in volume, average transaction sizes recorded in the market since 2002 for the separate uses are very similar with B2 transactions averaging 850 sq m and B8 at 880 sq m.

The largest transaction completed B8 transaction to complete in the market between 2002-2007 completed in Q4 2005 at Brooklands Industrial Estate and totalled 5,200 sq m. More recently (Q1 2008) there was a larger transaction at 27 Pool Road, Walton upon

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Thames where a unit totalling 6,300 sq m was acquired. The largest B2 unit totalled 4,230 sq m and completed at Europa 3 (3 Cox Lane) in Q4 2002.

Figure 7-8 Industrial Take-up in Elmbridge

120,000

100,000

80,000

60,000 Sq m Sq 40,000

20,000

0 2002 2003 2004 2005 2006 2007

B2 B8

Source: Knight Frank, Focus, Egi

Given the changing patterns in demand within the market over recent years it is interesting to note that based on data from the last three years the total amount of B2 accommodation acquired reached just 10,200 sq m, an annual average of 3,400 sq m with an average transaction size of just 400 sq m. Notably the largest single transaction recorded in Elmbridge between 2005-2007 totalled just 1,100 sq m. This compares to the B8 use which totalled 221,000 sq m, an annual average of 74,000 sq m and an average transaction size of 870 sq m.

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Figure 7-9 Annual Industrial Take-up for B2 accommodation in Elmbridge and Comparative Centres 2002-2007

20,000 18,000 16,000 14,000 12,000 10,000 Sq m m Sq 8,000 6,000 4,000 2,000 0 ‘02-’07 ‘02-’07 ‘02-’07 ‘02-’07 ‘02-’07 e ey n ll ing Ewell hor bridge & lt m le Va Wok El m Mo Spe Epso

Source: Knight Frank, Focus, Egi

Elmbridge recorded significantly more lettings than any other of the neighbouring centres between 2002 and 2007 for B2 accommodation. Take-up within the Borough was markedly higher between 2002-4, peaking at 18,000 sq m in 2004. The closest rival in terms of letting activity among the neighbouring boroughs was recorded in Spelthorne, although the peak in the centre achieved in the same year was only 9,800 sq m.

Following strong letting activity of B2 accommodation in the market leading up to 2004 take-up levels fell dramatically. Although this is most evident in Elmbridge given the higher take-up volumes it is a trend that can be seen across the neighbouring markets. This reflects the broader trend of the South East industrial market with demand having moved away from B2 space in recent years.

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Table 7-9 Summary of Take-up of B2 accommodation in Elmbridge and Comparable Markets 2002-2007 (sq.m)

Elmbridge Epsom & Mole Valley Spelthorne Woking Ewell Total Take-up 52,000 2,900 3,900 19,600 17,400

Average Annual 8,700 570 780 4,900 3,500 Take-up

Average 850 400 430 800 760 Transaction

Largest Single 4,200 1,100 1,100 3,100 3,300 Transactions Source: Knight Frank Table 7.9 above provides evidence that although overall take-up volumes between the centres varies quite considerably, there is very little difference in the average size of transaction recorded across each of the markets, all below 930 sq m, and for the larger more prominent markets (Elmbridge, Spelthorne and Woking) the average transaction sizes are each 740-840 sq m. There is also a similar trend evident regarding the largest transactions recorded in the different markets with each of the larger centres witnessing deals of between 3,100 sq m and 4,200 sq m. Overall it is clear that Elmbridge successfully attracted more lettings than other neighbouring centres, although the size of transactions remained comparable, at circa 4,200 sq m. In recent years take-up of B2 accommodation has been markedly lower across all of the markets.

Figure 7-10 Annual Industrial Take-up for B8 accommodation in Elmbridge and Comparative Centres 2002-2007

70,000

60,000

50,000

40,000

Sq m m Sq 30,000

20,000

10,000

0 ‘02-’07 ‘02-’07 ‘02-’07 ‘02-’07 ‘02-’07 e ll y e g g e le in d w l rn k ri E a o b V h o & e lt W lm l e m o p E o M S s p E

Source: Knight Frank, Focus, Egi

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The profile of the graph in Figure 7.10 reveals the dominance of Elmbridge in terms of B8 letting activity compared to each of the neighbouring centres. The data also reveals the growing demand for B8 accommodation within the market in recent years. Although this is not as clearly demonstrated by the other neighbouring centres it is a trend that has been seen across the South East as a whole in recent years.

Table 7-10 Summary of Take-up of B8 accommodation in Elmbridge and Comparable Markets 2002-2007 (sq.m)

Elmbridge Epsom & Mole Valley Spelthorne Woking Ewell Total Take-up 167,000 9,000 12,700 41,000 27,700

Average Annual 26,500 2,200 3,200 8,300 6,900 Take-up

Average 850 500 600 1,000 900 Transaction

Largest Single 5,200 2,300 3,600 6,500 5,000 Transactions Source: Knight Frank, Focus, Egi

Table 7.10 above again provides evidence that although overall take-up volumes between the centres varies quite considerably, there is very little difference in the average size of transaction recorded across the larger markets, with each at circa 830 sq m. There is also a similar trend evident in terms of the largest transactions recorded in the larger markets with each of the larger centres witnessing deals of between 5,200 sq m and 6,500 sq m. In contrast to demand for B2 accommodation the data reveals that B8 accommodation has dominated letting activity in recent years in line with the broader trend in the South East as a whole.

7.4. Conclusion

Offices (B1)

Demand for office accommodation within the Borough has remained broadly healthy and constant in recent years. In line with the broader market letting activity has remained focused on new and good quality accommodation, although unlike many other centres within the M25, Weybridge (the principle office centre in the Borough) has no Grade B office accommodation currently available. In Weybridge steady letting activity has led to an erosion of new accommodation. There remains 18,900 sq m of new accommodation within the market and a further 2,900 sq m of good quality Grade A space available. The vacancy rate for Elmbridge office market stands at 7.6%, while the vacancy rate for Weybridge stands at just 5.2%.

Also important to note is that the two highest annual take-up totals in Weybridge were achieved in 2006 and 2007 reaching 7,700 sq m and 7,300 sq m respectively. The average transaction size recorded across the whole borough since 1998 has totalled

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1,400 sq m. Taking into account a small number of larger transactions that may have skewed the average upwards, the majority of lettings have been for new accommodation between 460-930 sq m.

Industrial (B2)

Demand for B2 industrial accommodation since 2002 has changed markedly. Although letting volumes were high in the Borough between 2002-2004, demand for B2 units dropped significantly in recent years in line with the broader market, focusing more heavily on B8 space. Average transaction sizes across the region have remained constant at circa 840 sq m since 2002, albeit that the overall volume has decreased.

Warehousing, logistics and distribution (B8)

Demand for warehousing, logistics and distribution accommodation has increased considerably in recent years reflecting the trend in the broader market. Although the volume of space let has increased demand has remained focused on smaller freehold units of circa 840 sq m. Take-up activity within the Borough was also boosted by the completion of new industrial accommodation at Brooklands which has now almost been entirely eroded, demonstrating a certain degree of pent up demand within the market as well as broader occupier preferences. Demand within the market remains largely localised with very few regional and national requirements attracted to the area, due to land cost and availability.

In contrast to the office sector, the availability of poorer quality industrial accommodation is quite high. Again the upturn in letting activity recorded following the completion of new development reveals the importance occupiers are currently placing on acquiring new and good quality accommodation. The vacancy rate for industrial accommodation within Elmbridge as a whole stands at just 3.3%.

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8. EMPLOYMENT LAND PROJECTIONS

8.1. Introduction

In this section we project the future demand of employment land in Elmbridge to 2026. An employment land demand forecast for the Borough was previously undertaken by GWE Business West Research in 2006 titled ‘Employment Needs Assessment’30. There are various approaches to projecting employment land demand, each approach of which has its own strengths as well as weaknesses, as acknowledged in the ODPM’s Employment Land Reviews Guidance Note (2004), and to ensure consistency with the draft South East Plan and LDF planning period (2006 to 2026) it was considered necessary to re-visit demand projections.

Regional econometric forecasting takes into account wider drivers of change and growth. However these models do not usually take account of the specific circumstances of local economic development, including the availability and nature of sites, and the range of local economic development initiatives and company plans. A good indicator of local economic trends in employment floorspace demand can be formed by analysing historic trends of local completions rates. This provides a record of the past performance and is particularly useful when data allows analysis of a full business cycle.

With this appreciation, URS have developed a synthesis approach to employment land demand forecasting that takes account of both the local context and the wider regional macro-economic context. This builds upon the strengths of each approach and helps minimise the limitations. We build up this analysis by considering the following information:

• Employment forecasts

• Completions data and growth in floorspace used for employment purposes, and

• Synthesis forecast.

This approach and employment land demand for Elmbridge Borough are set out below.

8.2. Employment Analysis

The evolution of employment in the next 20 years will have an impact on the demand for employment land in Elmbridge. In looking at employment data, it is important not only to look at the local authority level, but also at the Property Market Area forecasts. The Property Market Areas are defined as areas within which the property market share the same characteristics. Firms do not generally take into account local authority boundaries when they decide to locate in an area.

30 Employment Needs Assessment; GWE (November 2006)

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Offices and industrial activities do not have the same location requirements. Therefore, Property Market Areas are different according to the activity considered. For Elmbridge, the Property Market Area for Offices (B1a use class) is defined as the South East Quadrant of the M25 market. The Industrial (B2 and B8 use classes) Property Market Area encompasses a wider area, covering the whole of Surrey and Hampshire.

Historic Trends of Employment and Current Employment

The Office of National Statistics (ONS) publishes an Annual Business Inquiry (ABI) that gives the number of employee jobs by local authority from 1998 to 2006 broken down by Standard Industrial Category (SIC) codes.

The current employee jobs in Elmbridge, and in the different property Market Areas are presented in Table 8.1. SIC codes have been grouped in eight sectors to allow a later comparison with employment forecasts produced at the regional level.

Table 8-1 Employee Jobs by Sector, 2006

Elmbridge Offices Property Industrial Property Market Area Market Area

Agriculture, forestry and fishing 219 2,801 4,216

Mining and Utilities 1 1,533 3,750

Metals, minerals and chemicals 1,061 9,606 16,438

Other manufacture 2,842 33,624 71,273

Construction 2,083 21,834 50,070

Retailing, hotels and catering 15,988 134,799 246,434

Transport and communications 2,192 47,640 47,475

Financial and business services 13,573 168,919 262,532

Other services 12,968 147,553 294,396

Total 50,927 568,309 996,584 Source: ABI, 2008

ABI data also allows us to calculate the historic annual employment growth by sector for Elmbridge and the different Property Market Areas. The historic compound average annual rate of employment is presented in Table 8.2.

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Table 8-2 Historic Employee Jobs Growth (Compound Average Annual Growth Rate), 1998-2006

Elmbridge (%) Offices Property Industrial Property Market Area (%) Market Area (%)

Agriculture, forestry and fishing -3.4 -1.5 0.2

Mining and Utilities 0.0 -16.3 -6.5

Metals, minerals and chemicals -10.6 -1.6 -1.2

Other manufacture -15.7 -3.4 -3.0

Construction 0.5 0.3 0.6

Retailing, hotels and catering -0.6 0.1 0.6

Transport and communications 2.4 -3.4 1.2

Financial and business services -2.8 3.1 2.8

Other services 1.1 2.5 2.0 Source: ABI, 2008, URS, 2008

Employment in Financial and business services has been declining in Elmbridge (-2.8%) whereas it has significantly grown in the Offices Property Market Area (3.1%). Similarly, the decline in manufacturing activities (Metal, mineral and chemicals and Other manufacture) has been higher in Elmbridge than in the Industrial Property Market Area.

8.3. Employment Forecasts

Regional and sub-regional economic forecasts are published by the SEERA and by the South East England Development Agency (SEEDA). Both base their economic forecasting on data provided by Experian Business Strategies.

Total Employment Forecast

SEERA published forecasts of total employment for sub-regions up to 2026 in its South East Plan Technical Note 1 (updated): Economic and Labour Demand Forecasting (updated March 2006). SEERA use Experian Business Forecasts, which take account of wider structural trends in the South East. Experian identify notable restructuring in the region with a decline in traditional manufacturing and growth in business services, leisure activities, retail, restaurants and hotel sectors. This is due to three principal factors:

• Globalisation has resulted in changing patterns of specialisation worldwide with certain regions remaining competitive in high value-added activities;

• Development in the South East has been part of a process of decentralisation whereby the region has benefited from high value-added activities leaving London due to cost, labour market and environmental reasons; and

• The South East has benefited from the acceleration of technological change which has dramatically improved ICT processing.

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Table 8.3 shows the forecasted change in employment structure of the South East, 2001 to 2026 based on Scenario 631.

Table 8-3 Employment Forecasts for the South East, 2001-2026

Employees 2001 Forecasted Average Annual Employees 2026 Change 2001-2026 (S)

Agriculture, forestry & fishing 74,970 39,630 -2.5

Mining & utilities 23,750 11,460 -2.9

Metals, minerals and chemicals 95,540 90,340 -0.2

Other manufacture 360,080 265,290 -1.2

Construction 273,810 246,120 -0.4

Retailing, hotels and catering 1,000,240 1,105,800 +0.4

Transport and communications 252,030 306,280 +0.8

Financial and business services 956,200 1,426,870 +1.6

Other services 1,109,550 1,348,950 +0.8

Total 4,146,170 4,840,740 +0.6 Source: SEERA; 2006

For the research here we are interested in 2006-2026. The Economic and Business Bulletin Winter 2004/Spring 2005 (SEEDA) publishes Experian Business forecasts to 2006. Table 8.4 shows the forecasted position for 2006, and shows the difference in taking the average annual rate of change 2006-2026 compared with 2001-2026.

31 ‘Extrapolation of Regional Planning Guidance’ – incorporates short-term migration based population projections and housing development levels as planned in the Regional Planning Guidance.

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Table 8-4 Employment Forecasts for the South East, 2006-2026

Forecasted Forecasted Average Average Employees Employees Annual Annual 2006 2026 Change 2006- Change 2001- 2026 (%) 2026 (%)

Agriculture, forestry & fishing 55,500 39,630 -1.7 -2.5

Mining & utilities 20,100 11,460 -2.8 -2.9

Metals, minerals and chemicals 97,100 90,340 -0.4 -0.2

Other manufacture32 323,700 265,290 -1.0 -1.2

Construction 294,300 246,120 -0.9 -0.4

Retailing, hotels and catering 1,087,300 1,105,800 +0.1 +0.4

Transport and communications 275,100 306,280 +0.5 +0.8

Financial and business services 1,028,000 1,426,870 +1.7 +1.6

Other services 1,184,000 1,348,950 +0.7 +0.8

Total 4,365,100 4,840,740 +0.5 +0.6 Source: SEERA; 2006, SEEDA; 2005

The forecasts show continued decline in manufacturing employment (-1.0% per annum) with increased employment in the service sector, most significantly in financial and business services (+1.7% per annum).

Forecasts at the regional level are useful to understand how the whole region is expected to evolve. However, because of local factors such as locational characteristics, existing business clusters, site availability, local economic initiatives and the skillset of the labour force, each property market area shows a different pattern of growth. Therefore, it is not appropriate to assume that the Property Market Areas will evolve in the same way as the region as a whole over the next 20 years. For that reason, regional annual average rates of growth need to be adjusted to take into account forecasts at the Property Market Area level.

Property Market Areas Forecasts

In a Note to Panel for the South East Examination in Public (Dec, 2006) SEEDA published Experian Business Forecasts by local authority for 2006, 2016 and 2020.

Table 8.5 presents the employment forecast for Elmbridge, Offices and Industrial Property Market Areas as well as the average annual rate of growth forecasted for the period 2006-2020.

32 The total of ‘other manufacture’ and ‘engineering’.

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Table 8-5 Employment Forecast for Elmbridge, Offices and Industrial Property Market Areas, 2006 and 2020

Forecasted Forecasted Average Annual Employment 2006 Employment 2020 Rate of Growth (%)

Elmbridge 60,430 72,812 1.3

Offices Property Market Area 632,219 710,541 0.8

Industrial Property Market Area 1,453,119 1,623,159 0.8

South East (all) 4,251,412 4,732,162 0.8

England (all) 30,804,433 32,636,971 0.4 Source: SEEDA, 2006

The annual rate of growth for Elmbridge is significantly higher than the rate of growth for the South East and England, and is one of the highest in the South East (it is the second highest, just after Dartford at 1.54%). The average annual rates of growth for the Property Market Areas are more in line with the South East average, although slightly higher. This confirms the fact that regional forecasts need to be adjusted to take into account of local factors.

For the Offices Property Market Area, the total employment forecasted in 2020 is 710,541 people. SEEDA employment forecasts take into account self-employment. However, the draft South East Plan forecast does not take self-employment into account. Therefore, in order to make the two datasets comparable, self-employment was taken out of the SEEDA forecast. The difference between the SEEDA and ABI estimates for 2006 gives the current number of self-employed people for that year. This number was projected using the assumption that the self-employment average annual rate of growth will be equal to the rate of growth of total employment. Table 8.6 presents the final SEEDA forecast to 2020 for the Offices Property Market Area excluding self-employment.

Table 8-6 SEEDA Employment Forecast for the Offices Property Market Area Excluding Self-Employment 2006-2020

2006 2020

ABI Employee Jobs 568,316 N/A

SEEDA Forecast (incl. Self- 632,219 710,541 employment)

Self-employed 63,903 71,820

SEEDA Forecast (excl. Self- 568,316 638,721 employment) Source: ABI, 2008, SEEDA, 2006, URS 2008

It is forecasted that the total employee jobs in the Offices Property Market Area in 2020 will be 638,721 (excluding self-employed).

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The same calculation was carried out for the Industrial Property Market Area. It is forecasted that the total employee jobs in the industrial Property Market Area in 2020 will be 1,113,202 (excluding self-employed). This presented in Table 8.7.

Table 8-7 SEEDA Employment Forecast for the Industrial Property Market Area Excluding Self-Employment 2006-2020

2006 2020

ABI Employee Jobs 996,584 N/A

SEEDA Forecast (incl. Self- 1,453,119 1,623,159 employment)

Self-employed 456,535 509,957

SEEDA Forecast (excl. Self- 996,584 1,113,202 employment) Source: ABI, 2008, SEEDA, 2006, URS 2008

Forecast of Employee Jobs Located on Employment Land

In order to relate the employment forecasts with employment land demand, it is necessary to take a closer look at the evolution of the sectors that are typically located on employment land to understand the impact on the demand for employment land.

Of particular interest to the employment land demand projections are the following sectors, as employment in each of these sectors is most closely related to the different employment land use type, see Table 8.8. This is based on URS surveys, particularly the Lower Lea Land Use Survey33, carried out in 2003 and the study carried out by Roger Tym & Partners for the Authority in 200434.

Table 8-8 Relevant B Use Class Sectors

Sectors Floorspace B Use Class

Financial and business services Commercial Offices B1(a)

Metals, minerals and chemicals Factories B1(c), B2

Other manufacture Factories B1(c), B2

Retailing, hotels and catering Warehouses B8

Transport and communications Warehouses B8

Source: URS, 2008

33 URS, Lower Lea Valley Land Use Survey, 2003

34 Roger Tym & Partners, King Sturge and C2G Consulting, Industrial and Warehousing Land Demand in London, 2004

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In the text we refer to B1(c)/B2 as B2 and B1(a) as B1 for simplicity.

Table 8.9 presents the annual growth of rate forecasted for B1, B2 and B8 in Elmbridge. It has been assumed that the employment forecast for the Property Market Areas Elmbridge is located within are the most relevant economic units to judge future growth/decline in Elmbridge. In other words, the Financial and Business Services sector in Elmbridge will behave in line with the Office Property Market Area Financial and Business Services sector. Similarly, sectors relevant to the B2 and B8 use classes will evolve in Elmbridge at the same rate as in the Industrial Property Market Area.

The employment forecast used for Elmbridge employment land demand projections is presented in Table 8.9. It is the result of the calibration of the sectoral forecasts of the Draft South East Plan with the total employment forecasts of the SEEDA note.

Table 8-9 Average Annual Compound Growth Rates for B Use Class Sectors for Elmbridge, 2006-2026

Land Use Type Rate of Employment Growth for Elmbridge, 2006-2026 (%)

B1 Offices 2.0

B2 Factories -0.7

B8 Warehouses 0.2

Source: URS, 2008

8.4. Floorspace Analysis

There are several data sources that can be used to estimate the floorspace of B1, B2 and B8 in Elmbridge. The two main sources are those published by Elmbridge Borough Council in its Commercial Monitor and its Annual Monitoring Report 2006, and those published by the Valuation Office Agency (VOA) for the Office of National Statistics.

Elmbridge Borough Council Commercial and Retail Monitor 2006 presents an estimate of the total of offices, industrial and warehouse floorspace from 1990 to 2006. However, it states that ‘the estimates of total stock are based upon the 1985 Inland Revenue figures which are probably an under-estimate of the true quantity of floorspace’. Additionally, the Monitor’s 2006 data does not compare with previous years ‘due to lack of completions data for the years 2001 and 2002, and the change to monitoring the financial year.’

The Valuation Office Agency (VOA) collects commercial and industrial floorspace statistics to determine the rateable value of non-domestic properties in England and Wales for the collection of local authority business rates. This data is published in conjunction with the Planning and Land Use Statistics Division of the Department for Communities and Local Government (DCLG) and is classified into floorspace by ‘offices’, ‘factories’ and ‘warehouses’, which are broadly consistent with the B1, B2 and B8 Use Classes. The data is available from 1998 to 2007.

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The VOA data offers a consistent methodology to allow an historic comparison of floorspace35, which is considered to be more reliable and complete than the Commercial and Retail Monitor dataset, and for these reason will be used for floorspace analysis.

Figure 8.1 presents the evolution of floorspace for B1, B2 and B8 use class from 1998 to 2007 in Elmbridge. In 2005, VOA changed its way of capturing floorspace and created a ‘bulk class’ category. This meant that some floorspace categorised as office, warehouse or factories was now classified as ‘bulk class’ in 2005. It seems to have affected B2 figures. Therefore, for the purpose of this study, the average annual rate of change of B2 floorspace does not include 2004-2005.

Figure 8-1 Elmbridge Floorspace History 1998-2007

300

250

200

Offices (B1) 150 Industrial (B2) Warehouse (B8)

Floorspace (,000 sq.m) 100

50

0

9 2 7 00 05 99 0 001 00 004 0 00 1998 1 2 2 2 2003 2 2 2006 2

Source: VOA, 2008

Table 8.10 shows the annual average change per annum of floorspace in Elmbridge, by floorspace type.

35 The comparability of the VOA data is not direct since the method to estimate floorspace has changed in 2005. When necessary, the data has been recalculated in order to make it comparable along the whole period. If the data is recalculated, it is stated in this study.

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Table 8-10 Compound Average Annual Change in Floorspace Provision, Elmbridge, 1998-2007

Floorspace Floorspace Change 1998- Compound 1998 2007 2007 Average Annual Change (sq m) (sq m) (sq m) 1998-200736 (%)

Office 216,000 267,000 +51,000 2.4

Factories 200,000 156,000 -44,000 -0.91

Warehouses 206,000 235,000 +29,000 1.5

Total 590,000 658,000 +68,000 N/A

1 The rate of change for 2004-2005 is not included in this figure

Source: VOA, 2008

One approach to forecasting is to project the historic trend line forward. However, the ‘smart growth’ approach to economic development determines that it is more of a priority for the South East to ‘drive up the value chain’ and maximise land resources than to plan for economic growth based on its historical development. This is captured in our ‘synthesis’ forecast approach, which adjusts the floorspace projections based on the projected changes to the employment structure of an area.

8.5. Synthesis Forecast

Adjustment Factor Calculation

Our synthesis forecast approach uses floorspace trends as the basis for projecting future employment land demand. The floorspace figures are adjusted for wider macro-economic changes by incorporating an adjustment factor into the forecast.

The adjustment factor captures the relationship between the historic and the projected average annual rate of employment growth. For example, if employment in financial and business services is expected to grow twice as fast in the future as it has historically, this would result in an adjustment factor of 2.0 with the rate of growth in office floorspace projected to be twice as fast than it has been in the past.

The adjustment factor is normally calculated as follows:

Average Annual Forecasted Rate of Employment Growth Adjustment Factor = Average Annual Historic Rate of Employment Growth

36 The compound average annual rate of change is derived from a line of best fit.

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Table 8.11 shows the adjustment factors for each use class located on employment land.

Table 8-11 Adjustment Factors for B1, B2 and B8 Use Classes

Compound Average Annual Historic Rate Compound Average of Employment Annual Forecasted Growth (%) Rate of Employment 1998-2006 Growth to 2020 Adjustment Factor

Office (B1) 3.1 2.0 0.6

Factories (B2) -2.7 -0.7 0.3

Warehouses (B8) 0.7 0.2 0.3 Source: ABI, 2008; URS, 2008

Floorspace Projections

These adjustment factors are then applied to the projected historic linear growth rate of floorspace37 for the three use classes. This adjusts the historic rate of floorspace growth to take into account employment changes. The results are presented in Table 8.12

Table 8-12 Synthesis Forecast for Elmbridge 2007-2026

Forecasted Compound Average Compound Average Annual Rate of Annual Historic Rate Floorspace Growth of Floorspace Growth (%) 1998-2007 Projected to 2026 (%) Adjustment Factor 2007-2026

Office (B1) 1.8 0.6 1.2

Factories (B2) -1.0 0.3 -0.3

Warehouses (B8) 0.8 0.3 0.2 Source: VOA, 2008; URS, 2008

The resulting forecast shows that the office (B1) and warehouses (B8) floorspace will grow at a slower rate than their historic growth. The industrial (B2) will decrease, but at a slower rate than its historic trend.

Table 8.13 converts these annual rates of change into floorspace projections from 2007 to 2026.

37 Projected from a line of best fit.

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Table 8-13 B Use Class Floorspace Projections for Elmbridge, 2007-2026

Projected Employment

Employment Projected Floorspace Floorspace 2007 Employment Changes 2007- (VOA) Floorspace 2026 2026

(sq m) (sq m) (sq m)

Office (B1) 267,000 333,000 +66,000

Factories (B2) 156,000 148,000 -8,000

Warehouses (B8) 235,000 246,000 +11,000 Source: URS, 2008. Note that figures may not add up due to rounding.

Figures 8.2, 8.3 and 8.4 show the floorspace projections to 2026 in the context of actual datasets 1998-2007. They also show the evolution of floorspace if it was following its historical trend. The difference between the projected trend line and the floorspace forecast is due to the adjustment factor.

Figure 8-2 Elmbridge Office (B1) Floorspace 1998-2007 and Synthesis Forecast 2007-2026

400

350

300

250 Projected

200

150 Office(B1) Floorspace (000 sq m)

100

50

0

0 6 02 10 18 26 998 00 0 006 008 0 014 01 0 022 024 0 1 2 2 2004 2 2 2 2012 2 2 2 2020 2 2 2

B1 Floorspace Historic Data B1 Floorspace Projection Linear Trend (follow ing line of best fit)

Source: URS, 2008

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Figure 8-3 Elmbridge Industrial (B2) Floorspace 1998-2007 and Synthesis Forecast 2007-2026

225

200

Projected 175 )

150

125

100

75 Industrial (B2) Floorspace (000 sq m

50

25

0

2 6 2 6 6 0 1 2 998 0 008 0 022 0 1 2000 2 2004 200 2 2010 2 2014 201 2018 2020 2 2024 2

B2 Floorspace Historic Data B2 Floorspace Projection Linear trend (follow ing line of best fit)

Source: URS, 2008. Note that the rate of change for 2004-2005 is not included in the line of best fit.

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Figure 8-4 Elmbridge Warehouse (B8) Floorspace 1998-2007 and Synthesis Forecast 2007-2026

300

250

200

Projected

150

100 Warehouse (B8)Floorspace (000 sq m)

50

0

8 2 98 00 06 12 14 20 9 0 002 0 00 0 0 016 0 02 1 2 2 2004 2 2 2010 2 2 2 2018 2 2 2024 2026

B8 Floorspace Historic Data B8 Floorspace Projection Linear Trend (follow ing line of best fit)

Source: URS, 2008

8.6. Floorspace Frictional Vacancy

The projections of employment floorspace do not take into account building vacancy. It is unrealistic to expect 100% occupancy rates because businesses relocate and premises can often require refurbishment and/or reconfiguration before they are marketed again. A level of vacancy is necessary to enable the property market to operate efficiently, and this level is often referred to as ‘frictional vacancy’. In URS’ experience, 5% is an optimal level of office floorspace vacancy, while a slightly larger factor of 8% vacancy is considered more appropriate for industrial or warehousing premises.

Analysis of Elmbridge borough’s commercial market by Knight Frank finds that at the end of 2007, the vacancy rate in Elmbridge was 7.6% for offices and 3.3% for industrial and warehouse uses (B2 and B8).

If we assume that over the planning period floorspace vacancy levels are normalised to a more optimal level of 5% for offices and 8% for industrial/warehousing premises, then the effect on the demand projections will be twofold:

1. If the proportion of vacant floorspace is above the optimal thresholds, demand will be met from existing vacant floorspace in excess of the optimal threshold before creating

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demand for new build premises. This assumes that existing vacant floorspace will meet the market requirements for new space by 2026.

2. If levels of vacancy are below the optimal thresholds, this will place an additional requirement for new floorspace on the demand projections.

The impact of bringing floorspace vacancy in line with optimal thresholds is shown in Table 8.14.

Table 8-14 Accounting for Frictional Floorspace Vacancy, by B Use Class for Elmbridge, 2006-2026

Contribution Revised Stock of Employment of Vacant Employment Employment Floorspace Floorspace to Floorspace Floorspace Projections the Demand Projections 2007 (VOA) 2006-2026 by 202638 2006-2018

(sq m) (sq m) (sq m) (sq m)

Office (B1) 267,000 +66,000 -7,000 +59,000

Factories (B2) 156,000 -8,000 +7,000 -1,000

Warehouses (B8) 235,000 +11,000 +11,000 +22,000 Source: URS, 2008 (Note that figures may not sum due to rounding)

Floorspace to Land

This section converts the projected demand for new floorspace into land through the application of plot ratios to the floorspace figures in order to translate floorspace requirements into land demand. Consideration is also given to land frictional vacancy.

Plot Ratios

The demand projections thus far have been expressed in floorspace. To enable local authorities to plan the amount of employment premises spatially, this needs to be translated to a land requirement. This can be achieved using appropriate plot ratios – the amount of a site area that the building footprint will take up. Table 8.15 overleaf shows the plot ratios that will be used in this research.

38 Negative floorspace indicates that there is currently an excess of vacancy above optimal thresholds.

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Table 8-15 Plot Ratios

Type of Property Plat ratio ranges from research39 Plot ratio used for Elmbridge

Office 0.41-2.00 1.50

Industrial 0.35-0.45 0.40

Warehouse 0.40-0.60 0.50 Source: ODPM, 2004; URS, 2008

From URS’ professional experience of employment land reviews elsewhere in the south east40, and from discussions with the Council Development Control team, new office buildings in the area are more typically three storeys in height and the building footprint takes up 50% of the site area, therefore resulting in a plot ratio of 1.5. However, business parks typically have lower building footprints (30-40%) once access roads and landscaping is taken into account. Depending on the type of development that comes forward, the local authority may choose to alter these plot ratios. In URS’ experience, plot ratios of 0.40 for industrial and 0.50 for warehousing are appropriate for new build industrial premises.

Using the plot ratios above, Table 8.16 translates the projected demand for employment floorspace into demand for ‘built-on’ employment land41.

Table 8-16 Converting Floorspace into Built-on Land Forecast by B Use Class, 2007-2026

Employment Floorspace Built-on Employment Land Projections 2007-2026 Demand Projections 2007-2026

(sq m) (hectares)

Office (B1) +59,000 +3.9

Factories (B2) -1,000 -0.1

Warehouses (B8) +22,000 +4.4 Source: URS, 2008

Note that totals for all the B Use Classes are avoided, because sites that become available from industrial structural decline of B2 use might not be appropriate for B1 office premises.

39 Employment Land Reviews: Guidance Note (ODPM, 2004)

40 Evidence is drawn from employment land surveys such as , Horsham and Mid Sussex, , Cherwell, Windsor and Maidenhead, and .

41 In this context ‘built-on’ employment land means sites that are occupied by buildings ready for occupation. It is equivalent to total employment land minus vacant and derelict sites.

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8.7. Land Frictional Vacancy

As discussed earlier, a degree of vacancy or ‘friction’ is often necessary to enable the industrial and commercial property market to operate efficiently. This is the case for land as it is for floorspace. Locational and operational needs of businesses change over time. This often requires businesses to move and some can choose to remain in the same property market area but at a different site. For this to happen smoothly there is the need for a certain level of vacant land.

As noted in the Industrial & Warehousing Land Demand in London study (Roger Tym et al, 2004) there is no rigorous measure of what frictional vacancy should be. That report assumed a land vacancy level of 10% to be appropriate. In our update to that report for the Greater London Authority, the Industrial Land Release Benchmarks (URS et al, 2007), we built upon earlier estimates by analysing historical rates of development and site ‘idle times’ – the amount of time it takes for a contract negotiations, planning applications, remediation work, site reconfiguration, demolition and construction, improving access etc before a site will become re-occupied. Vacancy in this sense can mean sites that are not ready for immediate occupation and can contain derelict buildings.

Our research in London suggests that a 5% vacancy level can be achieved through effective management of vacant industrial sites.

Table 8.17 shows the levels of land vacancy for employment land as surveyed for this report in 2007. It should be noted that the survey did not capture the totality of employment land in the Borough only the Strategic Employment Land identified in the Local Plan and other significant business sites identified through consultation with the Council. Therefore, the vacant land identified is likely to be an underestimate of the total vacant employment land across the Borough.

Table 8-17 Frictional Land Vacancy in Elmbridge

Employment Land Vacant Land 200742 Employment Land Surveyed (2007) (ha) (ha) Vacancy (%)

Offices (B1) 58.3 2.6 4.5

Industrial (B2) 28.1 1.2 4.4

Warehouses (B8) 40.5 1.8 4.3 Source: URS, 2008. Note that figures may not add up due to rounding

The vacancy rate across sectors is broadly in line with the frictional land vacancy rate required (5%). For this reason it is considered that there will be no additional land demand arising to cater for frictional land vacancy.

42 The vacant land was disaggregated to B2 and B8 according to built-on proportions.

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The final demand for employment land dedicated to offices is therefore 3.9 ha. Demand for warehouses (B8) is 4.4 ha and there is no demand for industrial (B2) employment land (-0.1).

8.8. Summary

This section has presented employment land demand projections for the different B Use Classes of Elmbridge based on the most recent employment forecasts published by SEERA and SEEDA. These forecasts are extrapolated from the Experian Business Strategies’ econometric models at the regional level and then calibrated at Property Market Area level to take into account locational characteristics such as existing business clusters, site availability, local economic initiatives and the skillset of the labour force.

A ‘synthesis forecast’ approach then examines the historical relationship between employment and floorspace and translates the employment forecast into a spatial requirement to 2026. Frictional floorspace vacancy is examined before converting the floorspace demand into land using appropriate plot ratios.

Over the planning period to 2026, the forecasts show that the most consistent demand for employment land demand is for B1 office premises (3.9 hectares) and B8 warehouse premises (4.4 hectares). It is forecast that there is no additional requirement for industrial (B2) activities (negative forecast of -0.1 hectares).

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9. GAP ANALYSIS

9.1. Introduction

This section draws upon the results of the Employment Areas and Town Centres surveys, the employment land demand projection, and the commercial property market analysis to identify the match between employment land demand and employment land supply. The results in this section are used to draw conclusions about the availability of employment land in the Borough.

9.2. Demand for Employment Land

The total additional demand for employment floorspace and land in Elmbridge between 2007 to 2026 is presented in Table 9.1.

Table 9-1 Demand for Employment Land in Elmbridge, 2007-2026

Use Class Floorspace Demand 2007-2026 (sq m) Employment Land Demand 2007-2026 (ha)

B1 +59,000 +3.9

B2 -1,000 -0.1

B8 +22,000 +4.4 Source: URS 2008. Note: Figures may not add due to rounding

Demand for employment premises is made up of demand for B1 and B8. There is on average over the course of the planning period – 2007-2026 - no demand for B2 premises (the projection indicates that there will in fact be minor negative growth, i.e. shrinkage).

9.3. Supply of Employment Land

There are three methods by which the additional demand for employment land can be catered for:

1. Using developable land identified during the Employment Area survey (vacant and derelict land);

2. Potential employment land/floorspace gain through the intensification of selected Employment Areas; and

3. Potential office floorspace gained through the intensification of the Town Centre sites.

These are now considered in turn.

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1. Developable Land in Employment Areas

The site survey identified 5.63 hectares of developable land in Employment Areas (see Tables 5.8 and 5.9). However, not all this land is suitable for all uses, since offices and industrial/warehouse activities have different locational requirements. For instance, industrial and warehouse locations are more suited to sites with good accessibility, particularly all-purpose roads (A-roads, i.e. trunk roads) but away from office or residential land uses; office land use is better located near public transport / good road access, amenities and good quality environment, and away from areas of potential contamination, and ‘bad neighbourhood’ uses.

Table 9.2 overleaf presents the sites where developable land was identified and whether they were assessed as more suitable for B1 or B2/B843. This assessment takes into account strategic policy trends (such as the need to focus office development in town centres as required in PPS6), emerging local policy44 and site survey results.

43 The fact that an Employment Area is presented as suitable for B2/B8 use for example does not mean that it is unsuitable for offices development.

44 Elmbridge’s Core Strategy Preferred Options states the preference for employment development to take place on previously developed sites (brownfield land/site) and in particular to focus on urban centres that are accessible by public transport.

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Table 9-2 Supply of Developable Land in Employment Areas in Elmbridge for B2/B8 and B1 uses.

Type of Land Use Area Developable Developable Most No. Name of the Employment Area Land Land (ha) Suitable

2b Telephone Exchange, Thames Ditton Vacant 0.09 B1

2c The Pavillion, Giggs Hill Green, Thames Ditton Derelict 0.23 B2/B8

3 Claygate House, Littleworth Road, Claygate Vacant 0.13 B1

4 Molesey Industrial Estate, West Molesey Derelict 2.20 B2/B8

5 Imber Court Trading Est, Orchard Ln, E.Molesey Vacant 0.24 B2/B8

6 Lyon Road/North Weylands, Walton-on-Thames Derelict 0.27 B2/B8

7b Mayfield Road, Walton-on-Thames Vacant 0.42 B1

7d Hersham Road North, Waton-on-Thames Vacant 0.12 B1

7d Hersham Road North, Walton-on-Thames Derelict 0.28 B1

8 Riverdene Ind Est, Molesey Road, Hersham Derelict 0.10 B2/B8

11b The Heights Business Park, Weybridge Vacant 0.65 B1

12a Brooklands Industrial Park, Weybridge Vacant 0.22 B2/B8

12b Wintersells Road Ind Park, Byfleet, Weybridge Vacant 0.21 B2/B8

12b Wintersells Road Ind Park, Byfleet, Weybridge Derelict 0.15 B2/B8

13 Portsmouth Road, Cobham Vacant 0.15 B1

20 BT Telephone Exchange, Claygate, Esher Vacant 0.16 B1

Total Developable Area 5.63 N/A Source: URS 2007. Note: Figures may not add due to rounding (Information taken from table 5.8 and 5.9)

Of the 5.63 hectares of vacant and derelict land, 2.0 hectares are considered to be more suitable for B1 use and 3.63 hectares are more suitable for B2/B8 uses.

2. Intensification of Selected Employment Areas

In aggregate across all Employment Areas, the survey identified 6.58 hectares of land use and premises, which were considered to be inefficient (arrangement, positioning on plots, poor use of space and access, etc) (see Table 5.10). Improved estate management may lead to an increase in density of land use, which could satisfy a portion of the projected employment land demand. However, considering that B2/B8 land uses have lower land values, the operational requirements of industries and warehousing, and the likelihood of fragmented patterns of land ownership, we do not anticipate that significant increases in floorspace could be achieved through intensification of Employment Areas, and only a minor proportion of demand is likely to be satisfied by this method. We suggest that until clear evidence comes forward that this is happening on a significant scale we do not assume that a significant element of B2 and B8 demand can be met through this mechanism.

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Employment Areas also provide the potential for B1 class use intensification. Table 5.10 shows that there is potential to achieve a maximum net gain of office floorspace of 15,000 sq.m, although this would be coupled with a loss of 25,000 sq m of B2/B8 floorspace. Considering that there is a similar projected demand for B2/B8 land as B1, and limited options for satisfying B2/B8 projected demand by alternative methods, B1 intensification on B2/B8 is not considered to be appropriate.

3. Intensification of the Town Centre Sites

In line with national and local policies, the sites identified for potential intensification in the town centres are more likely to meet the demand for office floorspace. Table 9.3 recaps the potential for intensification for offices in the town centres.

Table 9-3 Maximum Net Office Floorspace Gain through Town Centre Intensification

Number of Sites All Office Scenario Mixed-use Scenario Town Centre Identified through Survey Net gain (sq m) Net gain (sq m) Cobham 6 20,000 12,000

East Molesey 7 12,000 8,000

Esher 5 10,000 8,000

Walton-on-Thames 10 75,000 57,000

Weybridge 6 42,000 31,000

Total 34 159,000 117,000 Source: URS Calculations 2007. Note: Figures may not add due to rounding

9.4. Likelihood of Development

Not all of the sites identified in Employment Areas and Town Centres will come forward for development. Factors that impact on the likelihood of sites being developed and which require further site-specific investigation include:

• Complexity of site ownership (e.g. single or multiple)

• Age and condition of buildings on site, and in the immediate surroundings

• Presence and amount of developable land

• Commercial perspective of site suitability, and

• Flood risk.

At this level of survey and assessment factors such as ownership, site-specific commercial perspective/ market demand and flood risk are unknown. For this reason the 159,000sq.m of the all office scenario and the 117,000 sq.m of the mixed-use scenario

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represent the maximum potential. When factoring in the likelihood of development, it is anticipated that a significantly lower quantum of floorspace could actually come forward.

9.5. Comparing the Quantum of Employment Land Demand and Supply

This section looks at the comparison between demand for and supply of employment land for industrial/warehouse premises, and then for offices.

Industrial/Warehouses Premises (B2 and B8)

Land demand for industrial and warehouses premises is projected to grow by 4.4ha of between 2007 and 2026. The survey of Employment Areas identified 5.63ha of developable land, of which 3.63ha are considered suitable for B8 development (Table 9.2). This leaves a small demand shortfall of 0.77ha. This shortfall cannot be provided for by Town Centre locations because it is not considered suitable to locate B8 in Town Centres or alongside B1 or non-employment land uses (for reasons such as commercial sense i.e. land values, accessibility/congestion, land use conflict / bad neighbour activities, etc).

Furthermore, by the nature of B8 activities and their premises (e.g. storage sheds, warehouses etc.) there is little potential to increase the ratio of building footprint to plot size or the commercial prospects for multi-storey warehousing.

The excess demand in B8 land use therefore cannot be met by Town Centre sites or intensification of existing B8 land but could be met by:

• the improved estate management of land/premises of B2 premises on Employment Areas to create space for the B8 land use; and/or

• the replacement of sui generis activities on Employment Areas with B8 land uses.

Given that demand for B2 land use is projected to be static, land use, which is inefficiently used and older B2 stock premises requiring renewal, could be free up land for B8 activity. A number of Employment Areas were identified during the survey process, which have land and premises in poor and very poor condition, and would benefit from regeneration and estate management. Table 5.10 identifies 6.58ha of land use which could benefit from improved management, in particular Molesey Industrial Estate (area 4), Lyon Road (area 6) and Wintersells Road Industrial Park (area 12b) which together offer approximately 5ha. Further investigation would be required to assess the potential quantum of land that could be derived from this process, but as previously mentioned we do not anticipate significant increases in floorspace being achieved.

The latter point refers to those sites on Employment Areas with sui generis activities (Table 5.7). Larger proportions of sui generis activity was identified on ‘significant’ Employment Areas i.e. Employment Areas which are not designated under policy, and less sui generis activity was recorded on policy designated on SELs. Given that employment land in the Borough is supply constrained, sui generis activity on Employment Areas represents an erosion of strategically important employment land to non-employment uses, which should be minimised.

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Given that the supply constrained environment of the Employment Areas across the Borough, the quantum of land demand for B2/B8 compared with B1, and the suitability of sites for land uses, it is considered that Employment Areas with sites appropriate for B2/B8 would be best placed to meet B2/B8 demand where possible (B1 would otherwise bring about loss of B2/B8 land use).

By the combined methods of using developable land available in Employment Areas across Elmbridge for B2/B8 plus the prospects for estate management45, it is considered that demand and supply for B2/B8 in the Borough for the period 2007-2026 can be met.

Offices (B1)

It is projected that between 2007 and 2026, 3.9ha of employment land will be needed to cater for B1 land uses activities. By applying a plot ratio of 1.5 (three storeys with building footprint over half the site’s area), 3.9ha translates as 58,500sq.m of floorspace. Part of the B1 land use demand can be met by the proportion of developable land identified on Employment Areas. From the total 5.94ha, 2.0 ha (approximately 30,000sq.m) are considered suitable for B1 land use, leaving demand of 1.9ha or 28,500sq.m at a plot ratio 1.5. Additionally, the five Town Centres of Elmbridge, in aggregate, provide for a potential 117,000 sq.m (almost twice that of total demand) of office floorspace under an intensification scenario that would see mixed-use development coming forward. Development in Town Centres would be in accordance with the principles of sustainable development and smart growth and ensure that the greatest economic value should be obtained from existing land assets before additional sites are identified.

The comparison between demand for and supply of office premises shows that developable land on Employment Areas and intensification of Town Centres will allow for the projected demand for B1 land use/floorspace in Elmbridge to be met: Employment Areas could contribute to 2.0 hectares, or approximately 30,000 sq m of the floorspace, with and the remaining demand could be met through the intensification. By this two-step method, as a proportion of the total Town Centre intensification capacity, B1 would only require 25% of the total quantum of the Town Centre intensification potential to come forward for demand to be fully met.

It is therefore considered that demand and supply for B1 in the Borough for the period 2007-2026 can be met.

9.6. Summary of Gap Analysis

The final balance of employment land demand and supply is presented in the table below. The aim is to have an approximate balance between demand and supply over the plan period, i.e. to have a zero surplus by the end of the plan period46.

45 Sensitively undertaken at Employment Areas which require regeneration and renewal of older premises.

46 There will clearly be a need to look at the situation again nearer the end of the plan period and at that stage sites will be found or designated as appropriate.

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Table 9-4 Gap Analysis of Employment Land Demand and Supply

Supply Developable Demand Land Demand (Developable Land1 to meet Shortfall Shortfall in Land Demand met by Use (ha) Land)1 (ha) Demand (ha) (ha) B1 +3.9 2.0 1.9 Intensification of Town Centre sites

B2 -0.1 0 -0.1 N/A

5.94 1. Estate Management of B2/B8 land use in Employment Areas; B8 +4.4 3.63 0.77 2. Consider replacement of sui generis by B8 land use Source: URS 1: Vacant and derelict buildings on Employment Areas

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10. RECOMMENDATIONS

10.1. Introduction

The recommendations presented in this section have been developed from the analysis of preceding sections. They have been put together with due consideration paid to the constrained supply of employment land across the Borough47; the importance for retaining existing employment land, extending the designation of and protecting strategically and significant employment land; prospects to bring into use vacant and derelict land for B class use activity; and the potential for employment land demand to be met by the intensification of Town Centres (to a greater extent), and Employment Areas (to a lesser extent).

The supply of employment land in Elmbridge is constrained by a number of factors, such as extensive Green Belt designation and pressures from competing land uses such as housing. Given the modest quantum of developable land, the process of better management of land use and intensification of existing sites, particularly in Town Centres, will be an important method to meet demand projections.

The recommendations put forward draw upon the concept of smart growth and:

• Promote higher density, office-orientated employment uses in the town centres of Elmbridge, where there are greater opportunities for the workforce to travel to work by public transport and also use complementary facilities in the town centre

• Protect industry and warehousing uses in sites away from the town centres as such uses typically have lower employment densities and are more reliant on good links to trunk road infrastructure, and

• Aim to better utilise existing Employment Areas by enhancing the estate management and improving some of the building stock (by way of upgrade and refurbishment).

We elaborate on these principles in our recommendations below.

10.2. Recommendations

This employment land review conforms to the methodological requirements of the Government’s 2004 Employment Land Review guidance notes. The findings of this review provide an evidence base for the Council to develop more detailed employment policies for the period 2007-2026. When developing recommendations, the Strategic Housing Capacity Assessment should give due regard to the recommendations and justifications for retention, designation and intensification of Employment Areas as set out below.

47 Only 5.63 hectares of ‘developable land’ were identified out of 126 hectares of employment land surveyed.

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R1 Protection of all designated Strategic Employment Land (SEL)

All land and premises currently in B1, B2/B8 land uses in designated Strategic Employment Land should remain designated or allocated for B1, B2 and B8 business uses only. Sui generis activities should not be allowed on designated SELs.

All vacant land and derelict premises within Employment Areas should be retained for B1, B2/B8 development (as per the proposed designations presented in Table 9.2) and not released to non-employment land use.

Justification

Given the supply constraints on employment land across the Borough, it is recommended that all SELs retain their policy designation and continue to be protected from non-employment land uses.

Overall demand for employment land within the Borough is expected to be modest between the period 2007 and 2026, with a reasonably healthy overall demand for employment premises, representing 'churn' demand for re-use of existing premises and land.

R2 ‘Significant’ Employment Areas to be protected for Employment (B1, B2 and B8) uses only

All ‘significant’ Employment Areas should be recognised as important contributors to the Borough’s total stock of employment land. The Council should consider identifying and defining these significant Employment Areas in policy. This could mean ‘significant’ Employment Areas being designated as SELs or protected by a lower/sub-division of SEL status. The designation would need to protect them from erosion of non-employment land uses.

Justification

If supply and demand are to be in balance, particularly given the supply constraints of the Borough, all identified Employment Areas need to be protected and retained for B class uses. Survey evidence suggests that there is sui generis activity on designated Strategic Employment Locations and amongst other ‘significant’ Employment Areas (eight Employment Areas in total have sui generis activities) such as car showrooms, which have large footprints but low employment densities.

The creep of non-employment land uses on SELs and significant Employment Areas year on year will lead to an erosion of employment land, which will be detrimental to the capacity of the borough to provide for employment land in the future. The Elmbridge Borough Annual Monitoring Report (2006-2007), for instance, identifies 4,102 sq m of employment land lost to other (non-

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employment) uses in 2006-2007, of which 2,840 sq m were lost to residential uses.

Our analysis has identified total vacant / derelict land across the District to be 5.63ha. Vacant and derelict land located on established Employment Areas offers the potential to accommodate much of the employment land demand for the period 2007-2026. Any loss of this ‘developable land’ to non-employment would erode the Boroughs’ capacity to adapt to and accommodate future business requirements and for this reason such land and premises should be protected and monitored. Non-employment generating land uses, including sui generis activities, should therefore not be allow on developable land (derelict and vacant land and premises) on SELs or significant Employment Areas, either since this stock of land is critical to enable the demand projections for B1, B2 and B8 activities to be met.

Recommendation for which site/premises of vacant/derelict land is most suitable for B1, B2/B8 use are set out in Table 9.2.

Recommendations R1 and R2 will act to protect all Employment Areas from loss of land to non-employment uses development and of sui generis activities and enable the Council to plan effectively for the provision of employment land over the planning period.

R3 Improved Estate Management at key Employment Areas, with the intention of intensifying B2/B8 land use and improving environmental quality

Due consideration should be given to improving land use management for those Employment Areas which have poor/very poor grade premises and land.

Management should also look to improve the environmental quality of land, premises and services.

Intensification of premises and land currently in B class uses should be encouraged where appropriate.

Justification

We believe there is scope to intensify B class use developments in existing designated Employment Areas, which would contribute to meeting the forecast and planned growth in employment land.

Environmental improvements could enhance land use efficiency of B2/B8 land use and premises, which would lead to increased attractiveness, contribute to reductions in vacancy rates, churn (frequency of tenancy/ownership), and raise levels of inward investment.

Any redevelopment must be sensitively undertaken and would require extensive consultation with tenants and landowners of sites and premises at the Employment Areas.

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R4 Encourage office (B1) development in Town Centres

Potential development sites located in the five Town Centres of Elmbridge to be redeveloped where possible to accommodate office (B1) demand. Mixed-use schemes on these sites could be acceptable and beneficial, for example including elements of office, retail/leisure and residential. It may help the development if the Council approaches individual landowners at an early stage of the plan period to ascertain their plans for sites and buildings and encourages/ facilitates development proposals.

Justification

In the context of a positive demand for B2/B8 land use, and a limited (insufficient) quantum of developable land to accommodated projected demand for all B class uses, intensification of potential sites in Town Centres locations will be required to meet the shortfall of B1 (office) demand.

In order to assess the commercial viability, ownership issues and likelihood of a site coming forward for development, a commercial agent perspective should be sought for each Town Centre site coming forward.

R5 Monitoring of Employment Land Development

The Council should monitor the take up of land and premises across Employment Areas (SELs and Significant Employment Areas), and the development and intensification of land and premises on all Employment Areas. Monitoring will ensure the correct type of land use is comes forward and sufficient land is available for economic growth.

Justification

The supply constrained employment land market and the erosion of some employment land to sui generis activities support the need for close monitoring of planning applications, particularly applications for development of land designated as a Strategic Employment Land or ‘significant’ Employment Areas. The Borough Council should therefore adopt a monitoring mechanism to assess, on an annual basis, all planning applications coming forward for development and occupation.

The information of employment land captured in the survey process and listed in Table 5.1, plus the Table 5.8 and Table 5.9 which provide a list of vacant land and derelict land, is a good basis from which to begin the record of monitoring and against which to record any changes in quantum and class use.

The Council should also look to update the planning application database if required. Critically, to ensure equilibrium between land demand and supply, it is recommended that planning applications do not contradict the proposed recommendations set out in this review.

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Appendix 1: Appraisal Criteria for Assessing the Quality, Market Demand and Availability of Existing Portfolio

0. Base Information 0.1 Overall size of site/area 0.2 Floorspace in use (by segment/unit size) 0.3 Floorspace for sale and vacant (by segment/unit size) 0.4 Potential development plots (by size) 1. Quality of Existing Portfolio and Internal Environment 1.1 Age and quality of buildings 1.2 Noise and other obvious pollutants 1.3 State of the external areas and public realm 1.4 Parking, internal circulation and servicing 2. Quality of the Wider Environment 2.1 Adjacent land uses constraining operations or quality of uses on site 2.2 Perception of the wider environmental quality 2.3 Local facilities for workforce 3. Strategic Access 3.1 Ease of access to main road network 3.2 Proximity to rail, sea and air freight 4. Market Conditions/Perception and Demand 4.1 Strength of local demand in segment 4.2 Recent market activity on site 4.3 Likely market demand and viability of development without intervention 5. Ownership and User Constraints on Development/Redevelopment 5.1 Identify and number freehold owners 5.2 Identity of leasehold or other occupiers, lengths of lease etc 5.3 Ransom strips or other known ownership constraints on development 6. Site Development Constraints [undeveloped sites only] 6.1 Site access 6.2 Topography, size and shape 6.3 Utilities 6.4 On-site environmental (nature conservation, trees, cultural heritage, landscape) 6.5 Contamination/land stability/on-site structures 6.6 Amenity of adjacent occupiers 7. Accessibility 7.1 Workforce catchment 7.2 Access by public transport 8. Sequential Test and Brownfield/Greenfield 8.1 Urban, urban edge or outside urban 8.2 Previously developed in whole or part 9. Social and Regeneration Policy 9.1 Availability of other jobs locally 9.2 Deprivation in local communities 9.3 Priority regeneration designation 9.4 Potential availability of ‘gap’ funding to develop 9.5 Ability of site to support particular economic development priority? 10. Other Policy Considerations 10.1 Alternative uses if no longer allocated for employment 10.2 Other material policy considerations Source: ODPM, Employment Land Reviews: Guidance Note, 2004

Appendix 2: Consultees

• Altus Edwin Hill Commercial Property

• Barnes Kirkwood & Woolf, Chartered Surveyors, Cobham

• Elmbridge Business Network

• Gearbulk (UK) Ltd

• Glass Information Services Limited

• HES Malcolm Barry, Walton

• King Surge (International Property Consultants)

• South East Economic Development Agency (SEEDA)

• Tesco Plc

• Turner Morum Chartered Surveyors

• Wunderman (Marketing communications company)

Appendix 3: Employment Area Survey Questionnaire

Elmbridge Employment Land Review

Q 1 Employment Area Number:

Employment Area:………………………………

Your Initials: Date:

Q 2 EXISTING EMPLOYMENT USE. The Employment Area is best described as a:  Business park  Recycling / environmental industrial  Industrial estate  Town centre / main shopping area  Warehouse / distribution Park  Incubator / SME  Local shopping centre  Sui Generis (Identify sites on map ‘SG’)  Waste  Retail Warehouse  Petrol Filling Stations  Garden Centres  Car/Vehicle Hire Businesses / Selling and Display of Motor Vehicles  Builders Yards  Other (specify)

Q 3 Developable area on Employment Area – Percent (Vacant and Derelict land) Percent (of total Employment Area) ……………% Current use …………………………………………… Draw on map and label as “Developable” and describe current situation / use (see manual for definition) .

Q 4.1 Road access is Describe external and internal access and circulation (including adequacy) (Q 4.2)  Adequate for uses within site  Not adequate for uses within site  Don’t know

 There are sites with limited HGV access

Q 5 Describe strategic road access (trunk roads) observation Comment…………………………………………………………………………………………………………………

Q 6 Physical site constraints (i.e. other access, incompatible land use, layout issues) Comment ……………………………………………………………………………………………………….…………

Q 7.1 Topography issues If yes, comments on topography and illustrate on map (Q 7.2)  Yes  No

Q 8.1 Quality of environment Comments on quality of environment (Q 8.2) (see manual for definition)  Very good  Good  Poor  Very poor

Q 9 Condition of Buildings - % of buildings within Employment Area in : (Should add up to 100%)

Very Good % / Good % / Reasonable %/ Poor % / Very Poor %

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Elmbridge Employment Land Review

Q 10.1 Bad neighbourhood uses Comments on bad neighbourhood uses (Q 10.2) Businesses in the Employment Area cause:  None  Noise pollution  Air pollution  Smell  HGV traffic  Significant car traffic  Other (please comment)

Q 11 The Employment Area lies within close proximity to / has impact on (multiple answers possible)  Residential uses  Town centre / local centre  Shopping centre  Public open spaces/ areas of ecological values  Water  Other

Q 12.1 Contamination: Are there site(s)/building(s) within the Employment Area with potential contamination? If yes, describe potential contamination and indicate on map (Q 12.2)  Yes  No  Not sure

Q 13.1 Servicing of businesses in Employment Area (multiple answers possible) Always comment on servicing. Give reason for judgment on adequacy of  Road side loading/unloading servicing (Q 13.2)  Off road loading/unloading  Loading bays

Q 14.1 Parking facilities (multiple answers possible) Always comment on parking facilities give reason for judgment on adequacy of parking provision (Q 14.2)  Dedicated parking within Employment Area  On street parking  Yellow / double yellow lines  Red route  Controlled parking zone/paid parking

Q 15 Access and services for disabled staff or visitors  Dedicated car park spaces  Picture signs including large and clear signage  Ramps/alternative access to buildings  Tactile surfaces used in paving, etc  Clear and wide footpaths  Clearly marked and laid out pedestrian routes

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Elmbridge Employment Land Review

Q 16 Access to public transport (see manual for definition)  Very good  Good  Reasonable  Poor  Very poor

Q 17 Access to facilities and amenities (see manual for definition)  Very good  Good  Reasonable  Poor  Very poor

Q 18 Are there any buildings to let / for sale within the Employment Area?  Yes  No

If yes, make note of building(s), type of premises, floorspace available, estate agent

Q 19 General description of Employment Area If you have any comments on the Employment Area, use space below

Q 20 Policy Context (desk based) e.g. designated employment location, greenbelt, key sites, major employers?

Describe:…………………………………………………………………………………………………………………

Q 21 Possibility for intensification / redevelopment (In which way? On vacant / derelict land/buildings? Number of sites? Consider the suitability for office redevelopment i.e. proximity to amenities / facilities )

Describe:…………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………

Q 22 Photographs Image number(s) / / / / (Minimum of 1 image per Employment Area)

Data input by (initials) Date

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Appendix 4: Employment Area Survey Results

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 1 None uses/ Contamination

Proximity to other Residential, water, Site Name Kingston House Uses Strategic Open Urban Land

Existing A1 (SG car showroom)/ B2 (car Very Good 20 Employment Uses repair)

% Strategic Road Easy access to A307 Good 25 Access

Public Transport Reasonable Reasonable 25 Access

Internal Road Adequate for use within site Poor 0 Access

Dedicated parking within Condition of Buildings Parking Facilities Employment Area. Large car park Very Poor 30 used for car repair

Servicing of SEL Off-road loading/ unloading Policy context Businesses Thames Policy Area Car showrooms and car repairs Physical Site workshops. One part of the site No Description of Site Constraints is being redeveloped, one part is derelict

Topography Vacant buildings/ to Thames River to the North None Issues Let

Quality of the Developable area on Very good 0 Environment site (ha) Access to Possibility for facilities and Reasonable intensification/ The site is being redeveloped amenities Redevelopment

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 2a Significant car traffic uses/ Contamination

Proximity to other Site Name The Pavilion Residential uses, Open Space Uses

Existing B1 Very Good 0 Employment Uses

Strategic Road Good access via the A307 Good 100 Access Poor (Thames Ditton station 20 Public Transport minutes walk. Poor bus Reasonable 0 Access connections)

Internal Road Adequate for use within site Poor 0 Access

Condition of Buildings (%) Dedicated parking within Parking Facilities Very Poor 0 Employment Area

Servicing of Limited loading spaces Policy context SEL Businesses One office building. Physical Site Railway Description of Site Empty green space in front of Constraints the site

Topography Vacant buildings/ to No None Issues Let

Quality of the Developable area on Reasonable 0 Environment site (ha) Access to Possibility for facilities and Poor intensification/ None amenities Redevelopment

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 2b Mass uses/ Contamination

Proximity to other Residential uses, Site Name Telephone Exchange Uses Open Space

Existing B1 Very Good 0 Employment Uses

Strategic Road Good access via the A307 Good 0 Access Poor (Thames Ditton station 20 Public Transport minutes walk. Poor bus Reasonable 100 Access connections)

Internal Road Poorly set out Poor 0 Access Limited HGV access

Condition of Buildings (%) Dedicated parking within Parking Facilities Very Poor 0 Employment Area

Servicing of Off-road loading can be Policy context Green Belt on the West Businesses developed Underused space. There is an Physical Site Railway Description of Site empty green space in front of Constraints the site

Topography Vacant buildings/ to No None Issues Let

Quality of the Developable area on Reasonable 0.09 Environment site (ha) Access to Possibility for facilities and Poor intensification/ Underused site amenities Redevelopment

Elmbridge Borough Employment Land Review Final Report

None. Bad Neighbourhood Site No. 2c Redevelopment would generate uses/ Contamination an increase in car traffic Residential uses, Proximity to other Open Space, Site Name Royal Thames House Uses Strategic Open Urban Land, Conservation Area

Existing Currently there are no businesses Very Good 0 Employment Uses

Strategic Road Good access via the A307 Good 0 Access Poor (Thames Ditton station 20 Public Transport minutes walk. Poor bus Reasonable 0 Access connections)

Internal Road Limited Poor 100 Access Dedicated parking within Employment Area. Condition of Buildings (%) Parking Facilities Very Poor 0 A redevelopment might require some on-street parking

Servicing of None Policy context None identified Businesses

Physical Site Railway Description of Site Vacant building Constraints

Topography Vacant buildings/ to No None Issues Let

Quality of the Developable area on Reasonable 0.23 Environment site (ha) Vacant building, but limited Access to Possibility for possibility of parking, no facilities and Poor intensification/ possibility to expand the amenities Redevelopment boundaries of the site (railway, residential uses)

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 3 None uses/ Contamination

Proximity to other Sport grounds, Site Name Claygate House Uses Strategic Open Urban Land

Existing B1 Very Good 100 Employment Uses

(%) Strategic Road Small roads within a residential Good 0 Access area

Public Transport Reasonable (Claygate station, Reasonable 0 Access bus K3 every 10 minutes)

Internal Road Adequate for use within site Poor 0 Access

Dedicated parking within Condition of Buildings Parking Facilities Employment Area. Large car park Very Poor 0 used for car repair

Servicing of SEL, Green Belt on the east and None Policy context Businesses north High standing offices with sport facilities for employees. The site is occupied by one single Physical Site No Description of Site employer (Dairy Crest). Constraints One car park seems underused (but was surveyed on a Friday late afternoon)

Topography Vacant buildings/ to No None Issues Let

Quality of the Developable area on Good 0.13 Environment site (ha) The underused car park can be Access to Possibility for developed. However, the facilities and Poor intensification/ relationship of the new building amenities Redevelopment with the existing one would have to be considered.

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Significant car traffic. Site No. 4 uses/ Contamination Noise from metal work

Proximity to other Residential uses, Site Name Molesey Industrial Estate Uses

Existing B1, B2 and B8 Very Good 5 Employment Uses

Strategic Road Good access via the A3050 Good 15 Access heavy street traffic

Public Transport Poor (buses every hour) Reasonable 40 Access Narrow roads on the Eastern part. Internal Road There are sites with limited HGV Poor 25 Access access

Dedicated parking within Condition of Buildings (%) Parking Facilities Employment Area. Very Poor 15 On street parking

Servicing of Off road loading/ unloading Policy context SEL Businesses Loading bays Low rise industrial estate, Physical Site numerous different businesses No Description of Site Constraints and light industries. Storage and warehouses.

Topography Vacant buildings/ to No Yes Issues Let

Quality of the Developable area on Reasonable (but some potholes) 2.20 Environment site (ha) Access to Possibility for None as current use (but higher facilities and Poor intensification/ density uses could be achieved amenities Redevelopment through office development)

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Noise Site No. 5 uses/ Contamination HGV Traffic

Proximity to other Site Name Impart Court Trading Estate Sport grounds Uses

Existing B2 and B8 Very Good 0 Employment Uses Proximity to A309 and A3. Strategic Road However, the site main entrance Good 60 Access is on a smaller road

Public Transport Reasonable (Escher station) Reasonable 10 Access

Internal Road Adequate for use within site Poor 30 Access

Dedicated parking within Condition of Buildings (%) Parking Facilities Employment Area. Very Poor 0 On street parking

Servicing of Off road loading/ unloading SEL, Green Belt on the East, Policy context Businesses Loading bays West and South Warehouses with significant Physical Site No Description of Site HGV traffic. Creative Business Constraints (printing) one vacant warehouse

Topography Vacant buildings/ to River Ember bounding the site Yes Issues Let

Quality of the Developable area on Reasonable 0.24 Environment site (ha) Access to Possibility for Underused parking - low rise facilities and Poor intensification/ development amenities Redevelopment

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 6 Significant car traffic uses/ Contamination Residential, Proximity to other Site Name Lyon Road Golf course, Uses Sewage unit

Existing B1/ B2/ B8/ SG (vehicle hire, Very Good 0 Employment Uses builders yards, warehouse retail)

Strategic Road Good access A244 close by Good 10 Access

Public Transport Good Reasonable 40 Access Adequate for use within site. Internal Road There are sites with limited HGV Poor 40 Access access

Condition of Buildings (%) Dedicated parking within Parking Facilities Very Poor 10 Employment Area

Servicing of SEL, Green Belt on the South, Loading bays Policy context Businesses East and North Small light industries, warehouses and offices units, Physical Site Railway Description of Site low raise development. A good Constraints proportion of the site is poor grade, some of it is derelict

Topography Vacant buildings/ to No Yes Issues Let

Quality of the Developable area on Reasonable 0.27 Environment site (ha) Derelict land could be Access to Possibility for redeveloped facilities and Poor intensification/ Higher density uses could be amenities Redevelopment achieved through office development

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 7a Significant car traffic uses/ Contamination Residential uses Proximity to other Site Name Station Avenue Town Centre Uses Strategic Open Urban Land

Existing B1 Very Good 0 Employment Uses

Strategic Road Good access via the B365 Good 100 Access

Public Transport Good (Walton-Thames) Reasonable 0 Access

Internal Road Adequate for use within site Poor 0 Access

Condition of Buildings (%) Dedicated parking within Parking Facilities Very Poor 0 Employment Area

Servicing of None Policy context SEL Businesses

Physical Site Railway on the South Description of Site One business on the site Constraints

Topography Vacant buildings/ to No None Issues Let

Quality of the Developable area on Good 0 Environment site (ha) Access to Possibility for facilities and Very good intensification/ None amenities Redevelopment

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 7b None uses/ Contamination

Proximity to other Site Name Mayfield Road Residential areas Uses

Existing B1 Very Good 0 Employment Uses

Strategic Road Good access (proximity to A317) Good 60 Access

Public Transport Very good (Walton-Thames) Reasonable 0 Access Adequate for use within site. Internal Road There are sites with limited HGV Poor 0 Access access

Condition of Buildings (%) Dedicated parking within Parking Facilities Very Poor 0 Employment Area

Servicing of N/A (offices) Policy context None identified Businesses Half of the site is occupied by an office building. Car park is half- Physical Site empty. The other half has been Railway Description of Site Constraints demolished and there is no sign of further redevelopment for the moment

Topography Vacant buildings/ to No None Issues Let

Quality of the Developable area on Good 0.42 Environment site (ha) Vacant site of demolished Access to Possibility for building can be redeveloped. facilities and Poor intensification/ The developable land can be amenities Redevelopment extended to part of the underused car park

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 7c Noise uses/ Contamination

Proximity to other Residential uses, Site Name Hersham Road South Uses town centre

Existing B1 and SG (fire station, Very Good 0 Employment Uses ambulance, petrol station)

Strategic Road Good access via A244 Good 50 Access

Public Transport Very good (Walton-Thames) Reasonable 50 Access

Internal Road Adequate for use within site Poor 0 Access

Condition of Buildings (%) Dedicated parking within Parking Facilities Very Poor 0 Employment Area

Servicing of None Policy context None Businesses Site comprises a single office building, a fire station, an Physical Site None Description of Site ambulance station and a petrol Constraints filling station. SG approximately 50% of the area.

Topography Vacant buildings/ to No None Issues Let

Quality of the Developable area on Good 0 Environment site (ha) Access to Possibility for facilities and Very good intensification/ None amenities Redevelopment

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 7d Noise uses/ Contamination Proximity to other Residential uses, Site Name Hersham Road North Uses town centre Existing B2 and SG (builders' yard, retail Very Good 10 Employment Uses warehouse, bus depot) Strategic Road Good access via A244 Good 10 Access Public Transport Very good (Walton-Thames) Reasonable 50 Access

Internal Road Limited Poor 20 Access Dedicated parking within

Parking Facilities Condition of Buildings (%) Very Poor 20 Employment Area Servicing of None Policy context None Businesses Site made up of two different parts: a builders yard in the northern Physical Site part, a garage and a hardware Railway Description of Site Constraints showroom in the southern part. The SG activities take up 30% of the area. Topography Vacant buildings/ to No None Issues Let Quality of the Developable area on Good 0 Environment site (ha) Possibility to extend the boundaries to an underused car park to the northern part. A derelict building at the rear of the Access to Possibility for site. Active sui generis businesses facilities and Very good intensification/ activity on site may constrain amenities Redevelopment development. The units just behind the Peugeot garage are poor grade and can be intensified. However, they are currently used by the garage.

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 8 None uses/ Contamination Residential uses, Proximity to other Site Name Riverdene Industrial Estate other employment land, Uses Strategic Open Urban Land

Existing B1, B2 and B8 Very Good 0 Employment Uses

Strategic Road Very good access (via the A244) Good 50 Access

Public Transport Poor Reasonable 50 Access Adequate for use within site. Internal Road There are sites with limited HGV Poor 0 Access access

Condition of Buildings (%) Dedicated parking within Parking Facilities Very Poor 0 Employment Area

Servicing of None Policy context SEL Businesses Low rise light industries and Physical Site storage units. A building is being No Description of Site Constraints redeveloped within the SEL boundaries.

Topography Vacant buildings/ to No Yes Issues Let

Quality of the Developable area on Reasonable 0.10 Environment site (ha) Access to Possibility for Derelict building outside of the facilities and Poor intensification/ SEL boundaries amenities Redevelopment

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 9 None uses/ Contamination Other employment land, Proximity to other Site Name Air Products , Uses Conservation Area

Existing B1 Very Good 100 Employment Uses

Strategic Road Very good access (via the A244) Good 0 Access

Public Transport Poor Reasonable 0 Access

Internal Road No access to the site Poor 0 Access

Condition of Buildings (%) Dedicated parking within Parking Facilities Very Poor 0 Employment Area SEL ELE10 Servicing of No access to the site Policy context Green Belt on the West Businesses HEN 9 RTT5 New, high standing development. The buildings Physical Site have a big footprint: extensive No Description of Site Constraints car park and green areas. Most of the car parks are empty, but some buildings are still to let. Topography Vacant buildings/ to No Yes Issues Let Quality of the Developable area on Reasonable 0 Environment site (ha) Access to Possibility for Unused green space. Large facilities and Poor intensification/ building footprint amenities Redevelopment

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 10 None uses/ Contamination

Proximity to other Site Name GlaxoSmithKline Residential areas Uses

Existing No access to the Employment B1 Very Good Employment Uses Area

Strategic Road Narrow and residential roads Good Access

Public Transport Good (Weybridge Station) Reasonable Access

Internal Road No access to the site Poor Access

Condition of Buildings (%) Dedicated parking within Parking Facilities Very Poor Employment Area

Servicing of No access to the site Policy context SEL, Green Belt on the West Businesses

Physical Site One-firm development. No No Description of Site Constraints access.

Topography Vacant buildings/ to No None Issues Let

Quality of the Developable area on Very Good 0 Environment site (ha) Access to Possibility for facilities and Reasonable intensification/ None amenities Redevelopment

Elmbridge Borough Employment Land Review Final Report

Site Number 11a and 11b, Locke King Road/Brooklands Road

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 11a None uses/ Contamination Residential areas, Locke King Road/Brooklands Proximity to other Site Name Brooklands Museum, Road Uses Conservation Area

Existing B1 Very Good 0 Employment Uses Good car access via the B374. Strategic Road Access difficult for HGV for the Good 100 Access lower site

Public Transport Very poor Reasonable 0 Access Adequate for use within site Internal Road There are sites with limited HGV Poor 0 Access access

Condition of Buildings (%) Dedicated parking within Parking Facilities Very Poor 0 Employment Area SEL Servicing of ELE10 N/A (offices) Policy context Businesses Green Belt on the West Conservation HEN 9 The area has two parts with different accesses: one 5 storey Physical Site building with built-up car park, No Description of Site Constraints four 2 storey buildings, most of it to let. 10% of the site could not be accessed (wood)

Topography Topography at the periphery limits Vacant buildings/ to Yes Issues expansion Let

Quality of the Developable area on Good 0 Environment site (ha) Access to Possibility for facilities and Very poor intensification/ None amenities Redevelopment

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 11b None uses/ Contamination Other employment land, Proximity to other Site Name The Heights Brooklands Museum, Uses Conservation Area

Existing B1 Very Good 100 Employment Uses

Strategic Road Close to B374 Good 0 Access

Public Transport Good. Special bus service to the Reasonable 0 Access station

Internal Road Adequate for use within site Poor 0 Access

Condition of Buildings (%) Dedicated parking within Parking Facilities Very Poor 0 Employment Area SEL ELE10 Servicing of N/A (offices) Policy context Green Belt on the West Businesses HEN 9 RTT5 New, high standing development. The buildings Physical Site have a big footprint: extensive Old race track Description of Site Constraints car park and green areas. Most of the car parks are empty, but some buildings are still to let.

Topography Hills on the verge of the site Vacant buildings/ to Yes Issues prevents its extension Let

Quality of the Developable area on Good 0.65 Environment site (ha) Access to Possibility for Unused green space. Large facilities and Very poor intensification/ building footprint amenities Redevelopment

Elmbridge Borough Employment Land Review Final Report

Site Number 12a and 12b: Brooklands Industrial Park, Weybridge

Bad Neighbourhood HGV traffic Site No. 12a uses/ Contamination Significant car traffic

Brooklands Industrial Park, Proximity to other Site Name Other employment land Weybridge Uses

Elmbridge Borough Employment Land Review Final Report

Existing B1, B2 and B8 Very Good 10 Employment Uses

Strategic Road Good access (via the A318 and Good 0 Access A245)

Public Transport Very poor (buses every 30 Reasonable 50 Access minutes) Adequate for use within site Internal Road There are sites with limited HGV Poor 20 Access access, however, the HGV access to major plots is good Dedicated parking within Condition of Buildings (%) Parking Facilities Employment Area Very Poor 20 Yellow/double yellow roads SEL ELE10 Servicing of Loadings bays Policy context Green Belt on the East Businesses RTT5 HEN9 Large industrial estate. A Tesco distribution centre takes up 20% Physical Site of the estate. One location has Railway Description of Site Constraints recently been redeveloped for light industry/offices: this new development has a big footprint.

Topography Vacant buildings/ to No Yes Issues Let

Quality of the Developable area on Good 0.22 Environment site (ha) Access to Possibility for Empty land. Poorly used car facilities and Very poor intensification/ park amenities Redevelopment

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Noise pollution Site No. 12b uses/ Contamination HGV traffic

Wintersells Road Industrial Proximity to other Other employment land, Site Name Park, Byfleet Uses Conservation area

Existing B1, B2, B8 and SG (waste Very Good 10 Employment Uses activities, vehicle hire, bus depot)

Strategic Road Close to A318 Good 0 Access

Public Transport Very good Reasonable 50 Access The internal circulation is not easy Internal Road for cars. Poor 20 Access There are sites with limited HGV access. Dedicated parking within Condition of Buildings (%) Parking Facilities Employment Area Very Poor 20 On street parking

Servicing of SEL, ELE10, Green Belt on the Off road loading/unloading Policy context Businesses East Old industrial estate. 20% of it is Physical Site Railway Description of Site occupied by Sui generis Constraints activities.

Topography Vacant buildings/ to No Yes Issues Let

Quality of the Developable area on Good 0.36 Environment site (ha) Old industrial estate situated at the edge of the Borough Access to Possibility for Vacant/derelict buildings facilities and Very poor intensification/ Higher density uses could be amenities Redevelopment achieved through office development

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 13 None uses/ Contamination Residential uses, Proximity to other Site Name Portsmouth Road Town Centre, Uses Strategic Open Urban Land

Existing B1 Very Good 50 Employment Uses

Strategic Road Good access (via the A307 and Good 50 Access A245)

Public Transport Poor Reasonable 0 Access

Internal Road Adequate for use within site Poor 0 Access

Dedicated parking within Condition of Buildings (%) Parking Facilities Employment Area Very Poor 0 One car park is empty

Servicing of N/A (offices) Policy context SEL Businesses Site made up of two buildings: Physical Site No Description of Site Berkley Homes (2 storey) and Constraints Mundays Solicitors (3 storey)

Topography Vacant buildings/ to No None Issues Let

Quality of the Developable area on Good 0.15 Environment site (ha) Underused cark park: Access to Possibility for redevelopment would involve facilities and Very good intensification/ creating a better internal road amenities Redevelopment access to the new site

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood HGV traffic Site No. 14 (a, b, c) uses/ Contamination River Mole Business Proximity to other Site Name Park/Sandown Industrial Sport grounds Uses Estate/ The cookie man Ltd

Existing B1, B2, B8 and SG (waste Very Good 0 Employment Uses activities)

Strategic Road Small residential roads Good 10 Access

Public Transport Poor (bus 515: 1per hour) Reasonable 90 Access

Internal Road Adequate for use within site Poor 0 Access

Condition of Buildings (%) Dedicated parking within Parking Facilities Very Poor 0 Employment Area

Servicing of Green Belt on the South, West Loadings bays Policy context Businesses and North Low rise development. 50% is Physical Site occupied by waste activities. Railway Description of Site Constraints 20% is occupied by a retail warehouse. Some car repair.

Topography Vacant buildings/ to No Yes Issues Let

Quality of the Developable area on Reasonable 0 Environment site (ha) Access to Possibility for The boundaries can be facilities and Poor intensification/ extended to the South East amenities Redevelopment (Globe Micro)

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 15 None uses/ Contamination

Proximity to other Public open spaces, Site Name Hampton Court Estate Uses Grammar school

Existing B1, B2, B8 and SG (car hire) Very Good 0 Employment Uses

Strategic Road A 309 within 50m Good 80 Access

Public Transport Good Reasonable 20 Access The internal circulation is not easy Internal Road for cars. Poor 0 Access There are sites with limited HGV access. Condition of Buildings (%) Dedicated parking within Parking Facilities Very Poor 0 Employment Area

Servicing of Loadings bays Policy context Thames Policy Area Businesses

Physical Site Railway Description of Site Linear site with two buildings. Constraints

Topography Vacant buildings/ to No None Issues Let

Quality of the Developable area on Good 0 Environment site (ha) Access to Possibility for facilities and Very good intensification/ None amenities Redevelopment

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 16 None uses/ Contamination

Proximity to other Residential Uses Site Name Ferry works Uses Water

Existing B1 and SG (boat hire) Very Good 80 Employment Uses

Strategic Road A 309 within 1km, small road to Good 10 Access get to the site

Public Transport Reasonable Reasonable 10 Access The internal circulation is not easy Internal Road for cars. Poor 0 Access There are sites with limited HGV access. Condition of Buildings (%) Dedicated parking within Parking Facilities Very Poor 0 Employment Area

Servicing of Thames Policy Area N/A (offices) Policy context Businesses RTT5 Old industrial premises Physical Site refurbished into modern offices. No Description of Site Constraints 10% of the site is occupied by a boat hire business.

Topography Vacant buildings/ to River Thames on the North Yes Issues Let

Quality of the Developable area on Very good 0 Environment site (ha) Redevelopment of the boat yard Access to Possibility for would be limited by the frontage, facilities and Very good intensification/ its shape and its immediate amenities Redevelopment proximity to residential uses

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 17 None uses/ Contamination Residential uses, Proximity to other Site Name Elmbridge Borough Council Town centre, Uses Area of high ecological potential

Existing B1 Very Good 60 Employment Uses A307 and A244 in proximity. Strategic Road However, the access to the site is Good 10 Access not easy, and the main roads are busy roads. Poor (Esher station 15 minutes Public Transport walking, bus K3 every 10 minutes, Reasonable 10 Access other buses every hour)

Internal Road Adequate for use within site Poor 20 Access

Dedicated parking within Condition of Buildings (%) Parking Facilities Employment Area - empty car Very Poor 0 park in front of the main building

Servicing of N/A (offices) Policy context Town centre Businesses Administrative/ Community Physical Site centre with sport facilities. Some No Description of Site Constraints community buildings are in average condition.

Topography Vacant buildings/ to No None Issues Let

Quality of the Developable area on Very good 0 Environment site (ha) Access to Possibility for Citizen’s advice, King’s George facilities and Very good intensification/ Hall Buildings amenities Redevelopment

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 18 None uses/ Contamination Residential uses, Proximity to other Site Name Monument Hill Town centre, Uses Retail centre

Existing B1 Very Good 20 Employment Uses

Strategic Road On the A317, good access but Good 80 Access busy road Poor (Weybridge station 20 Public Transport minutes walking, buses every Reasonable 0 Access hour)

Internal Road Adequate for use within site Poor 0 Access

Condition of Buildings (%) Dedicated parking within Parking Facilities Very Poor 0 Employment Area

Servicing of Town Centre N/A (offices) Policy context Businesses HEN17 4 or 3 storey buildings along the Narrow site within a residential Physical Site road. One residential building area. Can only be used for Description of Site Constraints separates the two parts of the offices. site

Topography Vacant buildings/ to No None Issues Let

Quality of the Developable area on Very good 0 Environment site (ha) Access to Possibility for facilities and Very good intensification/ None amenities Redevelopment

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 19 None uses/ Contamination

Proximity to other Site Name Horizon Business Park Residential Uses Uses

Existing B1 Very Good 100 Employment Uses

Strategic Road Good access via A245 Good 0 Access

Public Transport Very Poor (bus 436 every 30 Reasonable 0 Access minutes)

Internal Road Adequate for use within site Poor 0 Access Dedicated parking within

Employment Area - the car park is Condition of Buildings (%) Parking Facilities underused for the moment, but Very Poor 0 60% of the offices buildings are empty

Servicing of Loadings bays Policy context RTT5 Businesses

Physical Site New development, 60% of No Description of Site Constraints which is to let

Topography Vacant buildings/ to No Yes Issues Let

Quality of the Developable area on Very good 0 Environment site (ha) Access to Possibility for facilities and Very poor intensification/ None amenities Redevelopment

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 20 Telecommunication mass uses/ Contamination Residential uses, Proximity to other Site Name BT Telephone Exchange Open field (Green Belt), Uses Town centre

Existing B1 Very Good 0 Employment Uses

Strategic Road Small residential roads Good 0 Access

Public Transport Reasonable (Claygate station, Reasonable 100 Access bus K3) The internal circulation is not easy Internal Road for cars. Poor 0 Access There are sites with limited HGV access. Condition of Buildings (%) Dedicated parking within Parking Facilities Very Poor 0 Employment Area

Servicing of Green Belt on the South and N/A (offices) Policy context Businesses East

Physical Site Railway Description of Site Telephone exchange Constraints

Topography Vacant buildings/ to No None Issues Let

Quality of the Developable area on Reasonable 0.16 Environment site (ha) Vacant land behind the main Access to Possibility for building, however it is difficult to facilities and Poor intensification/ reach. amenities Redevelopment The area is next to a field. Large footprint of building to site

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 21 None uses/ Contamination

Site with car showroom in Proximity to other Residential uses, Site Name Hersham Uses Other employment land

Existing B2, SG (car showroom), and A1 Very Good 0 Employment Uses (interior design showroom)

Strategic Road Very good access via the A244 Good 100 Access

Public Transport Poor (buses every hour) Reasonable 0 Access

Internal Road Adequate for use within site Poor 0 Access

Condition of Buildings (%) Dedicated parking within Parking Facilities Very Poor 0 Employment Area

Servicing of N/A Policy context Businesses The site is largely occupied by Physical Site No Description of Site sui generis activities (approx. Constraints 80%)

Topography Vacant buildings/ to No None Issues Let

Quality of the Developable area on Reasonable 0 Environment site (ha) Access to Possibility for facilities and Poor intensification/ None amenities Redevelopment

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 22 None uses/ Contamination

Thames Street (ex Crest Proximity to other Residential uses in the Site Name Nicholson) Uses immediate vicinity

Existing B1 Very Good 0 Employment Uses 300m to A317 (Weybridge high Strategic Road street). Thames Street however, Good 50 Access is a smaller B road with traffic calming measures. Very poor. Est. over 2km to Public Transport Weybridge train station; buses Reasonable 0 Access every hour.

Internal Road Adequate for use within site Poor 50 Access

Condition of Buildings (%) Dedicated parking within Parking Facilities Very Poor 0 Employment Area

Servicing of No access to the site Policy context HEN17 Businesses Limited road access, especially so Offices not currently used; Physical Site HGVs (considering traffic islands Description of Site underused site, inefficient use of Constraints etc.) space; bounded by residential.

Topography Vacant buildings/ to Yes (both buildings were No Issues Let vacant)

Quality of the Developable area on Reasonable 0.32 Environment site (ha) Access to Possibility for Reasonable (one convenience facilities and intensification/ Yes shop opposite Employment Area) amenities Redevelopment

Elmbridge Borough Employment Land Review Final Report

Bad Neighbourhood Site No. 23 None uses/ Contamination Residential uses, Proximity to other Site Name Octagon Development Town centre, Uses Hampton House

Existing B1 Very Good 0 Employment Uses Relatively close to 5 minutes from the A3050. However, access Strategic Road through a small residential road. Good 100 Access Further development might be incompatible with surroundings

Public Transport Very good Reasonable 0 Access

Internal Road Adequate for use within site Poor 0 Access Condition of Buildings (%) Dedicated parking within Parking Facilities Employment Area - the car park is Very Poor 0 part (half) empty Thames Policy Area Servicing of N/A (offices) Policy context RTT5 Businesses HEN9

Physical Site No Description of Site 2-storey building Constraints

Topography Vacant buildings/ to River Thames on the North None Issues Let

Quality of the Developable area on Very good 0 Environment site (ha) Access to Possibility for facilities and Very good intensification/ None amenities Redevelopment

Appendix 5: Town Centre Survey Questionnaire

Elmbridge Employment Land Review Reference number: Address: Reason for being a potential site (consider all of below)

Boundary notes (include potential to extend)

Existing use (describe existing – ground floor and above, and at rear)

Buildings on the site (number of)

% site coverage (estimate approx coverage)

Average storeys (consider frontage and rear)

Condition/quality grade (v.good, good, ave, poor, v.poor)

Estimated age

Comments on potential gain (remark on total storeys, surrounding height)

Parking (consider local, public/private car parking capacity)

Business image

Prominence (w.r.t highstreet / location)

Access to public transport (prox. to bus, trains)

Access to town centre facilities and amenities

Single or multiple occupation

Physical or policy constraints (possible contamination / topography / conservation site?)

Other comments (prospects for combining site?)

Appendix 6: Town Centre Survey Maps

C6

C1

C5

C2 C4

C3

Cobham town centre is 9.426 hectares 050 100 200 Meters EM5

EM3

EM2

EM1

EM6

East Molesey town centre is 4.2 hectares ER7

050 100 200 Meters E5 (700m)

E5

ESHER (700m)

E1

E2

E4

E3

Esher town centre is 14.156 hectares

050 100 200 Meters WT1

WT2

WT3

WT4

WT7 WT5

WT6

WT10

WT9

WT8

050 100 200 Meters Walton on Thames town centre is 18.328 hectares W3

W2 W2

W1

W4

W5

W6

Weybridge town centre is 15.59 hectares

050 100 200 Meters

Appendix 7: Town Centre Survey Results

Reason for being a Number of Buildings Average Storeys Net Gain for B1 Address potential site Existing use (currently on the Site) (currently on Site) Condition / Quality Estimated Age Potential Storeys (office)

Cobham

Car park to the south of Underused car park Car park and public 2 storeys - all gain for B1 Hollyhedge Road, and belonging to the Council, convenience, and two 2 storeys at front, down to 1 C1 2 Average est. 1970's use since none exists on 2 Storeys public convenience building and underutlised land to theresidential buildings (19 at fringe site currently to the north. north and 21)

Underused site: low rise 2 storey height max to fit Sandwiched between High buildings, and car park into Car park, shops. Row of with surroundings. Retail at 1 at front, and up to 2 C2 Street western side and town centre, though there isshops approx 4 fronting 4 2 or 3 Average est. 1970s ground floor for those at rear Longboyds Road. an underutlised public car High Street fronting high street. park 200m away.

Service yards at rear of Underused back yards and 3 storeys for separate Total gain since high street buildings. One Sandwiched between High good access from Church buildings, 2 for extensions currently derelict land. small solitary building. 1 (2 if include telephone 2 or 3 storeys at front, 1 at Average quality for C3 Street western side and Street and passage from est. 1960s or 1970s with consideration of Only the isolated, (Telephone exchange to exhange) church street end buildings at rear. Longboyds Road. High Street. Underused residenital to western small unit would be West boundary - possible land at heart of town centre boundary lost inclusion in redevelopment)

Vacant land, underused 1 storey can be added to C4 At rear of 31 High Street Retail and private car park 1 (to be intensified) 2 Average est. 1970's 1 and 2 storey potential. Links with site C5 current building.

Unused and vacant 70% of the site could be buildings of average / poor Community facilities C5 Cedar Road 3 2 Average est. 1970's built on. Consider frontage 2 storeys quality . Car park is (library, youth centre) with residential underused

Underused space at rear of A number of small 2 storey Integrate with exisiting Service yards and land at C6 Oakdene Road service yards and retail buildings extended from 2 fronting onto high street Average est. Early 1970s buildings and adjacent to 2 Storey gain for B1 rear of buildings buildings main buildings car park

Esher Junction of Esher Green/ Prospect for increasing the Offices and retail - 2 storeys on the car E1 2 3 storeys average est. 1960's 3 storeys High Street density of buildings underused private car park park

Public car park set off Claremont Street leading Underdeveloped space and E2 Public and private car parks 0 N/A N/A N/A 3 storeys 3 storeys through to Waitrose car underused space park

Very small site currently Portsmouth Road, west used as car park (unfulfilled E3 side of Waitrose building, Private car park 0 N/A N/A N/A 2 storeys 2 storeys use), Set on high street. ex-garage site. Strong prominence.

Portsmouth Road, North E4 Potential to intensify usage Low rise shops and offices 4 2 storeys Average est. pre1960 3 storeys 1 storey side Underused site, in proximity to station, and with good road linkages. Current Junction of Sandown Gate Low rise light industry and E5 usage (industrial / farm 2 2 average est. 1980's 3 storeys 3 storeys and Portsouth Road offices equipment could be moved to an strategic employment land area)

East Molesey

Low rise buildings, relatively 3 (one stand alone, two 2 at rear of highstreet Walton Road (B369) / Light industry and car EM1 underused site set just off extensions / rear of high buildings dropping to 1 at Average est. 1960's / 1970's 2-3 storeys 1 to 2 storeys Spencer Road parking the highstreet. street buildings) rear

Vacant retail building with Rear (south) of Walton Vacant - derelict retail EM2 good sized plot, set off 2 1 Poor est. 1980's 2 storeys 2 storeys Road (B369) highstreet building highstreet.

Rear (south) of Walton Building has scope for EM3 Woolworth retail and offices 1 2 Poor est. 1970s 2-3 storeys 1 storey Road (B369) highstreet intensifying

3 storeys. The site is currently 157-169 Walton Road / Vacant garage - offices - New build frontage could be EM4 occupied by an old vacant 1 3 Very poor est. 1960's / 1970's 3 storeys Pemberton Road junction residential brought forward and aligned garage. It is poor grade with the highstreet

Currently underused Low density site behind service yards, vacant West side of Manor Road / retail and offices buildings EM5 buiding and low density. 1 1 storey good est. 1960's 2 storeys 1 storey nr Walton Road (small, low rise building and Opportunity to improve car park) frontage.

Set south of Walton Road Underused Council owned EM6 (B369) (between Spencer Car park 0 0 N/A N/A 2-3 storeys 2-3 storeys public car park Road and Matham Road) Underused site. Currenlt of EM7 Maltham road low density / space could Low rise garage 1 1 Average est. 1960 2-3 storeys 1-2 storeys be better used Single or Multiple Occupation Proportion of site that Access to Public Access to Town Centre (Subject to more detailed Physical or Policy can be built on (%) Parking Issues Business Image Business Prominence Transport Facilities / Amenities investigation if required) Constraints Other Comments

This site lies next to the Green Belt, therefore, special care should be Local business town centre given to its development. Fringe location. Fields and Green Belt to the West. Public car park adjacent to Set on margin of town Poor: 1.5km to train station. M (EBC, British Legion, Height of buildings will be 50 - 60 green belt adjacent. Small Very good Residential to the East and site centre, looking out to Bus services are infrequent Residential) limied esp. as it it a fringe town. Limited prominence South East greenbelt area. location. Development needs to be sensitive to residential and in keeping with a small town centre Mixed use development. Some of the site is covered Access points and shape Not needed - public park Local business town centre Set on high street - high Poor: 1.5km to train station. by a Defined Shopping are not conducive to traffic. 70% Very good M cwith 300m Good image retail profile Bus services are infrequent Frontage (Policies ST6 and Instead the space could be 7) pedestrianised. Mixed use. Ground floor retail. Mix-use development prospect. Access points and shape are not conducive to traffic. Retail Set off the high street at at ground floor and Set adjacent to local rear of highstreet buildings, Public car park near by - Poor: 1.5km to train station. businesses space above. 70% business town centre. however with prospect to Very good M Conservation area (HEN9) max 300m Bus services are infrequent Access from High Street Good image. make new street scene of and from Chruch Street. high prominence Consider potential to redevelop the telephone exchange adjacent to the site? Limited site area. Look to Local business town centre Adjacent to C5 site - could Not visible: at rear of Poor: 1.5km to train station. integrate with C5 , but may 50 Public car park within 200m Good image. Site is Very good S be part of a larger building set on high street. Bus services are infrequent add extra complications currently B1 use redevelopment with land owners

Adjacent to rear yards / Community facilities (library space of highstreet and youth centre) would be Low: set one block off the Poor: 1.5km to train station. 60-70 Could be provided on site buildings of variable quality, Very good S None identified lost and would have to be High Street Bus services are infrequent but long frontage along provided elsewhere or Cedar Road reincorporated

Weak: Set adjacent to multistorey car park and Not strong: At noth end of Redevelopment would have Poor: 1.5km to train station. 60-70 Public car park within 300m rear end of buildings high street set away from Very good M None identified to be sensitive to existing Bus services are infrequent fronting corner of Oakdene main retail core build and integrate Road and Anyards road .

Set within retail core. The net gain from an Very good: on the high Esher station 20 minutes 60 Could be provided on site Would work with offices Very good M None identified intensification of the site is street walking above highstreet shops. not likely to be high The development of this Adjacent with rear gardens Set away from main Esher site would be made difficult / space of highstreet high street (Portsmouth Tthis site is situated in the Esher station 20 minutes by its multiple ownership 0 Could be provided on site buildings (on Portsmouth Road). However there are Very good M Conservation Area (Policy walking status (checking required). Road A307), but not close other offices located on HEN 9) The site was also identified to residential to South. Claremont lane as a retail opportunity

Would have to be provided Very good: On the high Esher station 20 minutes 0 off-site / provided at Good Very good M None identified street walking Waitrose car park?

This site is situated in the Would have to be provided Esher station 20 minutes The site could be 100 Good On the high street Very good M Conservation Area (Policy off-site walking intensified HEN 9)

Isolated fron the town Possibility to have a façade 5 minutes from Esher The site is outside the town 50 Could be provided on site centre, but there are other Poor M None identified on the road station centre boundaries offices in vicinity

Currently looks poorly laid Currently has parking on out. Backing onto Proximity to residential. site. However, it is a small residential at rear. Daylight issues may limit Side street location - less Hampton Court Station 50 site and nearby there is a Prospects to enhance utility Very good M None identified height of development. prominent than highstreet approx. 15-20 min walking large, underused Council of site, esp. along road Intensification would require owned public car park. frontage. Good office rebuild of exisiting buildings location. Not prominent. The site is Poor - site faces service Underused town centre car located at the back of a yards of highsteet Hampton Court Station Also identified as a site with 50 park nearby could cater for Tesco car park. Cannot be Very good S None identified buildings. Old buildings in approx. 15-20 min walking housing potential parking needs seen easily from Spencer poor condition. Road.

Poor - site is attached to rear of highstreet buildings, Not prominent. The site is Underused public car park which are in poor condition, located at the back of a Hampton Court Station Busy location due to 100 in the town centre can be near adjacent to car park Tesco car park. Cannot be Very good S None identified approx. 15-20 min walking Tesco's private car park. used and service yards. Office seen easily from Spencer probably occupy the third Road. floor of the existing building.

Just outside designated town centre boundary, but Site also identified as an still on the highstreet. opportunity for retail Opposite hard to let / Possibility of a mixed use Possiblity to incorporate Hampton Court Station 70 vacant and rundown retail Very prominent Very good M None identified development basement car parking approx. 15-20 min walking frontages (between This site is situated outside Seymour Road and Avern of the town centre Road). Adjacent to boundaries residential. More complex site - a combination of vacant or Underused town centre car Average - set between retai Average - side street Hampton Court Station underused service yards 50 park nearby could cater for / commercial frontage and Very good S None identified location approx. 15-20 min walking and existing buildings. parking needs residential site Potential to increase prominence of site frontage. Access to the site is Some of this site is covered A portion of the site can be Rear of highstreet / Not prominent. The access Hampton Court Station difficult. Close residential, 50-60 Very good S by the Conservation Area kept as car park surrounded by residential to the site is not easy. approx. 15-20 min walking will impact on height and (Policy HEN 9) location of buildings Underused town centre car Adjacent to new build Tthis site is situated in the Easy reach of the high Hampton Court Station Site could be more 50 park nearby could cater for residential flats and other Very good S Conservation Area (Policy street. Side street location approx. 15-20 min walking intensively used parking needs residential HEN 9) Reason for being a Number of Buildings Average Storeys Net Gain for B1 Address potential site Existing use (currently on the Site) (currently on Site) Condition / Quality Estimated Age Potential Storeys (office) Walton-on-Thames

Church Street (between Underused (low density) WT1 Manor Road and Annett Low density retail 1 1 Poor est. 1960's 2-3 storeys 1-2 storeys retail provision / poor grade Road)

This site is currently used as a builders yard / storage Church Street (east side, nr Light industrial - WT2 which are activities that 2 2 good est. 1970 /1980's 2-3 storeys 1-2 storeys Sidney Road) Warehouse could be accomodated in an employment land area

Off Church Street (between This site is currently an WT3 Thames Street and Manor Car park 0 0 N/A N/A 2-3 storeys 2-3 storeys underused private car park Road)

Church Street (east side, The supermarket on this 3 storeys for the currently Aldi sotre. To site only occupies the Supermarket - car park- WT4 2 supermarket - 2 for the Poor est. 1960/70's 2-3 storeys 3 north is Church Walk ground floor, and the 2 social club social club footpath) other storeys are empty

Poor grade offices to let - Junction High Street/ Offices to let - retail on the WT5 more suitable space could 1 3 poor est. 1960s 4 storeys 1 Church Street ground floor be developed

Low rise, poor grade shops 3 storeys or higher, given in central location. Poor Junction High Street/ the height of the new WT6 grade / out of keeping now Low rise shops 1 2 poor est. 1960's At least 2 storeys Church Street developments coming that there are new forward in the area developments in vicinity 3 storeys or higher, given Low rise, poor grade shops the height of the new in central location. Poor developments coming Junction Church Street/ grade / out of keeping now forward in the area Low rise shops - public car WT7 Bridge Street (Woolworths that there are new 1 1 poor est. 1960's (although there are high At least 3 storeys park building) developments in vicinity. rise residential buildings Current building has poor near by). The site has interaction with highstreet. permission for a 5 storeys building

Layout of current building 3 storeys or higher, given New Zealand Avenue / (Home Base) does not best the height of the new WT8 Ashley Park Avenue Retail (DIY) and car park 1 1 good est. 1980's / 1990's at least 2 storeys use the site. Set back off developments coming junction New Zealand Ave forward in the area

Low rise shops and offices WT9 High Street building with prospects for Low rise shops and offices 3 2 good est. 1980's 3 storeys 1 storey intensification

3 storeys for the office Largely low denisity and Old offices and light WT10 Churchfield road 2 buidling - 1 storey for the poor est. 1960's 3 storeys or higher 2 storeys poor grade buildings. industrial estate industrial unit

Low rise housing, the site can be integrated in the town centre boundaries andDetached houses and a WT11 Hurst Grove 26 2 storeys good est. 3 storeys of higher redevelopment as mixed playhouse cinema used, in order to retain housing component

Weybridge Large central car park part full; one of the buildings fronting High Street has a In grounds of NHS centre permission for demolition; NHS car park, building for Creche is in good condition 3.5 storeys at front (retail at car park off Church Street Max 3.5 storeys at High est. creche 10+ years; service yards at rear of creche, service yards for but service yards and rear ground, 2 office and 2 floors at front, down W1 and rear service areas of 4 Street front, stepping down office 20+ years and retail High Street provide retail on High Street, low of retail buildings and office residential at top), to 1.5 at to 1.5 at rear retail functions fronting to 2 or 1.5 at rear unit 50+ years possible space for grade office unit unit are poor rear High Street. development; NHS is partly used; Holstein Road offers point of access. Underused: This site Elmgrove Road. Rear of consists of a service yard, aService yard, old shop, and 1 storey on exising building 1 storey on exising building fronting high street, Average for existing, Poor Intensification on existing, W2 building which can be space for intensification on 1 Old Red Cross building to est. 50+years building, 2 on 'Old service yard and 'Old Red for Old Red Cross redevelop Old Red Cross intensified, and a vacant existing building redevelop to 2 storeys Red Cross' building Cross Shop' building Retail part for car parking, Car park at junction Ship 2 storeys given the height W3 Underused private car park Waitrose car park 1 Good est. 1970's and include one floor of 2 floors for office Yard - Elmgrove Road of surrounding buildings office.

Large footprint and low Buildings in vicinity show 3 density retail development: DIY/gardening retail W4 Monument Hill 1 1 storey Average est. 30years storeys on 3 storeys for B1 use underutilised land for town (FOCUS) and car park 50% - 60% of site centre location

Prospects for infilling of Back retail yards / service Baker Street (with frontage 3 at the frontage, 1 at the Up to 3 storeys at front, but W5 underused and ineffient areas. Pivate car park, 1 Average est. 1970's 2 storeys at the rear on the High Street) rear additional storey on existing town centre space. shops on the street

The site is a Telephone Exchange: better use could Part Telephone Exchange 2, with building height up to Church Road, opposite 2.5 or 3 3 storeys at front W6 / lay out can be made (now in use?) and office 1 the equivalent of 3 storeys Average est. 1950's 2 storeys Limes Road up to 4 storeys at rear through the modernisation use (Samsung) farther back of premises Single or Multiple Occupation Proportion of site that Access to Public Access to Town Centre (Subject to more detailed Physical or Policy can be built on (%) Parking Issues Business Image Business Prominence Transport Facilities / Amenities investigation if required) Constraints Other Comments

Relatively good and couldbe This site can be developed improved. Set on edge of Very prominent - on one of Defined Shopping Frontage as mixed-used 60 Could be provided on site boudary, but with links to Poor - Walton Station Very good S Walton centre's main road (policies STC6 and 7) The site was also identified highstreets. Proximity to as a housing opportunity residential also

Average. Close to This site is outside of the Very prominent - on one of 50 Could be provided on site residential. Set outside the Poor - Walton Station Very good S None identified town centre boundaries Walton centre's main road town centre boundary

Set within town centre area Retail and commercial Some of this site is covered A part of this site was Not prominent (at the back 50 Could be provided on site functions to highstreet side, Poor - Walton Station Very good M by the Conservation Area identified as an opportunity of residential buildings residential to North (along (Policy HEN 9) for retail Mayo Road)

Footpath on northern Good on high street side, Currently there is parking boundary - church walk. although residential rear Some of this site is covered for approx. 20 cars. Parking Very prominent - on one of Multi-ownership and 50 areas and poorer grade Poor - Walton Station Very good M by the Conservation Area could be provided on site as Walton centre's main road complex site: rear end of service yards / rear of (Policy HEN 9) basement car parking? buildings / yards / delivery buildings points and car parking.

The redevelopment of this site is not likely to result in a Very good. Good location in Very prominent - on one of Would have to be provided net get of floorspace, but it 100 heart of town centre but Walton centre's main road. Poor - Walton Station Very good M None identified off-site represents an opportunity to sought as retail High visibility adapt the supply of offices to the currant demand

This site lies within the Very good. Good location in Very prominent - on one of redevelopment site of A planning application has Would have to be provided 100 heart of town centre but Walton centre's main road. Poor - Walton Station Very good M Walton (Policy STC16 and already been granted for off-site sought as retail High visibility 17) - policy expired on the this site 27th of September 2007

A planning application has already been granted for Strong retail image - core ofVery prominent - on one of this site 50 Could be provided on site town centre. Well conect to Walton centre's main road. Poor - Walton Station Very good M None identified Part of the site was also facilities. High visibility identified as a retail opportunity

This site would suit a mixed used development. However, it is currently Good - Green space / wood occupied by a popular / wel and cricket club surrounds, Very prominent - on one of used store, and is not likely 50 Could be provided on site Poor - Walton Station Very good S None identified however, set on main road Walton centre's main road to be available for opposite new flat builds redevelopment. The site is on the boundary of a Strategic Open Urban Land.

Would have to be provided Very prominent - on Defined Shopping Frontage 100 Good - strong image Poor - Walton Station Very good M off-site Walton's high street (policies STC6 and 7)

A planning permission for Average - surrounded to residential development has Set off the high street. Poor 70 Could be provided on site North and East by Poor - Walton Station Very good M None identified been granted for this site visibility. Quiet road residential The site was also identified as a housing opportunity

This site is outside of the town centre boundaries Very prominent - on one of 30 Could be provided on site Poor - Walton Station Very good M None identified It's multiple occupation Walton centre's main road status will make it difficult to redevelop

Central high street location, For high street facing Backs onto older high streetgood business visibility. Average/Poor: 1.5km to floorspace, ground floor will Large public car park On the boundary of 60% to 70% buildings, but modern NHS Though more retail train station. Infrequently Very good M be retail, and top 0.5 floor opposite. conservation area building orentated, generally good served bus services could provide for image residential.

Average at front - fronting None from limited Average/Poor: 1.5km to Would have to be provided onto residential and near inspection, but note Note proximity to residential 70% Just off the high street train station. Infrequently Very good M off-site highstreet, but poor at rear residential character of area. served bus services with service areas. location Limted upward build due to On site, and nearby at Set one block back from Average/Poor: 1.5km to The private parking facilities Just off the high street. surrounding area. Street 100 public car park, approx. high street. Largely quiet train station. Infrequently Very good S would have to be Very limited prominence parking reserved for 400m away residential in character served bus services reincorporated. residential

Boundary of redevelopment includes an office buidling: Its redevelopment would be subject to negotiation. To the SW, the boundary The site is surrounded by Could be provided on site. Average/Poor: 1.5km to can be extended to the other good grade office A gateway site into the town S (potentially M - British Topography - site slopes 50 Approx 400m from town train station. Infrequently Good bowling green and and the buildings and high street centre. Legion, and Bowling) away steeply to the north centre site. served bus services British Legion building, location which would increase area by 40%. However, redevelopment should provide for these facilities o mitigate their loss.

Average/Poor: 1.5km to Public car park nearby - High street location, within Frontage directly onto high Potential complexity of site 30 train station. Infrequently Very good M Possible daylight issues within 200m retail area of good quality street. due to multiple occupation served bus services There is a residential building to the West side of the plot, and development The site is on the high Average/Poor: 1.5km to would have to take their High quality environment: 50 Could be provided on site street, but in a less busy train station. Infrequently Very good S Conservation area requirements in to within the conservation area area served bus services consideration. This would limit the development heigh on this side, and distance set away.