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Employment Land Review Charnwood Borough Council

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Employment Land Review Charnwood Borough Council Employment Land Review Charnwood Borough Council C137(e)/Final Report/November 2014/ BE Group Employment Land Review Charnwood Borough Council CONTENTS EXECUTIVE SUMMARY ........................................................................................... 1 1.0 INTRODUCTION ............................................................................................. 8 2.0 STRATEGIC CONTEXT ................................................................................ 15 3.0 SOCIO-ECONOMIC PROFILE ...................................................................... 52 4.0 PROPERTY MARKET – GENERAL .............................................................. 69 5.0 PROPERTY MARKET – ANALYSIS ............................................................. 89 6.0 EMPLOYMENT LAND ................................................................................... 96 7.0 STAKEHOLDER CONSULTATIONS .......................................................... 135 8.0 GROWTH FORECASTS.............................................................................. 166 9.0 LAND NEEDS OF NON-B CLASS USES ................................................... 178 10.0 CONCLUSIONS .......................................................................................... 184 11.0 RECOMMENDATIONS ............................................................................... 207 Appendix 1 – List of Consultees Appendix 2 – Enquiries Analysis Appendix 3 – Charnwood Vacant Property Schedule Appendix 4 – Site Appraisals Appendix 5 – Site Proformas Appendix 6 – Charnwood Site Scoring System Appendix 7 – Charnwood Site Scoring Assessment Appendix 8 – Developer Marketing Standards C137(e)/Final Report/November 2014/ BE Group Employment Land Review Charnwood Borough Council EXECUTIVE SUMMARY Introduction i) This report assesses the supply, need and demand for employment land and premises (use class B) in Charnwood. It has been carried out for Charnwood Borough Council to provide robust evidence to underpin and inform its Local Plan for the period to 2028. It will particularly consider changing economic circumstances since the inception of the Charnwood Local Plan Core Strategy in 2006. ii) The key objective of the study is: “to provide adequate, up to date and relevant evidence to inform the planning framework for Charnwood. The Council‟s express intention is to support economic growth, meet the anticipated needs of business and create a balance between employment and housing as required by the National Planning Policy Framework. The consultants will note that the Charnwood Local Plan Core Strategy is currently subject to a suspended examination and that the impacts of the passage of time and potential for changing circumstances on that policy framework needs to be understood.” Methodology iii) A number of research methods have been used including site visits and interviews with public sector agencies involved in the Borough (and in neighbouring local authority areas); 16 major businesses; key developers, landowners and their agents and other key stakeholders including Loughborough University. Desktop analysis of existing strategies, reports and documents has also been used to inform the overall findings. Finally the land supply has been assessed against forecast data to understand the future need for any additional employment land. This is then developed into a series of economic development recommendations that cover not just land, but also premises. The methodology follows 2014 Planning Practice Guidance (PPG) on the production of employment land reviews. Findings iv) Charnwood is a relatively affluent, reasonably skilled area. Unemployment is low in the context of Leicestershire, and is well below regional and national averages. Charnwood retains a strong local manufacturing sector, with 13.7 percent of the working population in manufacturing jobs, high in the national context but slightly below county and regional averages. C137(e)/Final Report/November 2014/ BE Group 1 Employment Land Review Charnwood Borough Council v) In terms of service sectors, business administration and support services and Information and communication have the strongest roles. Employment in the professional, scientific and technical sectors was more modest, and below wider averages, although these sectors do account for a high proportion (13.5 percent) of local businesses. Overall, there were some 6,180 businesses operating in the Borough in 2013. Most of those businesses employ less than ten employees (83.0 percent). vi) Charnwood is a relatively self contained local authority area. 56 percent of the Borough‟s working residents live and work in the area. This is relatively high in Leicestershire and only Melton and Leicester are significantly more self contained. Despite this Charnwood is a net exporter of labour, the largest in Leicestershire. vii) Charnwood has attracted a good share of the inward investment „successes‟ of Leicestershire over the last 17 years, as identified by the Leicester and Leicestershire Enterprise Partnership (LLEP). Most enquiries received by the LLEP were for small units of up to 465 sqm. However, there was also modest demand for larger industrial premises of 465-929 sqm, and greater than 2,324 sqm, and offices of more than 1,395 sqm. viii) Industrial need is for modern moderate/good quality units of up to 300 sqm. However, there is also a market for larger space, particularly specialist accommodation at the Charnwood Biomedical Campus. Here enquiries for 2,000 – 3,000 sqm are being received along with interest, likely to be turned into occupation, for premises of around 10,000 sqm. The identified shortage is for units of 2,000 – 7,000 sqm which could meet the needs of established firms looking to grow, or inward investment from mid-sized firms. ix) The office market operates at two levels, with local demand for smaller suites of less than 200 sqm operating alongside larger requirements for self contained properties of up to 3,000 sqm. Demand for the latter is focused at key locations in the Leicester PUA, notably Watermead Business Park, Syston. x) Consultations with a sample of the larger businesses in the Borough suggest a strong desire for further growth. Half of the 16 businesses expressed their desire to expand in the future, although only one (Interserve Construction) has scope to do so C137(e)/Final Report/November 2014/ BE Group 2 Employment Land Review Charnwood Borough Council entirely within its current site. Furthermore, several voiced the opinion that finding suitable premises within Charnwood will be challenging. xi) With the exception of Leicester City, all of the local authorities which neighbour Charnwood feel they are able to meet these needs on land within their own local authority area boundaries. Leicester has a significant, and long established, shortage of employment land and will be looking for support from its neighbours, particularly Charnwood. The current identified shortfall, as set out in the Leicestershire Housing Market Area Employment Land Study 2013, is for 32.16 ha of industrial use land and 19.20 ha of strategic warehousing land. xii) Market signals also indicate a high degree of demand for road and rail based logistics land in Leicestershire, consistent with its strategic location within the “Golden Triangle” for the distribution sector, generally defined as the area bounded by Milton Keynes, Birmingham and North Leicestershire. It is apparent that Charnwood is positioned within that broad strategic area and therefore may attract interest from the distribution and logistics sector. Employment Land Supply xiii) At 31 March 2014 there was a local supply of 54.27 of available employment land, made up of 16 sites. However, this includes one allocated site (E/5(c): Dishley Grange, Hathern) plus two planning consents, totalling 10.94 ha are unlikely to ever come forward for development, in their present form at least. Another 3.06 ha comprises planning permissions to provide space for the exclusive use of specific businesses. In addition, 65 percent of the Rothley Lodge Employment Area Extension site will be retained for green infrastructure in the current consent, reducing the net developable area by 7.41 ha to 3.99 ha. Allowing for these deductions gives a realistic employment land supply of 25.70 ha in nine sites. xiv) When measured against long term past take-up rates, the forecast demand is for 49.97-67.07 ha (36.82-49.42 ha, plus a five year buffer of 13.15 -17.65 ha to reflect a choice of sites and to provide a continuum of supply beyond the end of the plan period). By this measure Charnwood has a land supply shortfall of 24.27-41.37 ha against the realistic headline supply (25.70 ha). xv) The other forecast model (baseline employment) suggests the Borough has a sizable oversupply of employment land (see Table ES1). This would suggest that much of C137(e)/Final Report/November 2014/ BE Group 3 Employment Land Review Charnwood Borough Council the current land supply is surplus to requirements and could be used for other activities. However, the market assessment and a review of the historic trends in employment change and land take up (see Section 8.0) suggest that these forecasts underestimate land needs significantly. Table ES1 – Land Forecast Models – Summary Model Land Land Need Buffer (five Surplus Assumptions Stock 2014-2028, ha years take- (Shortfall), 2014, ha up rate) ha ha Historic Land 54.27 +49.42 High +17.65 High (12.80) High- based on Take-Up +36.82 Low +13.15 Low 4.30 3.53 ha/year
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