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Earl Shilton and Barwell Employment Land Assessment Prospect Leicestershire Limited

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Earl Shilton and Barwell Employment Land Assessment Prospect Leicestershire Limited EARL SHILTON AND BARWELL EMPLOYMENT LAND ASSESSMENT PROSPECT LEICESTERSHIRE LIMITED 29 November 2010 Prospect Leicestershire Limited Earl Shilton and Barwell Employment Land Assessment Contents 1 Introduction 1 2 Brief and Methodology 3 3 Source for Proposed Distribution of Employment Land to Earl Shilton and Barwell Sustainable Urban Extensions 7 4 National and Regional Trends to the Employment Land Market 16 5 Floor Space and Accommodation Requirements for Users of Distribution, Industrial and Offices Floor Space 22 6 Demand Profile for Hinckley and Bosworth 28 7 Market Appraisal for Earl Shilton and Barwell 42 8 Employment Land Generation from the Sustainable Urban Extensions 50 9 What the Market Will Deliver 54 10 Conclusions and Recommendations 60 Appendices – See Separate Document Prospect Leicestershire Limited Earl Shilton and Barwell Employment Land Assessment 1 Introduction 1.1 Purpose 1.1.1 The aim of this study is to assess realistically the level and type of employment land that can be developed to support the proposed Sustainable Urban Extensions (SUEs) to Earl Shilton and Barwell. 1.1.2 This assessment is principally market based. Currently, there is great uncertainty in the property markets. The economy is continuing to restructure and finance for development from both private and public sectors is not being delivered. For these reasons, planning has to be deliverable. Otherwise, regeneration and growth will not be achieved. 1.1.3 This assessment is intended to be robust and to inform the current masterplans for Earl Shilton and Barwell and the emerging Area Action Plan. 1.2 Context 1.2.1 A number of studies, at both county and local level, have considered the issue of employment land. The latest study, undertaken by BE Group, was completed in May 2010. However, this study did not re-examine the specific levels of need previously established for Earl Shilton and Barwell (20 - 25 hectares in total). Instead, this total was identified as part of an employment needs assessment for the wider sub-region undertaken by PACEC on behalf of Leicestershire Economic Partnership in October 2008. 1.2.2 Subsequently, it has been determined that further assessment, at a more local level, is required to establish whether there has been any changes in the level of need to the Adopted Core Strategy figure of 25 hectares across the SUEs, which reflected the PACEC Study. 1.2.3 Specifically, consideration is to be given to the make-up and delivery of employment premises required to support the overall development of the SUEs and the implications in terms of land take. 1.2.4 The Core Strategy requires HBBC to allocate two mixed use SUEs to Earl Shilton and Barwell through the preparation of an AAP. To the east of Earl Shilton, it is proposed that land will be allocated principally for 2,000 new homes and 10 hectares of employment land. To the west of Barwell, it is proposed that land will be allocated principally for 2,500 new homes and 15 hectares of employment. 1.2.5 The Core Strategy does not distinguish what land is to be developed for housing and what land is to be developed for employment. Instead, it just denotes the proposed extent of both SUEs. This is shown on the figure below. 1 Prospect Leicestershire Limited Earl Shilton and Barwell Employment Land Assessment 1.2.6 Masterplans have been produced subsequently by Capita Lovejoy of the two SUEs on behalf of the Borough Council. The masterplans for Earl Shilton and Barwell form Appendices 1 and 2 respectively. 1.2.7 The masterplan for Barwell shows two potential locations for employment land:- Land to the south (10.1 hectares) Land around Carousel Park (4.9 hectares). 1.2.8 Option two to the masterplan shows a reduced employment area to the south of 5.4 hectares. 1.2.9 We have been informed that the choice of location for land around Carousel Park has been driven mainly by the desire to provide a buffer zone to Carousel Park. 1.2.10 For Earl Shilton, three options have been produced. In each case, the principal variant concerns the potential development of the Severn Trent Sewerage Works towards the centre of the site. The availability of this part of the site will not be known until later this month. The resulting employment land take varies between 3.79 hectares to 8.48 hectares, depending on whether the sewerage works is available for development and, if so, whether it is developed for employment or housing. 1.2.11 Housing levels proposed for Earl Shilton are less than originally set out in by the Core Strategy. They range from between 1,415 homes to 1,645 homes. 1.2.12 In all cases, the employment land is situated in the centre of the site with direct frontage and access to the recently constructed A47 Earl Shilton Bypass. 1.2.13 Both SUEs are projected to start development in 2013. The end date for development coincides with the end of the plan period to the Core Strategy (ie 2026). 2 Prospect Leicestershire Limited Earl Shilton and Barwell Employment Land Assessment 2 Brief and Methodology 2.1 Brief 2.1.1 From the Brief, and the inception meeting that followed on 5 October 2010, it is clear that the study is to test critically whether the market will deliver 25 hectares of employment land or whether a more localised approach, concerning a smaller allocation of employment land, will be more appropriate in market terms. 2.1.2 This critical appraisal will ensure that the quantum of employment land required to support and benefit these communities to 2026 reflects their needs. In doing so, this study will take into account existing sites, projected population growth, regeneration, market demands, viability and deliverability. 2.1.3 The principal objectives and aims of the study are set out in Section 4 to the Brief. Paragraph 4.1 states that the principal objective is to carry out a comprehensive assessment of employment land need for Earl Shilton and Barwell to 2026, taking into account existing provision and the level of anticipated growth through the SUEs. 2.1.4 Paragraph 4.2 of the Brief is more specific. The assessment needs to set out what is needed in employment land terms. Reference is made to:- amount and scale; type/use class; market need; and location. 2.1.5 In addition, consideration is to be given to:- Viability; likely timescales for delivery; and what actions can be taken to improve the prospects of delivery. 2.1.6 Paragraph 4.3 to the Brief sets out the key aims to the study. These can be summarised as:- assessment of all current and future B class employment need/take up rates; identification and justification of employment needs, opportunities and the amount of additional employment land that will be appropriate; consider specifically the potential of B1 offices uses; and identify opportunities for linking future employment areas to the existing town centres. 2.2 Approach 2.2.1 The approach taken with the study has been four-pronged. These can be summarised as:- 3 Prospect Leicestershire Limited Earl Shilton and Barwell Employment Land Assessment market led; research based; consultative; and analytical. 2.2.2 The methodology with each prong of the approach is considered below:- 2.3 Methodology 2.3.1 Section 3 of this study provides a review of previous studies undertaken. We refer principally to the Leicester and Leicestershire HMA Employment Land Study produced by PACEC on behalf of the Leicester Economic Partnership in October 2008. This study is considered to be the principal source for the distribution of 25 hectares of employment land to the two SUEs serving Earl Shilton and Barwell. The basis employed by the authors of this study, in recommending such a distribution, and its relevance given current economic conditions, is re-assessed. 2.3.2 Sections 4 and 5 of the study give an overview in terms of demand and provide a basis for the remainder of the report that considers supply and demand at a more local level. The principal elements to this overview are:- national trends in the principal markets (including new or emerging sectors); regional trends, with reference to separate markets for industry, distribution and offices; other trends affecting demand for employment land; financing of development post credit crunch; and operators’ requirements - a changing world. 2.3.3 For this section, we have relied upon our own property expertise and knowledge of the principal markets. This has included reference to property research the company undertakes, such as the King Sturge Industrial and Distribution Floor Space Today Survey. 2.3.4 Section 6 provides a profile of the demand and supply of offices, industry and distribution floor space in the Borough of Hinckley and Bosworth, with particular reference to the built up area of Hinckley and Burbage given its proximity and relationship to Earl Shilton and Barwell. Consideration has been given to:- local economic overview; stock of employment premises; vacancy levels; development activity; supply of development land; rents, prices and yields and other issues affecting viability; and enquiries. 4 Prospect Leicestershire Limited Earl Shilton and Barwell Employment Land Assessment 2.3.5 Section 7 provides a market appraisal for Earl Shilton and Barwell. This provides an assessment of many of the factors considered in Section 6 and includes a SWOT analysis. It considers the employment basis for the two settlements, their principal characteristics (including communications) and their relationship with Hinckley and Burbage and the surrounding area, including Leicester. 2.3.6 Section 7 provides a description of the pitch that Earl Shilton and Barwell can offer for industry, distribution and offices.
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