Update of Update of DevelopmenDevelopment Trends in t Trends in WestminsterWestminster

27 June 200527 June 2005

CITY DEVELOPMENT CITY DEVELOPMENT OVERVIEW AND SCRUTINY OVERVIEW AND SCRUTINY

COMMITTEECOMMITTEE

Westminster-The Development Context

Westminster has a unique character with its complex land use mix and its buildings and functions of international, national and regional importance including:• Historic Environment • Institutions • Church and State• Employment • Residents • Entertainment• The Arts• Shopping • Transport• Education• Deprivation

Recent Planning Issues in Westminster

ઙ Local Development Framework

ઙ Funding for the Planning Service - planning fees and the Planning Delivery Grant

ઙ Planning Obligations

ઙ Use Classes Order

Current Developments, Design Awards and Planning Obligations

Developments Completed or Under Construction:)̺ Treasury Building, Parliament St, SW1 -completed (450,000sq.ft.)

)̺ York House, W1 - under construction (100,000sq.ft.)

)̺ Broadcasting House & Egton House, W1 - under construction (500,000sq.ft)

Design Awards for Buildings in Westminster in 2004:)̺ 4 Civic Trust Awards and 3 commendations,

)̺ 2 Royal Fine Art Commission Trust Award

)̺ 1 Institute of Civil Engineers Award

)̺ 1 London Planning Award

Planning Obligations completed in 2004/05 to secure:)̺ £4.3million+ for environmental improvements & community benefits

)̺ £11,380,475 for the affordable housing fund

)̺ 151 affordable housing units

ODPM Applications Determined by London Boroughs 2004

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

City ofWestminster

Barnet Redbridge Wandsw orth Brent Camden Lambeth Kensington andChelsea

Southw ark City of London

OD

PM

Ap

pli

cati

on

s D

eter

min

ed

Other Decisions Minor Decisions Major Decisions

Planning Applications Received 2000 - 2005

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

2000/01 2001/02 2002/03 2003/04 2004/05

Pla

nn

ing

Ap

pli

cati

on

s

All Applications Received ODPM Applications Received

ODPM Planning Application Processing Time

0

5

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

85

90

95

100

2000/01 2001/02 2002/03 2003/04 2004/05

Per

Cen

t

% of Major Applications determined within 13 weeks Major Target% of Minor Applications determined within 8 weeks Minor Target% of Other Applications determined within 8 weeks Other Target

New Target Introduced

Planning Appeals - 1999 - 2005

0

50

100

150

200

250

300

350

1999 / 2000 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005

No. o

f app

eals

rece

ived

Total Received Written Representations Public Inquiries / Informal Hearings

Planning Income - 1999 - 2005

800,000

900,000

1,000,000

1,100,000

1,200,000

1,300,000

1,400,000

2001/02 2002/03 2003/04 2004/05 2005/06Estimated

Pla

nn

ing

In

com

e (£

)

Fee Increase

The Office Market

• Westminster has a number of large development schemes under construction and demand is high for pre-application discussion on proposed major schemes.

• Predictions are that construction is likely to pick up. • Drivers Jonas suggest that developers should start

on speculative schemes but that these need to be the right property in precisely the right location.

Recovery in Central London

Source : DJ Research

West End Office Market• West End Core

- Floor by floor basis

- Floor plans of 4 -10,000 sq.ft

- Top quality space

- Serviced offices• Outside Core

- Larger Floorplates (e.g. Paddington & Victoria)

- Lower rents

- Large Corporate / Professionals

- Impact of Lyons Report• Outlook

- Speculative development returns

- Right space - Right place

The Residential and Retail Markets

Residential• Central London’s house prices remained largely unchanged in

2005, but residential rental values are rising at their fastest rate for 4 years.

• Housing starts have fallen but the number of planning applications and permissions for residential has increased in 2004.

Retail• The retail market was been the best performer over the last 3

years but total returns have fallen and, unlike previous years,

predictions are not so positive.

Tourism and Entertainment• London’s attracts 13.1 million visitors a year - it ranks with

Paris as the world’s most popular international holiday destination.

• Westminster is the focus of London’s tourist industry and the heart on London’s entertainment sector with the largest concentration of hotels and attractions.

• Hotels - permission for an additional 775 bedrooms by the end of 2004.

• There is pressure for growth in entertainment, leisure and food and drink uses bringing economic benefits but raising amenity issues. Permissions for such uses are decreasing in Westminster.

Looking Forward - Issues

• New Development Plan System - the Local Development Framework, the Core Strategy and the Statement of Community Involvement

• Sustainable Development - planning is an important vehicle for promoting sustainability and the City Council has produced award winning supplementary planning guidance to help developers achieve this.

• Planning Obligations - Central Government guidance overdue.

• Relationship with the Mayor For London - despite differences on some issues, we need to work with the Mayor to promote the city.

Large Scale Developments Coming Forward• Paddington - Future Phases

- Continue to implement approved schemes

- Proposed schemes coming forward

- Impact of possible expansion of Heathrow airport

• Victoria- Victoria has seen significant recent development

- New development and improved transport facilities proposed - Impact on Victoria of possible expansion of Gatwick Airport

• Crossrail

- Hybrid Bill before Parliament for implementing Crossrail - - Development Opportunities associated with Crossrail

• Olympics 2012

- Host city to be announced on 6 July 2005

- Venues for Olympic events within Westminster

- Impact of the proposal to host the Games

Major Applications in 2005 & 2006Applications for 16 Major Schemes in W1 are expected to be submitted

during 2005 & 2006 including- Swiss Centre (hotel, entertainment & residential)

- Dickens & Jones (retail, offices & residential)

- Marshall St. Baths (leisure centre, refuse depot, residential & offices)

- Trenchard House (key worker or affordable housing)

Applications for 14 major schemes in the north of the City are expected to be submitted during 2005 & 2006 including

- Paddington Central Phase 2 (hotel)

- Carlton Gate (residential & medical)

- West End Green (retail & residential)

Applications for 16 major schemes in the south of the City are expected to be submitted during 2005 & 2006 including

- Bowater House (residential & retail).