Landsec’s Geddes warns of ‘alarming’ fall in Westminster development
Landsec’s managing director of workplace has warned that uncertainty over planning policy in Westminster could deter real estate players from putting money to work in the borough.
Speaking at the Westminster Property Association’s 35th annual lunch, chair Marcus Geddes said Westminster had seen an “alarming” 75% fall in major planning applications over the past six years. Other London boroughs have also seen falls, he added, “but not to this extent”.
Developing in Westminster “can be rewarding”, Geddes said, but the borough “is also probably one of the most complex, expensive and therefore riskiest areas to invest in”.
Landsec’s managing director of workplace has warned that uncertainty over planning policy in Westminster could deter real estate players from putting money to work in the borough.
Speaking at the Westminster Property Association’s 35th annual lunch, chair Marcus Geddes said Westminster had seen an “alarming” 75% fall in major planning applications over the past six years. Other London boroughs have also seen falls, he added, “but not to this extent”.
Developing in Westminster “can be rewarding”, Geddes said, but the borough “is also probably one of the most complex, expensive and therefore riskiest areas to invest in”.
“Given the cost and complexity of investing here, the majority of developers do take a long-term view,” he added. “They are committed and take a deep interest in the communities in which they operate. But if the risks outweigh the benefits, there are other areas to invest in across London, and indeed around the world.”
Geddes said “uncertainty” in the planning system “deters investment and risks stalling growth and the decarbonisation of our commercial buildings”.
“A lack of guidance on how to assess the relative merits of both retrofit and redevelopment have left planning authorities and the industry grappling with how to balance all three of the stated objectives of sustainable development, namely economic, social and environmental,” he added. “Local politicians and planning officers are in the invidious position of trying to balance these very complex and fast-moving considerations.”
Rallying the room, Geddes said the WPA’s audience “is part of an important eco-system to further Westminster’s future built environment, creating access to opportunity and ensuring it’s one of the very best cities to live, work and visit”.
“But cheek by jowl to its core commercial districts are some of the most deprived wards in the country,” he added. “We all have a responsibility to ensure that this opportunity is being spread fairly across the city, so that all of Westminster can feel the benefits of its success.”
Geddes acknowledged the many problems facing real estate decision-makers as a tough year draws to an end – but added that there is no guarantee that the situation will ease in 2024.
“There’s no doubt that 2023 has had its challenges: high interest rates, high inflation and the continued cost of living crisis,” Geddes said. “Capital is more expensive, harder to secure and more risk-averse than we have seen over the past 15 years… Things are unlikely to get easier quickly.”
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Photo from Westminster Property Association
