London retail parks could provide space for 11,200 new homes - research finds

Redevelopment is already taking place on a number of sites. 29 of the 102 retail parks are undergoing residential-led redevelopment in one form or another and could deliver up to 16,800 homes. A further 28 developments on land next to retail parks are already delivering 17,500 homes. Together, around 34,000 homes are currently being developed on or adjacent to retail park sites across London.

James Singer, Associate Director at Lichfields and author of the research, said: “London needs more homes and some retail parks have clear potential to help provide them, particularly where large parts of a site are taken up by surface car parking or low-density development.

“That doesn’t mean every retail park is suitable for housing. Many are trading well, and factors such as land value, existing tenants and lease structures can make redevelopment difficult. 

“In a lot of cases, the more realistic approach is to redevelop sites in stages, keeping successful retail and leisure uses while adding homes and improving the wider site. That can make better use of the land while retaining uses that continue to perform well.” 

The research comes as London looks for ways to increase housing supply under the draft London Plan, published in July. The plan makes provision for around 558,000 new homes over the next 10 years, against an identified local housing need of approximately 840,000. 

Existing and proposed London planning policy supports the redevelopment of low-density retail parks and car parks for housing where sites are suitable. However, viability, existing uses and the ownership and lease arrangements of individual parks will have a major bearing on what can be delivered.

Retail parks have remained relatively resilient compared with other parts of the retail market, while strong occupier demand and limited new supply can support high existing use values. Existing leases, ownership structures and redevelopment costs can make residential schemes difficult to bring forward.

Vacancy across the retail parks analysed was around 15% at the time of the research, compared with an average of approximately 6% across the wider retail park market. The research found that some of this reflects sites already moving towards redevelopment, where tenancies have been allowed to lapse ahead of future plans. 

For sites with development potential, the study points to phased delivery as one way of retaining retail and leisure uses while introducing housing, community facilities, new streets and public space. It considers London examples including Hurlingham Waterfront in Fulham, Lewisham Retail Park and Southbury Leisure Park in Enfield.

James added: “The opportunity is not just to increase the number of homes on these sites, but to turn places built around cars into neighbourhoods where people can live, shop and spend time. That means thinking carefully about the mix of uses, the quality of public space and how each site connects with the surrounding area.”