The development of the Docklands as a hub for new businesses, attracting entrepreneurs and creating high-skilled jobs is under threat.
Plans to allow land owners to cash in on the current property boom by turning offices into homes without the need for planning permission are under consideration by the Government.
A temporary lifting of restrictions was introduced last year. The Mayor of London, under pressure from business clusters such as Tech City, won concessions that ensure key enterprise areas were exempt.
These areas included Canary Wharf, the enterprise zone around the Royal Docks and Shoreditch, where office space is in such short supply it is forcing startups elsewhere.
But now the measure – called Permitted Development Rights (PDR) – could be made permanent in an attempt to tackle London’s housing crisis. Land owners stand to make more money converting commercial premises into homes but the loss of business space could harm the capital’s standing, according to Mayor Boris Johnson.
Pressure to exempt zones from the new law has also come from the British Property Federation, London First and the Planning Officers’ Society.
The group recently sent Communities Secretary Eric Pickles a letter stating that if these protections were scrapped it would pose “a very real threat to the future of nationally and internationally significant business locations.”
Mr Johnson said: “While increasing housing output is of vital importance, I am concerned removing the exemption in our most thriving business districts could compromise London and the UK’s future economic growth.”
The City of London Corporation has said it could lose up to 18% of its office stock – space for 100,000 workers – if the proposals are implemented.
Assembly Member for City and East John Biggs (above) said: “Allowing property owners to convert offices, light industrial and warehouses into flats without the need for planning permission is a reckless measure that sacrifices jobs.
“There is a huge amount at stake. Permitted development drives up the land value of employment space.
“Even where owners don’t convert, they will use it as a reason to increase rents, forcing businesses to close or to leave London.”
Director of planning policy at London First Faraz Baber said: “These internationally recognised hubs have a finely balanced mix of land uses that are carefully managed by the planning process.
“They must remain managed through the planning system.”
Chief executive of the British Property Federation Liz Peace said: “Those areas of London that are exempt are bustling commercial hubs that provide essential jobs and services.
“Maintaining this variety of commercial and residential zones is crucial to the health of a city like London.”
Planning minister Brandon Lewis said nationwide PDR was providing badly needed homes and there was a “particularly acute need” in the capital.
But he added: “We recognise that there is some nationally strategic office space, such as the City of London and Canary Wharf.
“We will review how the current exemptions are handled moving forward.”
The consultation is now over and changes will come into effect in 2016.
Source: wharf.co.uk