Policy information sourced from the Lewisham Local Plan
EC4 Low-cost and affordable workspace
Strategic Objectives:
A An open Lewisham as part of an open London,
C A thriving local economy that tackles inequalities.
A Development proposals incorporating workspace should ensure that provision is made for suitable types and sizes of units, at an appropriate range of rents, particularly to meet the needs of specific social, cultural, or economic development uses. This approach towards affordable workspace is in alignment with the London Plan.
B Where there is existing affordable workspace this should be retained or re-provided. The exception being when on-site retention demonstrably harms opportunities for investment and the delivery of industrial employment intensification. Development proposals should use the design-led approach to explore options for retaining, re-purposing or creating new affordable workspace that is designed to a high specification and will remain suitable for local businesses, including small businesses and those in the cultural, creative and digital industries. Affordable workspace should be let at reasonable local market rates to encourage takeup of units and support business development, particularly by addressing financial barriers in access to workspace.
C Development proposals that incorporate an element of affordable workspace at rents maintained below the market rate for social, cultural or economic uses will be considered favourably.
D New major commercial development proposals for Class E(g) office and light industrial, Class B2 industrial, Class B8 storage and distribution and similar Sui Generis uses should when demonstrably viable make provision for affordable workspace. Developments must provide at least 10per cent of the rentable floorspace (Net Internal Area) as affordable workspace at 50 per cent of market rents. Affordable workspace should be provided on-site. An exception to this approach will be where proposals demonstrate, through robust technical evidence, that the provision of new on-site affordable workspace will harm the delivery of industrial employment intensification. Off-site provision will only be acceptable where it is demonstrated to the satisfaction of the Council that on-site provision is not feasible or off-site provision will achieve greater economic benefits. Off-site provision will be secured through planning obligations with payments in lieu calculated using the formula set out in Table 8.2 (Affordable workspace payments in lieu). Payment in lieu contributions will be used to support the provision of affordable workspace in Lewisham.
| FORMULA FOR CALCULATING PAYMENTS IN LIEU |
|---|
| Step 1: C = A x B Step 2: E = D x C Step 3: G = E x F Step 4: H = G – E Step 5: J = 1/ I Step 6; K = H x J |
| A = Total lettable employment floorspace (square metres) B = Percentage of floorspace to be discounted C = Amount of floorspace subject to discount D = Market rent per square metre before discount E = Market rent for discounted floorspace before discount F = Percentage discount G = Rent after discount H = Value of discount I – Investment Yield J = Income Multiplier K = Capital value of discount |
E Where new affordable workspace is provided this must be secured for a specified period agreed by the Council In order to ensure that workspace is appropriately managed it must be provided in one of the following ways:
- Leased and managed by an affordable workspace provider approved by the Council, with an agreed Workspace Management Plan;
- Managed directly by the owner, where it is demonstrated to the satisfaction of the Council that they have the necessary experience and expertise, with an agreed Workspace Management Plan; and
- Leased by the owner to an end user approved by the Council that requires non-managed workspace.
F Development proposals that do not provide the required amount of affordable workspace must submit a Viability Assessment. The assessment will be subject to an independent appraisal paid for by the applicant. Proposals must provide the maximum viable amount of affordable workspace, the level of which will be determined by the Viability Assessment and capped at the requirement set out in (D) above. The Council will apply viability review mechanisms where development proposals do not provide the amount of workspace required by the policy.
G Where there is existing affordable workspace this should be retained. Development proposals requiring planning permission that involve the loss of existing affordable workspace (including consented but undelivered workspace) will be refused unless the equivalent amount of affordable workspace is replaced on-site or re-provided elsewhere in Lewisham. Affordable workspace that is replaced or re-provided must be of at least the same quality as the existing provision and secured on equivalent terms, or alternative terms agreed by the Council. Proposals for meanwhile uses that secure affordable workspaces, on a temporary basis, will be assessed on their ability to contribute towards meeting demand.
H Affordable workspace will be secured through the use of planning obligations and/or legal agreements.
For more information and policy context please see the Lewisham Local Plan