The government has said 88,000 new homes a year are needed in London over the next decade to meet forecasted demand.

The next London Plan, due to be published in 2026, will set out how this could be achieved.

In consultation for the Mayor of London, Knight Frank has identified 328 hectares of industrial land which could offer the potential for residential redevelopment.

Knight Frank is suggesting the de-designation of poorly performing sites zoned for industrial use to unlock more residential developments.

In this case, 12 retail parks located on wholly or partially protected industrial land have been identified in Greater London.

Knight Frank has also suggested the potential for ‘industrial intensification’ within the grey belt, with 1,178 hectares of previously developed land identified which lie within 500 metres of a major road.

According to Knight Frank, London currently has 55 sq ft of occupied industrial space per dwelling.

Forecasting for a consistent ratio between London households and industrial floorspace uncovers the need for close to 50m sq ft of new warehousing should the London Plan’s housing delivery targets be met over the next ten years.

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However, the 55 sq ft of occupied industrial and logistics space per London dwelling is also the lowest ratio of any region of the UK and almost 50% lower than the national average, which stands at 109 sq ft per dwelling.

Furthermore, London has lost 18% of its industrial land since 2001, with industrial and logistics functions increasingly pushed out of the capital.

As a result, Knight Frank is recommending for the next London Plan to allocate increased resources to identifying opportunities to densify the city’s industrial and logistics supply.

This includes exploring innovative options to convert other use classes to accommodate warehousing and making use of available grey belt space to accelerate industrial and logistics development.

“While the proposed land swapping and intensification policies present opportunities to provide additional housing while ensuring the industrial and logistics sector is adequately provided for, there are significant implications which need further consideration,” said Claire Williams, head of UK and European industrial research at Knight Frank.

“Some poorly located or obsolete sites may be suitable for alternative uses, but others, even if sub-optimal, provide a location/cost profile that can’t be replicated elsewhere.

“Protecting and repositioning the right industrial land in the right places will be key to ensuring the capital remains liveable, productive, and globally competitive.”