DW Development Update Wharves v004 (1)

Development Update October 2015

Unlocking London’s Safeguarded Wharves

2Daniel Watney: Unlocking London’s Safeguarded Wharves: October 2015

The River Thames has played a crucial role in Britain’s history right back to when the Romans built London on top of it. The 215 mile long waterway has been a crucial trade route for Britain and many of its wharves continue to play a key role in serving the capital’s many major construction projects.

Waterside living has become popular too over recent decades, with many landmark developments changing the face of London.

Introduction

Thames215

miles


Yet such housing has been beyond the means of the vast majority of Londoners. As house price rises have continuously outstripped inflation with development lagging behind the

nationally, first time buyers have suffered. After three decades of continuous growth, homeownership is in decline.

An entire generation of first-time buyers risks being locked out of the market, facing an uncertain future living in the private rented sector (PRS).

Nowhere better encapsulates the scale and depth of the crisis than London. While some regional housing markets have struggled to reach their pre-recession heights, house prices in the capital have soared, because of tight planning restrictions and a lack of new development.

With a third of Londoners living in the PRS, families looking to buy a home have to look further and further out, or quit the city altogether.

A third of Londonerslive in the

PRS

240,000 homes per year we need


The capital in some ways is a victim of its own success. A vibrant and dynamic economy has attracted workers from not just all over Britain, but the world as well. A young population has meant London’s organic growth rate is already above the national average.

But this apparent success should not detract from the failure of policy-makers to deliver the homes London needs. With private sector output relatively stable over recent decades, a refusal of successive governments to reignite publicly funded house building has caused a shortfall in supply.

London needs to build around 50,000 homes a year. Last year, it achieved around half that. The city’s housing shortage risks harming its long-term prosperity. High housing costs are forcing key workers to relocate elsewhere, and longer commutes are making the ones who stay less productive.

2015

2014

2016

2017

2018

2019

= 10,000 homes


Fortunately, politicians are starting to realise the need for proper solutions. Housing was a more prominent issue in this year’s general election than it has been for decades, and looks set to be a defining theme of the forthcoming mayoral contest.

Boris Johnson’s successor will have to think creatively about where to build new homes. The greenbelt – which against common sense is protected at all costs – prevents outward development. This means we will have to look at opportunities for delivering housing within the capital.

One such opportunity is unlocking London’s 40 safeguarded wharves. Our analysis reveals collectively they could deliver up to 30,000 new homes, over half of London’s annual housing need, and generate a £15bn windfall for their landowners.


London’s wharves were protected on the basis demand for river freight would grow. It did not. Between 2001 and 2010 wharf trade fell by nearly a third.

There has been a recent uptick in activity largely resulting from new infrastructure projects taking place along the river, such as the Thames Tideway Tunnel. But with the government looking to rebalance investment away from London to the North, such demand is not guaranteed in the long term.

Removing these safeguarding directions to realise those opportunities presented by a change of use and redevelopment is not unprecedented: in 2013, 10 wharves lost their safeguarded status following a review by the Mayor of London.

With the city’s housing market at near breaking point, and air and rail offering viable alternatives, it is time to seriously consider the wharves’ safeguarded status.

We do not want to see the removal of all safeguarding directions and subsequent loss of all operational wharves. Many play a crucial role in supporting the capital and should continue to do so. But where sites are underused or unused and lay dormant, we should release them for development.


As a full-service consultancy, Daniel Watney’s partner-led approach has served an array of public and private sector clients for more than 150 years.

Our specialist development, investment, planning, professional service and residential teams provide integrated support and independent advice to a range of high profile clients.


River trade in LondonLondon’s safeguarded wharves are the legacy of London’s position as a global trading hub.

1700

1964

1967

The historical importance of the Thames to UK trade dates back to at least 1700, when it is estimated London’s wharves handled 70 per cent of the country’s imports and 69 per cent of its exports.

However, it was in the mid-20th century when river trade peaked, with trade exceeding 61m tonnes for the first time ever in 1964.

But by 1967, the impact of containerisation was becoming clear, with use of the upper docks declining. The construction of Tilbury port, designed to handle container shipping, represented another blow.

After Tilbury was finished, the enclosed docks were gradually closed and eventually turned over to developers.


The Port of London AuthorityThe Port of London Authority (PLA) is a self-funding public trust established by The Port of London Act 1908 to govern the Port of London.

1908

1992

TODAY

The PLA historically operated all enclosed dock systems on the river, with the exception the Regent’s Canal Dock. These docks are now closed to commercial traffic, apart from the Port of Tilbury, which was privatised in 1992.

With all its docks closed or sold off, the PLA now focuses on creating a safe environment on the tidal Thames. It is responsible for maintaining river channels for navigation, moorings, lights and buoys. The PLA also provides a wide range of services for shipping, including pilotage.

Today, the PLA is responsible for an area spanning 95 miles, covering the Thames estuary all the way to Teddington, making the Port of London the largest port in the UK by size.


Proposals to protect London’s river wharves from changes of use first appeared in the 1995 Thames Strategy, which put forward a number of measures to enhance the riverside urban environment, and harness the river for travel and leisure purposes.

Wharf safeguarding featured in formal planning guidance for the first time in RPG3B, which was published in 1997.

In 2000, responsibility for assessing planning applications affecting safeguarded wharves was transferred from the Secretary of State for Environment, Transport, Local Government and the Regions to the Mayor of London.

In 2005, the Mayor published the London Plan Implementation Report Safeguarded Wharves in the River Thames, which evaluated the suitability of maintaining safeguarded status for 28 wharves upstream of the Thames Barrier. It also considered whether to extend safeguarding to additional wharves downstream of the Thames Barrier.

A total of 50 wharf sites were then safeguarded through a Direction made under Article 10(3) of the Town and Country Planning (General Development Procedure) Order 1995, which requires the Mayor to be consulted before planning permission can be granted.

Planning policy

1995

1997

2000

2005


2013 In 2013 10 wharves had their protected status removed following the Safeguarded Wharves Review, leaving 40 safeguarded wharf sites.

This number may fall again. Earlier this year, the Chancellor unveiled his Long Term Economic Plan for London, which indicated that the government would discuss the devolution of major new planning powers to the Mayor of London, beginning with powers over wharves and sightlines.

In the Treasury’s productivity plan, published this summer, the Chancellor reiterated this intention.

Full details are expected to be revealed in the Autumn Statement.

Daniel Watney: Unlocking London’s Safeguarded Wharves: October 2015


Barking & Dagenham

1,170

415

15,836

1,236

Newham

2,685

3,795

1,385

TowerHamlets

3,931

278

141

City of London

Kensington & Chelsea

Hammersmith& Fulham

1,812

991

252

1,031

London Boroughs

Annual Housing Target

16,564Wharf housing potential

29,04566733

169

3,081

1,994

Lewisham

1,552

Bexley

Havering

Greenwich

446

2,610Wandsworth

Daniel Watney: Unlocking London’s Safeguarded Wharves: October 2015 13

As our analysis reveals, Barking and Dagenham has the greatest housing potential if its safeguarded wharves were released for development. This is largely due to the sheer size of the Ford Dagenham Terminal, which is some 70ha.

This alone could deliver nearly 12,000 new homes. However, the wharf is operational, with Ford currently manufacturing advanced diesel engines at the nearby plant.

Bexley, the City of London, Greenwich, Lewisham and Newham would all exceed their annual housing targets if they released their safeguarded wharves for house building.

AnalysisBarking & Dagenham

15,836

1,236



Wandsworth would meet half their housing target, while Hammersmith & Fulham, Havering, Kensington & Chelsea and Tower Hamlets would still have some way to go to meet their targets.

Releasing safeguarded wharves for development would be a boon for their owners, yielding an estimated

windfall of £15bn.We reiterate that it would not be appropriate to redevelop all of London’s safeguarded wharves, particularly when they support economic growth and are viable operations in their own right. Demand for wharf trade fell by 29 per cent between 2001 and 2010, but recent years have seen an increase, largely due to major infrastructure projects like Crossrail, the Northern Line extension and the Thames Tideway Tunnel. However, with the government looking to redirect infrastructure spending away from London and to the North, future such increases are uncertain.

Given the severity of London’s housing crisis, it is only right the wharves’ protected status is properly scrutinised, and we hope our research goes some way to starting a rational debate on their future.


Case Study

Fulham Riverside WestLondon Borough of Hammersmith and Fulham

Daniel Watney advised landowners of three separate riverside sites totalling 3.30 hectares to prepare a Masterplan and ultimately deliver a commercial and residential scheme of 474 residential units.



The schemes comprise new housing, commercial B1 floorspace and some small-scale retail.

In order to achieve this we carried out

Complex feasibility studies alongside stakeholders to establish the optimum use of each of the sites;

Thorough Community and stakeholder consultation through the pre-application process; Following public consultation feedback, the site proposed a further 50% of public open space and a dedicated facility for the Princes School of Traditional Arts, one of the Prince Of Wales’s charities;

The town planning case required a robust argument for the consolidation and loss of a safeguarded wharf from the site to another part of the Borough.


Wharf

Hurlingham Wharf

Swedish Wharf

Comley’s Wharf

Smugglers Way

Pier Wharf

Cringle Dock

Kirtling Wharf

Middle Wharf

Cremorne Wharf

Walbrook Wharf

Convoys Wharf

Brewery Wharf

Tunnel Wharf

Victoria Deep Water Terminal

Angerstein Wharf

Murphy’s Wharf

Riverside Wharf

Middleton Jetty

Pioneer Wharf

Albion Wharf

Erith Wharf

Standard Wharf

Northumberland Wharf

Orchard Wharf

Thames Wharf

Peruvian Wharf

Manhattan Wharf

Thames Refinery

Borough

Hammersmith & Fulham



Wandsworth

Wandsworth

Wandsworth

Wandsworth

Wandsworth

Kensington & Chelsea

City of London

Lewisham

Greenwich

Greenwich

Greenwich

Greenwich

Greenwich

Greenwich

Bexley

Bexley

Bexley

Bexley

Bexley

Tower Hamlets

Tower Hamlets

Newham

Newham

Newham

Newham

Operational

No

No

Yes

Yes

Yes

Yes

Yes

No

No

Yes

No

Yes

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

No

Yes

No

No

Yes

Size (ha)**

0.49

0.55

0.44

2.42

0.23

1.12

0.68

0.10

0.39

0.65

9.13

0.23

4.21

6.09

7.24

6.67

1.01

8.68

2.40

10.39

1.60

4.40

0.85

1.40

7.92

3.55

0.51

11.40

No. of Units

83

94

75

629

39

190

116

17

66

169

1552

39

716

579

1231

1134

96

825

228

987

152

418

145

133

1346

604

48

083

London’s Safeguarded Wharves


Wharf

Pinns Wharf

Steel Wharf

Rippleway Wharf

Docklands Wharf

Victoria Stone Wharf

Dagenham Wharf

Pinnacle Terminal

No 1 Western Extension

East Jetty

No 4 Jetty

Ford Dagenham Terminal

Halfway Wharf

Borough

Barking & Dagenham

Barking & Dagenham

Barking & Dagenham

Barking & Dagenham

Barking & Dagenham

Barking & Dagenham

Barking & Dagenham

Barking & Dagenham

Barking & Dagenham

Barking & Dagenham

Barking & Dagenham

Havering

Total Operational

Total Non-Operational

Total

** GLA / PLA Safeguarded Wharves Review - Final Recommendation, March 2013

Operational

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Size (ha)**

1.73

1.94

5.75

2.00

1.99

5.19

7.63

1.82

0.31

11.46

70.00

4.37

182.22

26.72

208.94

No. of Units

294

184

546

190

189

493

725

173

53

1089

11900

415

25125

3920

29045

London’s Safeguarded Wharves


The Daniel Watney team

John HardingSenior partner and head of transactional [email protected]

David GrahamSenior associate [email protected]

Julian GoddardPartner and head of residential [email protected]

Charlotte GoodrumAssociate [email protected]

Charles MillsPartner and head of planning [email protected]

DW Development Update Wharves v004 (1)

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