Policy E3 — Affordable workspace

Policy E3 Affordable workspace A In defined circumstances set out in Parts B and C below, planning obligations may be used to secure affordable workspace (in the B Use Class) at rents maintained below the market rate for that space for a specific social, cultural or economic development purpose such as: 1) for specific sectors that have social value such as charities, voluntary and community organisations or social enterprises 2) for specific sectors that have cultural value such as creative and artists’ workspace, rehearsal and performance space and makerspace 3) for disadvantaged groups starting up in any sector 4) supporting educational outcomes through connections to schools, colleges or higher education 5) supporting start-up and early stage businesses or regeneration. B Consideration should be given to the need for affordable workspace for the purposes in Part A above: 1) where there is affordable workspace on-site currently, or has been at any time since 1 December 2017, except where it is demonstrated that the affordable workspace has been provided on a temporary basis pending redevelopment of the site 2) in areas identified in a local Development Plan Document where cost pressures could lead to the loss of affordable or low-cost workspace for micro, small and medium-sized enterprises (such as in the City Fringe around the CAZ and in Creative Enterprise Zones) 3) in locations identified in a local Development Plan Document where the provision of affordable workspace would be necessary or desirable to sustain a mix of business or cultural uses which contribute to the character of an area. C Boroughs, in their Development Plans, should consider detailed affordable workspace policies in light of local evidence of need and viability. These may include policies on site-specific locations or defining areas of need for certain kinds of affordable workspace. D Affordable workspace policies defined in Development Plans and the terms set out in Section 106 agreements should ensure that the objectives in Part A above are monitored and achieved, including evidence that the space will be managed by a workspace provider with a long-term commitment to maintaining the agreed or intended social, cultural or economic impact. Applicants are encouraged to engage with workspace providers at an early stage in the planning process to ensure that the space is configured and managed efficiently. E Leases or transfers of space to workspace providers should be at rates that allow providers to manage effective workspace with sub-market rents, meeting the objectives in Part A, over the long-term. 6.3.1 It is important that London continues to generate a wide range of economic and other opportunities , to ensure that London is a fairer, more inclusive and more equal city. The cost of workspace in London is particularly high relative to other parts of the UK and to ensure that all types of development needed to support the economy can be accommodated there is a need for affordable workspace for some economic, social and cultural uses that cannot afford to operate at open market rents and to support start-up or early stage businesses. 6.3.2 Affordable workspace is defined here as workspace that is provided at rents maintained below the market rate for that space for a specific social, cultural, or economic development purpose . It can be provided and/or managed directly by a dedicated workspace provider, a public, private, charitable or other supporting body; through grant and management arrangements (for example through land trusts); and/or secured in perpetuity or for a period of at least 15 years by planning or other agreements. 6.3.3 Affordable workspace may help support educational outcomes , for example by businesses providing apprenticeships and work experience, offering mentoring by entrepreneurs and/or providing space for further and higher education leavers to develop academic work into businesses. It may also be linked with business support and skills training. 6.3.4 As well as ensuring a sufficient supply of affordable business space, the Mayor also wishes to support sectors that have cultural or social value such as artists, designer-makers, charities, voluntary and community organisations and social enterprises for which low-cost space can be important. Therefore, in certain specific circumstances, as set out in Part A, there may be a need to secure affordable workspace as part of new development. 6.3.5 Social, cultural, or economic development objectives can be set in planning obligations , or by ensuring workspace providers are on a Local Authority framework panel or accredited list. Arrangements for engaging a provider, how the space will be owned or leased and the process for review, changes in terms, disposal or termination, should be agreed with the Local Planning Authority. When drawing up local Development Plan policies, boroughs are encouraged to draw on the experience of local workspace providers to understand the nature of demand in an area. Planning obligations used to secure affordable workspace in mixed use schemes should include mechanisms to ensure its timely delivery. It may be appropriate to require this in advance of some or all residential elements being occupied. 6.3.6 Landowners sometimes provide affordable workspace on a voluntary and temporary basis prior to the redevelopment of a site. This provision makes good use of sites that may otherwise remain vacant. The temporary use of a site should generally be secured through a temporary planning permission and must not result in an unacceptable impact on residential amenity or prevent development sites from being brought forward for development in a timely fashion. Parameters for any temporary use, particularly its longevity and associated obligations, should be established from the outset and agreed by all parties. 6.3.7 The Mayor will encourage the delivery of new workspace for SMEs, the creative industries, artists and the fLondon Plan Policy E3 · official source →