SHD Logistics is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

London's crowded housing market shoots up warehousing demand

London's crowded housing market shoots up warehousing demand

According to research from Savills, London is set to require up to 6.49 million sq ft (602,940 sq m) of warehouse space per year, a 419% increase on current levels,  in order to keep up with the delivery of new homes in the capital.

The British Property Federation’s (BPF) ‘What Warehousing Where?’ report states that, at a national level, 69 sq ft (6 sq m) of additional warehouse space will be needed per home in order to fulfil deliveries generated by the growth in online retail, which now accounts for as much as 21.4% of all retail transactions in the UK.

Savills has calculated that in order to meet current demand for housing in the capital, London will need to build up to 94,000 homes per year. At present, based upon the five year average, only around 1.25 million sq ft (116,128 sq m) of industrial development is completed annually in London, suggesting a potential short fall of 5.24 million sq ft (486,811 sq m) of warehouse space

Kevin Mofid, head of industrial research at Savills, comments: “The delivery of additional homes in London will mean further warehouse space is needed to service them. The hinterland of London has traditionally seen a disproportional amount of warehouse space developed. As our population grows and shopping habits change  it is crucial to safeguard industrial development land as robust urban logistics networks are what allows us to continue to receive our next day deliveries and one-hour delivery slots.”

Bridget Outtrim, director in the industrial & logistics team, comments: “It is definitely a step in the right direction that the GLA has recognised the importance of retaining industrial space in the city. However, these figures prove that we still have a long way to go. We now need to ensure that we are creating the right type of space which includes B8 distribution uses and a recognition of the importance of yard space so that we can continue to successfully service homes across the capital.”

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.