OUTLINE PLANNING APPLICATION - FOR LAND KNOWN AS OAKDOWN FARM, BASINGSTOKE - Give My View
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OUTLINE PLANNING APPLICATION FOR LAND KNOWN AS OAKDOWN FARM, BASINGSTOKE Oakdown Farm Employment Land & Economic Assessment Avison Young August 2020 AUGUST 2020
Oakdown Farm Employment Land & Economic Assessment August 2020
Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment Contents Executive Summary ............................................................................................................................................................. 1 1. Introduction and Strategic Context .................................................................................................................... 1 2. Current Policy Context .......................................................................................................................................... 8 3. Industrial Land Supply ..........................................................................................................................................15 4. Market Demand and Needs ...............................................................................................................................23 5. Future Demand.....................................................................................................................................................34 6. Need for the floorspace proposed ....................................................................................................................40 7. Economic Benefits Assessment ...........................................................................................................................49 Prepared By: Chijioke Anosike, Bart Monhonval, James Morris, Martyn Saunders Status: Final Submission Version Draft Date: August 2020 For and on behalf of Avison Young (UK) Limited Date: July 2020
Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
Executive Summary
• Basingstoke and Deane Borough Council (“The Council”) recognise that there is great potential for world class
business activity to be served across its local economy. The Council’s planning evidence indicates a number
of policies which advocate for the development of employment land.
• This report highlights that market demand outstrips market supply for industrial land, specifically for distribution
and logistics activity.
• The floorspace target for storage and distribution land over the plan period is 122,000 sqm (Local Plan).
Additionally, our analysis has highlighted the need for circa 185,000 sqm of distribution and warehousing space
up to 2040.
• It is clear that the pipeline supply of storage and distribution floorspace (both in terms of land allocations and
planning consents) falls well below the 122,000 sqm required over the plan period, as set out within the Local
Plan.
• Oakdown Farm presents a significant opportunity for the Council to achieve their employment and economic
growth aspirations and diversifying its employment land stock.
• Moreover, of the small number of sites coming forward, no single opportunity presents a comparable scale of
development or level of connectivity as Oakdown Farm. Meaning it not only provides a viable location for the
proposed activity, in doing so it would not divert future demand away from existing sites or allocations. In this
regard it represents a considerable net gain for the borough.
• The proposed development can help provide the capacity that ensures future demand is not frustrated by a
lack of capacity.
• By diversifying the employment land stock of the borough, the proposed development will achieve significant
economic growth and job creation.
• It is expected that the Oakdown Farm development could deliver up to 734 direct jobs and generate an
annual direct GVA of circa £44.5m.
• Additionally, the development will generate indirect benefits, through the creation of jobs down its supply
chain. In total, the development could create 1,027 jobs and generate £62m of GVA per annum.
• The range of jobs provided will offer different opportunities for local residents, from entry level through to skilled
technical and managerial roles. Potential occupier sectors have historically demonstrated significant career
development opportunities and skills advancement, providing real opportunities across the current workforce
of the borough.
• Overall, the proposed development of Oakdown Farm presents a major opportunity to support the
achievement of the Council’s stated economic objectives.
Date: July 2020 Page: 1
Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
1. Introduction and Strategic Context
1.1 Avison Young have been appointed by Newlands Developments to provide an Employment Land and
Economic Assessment to help support the preparation of a masterplan and planning application for major
new land allocation to the south of Basingstoke – referred to as Oakdown Farm.
1.2 The site currently is undesignated agricultural land and has not previously been allocated as a site for
employment development, however its development potential is identified in the Council’s current
employment land evidence base.
1.3 There is a strong industrial market in Basingstoke and the supply of land and floorspace is not keeping pace
with demand, particularly in locations which offer ‘optimal’ conditions for occupiers (i.e. with excellent access
to the M3). Supply in the Basingstoke and Deane District is either limited or not in the most appropriate locations
for occupiers. As such an opportunity exists for the District Council to build on this market momentum and
unlock significant economic benefits for the area, help secure the future growth of the market and support
the wider approach to inclusive growth for the District area.
A Strategically Important Economic Hub
1.4 The site lies in a critically important location within the Enterprise M3 Local Enterprise Partnership (EM3 LEP)
area, sitting directly off the M3, in close proximity to Basingstoke, the largest town within the county of
Hampshire. The site is conveniently located for access to London, the south coast, the ports of Southampton
and Portsmouth, and the M4/ M3 corridors. These factors underpin the large unmet storage and distribution
potential in the area.
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Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
Figure 1: Enterprise M3 Local Enterprise Partnership
Source: EM3 LEP
1.5 The influence and impact of these strategic connections is particularly striking for larger distribution and
storage units in the South West. CoStar Data, as presented in Figure 2, shows clusters of this type of units around
major transportation hubs (Heathrow Airport on one hand and the ports that are located on the south coast
such as Portsmouth, Southampton and Plymouth on the other) as key arrival points for goods into the UK, and
the M4 and M3 corridors which act as onward distributors to both business and resident populations in the
south of the country.
Figure 2: Distribution and Storage (above 50,000sqft)
Source: CoStar, March 2020
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Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
1.6 Basingstoke is located half-way between Heathrow Airport and Southampton Harbour and about 1 hour away
from Gatwick Airport, Portsmouth Harbour and Poole Harbour.
Table 1: Travelling Time and Distance from Basingstoke
Miles Time (mins)
Heathrow Airport 36 33
Gatwick Airport 60 62
Portsmouth Harbour 40 49
Poole Harbour 58 70
Southampton Harbour 26 33
Dover Harbour 125 123
Plymouth Harbour 162 182
Source: Avison Young, based on Google Map (March 2020)
1.7 The LEP recognises, in its Local Industrial Strategy (LIS) published in August 2019, the importance of growing the
region through maximising access to global markets through ports and airports and the potential of the sub-
regional economies associated with those gateways.
1.8 The analysis of employment by sector, published in the LIS, shows that the Transport and Storage sector has
seen the largest growth in employment over the period going from 2013 to 2018 as a proportion of total
employment. This sector employed 25,175 people in 2018 in the EM3 LEP area.
1.9 Whilst the Transport and Storage sector remains a small contributor to the total economy of the EM3 LEP area
(providing circa 3.3% of all employment in the area), the sector is fast growing and is essential in supporting
the growth of other sector activities and ensuring the high level of productivity of those sectors.
1.10 Based on the LIS, EM3 is a highly productive economy ranking 5th highest in terms of GVA per head at £31,952.
1.11 The LIS establishes that the LEP area includes a population of 1.52 million people, 89,700 businesses, 2 county
councils and 14 district authorities generating £49 billion GVA for the UK economy. The EM3 area is globally
competitive with knowledge, digital and design-based economy including high value sectors such as: space
and satellite; aerospace and defence; digital and cyber security; life sciences and med-tech; and 'createch'
(creativity and technology, including gaming). It is home to two Universities; Surrey and Winchester; and has
important research and innovation institutions such as the Pirbright Institute as well as research-based
businesses at Southampton Science Park and Surrey Research Park.
1.12 Basingstoke has been ranked as the number one place in the UK for the digital economy by the National
Institute of Economic and Social Research (NIESR), building on the town’s reputation as part of the area’s ‘tech
corridor’. It is also recognised as an excellent place for inward investment by Local Futures, which ranked
Basingstoke as being in the top three local authority areas in the country to base a business in as a result of
the high levels of productivity, excellent business survival rates and the number of knowledge driven businesses
based in the area.
Date: July 2020 Page: 3
Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
Site and Spatial Context
1.13 The site area is outlined below in Figure 3. The site encompasses approximately 87.44 acres (35.39 hectares) of
agricultural land.
Figure 3: The Oakdown Farm site
Avison Young Schedule of Areas, 2020
1.14 The site is located within the Parish of Dummer, which is located in the south eastern portion of Basingstoke
and Deane Borough. Dummer Parish is one of the smaller Parish Councils in Basingstoke and Deane. Figure 4,
shows an enlarged policy map with the site area highlighted in yellow.
Date: July 2020 Page: 4
Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
Figure 4: Basingstoke and Deane Policy Map
Source: Basingstoke and Deane Council, 2020
1.15 Figure 5 shows the parish boundary map of Basingstoke and Deane, again with the site identified in yellow.
Figure 5: Basingstoke and Deane Parish Boundary Map
Source: Basingstoke and Deane Council, 2020
1.16 Oakdown Farm (highlighted in Figure 6 in white with a red border) is located approximately 5 miles south of
Basingstoke town centre and is bordered by the M3 running south towards Southampton and north to Central
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Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
London. The Site also adjoins the A30, providing strategic links to Basingstoke to the North, and to the South
West region.
Figure 6: Spatial Context
Source: Avison Young, 2020
1.17 Table 2 provides the schedule of accommodation proposed for the site at Oakdown Farm, whilst Figure 7
provides the current masterplan associated with the schedule of accommodation.
1.18 Oakdown Farm incorporates c.265,000 sqm of floorspace in total on a 35ha site, of which c.105,500 sqm would
be at ground floor level, with the opportunity for significant ‘upper floor’ space within Unit 1 to enable a range
of e-commerce occupiers to consider the site given the strength in demand in this sub-sector.
Table 2: Oakdown Farm Schedule of Accommodation (sqm)
Warehouse Office Total
217,954
Unit 1 0 217,954
(58,561 GF) *
Unit 2 26,477 1,859 28,335
Unit 3 11,205 625 11,830
Unit 4 9,250 515 9,765
264,886
Total 2,999 267,884
(105,493 GF)
* (at ground floor level)
Source: UMC Architects, 2020
Date: July 2020 Page: 6Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
Figure 7: Oakdown Farm Masterplan
Source: UMC Architects, 2020
Date: July 2020 Page: 7Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
2. Current Policy Context
2.1 The starting point for understanding both the economic opportunity for growth in the industrial/warehouse
sector and the need to provide additional land to accommodate it is to consider the existing policy and
evidence base that is shaping the future of the economy in the Basingstoke and Deane Borough Council area,
and more locally within Dummer Parish.
2.2 To develop this understanding further to consider sub-regional needs beyond the borough boundary this report
uses the geographical zone of the Basingstoke-Andover Functional Economic Market Area (FEMA) as
identified by the LEP in its analysis of the area’s industrial economy. It should be noted that the relevance of
this FEMA has been questioned in the Council’s own economic evidence base and is therefore not a
universally recognised market area.
2.3 In doing this, the analysis of policy and evidence base can be split into two distinct sub-sections: Local planning
policy, and Local Enterprise Partnership (LEP) strategy. These will be addressed in turn.
Local Planning Policy
2.4 The variety of planning policy documents applicable to the local and sub-regional market helps to define the
current nature of the wider employment area. It also establishes the parameters for growth and change within
which the Masterplan will sit.
2.5 The following subsection focusses on the key local and national planning policy documents which ultimately
will guide the future of study area. This includes:
• NPPF (2019)
• NPPG (2019)
• Strategic Housing and Economic Land Availability Assessment (2019)
• Planning Obligation for Infrastructure Supplementary Planning Document (2018)
• Basingstoke and Deane Local Plan (2016)
• Dummer Village Design Statement (2004)
National Planning Policy Framework (2019)
2.6 The National Planning Policy Framework (NPPF) (2019) is a document that both guides the writing of Local Plans
across the United Kingdom and provides a framework for housing and other development to be produced.
Chapter 2 titled ‘Achieving sustainable development’ states that economic objectives “help build a strong,
responsive and competitive economy, by ensuring that sufficient land of the right types is available in the right
places and at the right time to support growth, innovation and improved productivity; and by identifying and
coordinating the provision of infrastructure” (8.a). To be considered appropriate for development it is therefore
vital that there is evidenced need for development, through this report we aim to provide such evidence to
demonstrate that Oakdown Farm is capable of supplying land which can aid local and strategic economic
growth.
Date: July 2020 Page: 8Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
National Planning Policy Guidance (2019)
2.7 The National Planning Policy Guidance (NPPG) provides a range of specific guidance and strategy related to
the plan making process. It provides guidance on how to ensure sufficient land exists to support future growth
by outlining the need for a ‘Housing and economic land availability assessment’, its aim is to identify “a future
supply of land which is suitable, available and achievable for housing and economic development uses over
the plan period”. It states that an assessment should:
• identify sites and broad locations with potential for development;
• assess their development potential; and
• assess their suitability for development and the likelihood of development coming forward (the availability
and achievability).
2.8 In regards to any proposed development on Oakdown Farm, the Council have completed such an
assessment (see below) which identifies the potential opportunity for the site to meet future economic needs.
Strategic Housing and Economic Land Availability Assessment (2019)
2.9 The Strategic Housing and Economic Land Availability Assessment (SHELAA) is a document which identifies
“sites with the potential for housing or employment”; its aim is to “assess how many homes or floorspace they
could provide” and “assess when they could be developed”. This document provides the evidence to inform
decision making on “future housing and employment development”.
2.10 The Parish of Dummer has been listed to potentially provide 640 homes (excluding planning permissions) over
the next 10 years. More specifically, in Appendix 5 of the SHELAA Oakdown Farm is listed as a site identified
outside the Settlement Policy Boundaries (site reference DUM004). Appendix 5 states that economic “viability
of the site may be affected by the need for environmental and highways assessments, minor upgrades to the
existing site access from the A30 and A30/Winchester Road junction, and a potential new roundabout forming
a second access.” Overall SHELAA’s Appendix 5 concludes that the Oakdown Farm is likely to be developed
as long as it “complies with the borough’s current planning framework”.
Planning Obligation for Infrastructure Supplementary Planning Document (2018)
2.11 The Planning Obligation for Infrastructure Supplementary Planning Document (SPD) is a document that aims
to enable development proposals to meet the needs of local communities from developer section 106 and
Community Infrastructure Levy contributions. Under the ‘Employment and Skills’ section, the SPD states that
“warehouse and industrial schemes of 2,000m2 floorspace or greater” are required to provide quality
apprenticeships, training and employment for local residents depending on the scale of a particular
development.
2.12 As shown later in this report the proposed development and its potential occupiers have a track record in
providing such career opportunities and supporting local residents into work and with their onwards
progression.
Date: July 2020 Page: 9Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
Basingstoke and Deane Local Plan (2016)
2.13 The Basingstoke and Deane Local Plan is a planning document which outlines the Council’s strategic policies
for growth between 2011 to 2029. Paragraph 7, ‘Economic Development’, makes clear that the aim of the
“Local Plan is to maintain and enhance the borough’s position as a prosperous economic centre”. The Local
Plan recognises that there is a market demand for new industrial and storage distribution premises and
identifies that over the plan period (2011-2029), Basingstoke will require up to 122,000 sqm of storage and
distribution floorspace. The Borough mentions 16 Strategic Employment Areas for employment uses.
2.14 The Local Plan states the aim of supporting the creation of between 450-700 jobs per annum (8,100-12,600
during the plan period – 2011-2029). The Plan goes on and states that inward investment will be enabled by
allocating new employment site or sites for storage and distribution uses in a subsequent Development Plan
Document.
2.15 The Local Plan will support opportunities to develop the following key employment sectors:
• Specialist/advanced manufacturing (including research and development)
• Financial and business services in Basingstoke town centre and the established office locations of
Basing View, Chineham Business Park (including Hampshire International Business Park) and Viables
• Storage and distribution in suitable locations
2.16 Policy EP1 mentions that development proposals for storage and distribution floorspace, outside of the existing
Strategic Employment Areas, which come forward in advance of a subsequent DPD, will be permitted which
are:
• Able to successfully mitigate the landscape impact, which will include the provision of sufficient
space for appropriate soft landscaping/green infrastructure, appropriate location of development
within the site, and utilise a design, and layout of built form and use of materials in order to ensure
that any landscape impacts are minimised;
• Compatible with any neighbouring uses, including residential properties;
• For the provision of high quality floorspace;
• Well related to the strategic road network and easily accessible for HGV’s;
• Capable of being provided without having a severe highways impact;
• Able to successfully mitigate the impact of the development on the character of nearby settlements;
and
• Able to demonstrate there is a proven need for the floorspace proposed
2.17 For the purposes of Policy EP1 an ‘employment use’ includes the B Class uses i.e. B1 business (including offices),
B2 general industry and B8 storage/distribution uses. The policy sets out the strategic approach to employment
development in the borough.
Date: July 2020 Page: 10Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
2.18 Dummer has no sites that are listed as a Strategic Employment Areas, nonetheless the local plan states that
“to meet the identified and forecast needs for the storage and distribution sector, the council will need to
identify sites for such uses. This will be achieved through the production of a subsequent Development Plan
Document”. This clearly indicates that the borough’s land requirements cannot be met through the current
allocations and that new Strategic Employment Areas will be required in order to provide sufficient storage
and distribution land.
2.19 As demonstrated in this Report, Oakdown Farm can provide the conditions that meet the needs of the storage
and distribution sector and therefore is suitable to be considered as a new Strategic Employment Area to help
the borough meet is identified requirements.
Economic Needs Assessment (2018)
2.20 The Economic Needs Assessment aims to support future economic development in the Borough and places
an emphasis on the need to ensure there is future provision of industrial stock within the borough.
2.21 The document states:
“There is a strong industrial market in Basingstoke with current demand outstripping supply. Supply is currently
constrained due to the lack of suitable available sites. Development is occurring in a piecemeal fashion, but
these are on existing redundant employment sites that are available on a freehold basis. Where redundant
sites are on a long leasehold basis this is potentially hindering their redevelopment.”
Given the level of demand it is unlikely that re-development of existing sites will be sufficient to meet all of the
demand for industrial space and new sites are required. Releasing new sites will benefit the market in following
ways:
• Preserve existing estates – prevent the loss of general industrial from redevelopment for storage and
distribution uses.
• Capture inward investment opportunities.
• Retain existing business by providing suitable accommodation. This is both by providing higher-
quality premises, and by delivering larger units to support their growth. Relocations to new property
will free up other existing stock for refurbishment/redevelopment for other occupiers.
Agents indicated that junctions 6 and 7 of the M3 would be the strongest strategic locations for storage and
distribution use. New sites would also need to be of sufficient size to fit larger units with adequate yard space.
During consultation with agents, there were varying reports on exactly how much land would be required to
meet the demands of the industrial market. The quoted figures were wide ranging – from 25 to 100 acres (10-
40 ha).”
2.22 Based on the above it can be seem that development on Oakdown Farm can be used to match the industrial
supply needed in the Borough. Oakdown Farm is approximately 35.5 hectares, which is within the size range
quoted by the above agents to meet industrial demand. Critically it also provides the direct access to the M3
that agents reported were essential for future development in this sector.
Date: July 2020 Page: 11Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
2.23 The local plan states that inward investment will be enabled by “allocating new employment site or sites for
storage and distribution uses in a subsequent Development Plan Document”, this supports the opportunity at
Oakdown Farm, which can attract ‘footloose’ businesses to the borough and help Basingstoke and Deane
achieve their job creation target of 450-700 jobs per annum over the plan period (2001-2029).
Dummer Village Design Statement (2004)
2.24 The Dummer Village Design Statement (VDS) is a document written by the Dummer Parish Council and
highlights some of the characteristic, features and qualities that residents value in their local area. When
describing Dummer’s context, the VDS states that “some light industry has been developed through farm
building redevelopment – Manor Farm has provision for some offices and workshops, as does Oakdown Farm”.
The Dummer VDS does not discuss much on the future economy nor does it discuss details on employment
matters - however it does not specifically rule any future development of this kind.
Skills and Employment Strategy
2.25 There is no specific Borough evidence document on skills and employment, however the Basingstoke and
Deane local plan states one of the eight corporate priorities is to “increase skills and employment”. The local
plan aims to create an economy where “residents can readily improve their skills and play their part in and
benefit from the area’s prosperity.” Furthermore, as the Borough aims to create 450-700 jobs per annum over
the plan period (2001-2029), the Oakdown Farm development is an excellent opportunity to both provide jobs
as well as upskill local residents in the Basingstoke and Deane area.
Local Enterprise Partnership Context
2.26 There are 38 Local Enterprise Partnerships across England. They are business led partnerships between local
authorities and local private sector businesses. They play a central role in determining local economic priorities
and undertaking activities to drive economic growth and job creation, improve infrastructure and raise
workforce skills within the local area.
Working for a Smarter Future – The Enterprise M3 Strategic Economic Plan (2014-2020)
2.27 The Strategic Economic Plan (SEP) is a forward-looking plan that will help address the consequences of growth
whilst building on economic strengths and harnessing the potential in one of the fastest growing economies in
the UK in a coherent and coordinated way.
2.28 It is based on a bottom-up approach following consultations with the public, private and not-for-profit sectors
and builds on the Enterprise M3 Strategy for Growth published in May 2013. It also presents an overarching
view of a wider, co-ordinated programme of activities for Enterprise M3. This includes activities being
undertaken with a wide range of local partners to refine the European Structural and Investment Fund Strategy
(EUSIF), which was submitted to government in January 2014, and activities in relation to the £21.7m invested
in infrastructure projects through our Growing Enterprise Fund.
2.29 Through Innovation and Enterprise activities, the LEP aims to support the creation of 200 new high growth
companies, 8,000 additional jobs and £2 billion of new export markets from businesses in the Enterprise M3
area.
Date: July 2020 Page: 12Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
2.30 In regard to Oakdown Farm, this presents an opportunity for new companies to be created which can
become tenants on any potential industrial development on Oakdown Farm. The Enterprise M3 advocates a
’Sci:Tech’ corridor, and specifically states “certain broad sectors of the economy such as information &
communications, pharmaceuticals, and distribution” as the Sci:Tech corridor’s strengths which present
“exceptional opportunities to further strengthen a successful local economy and make a significant
contribution to UK growth”. Oakdown Farm can play a significant role in meeting that aspiration by attracting
inward investment by providing a type of development that is not currently available to businesses looking to
locate in the area.
Local Industrial Strategy – Developing our Approach
2.31 Local Industrial Strategies (LIS), led by Mayoral Combined Authorities or Local Enterprise Partnerships promote
the coordination of local economic policy and national funding streams and establish new ways of working
between national and local government, and the public and private sectors.
2.32 The LEP outlines nine strategic priorities for the area in its Local Industrial Strategy (LIS). Three of these are key
drivers for updates and improvements to the distribution network.
• ‘A gateway region’ focusses on ‘Growing our region through maximising access to global markets through
our ports and airports and the potential of the sub-regional economies associated with those gateways.’
Central to this is access to business supply chains, mobility and connectivity.
• ‘Smart mobility’ calls for ‘Better and more efficient connections between businesses and their staff, supply
chains and markets to enhance productivity and new approaches to mobility that suit the needs of
residents and the nature of our area.’
• ‘Exporting’ supports ‘Increasing the number of companies and the volumes of goods and services being
exported to increase demand and stimulate investment.’
2.33 The above three strategic priorities collectively create a conducive environment for industrial development to
emerge in Oakdown Farm. Improving business supply chain, whilst ensuring efficient transport connections as
well as increasing exporting can all be achieved through an innovative distribution and storage development,
which Oakdown Farm proposes.
Summary and conclusion
2.34 The importance of growth in employment within the industrial, and more specifically the distribution, sector is
recognised across all levels of policy, as is the need for appropriate land to be provided to ensure demand is
not frustrated by a lack of supply.
2.35 There is a clear recognition in local policy and evidence that the borough lacks sufficient land to
accommodate forecast demand from the storage and distribution sector and that new (additional) sites need
to be identified.
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2.36 Policy and strategy recognise that to be successful any sites proposed for development need to provide the
appropriate scale of land and premises and marry this with strategic accessibility to enable businesses to
service multiple markets.
2.37 When considered against this policy direction there is a clear need, justification and requirement for Oakdown
Farm to come forward for development in order to enable the Council to fulfil its growth objectives.
Date: July 2020 Page: 14Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
3. Industrial Land Supply
3.1 To understand whether there is a justified need for Oakdown Farm to come forward for development it is
critical to understand the current employment land portfolio and consider whether it is capable and suitable
of meeting the needs of all economic activities going forward.
3.2 To develop this understanding, we have used the Basingstoke and Deane Economic Needs Assessment
(February 2018) to analyse employment land supply in the area. This will enable us to begin to understand how
current land supply might address future needs, particularly in the large-scale logistics sector. The study
supports the Council’s commitment within the Local Plan (2016) to review the need for land to be allocated
for storage and distribution (B8) but also updates the Borough’s wider employment land and economic
evidence.
3.3 In line with the approach taken in the Basingstoke and Deane Economic Needs Assessment, the industrial uses
have been split into B1c, B2 and B8 uses. Whilst the focus of this report is on storage and distribution activity
(B8), it is recognised that permitted development rights allow for some level of fluidity between industrial use-
classes. As such, the inclusion of all uses sanctioned with permitted change provides a comprehensive
overview of the existing industrial supply base. Whilst the storage and distribution supply figures outlined below
set a minimum floor-space supply figure, it is worth considering the potential impact of future changes of use
from B1c and B2 on the figures provided.
3.4 For allocated sites where available site areas are recorded in hectares, the Basingstoke and Deane Economic
Needs Assessment (February 2016) assumed a 40% plot ratio to develop a floorspace figure.
3.5 The portfolio of currently available land, and soon to be available land, is as follows:
Table 3: Existing Industrial Land Supply (B1c and B2 Uses)
Permission or Available site Net floorspace
Location Address allocation area (ha) gain (sqm)
Chineham Larchwood, Crockford Lane Permission 10,721
Lutyens Close, Lychpit Permission 2,550
Andwell Trout Farm, Hook Permission 548
Daneshill East
May & Schofield Ltd, Stroudley Rd Permission 533
Lane End Farm, East Woodhay Permission 720
Viables Jays Close Allocation 1.2 4,800
Viables Jays Close/Hatchwarren Lane Allocation 0.62 2,480
Viables Land at Jays Close Allocation 0.65 2,600
Ardglen, Emerging
Whitchurch Land north of Ardglen Rd allocation 4,000
TOTAL 28,952
Source: Basingstoke and Deane Economic Needs Assessment Feb 2018
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Table 4: Existing Storage and Distribution Land Supply (B8 Use)
Permission or Available site Net floorspace
Location Address
allocation area (ha) gain (sqm)
Brighton Hill Marbaix House, Wella Road Permission 2,744
Macmillan & Co Ltd, Brunel
Houndmills Permission 10,050
Rd (Logistics City)
Cranes Rd, Sherborne St
Non-Allocated Site Permission 420
John
TOTAL 13,214
Source: Basingstoke and Deane Economic Needs Assessment Feb 2018
3.6 Whilst the figures outlined above set the supply figures in February 2018, it is important to analyse the impact
of planning permissions since this date on the overall industrial supply floorspace figures. All planning consents
for industrial use or development between February 2018 and March 2020 are outlined below.
Table 5: Industrial Permissions February 2018 - March 2020
Net floor-
Planning
Date of Proposed space
Address Referen Description
Permission Use gain
ce
(sqm)
Linde Material Application submitted for
Handling (UK) 19/03045/ Industrial construction of steel framed building.
22/11/2019 646
Kingsclere Road FUL (B8) This project also includes associated
Basingstoke RG21 6XJ infrastructure works.
Barn At Goddards
19/02732/ Business Erection of a barn for B1c use (part-
Farm Goddards Lane 25/10/2019 N/A
FUL (B1c) retrospective)
Hook RG27 0EL
Application submitted for
construction of 3 employment units
Former ITT Defence
19/02725/ (class B1, B2 and B8) and 2 class A3
Site Jays Close 18/10/2019 Industrial 859
FUL units. This project also includes
Basingstoke RG22 4BA
associated infrastructure works and
access roads.
Application submitted for change of
Berry Court Farm
19/00370/ Industrial use of land from agricultural to B8
Bramley Road Tadley 20/09/2019 N/A
FUL (B8) use as an extension of berry court
RG26 5AT
business park.
Application submitted for change of
Portland Farm
19/02368/ Industrial use of a series of existing agricultural
Popham Lane 20/09/2019 545
FUL (B1/2/8) buildings to a car workshop (B2) and
Basingstoke RG25 2BD
the storage of cars (B8).
Clift Meadow Application submitted for
19/02042/ Industrial
Minchens Lane Tadley 16/08/2019 0 construction of a replacement
FUL (B8)
RG26 5BH storage shed.
Lauriston Court
19/00821/ Industrial
London Road 26/07/2019 N/A Erection of a scooter store
FUL (B8)
Basingstoke RG21 4BB
Application submitted for
Linde Material construction of semi-permanent
Handling (UK) L 19/01336/ Industrial building for the storage of fork lift
14/06/2019 900
Kingsclere Road FUL (B8) trucks. This project also includes
Basingstoke RG21 6XJ associated infrastructure works and
access roads.
Application submitted for demolition
and redevelopment of unit 10 for a
B1(c)/ B2/ B8 unit, together with
Unit 10 Wade Road 19/00968/ Business service yard, car parking, cycle
26/04/2019 3,486
Basingstoke RG24 8PL FUL (B1c) storage, landscaping and
associated works. This project also
includes associated infrastructure
works and access roads.
Date: July 2020 Page: 16Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
Net floor-
Planning
Date of Proposed space
Address Referen Description
Permission Use gain
ce
(sqm)
Application submitted for
construction of steel fabricated shed
Martin-Brower Uk Ltd to house bailing machine for 3rd
19/00562/ Industrial
Houndmills Road 22/03/2019 N/A party recycling. Re-location of
FUL (B1/2/8)
Basingstoke RG21 6XP existing bailing shed to be used for
storage. Re-configuration of HGV
parking.
Application submitted for
Land To The North Of construction of 6 B2/B8 units, parking,
Kingscler Kingsclere 19/00435/ Business landscaping and associated works.
15/03/2019 660
Business Park Newbury FUL (B1c) This project also includes associated
RG20 4SW infrastructure works and access
roads.
The George Inn Application submitted for
18/03583/ Industrial
Springhill Lane 25/01/2019 17 construction of timber shed (part
FUL (B8)
Andover SP11 6BG retrospective).
Wade Road Depot Application submitted for siting of
18/02357/ Industrial
Wade Road 31/08/2018 N/A aluminium framed workshop for the
FUL (B1/2/8)
Basingstoke RG24 8PL servicing of vehicles.
Application submitted for change of
use of the site from storage and
distribution (use class B8) to a flexible
Unit 5 Sherrington Way 18/01666/ Business
22/06/2018 0 business (use class B1), general
Basingstoke RG22 4DQ FUL (B1c)
industrial (use class B2) and/or
storage and distribution (use class B8)
use.
Unit 6, Studland Application submitted for demolition
Industrial Estate Gore 18/00706/ Business of single storey unit and replacement
23/03/2018 N/A
End Road Newbury FUL (B1c) with two storey unit to match
RG20 0PW adjoining units.
Source: EGi, 2020
3.7 Analysing all of the data together, there is a pipeline of 47,221sqm of industrial space, taking account of
planning consents and allocations (working on the basis of a 40% plot ratio). When looking at B8 storage and
distribution space alone, the pipeline is just 18,254sqm. Importantly, this figure includes flexible industrial use
classes. With this in mind, the floorspace figure operating strictly as storage and distribution is likely to be lower
still. This falls well below the 122,000sqm required over the plan period, as set out within the local plan.
Analysis of Alternate Sites
3.8 Building on the supply figures outlined above, it is important to note that not all industrial sites are suitable for
the distribution uses proposed at Oakdown Farm. Reliable and proximate access to the UK’s trunk road
network, and land parcel and floorspace size are key determinants of suitability for occupiers in the distribution
sector. The information set out below provides a brief overview of alternative sites to outline the scale and
nature of potential development opportunities and their similarities/differences with proposals at Oakdown
Farm.
3.9 All sites considered are taken from the Basingstoke and Deane Economic Needs Assessment (February 2018)
with no floorspace gains since February 2018 of sufficient size to accommodate distribution activity of the scale
and nature proposed at Oakdown Farm.
Date: July 2020 Page: 17Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
Chineham
3.10 The site is situated on Chineham Business Park. It’s location at the north eastern tip of the business park presents
reasonable connections to the A33 trunk road, which itself later connects to the M3.
Figure 8: Chineham Site Location Plan
Source: Avison Young, 2020
3.11 The site is 2.34 ha in size, with 10,721sqm of proposed floorspace across three units. The scale and nature of the
units are potentially targeted towards distribution activity; however, given the size of the units, this would likely
attract smaller-scale occupiers than is the case at Oakdown Farm. Moreover, the convoluted access to the
M3 would present challenges to large-scale distribution occupiers.
Daneshill East
3.12 Daneshill East has had four consented industrial developments at Lutyens Close, Andwell Trout Farm, May &
Schofield Ltd (Stroudley Rd) and Lane End Farm. Of these permissions, only the scheme at Lutyens Close can
be categorised as ‘B8 Distribution’ in its nature. The other three schemes are all for units under 1,000sqm on
plot sizes incapable of facilitating large-scale distribution activity.
Date: July 2020 Page: 18Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
Figure 9: Lutyens Close Site Location Plan
Source: Avison Young, 2020
3.13 As was the case at Chineham, the Lutyens Close site presents good access to the A33 but is not directly
connected to the M3 motorway.
3.14 The site is 1.04 ha in size, with one 2,550sqm unit proposed. Whilst falling under the ‘B8 distribution’ planning
categorisation, the scale, location and associated connectivity of the site presents a different proposition to
that proposed at Oakdown Farm. It is deemed that the scheme at Lutyens Close does little to address the
unmet need for large-scale, well-connected distribution orientated floorspace that the proposition at
Oakdown Farm is geared towards.
Viables
3.15 There are three allocated industrial sites at Viables Business Park. These range in size with the largest allocation
covering 1.2ha and the smaller sites encompassing 0.62 and 0.65 ha. Working at 40% plot ratios, these sites
could potentially accommodate 4,800sqm, 2,480sqm and 2,600sqm units respectively.
3.16 It’s worth noting that these allocations are for general industrial use (B1C and B2) and that the sites may come
forward with multiple units of smaller scales than outlined above.
Date: July 2020 Page: 19Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
Figure 10: Jay's Close Connectivity
Source: Avison Young, 2020
3.17 In terms of accessibility, the site sits adjacent to the M3 motorway and in close proximity to Basingstoke Town
Centre, providing good transport links for distribution activity. Notwithstanding this, the closest access to the
Motorway is found at junction 6, requiring a 3-mile journey through the Viables Business Park, and along the
Ringway South.
3.18 With this in mind, it is deemed that the site would not attract the high-profile distribution occupiers that could
potentially be attracted by the connectivity found at Oakdown Farm.
Ardglen Whitchurch
3.19 The emerging allocation at Ardglen Whitchurch presents a site with the scale suitable to facilitate distribution
activity, however, the location and connectivity to the strategic road network does present challenges. Whilst
well-served by the A24, the site is poorly connected to the M3 and would be unlikely to attract distribution/e-
commerce occupiers of the same nature as those who may wish to locate at Oakdown Farm.
Brighton Hill
3.20 The site at Brighton Hill sits immediately to the North of Wella Road and encompasses 0.44 ha of currently
derelict industrial land.
Date: July 2020 Page: 20Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
Figure 11: Brighton Hill Site Location Plan
Source: Avison Young, 2020
3.21 The consented scheme is for the erection of a building to provide office, warehouse storage and yard
accommodation for the relocation of the Champion Group, who provides scaffolding, brickwork and building
services. The units will provide 5 ground floor B8 units with first floor office accommodation, totalling 2,449 sqm.
3.22 With the above in mind, it is clear that the site at Brighton Hill will not provide accommodation of the same
nature as that at Oakdown Farm, or indeed be available to inward investment as it is being built for an
identified end user
Houndmills
3.23 The consented scheme at Houndmills comprises three self-contained detached industrial buildings on a 2 ha
site. Unit A is 3,225sqm, unit B is 4,455sqm and unit C is 1,995sqm.
3.24 The units are suitably sized to accommodate distribution activity; however, the unit sizes fall well short of those
proposed at Oakdown Farm, and on this basis, would likely attract different occupiers.
Date: July 2020 Page: 21Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
Figure 12: Houndmills Site Location Plan
Source: Avison Young, 2020
3.25 Moreover, the site presents a different kind of connectivity to that proposed at Oakdown Farm, with the
Houndmills site offering a more strategic location for distribution of goods in and around Basingstoke itself,
whilst the Oakdown Farm site is likely to appeal more to occupiers who need direct links to the M3 Motorway
corridor.
Summary and Conclusion
3.26 It is clear that pipeline supply of storage and distribution floorspace (both in terms of land allocations and
planning consents) falls well below the 122,000sqm required over the plan period, as set out within the local
plan.
3.27 Moreover, of the small number of sites coming forward, there isn’t a single development that presents the
connectivity or scale of development proposed at Oakdown Farm. In this regard, it is unlikely that the approval
of the scheme would divert future demand away from existing sites given the unique occupier base we expect
Oakdown Farm to attract, relative to alternative sites.
3.28 Similarly, without Oakdown Farm coming forward it is impossible for the borough (within the existing known
land portfolio) to accommodate the nature and scale of activity that the market is directing to the borough.
3.29 If the Local Planning Authority is to achieve its target of 122,000sqm of storage and distribution space over the
plan period, it is essential that a scheme of the scale and nature of the proposal at Oakdown Farm is
consented.
Date: July 2020 Page: 22Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
4. Market Demand and Needs
4.1 The previous sections have considered the policy and land supply position – both drawing directly on evidence
and information prepared by the Council. In this section we consider market dynamics to develop our
understanding of the scale and nature of space that businesses are seeking to occupy and identify what this
may mean for future space needs.
4.2 It should be noted that given this analysis relies on historic data there are some limitations in its usefulness as
demand will naturally be limited by the provision of space within the borough.
Basingstoke and Andover Industrial Provision
Existing Stock
4.3 Basingstoke and Andover can be defined as a functional economic market area (FEMA) 1 that sits to the West
of Blackwater Valley, North West of East Hants and North of Winchester. Figure 13, is the boundary of the
Basingstoke and Andover FEMA.
4.4 Despite the LEP study to define the FEMA, Basingstoke and Deans’ Economic Need Assessment is in
disagreement and consider the Borough as a FEMA on its own. In reality businesses will pay little regard to
these administrative or planning boundaries and will seek to locate where premises is available and provides
the appropriate wider conditions.
4.5 Distribution and warehousing businesses tend to be flexible in terms of geography within a target area,
principally focusing on accessibility to the transport network rather than accessibility to a particular workforce
as opposed to other employment sectors which are mainly concerned by the access to highly skilled
workforce such as finance or bio-science for instance. As such a wider area is appropriate to reflect this more
fluid dynamic.
4.6 As shown in Figure 13, the main cluster of industrial activity is in and around Basingstoke, in the East of the FEMA.
A second cluster is located in the West of the FEMA, near Walworth Rd and Hopkinson Way in Andover.
1 EM2 LEP
Date: July 2020 Page: 23Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
Figure 13: Basingstoke and Andover Functional Economic Market Area Industrial Properties
Source: CoStar, March 2020
4.7 The industrial stock within the study area comprises 516 properties equating to 13.9 million sqft of industrial
floorspace.
4.8 Distribution and Warehousing occupy nearly half of all industrial properties in the area and nearly 70% of the
total industrial floorspace available which demonstrates the importance of this sector in the local economy
and a tendency for occupiers in this sector to be larger than other industrial businesses.
4.9 The stock is also relatively consistent in term of quality, with an average rating of 2.5 out of 5 in the CoStar
assessment. This, in part, reflects the fact the majority of stock is relatively old, with the average industrial
property being built in the 1980s. However, it should be noted that distribution and warehousing space is, on
average, newer than other industrial space reflecting the nature of space the sector needs. Despite this much
of the stock cannot be considered as “modern” by industry standards and is still unlikely to meet occupier
requirements.
Date: July 2020 Page: 24Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
Table 6: Industrial Stock
Number of
Floorspace (sqft) CoStar
Properties Average
Quality
Year Built
Total % Total % Average Rating
Distribution 14 3% 2,009,294 14% 143,521 3.1 1991
Warehouse 238 46% 7,500,638 54% 31,515 2.7 1987
Light Distribution 2 0% 58,999 0% 29,500 2.5 1978
Refrigeration/Cold
1 0% 87,445 1% 87,445 3.0 1997
Storage
Food Processing 4 1% 480,582 3% 120,146 3.0 2003
Light
51 10% 979,000 7% 19,196 2.4 1978
Manufacturing
Manufacturing 5 1% 853,853 6% 170,771 3.0 1972
R&D 1 0% 139,900 1% 139,900 3.0 2014
Service 151 29% 899,503 6% 5,957 2.3 1983
Showroom 4 1% 92,607 1% 23,152 2.8 2008
Unknown 45 9% 797,962 6% 17,732 2.4 1981
ALL INDUSTRIAL 516 100% 13,899,783 100% 26,938 2.5 1985
Source: CoStar, March 2020
4.10 Table 7 shows the share of properties built by period. This shows that only 20% of the existing industrial stock
was built in the last 20 years, with the rest of the stock mainly dating from the 1976-2000 period.
4.11 The low share of distribution space built in the past 20 years (15%) once again demonstrates the lack of
“modern” distribution properties in the area. This observation is even more relevant for light distribution space,
with all buildings delivered prior to 2000.
Table 7: Industrial Stock, year built
Pre-1950 1951-1975 1976-2000 2000-2020
Distribution 0% 15% 69% 15%
Warehouse 0% 15% 61% 23%
Light Distribution 0% 50% 50% 0%
Refrigeration/Cold Storage 0% 0% 100% 0%
Food Processing 0% 0% 50% 50%
Light Manufacturing 4% 26% 66% 4%
Manufacturing 0% 67% 33% 0%
R&D 0% 0% 0% 100%
Service 1% 22% 57% 19%
Showroom 0% 0% 25% 75%
Unknown 8% 15% 65% 12%
ALL INDUSTRIAL 2% 19% 60% 20%
Source: CoStar, March 2020
Date: July 2020 Page: 25Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
4.12 In terms of size, there is a spread across size bands with c.60% of the entire industrial stock in the area is above
10,000 sqft, with a third being above 20,000 sqft. There are a limited number of “small” units (assumed as units
below 5,000 sqft) and these are almost exclusively used for “light manufacturing” activities, “service” activities
and other unknown activities.
Table 8: Number of Industrial Properties by Size (sqft)
2,000 - 5,000 - 10,000 - 20,000 - 50,000 - >
< 2,000 Smallest Largest
5,000 10,000 20,000 50,000 100,000 100,000
sqft (sqft) (sqft)
sqft sqft sqft sqft sqft sqft
Distribution 0 0 0 1 3 4 6 14,412 620,000
Warehouse 1 4 6 93 104 21 9 1,900 341,871
Light Distribution 0 0 0 1 1 0 0 14,369 44,630
Refrigeration/
0 0 0 0 0 1 0 87,445
Cold Storage
Food Processing 0 0 0 0 1 1 2 43,560 222,167
Light
4 16 7 11 6 7 0 962 97,636
Manufacturing
Manufacturing 0 1 0 0 0 0 4 4,000 410,189
R&D 0 0 0 0 0 0 1 139,900
Service 10 57 79 4 1 0 0 627 35,930
Showroom 0 1 0 1 1 1 0 3,227 51,626
Unknown 6 8 6 12 12 0 1 647 168,052
ALL INDUSTRIAL 21 87 98 123 129 35 23 627 168,052
Source: CoStar, March 2020
4.13 It is clear that the majority of “large” industrial units (i.e. assumed as units above 100,000 sqft here) are being
used for distribution and warehousing. Scale is clearly more important to the distribution and warehousing
activities compared to other activities, with the sector occupying 80% of all industrial units above 20,000 sqft
and 65% of all units above 50,000 sqft, which highlights the need to respond to their demand for larger units in
the future.
Vacancy
4.14 The industrial vacancy rate for all light industrial and industrial uses in the study area is approximately 5% as
seen in Figure 14.
4.15 This rate is considered to be low and lower than the UK vacancy rate for the industrial and logistics market
which stands at 6.6% 2. Vacancy rate forecast shows that the rate could fall and remain below 4% in the
coming years.
4.16 Whilst fluctuating between 2% and 7% since 2010, the vacancy rate has been relatively stable and low, which
demonstrates the strength of the industrial property market and the appetite from tenants for space in the
area.
2 https://www.savills.com/research_articles/255800/284259-0
Date: July 2020 Page: 26Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
Figure 14: Basingstoke and Andover Industrial Vacancy Rates
Source: CoStar, March 2020
4.17 Low vacancy rates are not desirable to sustain local economic growth and high productivity as, due to lack
of available space, businesses wishing to expand their activities or settle in the area might be forced to look
elsewhere for suitable and available space – sometimes in sub-optimal locations.
4.18 Basingstoke Council should therefore encourage the delivery of new industrial space in the local area to
ensure its full economic potential and support high levels of productivity in the industrial sector.
4.19 The industrial vacancy rate for distribution and warehouses in the study area is approximately 5.5% as seen in
Figure 15, which is 0.5% lower than the total industrial vacancy rate of Basingstoke and Andover. This suggests
that demand for space in the distribution and warehousing sector is higher (when compared to overall supply)
than the wider industrial market.
Figure 15: Basingstoke and Andover Industrial Vacancy Rates (distribution and warehousing only)
Source: CoStar, March 2020
Date: July 2020 Page: 27Client: Newlands Developments Report Title: Oakdown Farm Employment Land & Economic Assessment
4.20 The spike in vacancy between 2016 and 2018 is largely driven by an increase in supply of distribution and
warehousing space during that period, most notably large quantum’s of space in two consecutive years
(620,000 sqft in 2015 and 417,500 sqft in 2016) and the time needed to lease out space with the average
number of months of the market of properties fluctuating between 4 months and 24 months in the past 10
years.
4.21 Whilst space delivered in 2015 was absorbed rapidly, space delivered in 2016, 4 units, all warehousing
(including one units of 341,000 sqft and one unit of 51,000 sqft) stayed on the market for an average of 9
months (this is shown by a small drop in vacancy from 2016 to 2017).
Take-Up
4.22 The net take-up provides an indication in the change of floorspace available across a period of time. A
positive net absorption means that more space was leased up than the amount of space that was made
available on the market. A positive net absorption will suggest a decrease of the vacancy rate.
4.23 Space could be made available either by businesses moving out and vacating existing space or by the
delivery of new properties.
4.24 When looking at Figure 16, we observe that the Distribution and Warehousing space has a net absorption rate
similar to the one of the entire industrial stock. This suggests that the main activity on the industrial property
market is driven by distribution and warehousing space.
Figure 16: Net Absorption of Industrial Floorspace
Source: CoStar, March 2020
4.25 In the main net absorption has been positive and for a significant scale of space, this suggests ongoing
demand for space with take up being greater than the vacation of space.
Date: July 2020 Page: 28You can also read
