Employment Land Assessment
Employment Land Assessments are fundamental to understanding the supply and demand for commercial and industrial land in a local authority area. Whether you are seeking to develop employment land, release it for alternative uses, or challenge a council's employment land policies, this assessment provides the evidence base that underpins those decisions.
Typical Cost
£300 – £5,000+
Turnaround
1 – 6 weeks
AI Report
Minutes
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What is a Employment Land Assessment?
An Employment Land Assessment (ELA) evaluates the quantity, quality, and suitability of land allocated or used for employment purposes within a defined area. It assesses both the supply of available employment sites and the projected demand for employment floorspace based on economic forecasting, labour market analysis, and property market signals. The assessment identifies whether there is a surplus or deficit of employment land and makes recommendations about future allocations, safeguarding, or release of sites for other uses.
When is a Employment Land Assessment required?
Employment Land Assessments are most commonly commissioned by local planning authorities to inform their local plan evidence base, in line with paragraph 86 of the NPPF which requires planning policies to address the specific locational requirements of different sectors. Developers and landowners may also need to commission site-specific employment land assessments when seeking to redevelop or change the use of existing employment sites, particularly where local plan policies protect such land. If your proposal involves the loss of employment land or buildings, the council will almost certainly require evidence demonstrating that the site is no longer viable or needed for employment purposes.
What does a Employment Land Assessment include?
A comprehensive Employment Land Assessment includes an audit of existing employment sites and premises, assessment of each site's quality, accessibility, and market attractiveness, analysis of commercial property market conditions including vacancy rates and rental values, economic forecasting of future employment land requirements using models such as the Oxford Economics or Cambridge Econometrics employment projections, assessment of the balance between supply and demand, and policy recommendations regarding site allocations, safeguarding, and release. Site-specific assessments typically include marketing evidence, viability analysis, and assessment against the council's own employment land review criteria.
How much does a Employment Land Assessment cost?
A site-specific employment land assessment to support the release of a single site for alternative use typically costs between £3,000 and £7,000, depending on the marketing evidence and viability analysis required. Area-wide Employment Land Reviews commissioned by local authorities are substantially more expensive, usually ranging from £30,000 to £80,000, reflecting the need to assess dozens or hundreds of sites across the district.
Who can prepare a Employment Land Assessment?
Employment Land Assessments are prepared by specialist planning and property consultancies with expertise in commercial property markets and economic forecasting. Practitioners are usually chartered planners (RTPI), chartered surveyors (RICS), or economists with experience in employment land studies. For site-specific assessments supporting loss of employment land, a RICS-registered valuer may be needed to provide evidence of commercial viability.
How long does a Employment Land Assessment take?
A site-specific employment land assessment can typically be completed within 4 to 6 weeks. The timescale depends heavily on the marketing evidence available, as many councils require evidence of active marketing for a period of 12 to 24 months before accepting that a site is surplus to employment requirements. Area-wide studies for local plan purposes usually take 4 to 6 months.
Frequently Asked Questions
Can I build houses on employment land?
It depends on local plan policy and the evidence you can provide. Most councils have policies protecting employment land, and you will need to demonstrate that the site is no longer suitable, viable, or needed for employment use. This typically requires a marketing exercise showing the site has been actively marketed for employment use at a reasonable price for a specified period without attracting occupiers.
How long do I need to market employment land before it can be released?
Marketing periods vary by local authority but typically range from 12 to 24 months. The council's employment land policies will specify the required marketing period, the terms on which the site should be offered, and the evidence needed to demonstrate a genuine and sustained marketing effort. Some councils require marketing at both freehold and leasehold terms.
What does the NPPF say about employment land?
The NPPF requires local planning authorities to set out a clear economic vision and strategy, identify strategic sites for employment, and address the locational requirements of different business sectors. Paragraph 86 states that planning policies should recognise and address the specific needs of different types of business. The framework supports a flexible approach that allows employment sites to adapt to changing economic conditions.
What is the difference between B1, B2, and B8 use classes?
The traditional B use classes have been partially reformed. Former B1 uses (offices, research, light industry) now fall within the new Class E commercial use class introduced in September 2020. B2 (general industrial) and B8 (storage and distribution) remain as separate use classes. Employment land assessments typically cover all these categories, plus increasingly the sui generis uses that support employment.
Can a prior approval application bypass employment land policies?
Permitted development rights allow certain changes of use from commercial to residential through prior approval, notably Class MA of the GPDO which permits change from Class E to residential. These rights operate outside the normal planning policy framework, meaning employment land policies do not directly apply. However, prior approval conditions including vacancy requirements and size limits still need to be met.
What evidence is needed to show employment land is not viable?
You will typically need a viability assessment prepared by a RICS-registered valuer showing that the costs of refurbishing or redeveloping the site for employment use exceed the likely value generated. This should be supported by evidence of marketing efforts, comparable transactions, and an analysis of why the site fails to attract employment occupiers. Simply demonstrating that residential use would be more profitable is not sufficient.
Do Employment Land Assessments consider future growth sectors?
Yes. A good assessment will analyse projected employment growth by sector using econometric models and consider how emerging sectors such as advanced manufacturing, life sciences, logistics, and the green economy may generate demand for different types of employment floorspace. This forward-looking analysis is essential for ensuring land supply matches future needs rather than just current patterns.
What is a qualitative assessment of employment sites?
Beyond simply measuring land supply in hectares, a qualitative assessment evaluates each site against criteria such as strategic road access, public transport connectivity, compatibility with neighbouring uses, environmental constraints, broadband connectivity, and market attractiveness. Sites scoring poorly on qualitative criteria may be candidates for release, even where there is a quantitative shortfall.
How does permitted development affect employment land supply?
The expansion of permitted development rights, particularly for office-to-residential conversions, has significantly reduced employment land supply in many areas. Employment Land Assessments now routinely account for losses through permitted development when calculating net supply. Some councils have responded by introducing Article 4 Directions to remove these permitted development rights in key employment areas.
Can employment land policies be challenged at a local plan examination?
Yes. If you believe a council's employment land policies are not justified by robust evidence, you can submit representations during the local plan consultation and appear at the examination in public. Common grounds for challenge include outdated evidence, over-allocation of employment land relative to demand, failure to account for market signals, or policies that are inflexible and do not allow for changing economic circumstances.