The City of London has an ambitious target to create 1.2million sq/m of new high quality office space by 2040. This would help to ensure the area remains a hotbed for business. However, there are some big challenges that could make achieving the goal impossible. One of the most notable according to the CPA (City Property Association) is demands for cycling provision. We want to have a closer look at this today, then if you need help from a lettings agent in the City of London, you can speak to us.

The policy

City-wide policies from the Mayor of London aim to promote cycling in the capital. The goal is to get more people to cycle to work, improving their health and the environment in the city.

One of the most crucial rules is that every new office development must have a proportional amount of cycling facilities. The policy from 2021 says that there should be a cycle space for every 75 sq/m of new office space. This can include space for storing a bike, showering/changing, and lockers.

The problem

The CPA says the demand for so much cycling provision is holding back developments. It puts a huge amount of pressure on developers, especially those planning big office buildings. This requires higher investments, especially if it is costly basement excavations. It could therefore hurt everyone, from businesses to every lettings agent in the City of London.

The stats seem to support CPA’s view. They estimate that just 36% of workers live within 10km of their office in the City. These are the people most likely to cycle to work. The remaining 64% live further away and are more likely to choose public transport. So, the demand for cycling storage is disproportionate to the use. In fact, it is believed that 86% of the new cycle bays don’t get used. That is a huge waste of space and the investment to create it.

Environmental impact

CPA is also critical of the impact on the environment. Chairman Ross Sayers said there would be a “huge carbon and capital cost”. In fact, the financial costs and environmental impact “risks undermining the viability of new schemes”.

The estimate is each cycle space produces 1.29 tonnes of carbon. According to the policy, 1.2million sq/m of new office space would require 25,000 cycling bays. They would total 42,500 sq/m. Crucially, it would produce 21,500 tonnes of carbon. That is more than you would get from an entire high rise building.

Response

A Mayor of London spokesperson said there has been a “huge increase in cycling” in both the City and across the capital. As a result, they want to keep doing more to ensure there is high quality infrastructure for cyclists. This will involve working with TfL and local authorities.

Comments from the City of London Corporation acknowledge CPA’s concerns. Crucially, their statement said they will engage with stakeholders to “reach a pragmatic solution” for new office schemes. This could offer more leeway and allow more schemes to progress.

Do you need help from a lettings agent in the City of London?

Finefair Ltd appreciates that the City has one of the most unique property markets in the world. It is largely offices and commercial space, with only a small amount of housing. As a result, the homes can be fantastic assets. They can generate a lot of income, especially from short term renters.

If you do invest, we have the perfect services for you. In fact, we are probably the most dynamic lettings agent in the City of London. Clients can rely on us for guaranteed rent, property management, and more. So, get in touch and learn more.