Post Covid-19 – Planning for town centres

The challenges that Covid-19 presents may speed up the decline in some traditional town centre operations, creating a greater urgency for investment and regeneration to support their continuing role.

Whilst planning may not provide all the answers for delivering vital and viable centres, it certainly has a critical role to play in creating a positive framework for delivery that supports their vitality and future evolution. This role will become even more important during the coming months as we discover the full effects of Covid-19.

Town centres now know what most of their streets would be like when freed from high levels of traffic. Data shows that they have benefitted from much better air quality, although clearly they are suffering from lack of footfall.

The absence of customers during this period and the full effects of Covid-19 on the occupational markets remains unknown, but they are likely to be felt throughout at least the remainder of this year. Our research shows that on average landlords have only been able to collect approximately 50% of rents from tenants for the first quarter of 2020 and with many retail occupiers having been closed during this period there will be concerns over rent payments for the second quarter. Inevitably there will be some business casualties and we have already seen some operators entering into administration during the last few weeks and some tenants confirming that they will not be re-opening certain stores resulting in landlords exploring options for alternative concepts.

Our evidence from client surveys carried out for Revo last year demonstrates that the majority of landlords have been considering re-purposing high street and shopping centre assets over the last few years. Intensification and increases in food and beverage, leisure, residential, community and business space proposals are some of the wide ranging uses being considered and delivered. Our expectation is that there will be an increase in re-purposing projects as landlords are required to deliver alternative uses to replace former retail uses, or to enhance, maintain or reduce further losses in value.

Whilst residential will not work in all circumstances, there has inevitably been a particular focus on residential redevelopment given the potential higher value use that this could deliver compared to other land uses. The established benefits of residential delivery in town centres are also well-understood. It results in the redevelopment of brownfield land and at an increased density, typically utilises land that is in easy access of sustainable transport infrastructure and provides new homes in town centres to support the vitality of existing and new services. These are all positives that can contribute to the agenda to reduce carbon emissions.

Residential delivery in town centres is therefore positive urban regeneration that meets social, economic and environmental objectives. Town centres lend themselves to different housing types and tenures, which will aid the diversity of delivery required.

Further still, the full effects of Covid-19 are not yet known on the mobility of society. How far and how frequently will people be willing to travel, what modes of transport will people be willing to take and what capacity will public transport be able to operate at are some of the questions that may arise. Town centres in particular have an important role to play in providing a response. They can provide accessible services in close proximity to the areas that they serve and connected business hubs that minimise the need for travel. New residential dwellings can build in amenity space, both within dwellings and communal areas, that can cater for remote working. All of this can be provided in locations that provide easy access to central business hubs in larger cities.

Given the obvious and significant benefits of delivering a wide range of uses in town centres by almost exclusively using previously developed land, planning policies should provide a positive framework in which developers and landlords can invest in revitalising such locations.

Most planning policies are incredibly supportive of town centres at a strategic level, but the competing interests mean there is often a further layer of restrictive policies

If we are serious about enacting real societal change through town centre regeneration that delivers overwhelming benefits, is a more radical approach required that provides the overtly positive framework to maximise the changes and opportunities in town centres?

The objective to provide this positive framework will likely become an even more acute requirement over the coming months and years and is supported by Government policy. In that regard, local planning authorities and development plans must take a bold approach to creating that environment for positive regeneration. This includes:

1. Setting bold minimum densities for residential and commercial development to enable high density uses to be provided close to existing transport infrastructure.                                               
2. Taking a pragmatic approach to the requirement for car parking at town centre developments to reduce significantly requirements in order to both acknowledge the accessibility of such locations, existing reduction in private car ownership and the policy requirements to transition towards a low carbon future.                                                                     
3. Removing barriers for investment for land uses – for example removing policy approaches that seek to protect retail frontages. Such an approach is dated in any event, but provides a barrier to providing mixed and balanced communities within town centres by preventing appropriate uses.                                               
4. Acknowledging and planning for the important role that logistics space will likely play in town centres as part of both residential developments and meeting requirements for retail, office and service requirements. Policies shouldn’t be afraid of creating spaces for such locations as ultimately this use will support the other highly active uses that create vital and viable locations.     
5. Supporting innovative and creative design solutions to address heritage considerations. Many heritage assets themselves were once bold designs that were progressive in moving design in development forwards. There should be no reason why new and old developments cannot sit comfortably side by side to ensure that the opportunities that town centres present for the future of society can be delivered.                                                         
6. Working with landlords and developers to identify areas of schemes that have future redevelopment potential so they can be allocated for such uses with development plans.                   
7. Giving greater incentives to use public sector land, CPO and other planning powers to enable growth.

The above list is not exhaustive and given the potential issues that may arise with the town centre occupational markets post Covid-19, local planning authorities will need to work fleet-footed with stakeholders to ensure that planning can assist in providing the positive framework required to avoid delays to investment. This could include radical changes to town centre policies in emerging development plans that may themselves be at an advanced stage. There would be no point in putting in place policies now that would last for five years and be dated before they had even been adopted.

We also consider that Government itself will need to consider its approach to planning for town centre uses to assist with the delivery of town centre regeneration. Further initiatives could include:

1. Streamlining the Use Classes Order to amalgamate appropriate town centre Class A uses into one (e.g. Nail Salons and Cafés into Class A1).
2. Extending the Future High Street Fund / Housing Infrastructure Fund to support town centre regeneration and in particular the ability for Local Planning Authorities address funding gaps for the delivery of development on brownfield land in town centres.

The significant opportunities for town centre regeneration remain and despite ongoing uncertainty, the current circumstances present an opportunity to support the creation of mixed and balanced communities within them. The planning profession will need to act quickly to support their delivery.