Key opportunities and risks for real estate

Opportunities

Strategic brownfield and Green Belt development

Promoting development on brownfield land, and selective release of MOL or Green Belt land, will create potential for high-density, high-value residential projects especially near transport hubs 

Industrial land declassifications

Opportunities to unlock redevelopment potential, especially in locations where planning policy shifts support new residential or mixed-use schemes.

Potential redefining of CAZ or Opportunity Area boundaries

May create opportunities to capitalise on newly included or reclassified areas, unlocking mixed-use development potential, higher-value land uses, and greater planning flexibility.

Aligning with strategic investment priorities

The next London Plan highlights priority areas like transport, housing, logistics, and infrastructure — pointing to clear opportunities for real estate investors to align with growth and unlock long-term value.  

Risks

Local Plan misalignment

Local plan inconsistency may create planning uncertainty, and a fragmented delivery landscape. Just 30% of boroughs aligned to current housing targets, and approaches to different types of housing vary.

Vacancy intervention

Proposed interventions such as rental auctions for vacant high street units may reduce landlord control over tenants and lease terms. Potentially undermining asset value and operational flexibility.

Climate resilience gaps

Subsidence is underacknowledged in the consultation document and poses a significant risk to landlords in terms of valuations and insurability, particularly in vulnerable boroughs.

Overprescription

Over-prescriptive planning policies that fix sector uses in CAZs, high streets or industrial zones risk reducing landlord flexibility, hindering responsiveness and weakening long-term asset performance.