With London's population set to soar to ten million people by 2030 City Hall is at the forefront of the search for more work space for new and growing businesses.
A new report published today (15 September) highlights the particular need to find more space for the burgeoning creative industries. Workspace providers, experts and London's local authorities are today attending a summit at City Hall to begin work on developing an action plan to tackle the challenge.
The event will be led by the Deputy Mayor of London for business and enterprise, Kit Malthouse, and he will highlight the increasing importance of the rapidly multiplying number of open workspaces in the capital, which provide shared facilities for all kinds of small enterprises.
There are now around 150 open workspaces across London with over half of them established in the last two years.
Nearly 4,000 small businesses occupy these spaces at any one time and today the Mayor's Office is calling on developers and local authorities to work harder to make better use of ground floor units in new buildings and high streets, by setting up a new network of business incubators and co-working or artist workspace providers.
A new study into artists workspaces published today highlights that one in six new jobs in London is in the creative industries. However directors of the capital's major cultural institutions have voiced concerns about an exodus of artists and creative talent out of central London.
Many are worried that artists are becoming victims of their own success by increasing the value of the areas they work in but then being forced out by the rising prices their presence has helped to boost.
The study comes as the London Design Festival and London Fashion Week, international showcases of two key creative sectors that generate billions for the economy and create thousands of jobs.
Like artists, many designers will be working in small studios around the capital.
The study found that the supply of artists studio space in London is higher than expected with 298 separate studio sites or buildings across London catering for 11,500 artists. However they also found that 28 per cent of artists studios are under threat as they do not expect to be able to renew their rental or leasehold agreements in the next five years.
The Deputy Mayor of London for education and culture, Munira Mirza, said: "London thrives on a close relationship between the artistic community and our booming creative and digital businesses. With as many as 3500 artists likely to lose their places of work over the next five years it is imperative that we consider the provision of artists space in the context of affordable workspace."
The London Enterprise Partnership, which the Mayor chairs, is presiding over bids from London Boroughs for several million pounds of growth funding from the New Homes Bonus. And a significant proportion of this funding is expected to be directed towards Places of Work, with the aim of exploring the potential for levering in further European funding for these projects in the coming year.
The Mayor is determined that suitable workspace will be provided to ensure London maintains its international reputation as a place where new, innovative and creative endeavours come to start-up and grow. His team has developed an interactive online map that shows over 400 Open Workspaces where small enterprises start their lives.
The map will not only provide an overview of where workspaces are located across London, but will also act as a directory of workspace providers for developers and councils.
The Deputy Mayor of London for business and enterprise, Kit Malthouse, said: "Small businesses are the heart and soul of our city and we need to do everything we can to find the space for them to set up and thrive. We cannot rest on our laurels. The London property market is very dynamic and we have to make space for everyone. Co working spaces are a fantastic opportunity for new businesses that might struggle to afford the rent on a busy high street, and today we'll be urging people to find as many new locations for work spaces as they can. It will help us ensure our great city is a place where people can live, work and thrive for years to come."
Several key recommendations will be made at today's event.
They include:
· Promoting semi industrial workshops and studios with the aim of bringing together professional makers and new recruits to those industries.
· Focusing on social and community initiatives to help provide training and access to affordable space for disadvantaged groups.
· Recognising the value of existing workspace - ensuring the importance of spaces in and around town centres are recognised by planning as part of redevelopment proposals.
· Creating partnerships between developers and workspace providers
· Encouraging councils to adopt a brokering role to ensure that appropriate workspace is incorporated into new housing developments.
The Mayor is already supporting the creation of new workspace through existing regeneration funds. That money is being used to support projects like Camden Collective, which provides free co-working space and pop-up retail space in previously empty shop units and office buildings. Members do not pay for their workspace but must commit to providing a certain amount of their time each month to helping develop the scheme.
Notes to editors
New Homes Bonus
A decision on the New Homes Bonus proposals will be made by the LEP in autumn 2014 and projects are due to commence from April 2015. The LEP has also drafted its European Structural and Investment Fund (ESIF) strategy which includes opportunities for workspace projects. Subject to European Commission and Government agreement the LEP should be in a position to launch the ESIF early next year. Further information is available on the LEPs pages of the london.gov.uk website.
Incubators, Accelerators and Co-working (IAC) spaces
Fully funded by the LEP SME budget, the GLA appointed URS, Ramidus, #1Seed and Gort Scott to carry out research into the supply of existing Incubators, Accelerators and Co-working (IAC) spaces in London, which was the first study into the emerging sector of this kind. The main research questions were: What are the existing facilities across London Do these facilities have a positive impact on business success rates and growth? Are there models that work better than others? Are there geographical or sectorial gaps? What interventions should the public sector undertake? The report identified; 34 Incubators, 16 Accelerators, 112 Co-working Spaces operating in London IACs as a relatively recent phenomenon, with half of IACs surveyed having been established in the past two years (2012-14), and a further third established 3-5 years ago (2011-2009) Majority of the IACs are located in four inner London boroughs (Westminster, Camden, Islington, and Hackney), with a particular concentration in and around Tech City Outer London has less IACs, with existing spaces tending to be provided by local authorities, charities and other third sector bodies. This is in clear contrast to the predominance of private sector providers characterising inner London IACs IACs have tended to provide B1 office space, although there is an emerging sector of shared workspaces and incubators providing access to more specialised workspace and equipment, such as the QMB Innovation Centre, which provides high-spec lab space to science and technology companies, and Blackhorse Workshop, which provides shared bench space, power tools and machines to both professional craftspeople and enthused hobbyists. The report recommends the creation of a workspace provider network, through which IACs can inform emerging workspace policies, share learnings, and engage with boroughs and developers. The report also recommends the creation of an online interactive map to make IAC spaces visible to Londoners. The report concludes that any future public sector investment should focus on IACs with clear community outreach goals (e.g. providing training for disadvantaged groups, providing subsidised workspace) as well as being combined with wider initiatives to maximise public outcome.
London Open Workspaces Map
The London Open Workspaces map is an interactive guide to London's start-up workspaces, revealing the capital's incubators and co-working spaces alongside other start-up workspaces such as artist studios and maker-spaces. https://www.london.gov.uk/priorities/business-economy/for-business/business-support/london-workspaces/
Accommodation Growth in Town Centres
Members of the LEP SME Working Group, the Outer London Commission, and the Mayor’s Design Advisory Group commissioned Maccreanor Lavington, Peter Brett Associates and Graham Harrington Planning Advice to assess the capacity for housing intensification in and around town centres, while retaining and encouraging a diverse range of enterprises and the spaces they need. The study informs the Further Alterations to the London Plan, and future regeneration funding and programmes. The report urges boroughs to actively plan for new homes whilst qualitatively analysing the importance of non-residential space. Town centres strategies should recognise the important role that lower cost enterprise spaces in and around town centres play in the local economy, and consider what role they should play in the future. https://www.london.gov.uk/priorities/regeneration/publications-guidance/accomodating-growth-in-town-centres
Artists Workspace studies
Cultural Metropolis, the Mayor's draft cultural strategy for 2012 and beyond, makes a clear link between London's position as a world city and its global status as a centre for culture and the creative industries. While strategic and popular attention has been lavished on the creative industries, artists are often overlooked and, at first glance, the economic contribution from the artistic sector is relatively modest. The GLA Culture and Regeneration teams commissioned an audit of the current supply for London's artists workspaces by We Made That in March 2014 and have subsequently refined the work in collaboration with a steering group made up of a selection of key providers including a number of detailed case studies showing how new spaces can be established. The studies identify;
Around 300 artist studio buildings in London catering to 11,500 artists.
A potential future crisis of affordability and under-provision of space. Within the next 5 years, over 3000 artists will lose their place of work as operators do not expect to be able to renew leases or rental agreements. Over the past 10 years average studio rents have risen by approximately 45%, rising from £7.54 per sqft in 2004, to £11 per sqft in 2014.