London Retail Parks Could Host Over 11,000 New Homes in Mixed-Use Developments

Research by planning consultancy Lichfields reveals that 19 retail parks across London have the potential to accommodate approximately 11,200 new homes through mixed-use redevelopment projects.

The study, titled Car parks to communities, examined 102 retail parks spanning 29 London boroughs, covering around 9.1 million square feet of retail space. After assessing factors such as accessibility, flood risk, planning commitments, policy protections, and proximity to local services, the consultancy identified 19 sites in 13 boroughs suitable for further housing development.

Residential-led redevelopment is already underway at several locations. Of the 102 retail parks analysed, 29 are currently being redeveloped with a focus on housing, potentially delivering up to 16,800 homes. Additionally, 28 projects on land adjacent to retail parks are in progress, expected to provide 17,500 homes. Combined, these efforts represent around 34,000 homes being developed on or near retail park sites throughout London.

James Singer, Associate Director at Lichfields and author of the report, commented: “London needs more homes and some retail parks have clear potential to help provide them, particularly where large parts of a site are taken up by surface car parking or low-density development.” He added, “That doesn’t mean every retail park is suitable for housing. Many are trading well, and factors such as land value, existing tenants and lease structures can make redevelopment difficult.”

Singer emphasised that phased redevelopment could be a practical approach in many cases. “In a lot of cases, the more realistic approach is to redevelop sites in stages, keeping successful retail and leisure uses while adding homes and improving the wider site. That can make better use of the land while retaining uses that continue to perform well.”

The findings come amid London’s efforts to boost housing supply as outlined in the draft London Plan published in July. The plan aims to deliver approximately 558,000 new homes over the next decade, falling short of the estimated local housing need of around 850,000.

Current and proposed London planning policies support the redevelopment of low-density retail parks and car parks for housing where appropriate. However, the viability of such projects depends heavily on existing uses, ownership, lease arrangements, and redevelopment costs.

Retail parks have demonstrated relative resilience compared to other retail sectors, with strong occupier demand and limited new supply sustaining high land values. The research noted a 15% vacancy rate among the retail parks studied, higher than the approximate 6% average across the wider retail park market. This discrepancy partly reflects sites already transitioning towards redevelopment, where leases have been allowed to lapse in anticipation of future plans.

For sites identified as having development potential, the study highlights phased delivery as a strategy to maintain retail and leisure functions while integrating housing, community facilities, new streets, and public spaces. Examples cited include Hurlingham Waterfront in Fulham, Lewisham Retail Park, and Southbury Leisure Park in Enfield.

James concluded: “The opportunity is not just to increase the number of homes on these sites, but to turn places built around cars into neighbourhoods where people can live, shop and spend time. That means thinking carefully about the mix of uses, the quality of public space and how each site connects with the surrounding area.”