Sadiq Khan's ULEZ blamed as empty shops in London hit record high
Retail vacancy rates have increased in the capital since ULEZ was rolled out, figures show.
Sir Sadiq Khan's expansion of the Ultra-Low Emissions Zone (ULEZ) has resulted in a decade-record high for shop closures, figures suggest. The vacancy rate for shops in all London boroughs rose to 6.2% this year compared to 1.9% in areas near the city, according to property analysts CoStar.
The Mayor of London expanded ULEZ across the capital in August 2023. The scheme charges owners of cars which don't meet certain emissions standards £12.50 per day to drive inside the zone.
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Researchers from CoStar said the after effects of the Covid pandemic have pushed up retail vacancy rates in the UK but those increases were more moderate compared with London.
CoStar found retail parks in the ULEZ zone have seen vacancy rates of 4.2% compared to 0.2% for unaffected areas. Demand for leases has dropped with retailers wary amid reduced footfall.
Patrick Scanlon, Senior Director of Market Analytics at CoStar, told the Telegraph the research suggested ULEZ expansion had reduced demand for retail space.
He said the impact of ULEZ could be short-term as drivers will eventually trade in older models for newer ones, but warned some spots with higher vacancy rates could struggle to attract investment.
Thomas Turrell, the Conservative London Assembly member for Bexley and Bromley, said his party warned Sir Sadiq that ULEZ expansion would have unforeseen impacts on the way people in outer London live and work.
He said: "Local economies are struggling already as a result of the Labour Government’s catastrophic jobs tax, and the Mayor whacking ULEZ on top is only exacerbating that.
"High streets are at the heart of our local economies, and I want to see work done to save them before it is too late."
A spokesperson for the Mayor of London said data from a ULEZ report and independent analysis found the expansion has not impacted footfall or retail and leisure spending in either outer London or London as a whole.
They added: "Recent data shows ULEZ works, driving down levels of pollution and bringing cleaner air to all Londoners. With 97.1% of vehicles seen driving in London now ULEZ compliant, the data also shows that Londoners have continued to upgrade their vehicles to cleaner models.
"The Mayor is committed to improving air quality in London and has taken world-leading action to tackle toxic air pollution, which prematurely takes the lives of an estimated 4,000 Londoners each year."
Figures supplied by the Mayor's office show visitor footfall in outer London increased by almost 2% in the year after the ULEZ expansion.
