Oxford Street Revival: The Mayor’s New Vision

London Mayor Sir Sadiq Khan announced at the end of February the consultation on the establishment of a Mayoral Development Corporation (MDC) along Oxford Street as a means to allow for the potential pedestrianisation and regeneration of the nation’s most famous high street.

The Oxford Street MDC would assume responsibilities from Westminster and Camden for plan-making and the determination of planning applications in the area. Furthermore, Oxford Street would come under greater responsibility of the GLA as a part of the Transport for London Road Network. The MDC would also be in receipt of neighbourhood element of Community Infrastructure Levy (CIL) paid by developments within the area with Westminster City Council allocated the strategic funds from CIL.

It is the Mayor’s ambition that the MDC would be set up by January 2026.

Proposed Mayoral Development Area Boundary

The concept of pedestrianisation is not new to Oxford Street, with proposals dating back to the 1960s. Previous attempts at pedestrianising Oxford Street and the surrounding public realm have had little success. In 2018, Westminster City Council dropped pedestrianisation proposals in response to opposition from local residents. By 2024 the Council had revived proposals for public realm and scaled back pedestrianisation as part of their initial £90m Oxford Street Programme which then had to be shelved in September 2024 following the Mayor’s announcement of potential MDC for the area.

Pedestrianising Oxford Street has been a key part of the Mayor’s electoral pledges since 2015, and has been frustrated by the failure of previous attempts by the Council to deliver this. The arrival of the Labour government last year appears to have given a new impetus for the Mayor to directly intervene through a MDC to realise his ambitions. 

Political intentions aside, there is a lot to say for the decline in footfall on the street since the rise of e-commerce, changing consumer behaviours, and the lasting impact of the pandemic which has reduced consumer spending and falling retail rents. According to figures reported in the consultation documents: 

• Footfall on Oxford Street is only 57% of the level seen in 2006, compared to 98% Bond Street and 83% for Regent Street

• A decline of 29% between 2022 and 2024 in inflation-adjusted spend between 9pm and 6am on Oxford Street, with a drop in spending after 9pm across all days of the week.

• New West End Company (NWEC) research suggests prime rents on Oxford Street (-36%) remain stubbornly lower in comparison to pre-pandemic peaks, which is below prime rents for Bond Street (-10%) and Regent Street (-24%).

Given the focus of the proposed MDC on Oxford Street with the boundary set back two streets north and south of the street, there are questions as to how proposals to pedestrianise the area will displace traffic to other streets. Furthermore, it is not yet clear how the MDC would shape the overall public realm across London’s West End, particularly Oxford Circus, Regent Street, Bond Street, and Tottenham Court Road.

The MDC comes at a particularly interesting time as both Westminster City Council is preparing to review its local plan and the GLA also reviewing the London Plan. As the MDC would have responsibility for plan making it appears there could be a planning policy vacuum should the MDC be established in January 2026.

The current consultation period runs from 28^th February 2025 to 2^nd May 2025 which the Mayor is seeking views on the rationale for designating an MDA and establishing an MDC, as well as the principle of pedestrianisation and possible impacts. It is anticipated that in June 2025 the Mayor will publish their response to consultation. In Autumn 2025, subject to consultation result, it is expected that detailed pedestrianisation proposals would be developed and consulted upon. Following the results of the consultation, it is the Mayor’s ambition that the MDC would be formally established In January 2026 

The JLL Planning team will be monitoring the progress of the public consultation and emerging plans for Oxford Street with interest.

You can find out more about the public consultation here.

To discuss any of the matters discussed above or any other planning matter, please contact the team.