Converting commercial property to residential use has now become a whole lot easier with the change to planning regulations that have now come into force. Edwin Allen, Associate Director at Chancellors Estate Agents, considers the implications…
Commercial property landlords can now convert offices to residential use without the need to seek planning permission. With so much unused office space and a severe housing shortage throughout the country, this change has been welcomed by many.
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Landlords will benefit – the value of residential property per square foot is higher than office space. In many areas of the country there is an over-supply of older office stock that is unsuitable for modern business needs and is likely to remain vacant. If all the suitable office space was converted, it would create 25% of new homes that the government is keen to see built in 2013. This move would boost the economy, ease the housing crisis and reduce the burden of having too much vacant commercial property on the market.
Commentators have expressed concern that in some areas the changes will conflict with existing planning policy. This is why implementation of the changes will run for three years so the implications can be assessed and the extent to which they are used can be gauged.
Overall, it’s good news for landlords. Although most London boroughs have been granted exemption from the new rules along with other major city centres, the impact elsewhere may be more noticeable and the opportunities for landlords may become realised.
To find out more about converting commercial property to residential, contact Edwin Allen at Chancellors Estate Agents on 01344 408055 or email the Chancellors Commercial Property team – commercial@chancellors.co.uk.
Correct at time of publication. The views and opinions expressed herein are those of the individual contributor and do not necessarily reflect those of the Chancellors Group of Estate Agents Ltd or its subsidiaries. References to legislation, best practice and other matters with legal implications such as fees, rules and processes are included for information and editorial purposes only and are not authoritative, nor should they be interpreted as advice. When in doubt you should only take advice from an industry professional or solicitor where appropriate. E&OE.
