Government indecision regarding the rules for converting office buildings into residential units is having a negative impact on the housing sector…
New rules that permit developers to convert empty office blocks into residential properties have been in place since 2013. The changes meant developers were able to undertake work without having to apply to local planning authorities for full permission.
The measure, which was introduced by the Coalition government during the last parliament, stipulated that all conversions must be completed and occupied by May 2016.
Architecture firm Ashby Design provides services to major housebuilders. Director Simon Hansard said the government’s failure to follow up on what would happen post-May was leading to new commercial-to-residential developments grinding to a halt.
“In South East England permitted development rights have provided a sizeable chunk of work for the housing supply chain over the past couple of years,” he said.
“However, with the legislation requiring premises to be occupied by May next year and there no announcement from the government what will happen after May, all of this work has now dried up.”
The construction industry has lobbied the government in an attempt to gain answers. However, none have been forthcoming. This means no new work on these conversions is taking place as developers fear they would be unable to have the properties occupied by the deadline.
Hansard said: “Considering the need for all levels of housing in this country, be it private, affordable or social, and the fact we have a lot of offices standing empty, it’s surprising that the government hasn’t addressed this one way or another.”
A report from the Royal Institute of British Architects (RIBA) in July revealed the government is considering an extension or even making permitted development rights a permanent measure.
However, not everyone is a fan of the plan. The London Forum of Amenity and Civic Services lobbied the government to delay the introduction. It was hoped this would give local authorities more time to prepare paperwork that would give them the option to opt out.