CBRE has called on the government to ‘clarify the ambiguities’ in the recently introduced change of use legislation to prevent expensive delays. Meanwhile it is reported that Islington council has launched a landmark legal challenge in an attempt to prevent the conversion of a 1960s office block into 100 flats.
Archway Tower
The legislation, which came into force in May, allows the conversion of office space into homes without the need for planning permission for a period of three years. It is designed to increase the housing supply, encourage regeneration and bring empty commercial properties back into productive use.
However, many local authorities fear that the legislation will prove damaging to their economies due to the loss of business premises. As a result over 300 authorities applied for exemption from the legislation. Of these, only 17 were successful leaving many who had spearheaded the opposition, including Birmingham and Sheffield, compelled to accept the changes.
While these councils were disappointed with the result, it undoubtedly created opportunities to property owners, investors and developers who are now free to take advantage of the greater freedom they have been granted.
But, as CBRE points out, the market demand for office to residential conversions has not yet been tested. Furthermore the question remains as to whether or not the legislation will succeed in its stated aim of addressing the housing crisis.
In addition “substantial concerns” are raised regarding ambiguities in the legislation which are expected to lead to appeals and delays. CBRE warns these ambiguities could be used by local authorities to frustrate property owners, thus contradicting the purpose of the legislation which is to fast-track permitted development.
Consequently CBRE has asked the government for further clarification to “remove the uncertainty that currently exists.”
“Without guidance to clarify the ambiguities, this legislation will not achieve its aim of providing homes quickly and simply.
“Instead uncertainty will lead to expensive delays,” they conclude.
Their case is underlined by the news that Islington has initiated legal proceedings in the hope of halting the conversion of Archway Tower by property developer Essential Living. The building has been empty since the previous tenant moved out last year but councillors are opposed to losing offices in the borough to private housing.
“This is not right for Islington and so we have started the legal process to try to overturn the government’s changes,” said the executive member for housing and development James Murray.
The council has already written to the government explaining its grounds for the challenge and is now poised to file a claim for a judicial review.
Other local authorities are certain to be monitoring the situation closely and, should they follow suit, the legislation could be thrown into total disarray.
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