Landlords of office buildings will be able to convert their properties to residential use without applying for planning permission under new legislation expected to be announced this week, the Telegraph reports.
Communities Secretary Eric Pickles
The relaxation of planning regulations, first discussed two years ago, is designed to increase the supply of housing which has fallen to its lowest peacetime level since 1924. However, the change of rules will not apply to other categories of commercial property such as shops and warehouses.
When the change to Classes Orders was proposed in 2011 the government said if all long-term unoccupied office space was converted it could provide an estimated 250,000 new homes.
Communities Secretary Eric Pickles said; “By unshackling developers from a legacy of bureaucratic planning we can help them turn thousands of vacant commercial properties into enough new homes to jump start housing supply and help get the economy back on track.”
Earlier this month the government returned to the subject, saying that office vacancy rates in some regions were as high as 21 per cent and restrictions on their future use should be lifted.
Charles Fairhurst, of Fairbridge Residential Investment Management, told the Financial Times that there are many office blocks which would be ideal for conversion.
He said; “If you walk around Fitzrovia you quickly realise there are an awful lot of less attractive office buildings which would do better as residential.”
The proposed relaxation of planning regulations has not gone down well in the City of London however. Many in the City fear that it could lead to landmark commercial buildings being converted into luxury apartments. As a result it is understood the City has succeeded in gaining exemption to the rules.
Mark Field, the MP for the City of London and Westminster, said he is ‘delighted’ with the outcome.
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