The Risks of Turning Commercial Property into Residential Accommodation

Posted on 21 August, 2011 by MOVEHUT

Government plans to give developers the right to convert commercial property into residential property without the need to apply for planning permission ‘will impact severely on local communities’, say representatives acting for London’s local authorities.

Earlier this year, communities secretary Eric Pickles outlined the proposals, intended to address the lack of new homes and offer a general kick-start to the UK economy.

Local Councils say the lack of new builds is not down to the planning system. It has been pointed out that planning permission has already been granted for 170,000 homes and Parliament is being urged to investigate why these haven’t been built.

The relative cheapness of commercial property compared to residential was highlighted, as was what this would mean. This ‘would create an incentive to turn businesses into homes – but it would also remove the responsibility of developers to ensure the needs of local residents are met.’

Currently councils considering planning applications can invoke Section 106 of the Town and Country Planning Act. Under this legislation, developers can offer to build infrastructure in return for being awarded planning permission on certain projects. For example, in return for a council allowing a developer to build new homes, the developer offers to build a school to cope with the expected influx of families.

If Section 106 is no longer applicable, the conclusion drawn is it ‘would mean that communities miss out on this supporting infrastructure which includes roads, schools and health facilities’.

Attention is also brought to the risk posed to local economies by the reforms. Commercial property brings with it employment opportunities and changing it to residential property ‘would significantly reduce the number of jobs available in local areas, especially in important but low value industries’, advises the group.

London Councils acts on behalf of all 32 London boroughs, the City of London, the Metropolitan Police Authority and the London Fire and Emergency Planning Authority.

 



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