Office change of use to homes - initiative launched

The coalition Government has begun consultation on their proposals to scrap the need to obtain planning permission to convert commercial property into residential use.  The government believes that if all of the long-term office space currently available was converted it could potentially deliver 250,000 new homes.

Richard Pullen, Director of Pullen Associates reports that "the government is now consulting developers and local authorities on their proposals and this will run until 30th June 2011."

The consultation seeks views on the proposal to give general development rights to permit the change of use from Class B1 (business) to C3 (residential) and from B2 (general industrial) to C3 (residential).   It is proposed that this right will not be available for listed buildings or developments where an environmental impact assessment is required.

The proposal is aimed at bringing vacant property back into use, but it is likely there there will be many exceptions to the right if it is implimented, including a size threshold where a local authority is prioritising commercial uses and where they do not want to lose high value commercial areas to residential units.

Richard Pullen says that "all of this proposal is fine in theory but it could become quite complicated and in practice not all commercial properties easily convert into residential and the result will be that the conversion will only take place where is it financially viable to do so.   Whether residential or office use is the higher value can fluctuate depending upon market conditions prevailing at any one time.  The important thing will be to permit and promote the development of new office accommodation at the same time as permitting obsolete office buildings to be converted into residential.  However, some proposed city centre office developments are unviable where there are planning restrictions on the provising of parking and we could end up with some town and city centre locations not being able to provide quality new office accommodation.

The outcome of the consultation will make interesting reading.  Let's hope that the government's proposal does not become so complicated to impliment that it does not create the oppportunity that some towns and cities require.