The New Labour Government may lead to a rise to office-to-residential conversions.
A recent study by Lambert Smith Hampton found that there are roughly 12.9 million square feet of unused office space in the East and South-East of England. The Labour Government has pledged to create 1.5 million homes during the current parliamentary cycle. This could mean we see an influx in offices being converted for residential purposes.
The Law and recent changes
Office-to-residential conversions saw a rise due to the 2013 Permitted Development rights. They are regulated by the Town and Country Planning (General Permitted Development) (England) Order 2015 (GPDO), and there are various regulations, conditions and restrictions that need be met.
In March 2024 two of these key restrictions were removed making it easier for developers. There are still certain provisions they must meet. The main ones are:
- any developer will need to make an application for prior approval;
- the property must have been used under Class E of the GPDO for at least two years before the application; and
- the property must not be a Listed Building, within a national park or an area of outstanding natural beauty.
One hurdle that comes with Permitted Development is Article 4 directions. These allow the local council to remove Permitted Development rights if they deem it necessary to protect local amenities or the wellbeing of the area.
Application for Prior Approval
This is a key component for any developers looking to carry out such work. This approval needs to be obtained from the Local planning authority. They will consider what impact these conversions will have in the area including on transport, any potential contamination risks and what would be the noise pollution from surrounding commercial units on any potential occupiers.
The benefit of obtaining prior approval is that its less difficult than obtaining planning permission. Also, the local authority cannot consider any matters not referenced in the GPDO and should make a decisions within approximately 8 weeks.
What the future under the new Labour Government may bring.
As part of their election manifesto Labour pledged to create 1.5 million new homes while in power. This is a tall task considering the previous Conservative Government created 1 million new homes between 2018-2023. Considering the boom in hybrid working post covid, the now excess of vacant office space may be Labour’s best option.
Labour’s intention has been supported by the National Planning Policy Framework (NPPF) published 31st July 2024. It has called for wider use of the article or scrapping the legislation in its entirety.
How can Attwells Solicitors help
The Government’s words and actions could see a high demand for office-to-residential conversion.
Here at Attwells our property teams would be happy to assist. Whether you’re a developer looking to sell residential units, or you own vacant office space that you want to sell to a developer, our experienced residential and commercial property team would be happy to assist.
Please visit our website or call our office on 01473 229200 to speak to a member of the Team.
Our blogs and articles are correct at the time of writing.
These have been created for marketing purposes only and should not be considered as legal advice.
