MPs from two all-party parliamentary groups (APPGs) are calling on the UK government to convert empty commercial premises into affordable homes, after research found that repurposing empty properties in this way could help to address the housing crisis.
The APPG for Housing Market & Housing Delivery and the APPG for Ending Homelessness carried out a Joint Inquiry into Rethinking Commercial to Residential Conversions, producing a report that suggests there is ‘significant potential’ for increasing the affordable housing supply by turning commercial properties into residences.
However, this only applies if safeguards are put in place to make sure that the converted residences are of sufficient quality and affordability.
The government’s pledges to build more housing and address the affordable housing shortage have yet to be delivered, which is why – against a backdrop of increasing homelessness in the UK – these MP groups are challenging the government to do more, sooner.
Read on for more details from this report and more information about the viability of commercial to residential conversions.
Empty council buildings alone could provide 20,000 homes
Evidence reviewed and presented in the report was sourced from housing organisations, homelessness charities, local authorities, developers, and planning experts.
In particular, the joint inquiry pointed to research from Habitat for Humanity, which stated that councils in England owned 7,000 commercial properties that had been left unused for over a year as of 2021.
This research further suggested that these local authority-owned buildings alone could provide 20,000 more homes through commercial to residential conversion projects.
This figure doesn’t include privately owned commercial properties, either – as the report also revealed that 14% of retail units and 7% of office space are currently sitting vacant.
Though there is evidently a lot of potential here, the groups also echoed public and industry concerns over improving regulations for this type of commercial conversion.
Permitted development rights (PDR) allow many conversions to take place without applying for planning permission, often leaving residents with sub-par and unsafe housing.
The MPs are therefore also calling on the government to do more to ensure that councils utilise their empty buildings and that all commercial-to-residential PDR projects are fit for habitation.
Are commercial to residential conversions safe?
As per the report, the Town and Country Planning Association (TCPA) claims that PDR conversions put the ‘worst face’ on the housing crisis, as many shops and offices have been converted into poor-quality flats that are too small and have limited access to daylight.
To prevent this from continuing to happen, the inquiry recommends legally implementing a series of ‘Healthy Homes Principles’ proposed by the TCPA – which would apply to all homes, not just conversions under PDR.
These standards include providing access to natural light and ensuring fire safety, adequate heating, and proper ventilation to prevent damp and mould. They also include focusing on areas with access to transport, green spaces, shops, schools, and GPs for conversions.
Strengthening housing regulations like this would help to create better quality housing in places where people actually want to live, rather than making the crisis worse – but such amendments to the Levelling Up and Regeneration Bill currently under debate in the House of Lords would also need to be approved by the government.
However, stricter regulations for commercial to residential conversions would surely be welcomed by buyers, lenders, and structural warranty providers alike – ensuring that the property is safe, structurally sound, and a worthwhile investment.