The relaxing of planning restrictions for office to residential conversions is set to be a limited panacea for the housing sector.
The greatest value uplifts from conversion of offices into new homes without planning permission will largely be in the South, in areas where values in residential are higher than offices, according to Savills’ “Where is office-to-residential conversion viable?” research.
In London’s Mayfair, prime offices could see a £1,000 per sq ft uplift to £3,000 per sq ft on conversion.
However, conversions in many high-value areas are likely to be thwarted by London mayor Boris Johnson and local authorities seeking exemptions to protect commercial zones.
In Manchester and Leeds, conversion also appears pointless, with Savills finding a loss of £35 per sq ft and £25 per sq ft respectively through the change of use.
The ability to convert offices to residential without seeking planning consent is the latest move by government to try to boost the supply of new homes. It is due to come into force on 30 May.
annabel.dixon@estatesgazette.com
