Croydon council is attempting to use its planning powers to stop developers converting office spaces into residential buildings in its town centre.
In May last year the government introduced new permitted development rights allowing offices to be converted into residential spaces without planning permission.
Councils can make an Article 4 direction to exempt areas from this right, which Croydon intends to do.
However, the government has the power to intervene and cancel this direction if it fells it has been incorrectly applied.
Simon Ricketts from the law firm S J Berwin said: “The application by local authorities of Article 4 directions is relatively widespread but also scrutinised carefully by the government who want to make sure local authorities aren’t standing in the way of housing delivery and economic growth.”