It seemed like good politics. But in removing the need for planning permission from office-to-resi conversions, the government may have created a monster.
When ministers said they would relax planning rules to fast-track conversion applications, it seemed a move that was perhaps more symbolic than one that would accelerate lasting change. An Estates Gazette investigation this week reveals that nothing could be further from the truth.
An impact assessment by CLG last May made a “best estimate” that 140 conversion applications would be made each year. However, after surveying all 326 of England’s local authorities – and receiving 262 responses – it’s clear that this is a gross underestimate.
More than 2,250 notifications to change offices to homes were submitted to councils in the first six months of the new permitted development rights. Indeed, a single London borough – Richmond – will exceed the government’s national estimate.
The policy is a success by many measures. The thousands of applications should increase much-needed housing stock quickly. They will reduce the oversupply of empty commercial stock that has little chance of occupancy. And they will breathe life into places which, for whatever reason, have become lifeless.
However, the conversions will not generate s106 or CIL payments. It’s unclear how much pressure these new homes will put on local services such as health or education. And it remains to be seen what the loss of office stock will mean for places such as Richmond which, arguably, should have a strong commercial future in a recovering economy.
Nick Boles may rightly be trumpeting a policy that has been a political success, but the policy challenges have only just begun.
¦ The housing minister has written to the prime minister to warn that a commitment to make Britain “the best-housed nation in Europe” will not be met without a change of policy. He acknowledges that the private sector should be making a greater contribution, but that without greater state intervention, homelessness, disrepair, overcrowding and “unacceptable” housing conditions will proliferate.
The letter, from Ian Gow, was written in 1984 to Margaret Thatcher and released to little attention among the raft of 30-year-old government documents disclosed last week. Before writing his letter, Gow had spent 17 months discussing housing matters with local authorities. Notwithstanding the very different environment today, if current housing minister Kris Hopkins were to say that after three months in office he had reached similar conclusions, would anyone be surprised?
¦ The decidedly mixed retailer performance over Christmas shows how we have become a nation of convenience food shoppers: supermarkets that have focused on smaller, urban stores– not least Sainsbury’s and Waitrose – prospered; those that have been slower – Morrisons – suffered. Asda’s property director tells EG this week that the Walmart subsidiary will be prioritising the format in the South East as part of its expansion plans, with click and collect at their heart. Meanwhile Morrison’s chief executive Dalton Philips was set to make the group’s first online delivery on Friday morning, while keeping a keen eye on the roll-out of M-Locals. And what of M&S, which reported a third Christmas of declining clothing sales but market-leading growth in food? Company Watch drew a harsh parallel, likening what was once the nation’s favourite retailer to a “big deli selling occasional knickers”.
¦ Estates Gazette is delighted to be supporting July’s Jones Lang LaSalle Property Triathlon and Property Swim. Registration for the race, which takes place at Dorney near Eton, Buckinghamshire, opens next month. A crack EG team is being put together by deputy editor (and Team GB triathlete) Sam McClary. Her main concern so far is that I have agreed to take part. Good luck to all my fellow triathletes – and those are words I never thought I’d write – in competition and in raising money for Samaritans, the event’s charity partner.
Damian.Wild@estatesgazette.com
