Office-to-residential conversion starts in the capital have ramped up in the year to May, according to EGi’s latest London Residential Market Analysis.
This is despite the ambiguity surrounding the May 2016 deadline of the divisive scheme putting future developments in doubt.
Last May, work had started on just 393 homes. By May this year, construction was under way on 5,354 – a 14-fold increase.
When all are complete, London will have gained 5,747 homes through office-to-resi conversions – a
decent contribution to total housing starts over the same period, which stand at around 44,000, according to the ONS.
Croydon has emerged as the most popular place to convert, with 30% of all PDR starts under permitted development rights in the borough. But more than 9,000 possible units across London are still in the planning pipeline, which means that the focus could shift
to west London, with Harrow and Hounslow the most affected.
While PDR is a valuable source of housing, the cost to local authorities is high.
Nigel Evans, EGi’s head of LRR, said: “PDR has led to a total possible loss of £224.7m in commuted payments, or 4,000 affordable housing units from the total of 14,338 PDR units that gained consent after the rules changed in May 2013 in London.”
