William Eichler 23 August 2019

Councils accused of ‘restricting’ retail to residential conversions

Local authorities are preventing developers from converting retail space into residential property because of scepticism over ‘Permitted Development Rights’, a private wealth law firm says.

Research by Boodle Hatfield found that the number of retail properties approved for conversion to residential property has dropped 17% in the last year, from 453 in 2017/18 to just 376 in 2018/19.

The fall in conversions is being driven, according to the law firm, in part by local authorities restricting developers from using ‘Permitted Development Rights’ (PDR).

PDR, which was introduced in 2013, is the system that allows developers to convert commercial property to residential use without a full planning application.

A report published last year by the think tank Centre for Cities warned that the use of PDRs was threatening commercial property which is integral to attracting firms and jobs to city centres.

In January, Islington Council clamped down on the use of PDRs in the south of the borough to save 900,000 square metres of office space, an area that supports around 62,000 jobs.

However, Dennis Ko, partner in the Real Estate team at Boodle Hatfield, argues that councils have to find the right balance between protecting their commercial property stock and building housing.

‘With the number of retail units standing empty around the country, it’s surprising that a growing number of councils are opposed to seeing new residential units replacing them,’ said Dennis Ko, partner in the Real Estate team at Boodle Hatfield.

‘While it’s important to ensure the right mix of residential and commercial property, especially in town centre areas, disincentivising developers from creating new homes is unlikely to be the best way to do it.’

‘Developers often complain that the full planning process is slow, inconsistent and frustrating. Some will simply walk away rather than deal with that.’

SIGN UP
For your free daily news bulletin
Highways jobs

Domestic - WMF2876e

Westmorland and Furness Council
£24,413 pro-rata
The role of a Domestic is more than just a job, it makes a huge difference to the wellbeing of our residents Ulverston, Cumbria
Recuriter: Westmorland and Furness Council

Principle Planning Officer - WMF2863e

Westmorland and Furness Council
£47,181 - £48,226
Wouldyou like to live and work in one of the most beautiful parts of the country? Barrow in Furness, Cumbria
Recuriter: Westmorland and Furness Council

Streetworks Compliance Officer - WMF2877e

Westmorland and Furness Council
£36,363 - £37,280
The role involves providing specialist technical advice, guidance, and support to colleagues across the highways service Kendal, Cumbria
Recuriter: Westmorland and Furness Council

Childrens Social Worker - WMF2879e

Westmorland and Furness Council
£42,839 - £44,075
Come and start your social work career at an Ofsted rated ‘good’ Children and Families Service. Penrith, Cumbria
Recuriter: Westmorland and Furness Council

Social Worker - Children in Care, Mid Essex

Essex County Council
£36124.0000 - £51834.0000 per annum
Social Worker - Children in Care, Mid EssexPermanent, Full Time£36,124 to £51,834 per annum Location
Recuriter: Essex County Council
Linkedin Banner