Conversions of offices, retail shops, and agricultural properties into homes jumped 40% from 982 to 1,355 in England in the second quarter of 2015 compared to the same quarter a year ago, says EMW, the commercial law firm.
EMW explains that developers are using conversions to increase the amount of property on the market to address the current housing shortage, as growth in mortgage lending boosts the already strong demand for homes. August saw an increase of £3.4bn in mortgage lending, up from £8.8bn to £12.2bn, which was the biggest monthly increase since spring 2008, before the full effects of the recession were felt.
EMW adds that a major reason behind the strong rise in conversions has been developers’ use of Permitted Development Rights (PDR), otherwise known as ‘prior approvals’, which allow them to bypass formal planning applications for conversions.
The Government has just announced (13th October) that these rules will become permanent and extended to ease construction of more housing. The planning minister also revealed that new PDR will enable light industrial buildings and launderettes to change to residential use subject to meeting certain criteria and further details will be published in due course.
