A New Opportunity for Landlords and Investors

In 2021, landlords and property investors could gain easier access to retail-to-residential conversions. The Government has launched a consultation, Supporting Housing Delivery and Public Service Infrastructure, to explore allowing Class E properties to switch to residential use under permitted development rights. This could breathe new life into high streets and town centres as traditional retail struggles.

Expanding Permitted Development to Class E Properties

Class E is a broad use class that includes not just retail but also hospitality, financial and professional services, indoor sports, medical services, nurseries, offices, research and development, and light industrial units. If extended to residential use, landlords and investors could repurpose a wide range of commercial buildings into homes.

Potential Impact on Urban and Rural Areas

The proposed changes aren’t limited to urban areas. While the policy would exclude national parks, the Norfolk Broads, Areas of Outstanding Natural Beauty, and World Heritage sites, conservation areas could be included. This means out-of-town locations could also see a surge in conversions, potentially failing to revitalize town centres.

Striking the Right Balance in Town Centres

With bricks-and-mortar retail in decline, there is a risk of over-conversion to residential, which could alter the character of town centres. A balance must be struck to ensure town centres remain vibrant and diverse rather than being completely dominated by housing.

The Role of Local Authorities in Managing Change

To prevent uncontrolled residential conversion, local authorities must be given the flexibility to ensure town centres retain a mix of retail, leisure, and essential services. Blanket approval for residential conversions could harm communities by removing commercial spaces that could serve other purposes.

Moving Forward with Caution

While streamlining planning policy can be beneficial, we must also be aware of potential unintended consequences. Instead of an unrestricted push towards retail-to-resi conversions, a more strategic approach should be taken to maintain the character and functionality of town centres while addressing housing shortages.