In an effort to boost the housing supply throughout the country, the UK government introduced a temporary policy in 2013. It allowed the conversion of certain types of office buildings to residential use without the need for full planning permission. Known as Permitted Development Rights (PDR), it was originally introduced for a period of three years but was made permanent in 2016.

PDR was opposed by many London boroughs and Local Authorities. There has been a series of discussions and debates regarding the benefits achieved by the PDR rule. In recent years, there has been a growing demand to end PDR, but the government is not only unrelenting but doing the opposite. The PDR rule has been extended to allow entire blocks of office to be demolished and rebuilt as residential homes–and that too without planning permission.

While data shows that PDR is boosting housing figures, there are some serious concerns about the quality and affordability of the units. Many such constructions reportedly have extremely poor-quality housing, with just a small percentage of homes meeting national space standards. The Local Government Association (LGA) has argued that PDR is worsening the situation by allowing developers to escape the responsibility of providing affordable housing obligations.

Shelter, the homelessness charity Shelter has claimed that 10,340 affordable homes have been lost due to PDR.

Shelter, the homelessness charity Shelter has claimed that 10,340 affordable homes have been lost due to PDR.

The Government had introduced PDR with the intention to revitalise and energise town centres and find an economical way of reducing the shortage of homes. However, the experts point out that quality must not be compromised in such conversions. In terms of quantity, PDR can be termed a success. 64,798 dwellings were converted from office to residential alone from 2015 to 2020. Croydon is leading the table with 3217 conversions of its offices to residential homes in five years. Birmingham stands second with 1760 conversions for the same period.

The top 20 have happened either outside of London or in outer London Boroughs, with one exception of Lambeth. Experts do not find this out of place, as the whole Central Activities Zone of London has had its PDR removed. The even balance between commercial and residential values in these locations is a more logical explanation for this development.

PDR will be an attractive proposition in places where residential values exceed those of commercial property. A large percentage of the older office stock in decent residential locations has already undergone conversions or redeveloped. This explains the slowdown in PDR applications in London from 259 in July-September 2014 to a mere 48 applications in April-June 2021.

The government is also addressing the issue of small homes by stating that all new homes delivered through PDR must meet the Nationally Described Space Standard and local design codes. Through another amendment to the General Permitted Development Orders (GPDO), the government has stated that no permission will be granted for dwelling less than 37 square meters if it doesn’t comply with the Nationally Described Space Standard. The onus is on the government to ensure checks and balances are in place so that a positive culture of pride and performance returns to the high street.