Converting offices 'could create 260,000 new homes'

The government's plans to allow new home developers to convert unused offices into new homes could help create over 260,000 new homes, according to Communities Secretary Eric Pickles.

A consultation on the proposed planning amendment, which was announced in last month's Budget, has now been launched by Pickles, as part of the government's attempts to increase the supply of new homes in this country. The consultation will run until 30 June 2011.

According to new homes figures published by Pickles, as many as 39,112 new homes in London could be offered, thanks to the change of use from commercial to residential.

Elsewhere, the government estimates that 33,112 new homes in the South East would be provided, 14,683 new homes in the South West, 45,532 new homes in the North West, 29,792 new homes in the West Midlands and 11,191 new homes in the North East. 

Pickles commented: "Many towns and cities have office blocks, warehouses and business parks needlessly lying empty, while housebuilding has fallen to the lowest in peace time history because the planning system has tied developers up in knots of red tape.

"By unshackling developers from a legacy of bureaucratic planning we can help them turn thousands of vacant commercial properties into enough new homes to jump start housing supply and help get the economy back on track.

"Councils already have powers to give greater local planning discretion and they should use them more to promote growth."

The British Property Federation (BPF) has backed the plans, but warned they will not work in every location.

The BPF says that it supports the relaxation of the change-of-use laws in unlocking desperately needed new housing, but agrees with government that they should be consulted upon, to avoid any unintended consequences.

Ian Fletcher, director of policy at the British Property Federation, said: "The desperate need for housing means no stone should be left unturned in considering new sources of housing supply.

"Office to residential conversions won't work for all buildings, or in every area, but any trip through our suburbs soon exposes redundant office space that is never going to be brought back into commercial use.

"Such conversions will be good for those seeking homes, the wider community and local authorities, who will gain from the New Homes Bonus and council tax receipts that occupation generates.

"The Government is, therefore, right to consult on how best to make this happen."