Home // Insights & Events // WORK FROM HOME – are upcoming changes to permitted development rights likely to speed up the delivery of homes and revive the office to residential conversion market?
Originally brought in to speed up housing delivery over the years, office to residential permitted development rights (“PD rights”) have received a bad rap due to some developments being considered “substandard”.
The Government therefore sought to curb PD rights in 2021 so that any property where a permitted development application was made on or after 6 April 2021 must have:
There was also an eight-week prior approval process requiring developers to apply to the local planning authority for determination on certain matters, including whether there was a requirement to provide for adequate natural light in all habitable rooms. These safeguards, together with the eight-week prior approval process, seemed to negate the benefit of the PD rights.
With new housing delivery at an all-time low the Government has decided to review the PD rights and scrap the three-month vacancy requirement along with the floor space cap. Whilst the prior approval process will remain the move is clearly aimed at boosting housing delivery.
Notwithstanding that the PD rights apply to any property within Use Class E (think shops, restaurants, gyms etc.) with office demand still subdued following the pandemic and only A+ stock letting quickly, the new PD right should prove an attractive proposition for investors/developers wondering what to do with redundant office stock in need of significant investment to meet anticipated MEES thresholds.
Other potential benefits from the new PD rights are:
Whilst any new housing will be welcome, we don’t expect the new PD rights will be a silver bullet to the UK’s housing woes as:
Notwithstanding these reservations, we have already seen an increase in developers and landlords enquiring about permitted development opportunities, so there’s scope for a much needed shot in the arm for the commercial investment market.
If you are looking at a potential office to residential conversion project why not get in touch with the team @Greenwoods Legal LLP to discuss your options over coffee.
This update is for general purposes and guidance only and does not constitute legal or professional advice. You should seek legal advice before relying on its content. Greenwoods Legal LLP is a Limited Liability Partnership, registered in England, registered number OC306912. Our registered office is Queens House, 55-56 Lincoln’s Inn Fields, London, WC2A 3LJ. A list of the members’ names is available for inspection at our offices in Peterborough, Cambridge and London. Authorised and regulated by the Solicitors Regulation Authority, SRA number 401162. Details of the Solicitors’ Codes of Conduct can be found at www.sra.org.uk. All instructions accepted by Greenwoods Legal LLP are subject to our current Terms of Business. VAT Reg No: 161 9287 89.
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