Times have certainly changed with the expectation of more flexible working, and because of this, many companies, including the likes of Airbnb, Microsoft, and HSBC, have introduced long-term hybrid and remote working options, which has led to the downsizing or closure of some offices completely.
Considering the ongoing housing crisis, this should be treated as the great opportunity it is, according to HJ Collection’s CEO Reece Mennie, who believes rejuvenating property in prime locations will serve homeowners and renters well.
We speak to him about why conversions are the answer.
Can residential conversions help to tackle the UK’s housing shortage?
Certainly. I read that the National Housing Federation predicts that 340,000 houses need to be supplied each year to keep up, and that is just for England alone. To supply the growing appetite for homes, it makes sense to convert property that is already available to free up residential space at a rapid rate.
The case for conversions is so strong that the government introduced changes to Permitted Development Rights (PDR) in August 2020, which means planning permissions are easier to secure.
Replacing offices with residential dwellings has a lot of benefits. Considering that these buildings are often built up to save space in prime areas while offering multiple living spaces. Not only this, but offices also tend to be based in easy-to-reach, bustling locations that are in high demand, housing people that are eager to find homes in popular areas.
Helping to solve the housing crisis is one thing but this must be done with sustainability in mind, are there environmental benefits to conversions?
Like many industries across the UK, the property sector is sharpening its efforts to ensure net zero targets are met. Converting unused property is certainly going to help us on our mission to achieve this goal.
I saw a study from the National Trust for Historic Preservation not so long ago which said that even new properties that are 30% more energy efficient than existing buildings can take anything between 10 – 80 years to cancel out the negative environmental effects created during their construction process. This is a solid reason for opting for conversions. Reusing older buildings not only saves them from being demolished, which is bad for the environment but also allows them to be repurposed into more energy-efficient properties with less damage to our surroundings.
Are there any other benefits to converting property, considering wider society and the economy?
Of course, there’s no doubt that behaviours have changed following the pandemic and a major part of that is the impact on working culture and the retail industry. This has seen our town and city centres become quieter, with bars, restaurants, and shops suffering. Office conversions will ensure that liveable space isn’t going empty during a housing crisis. Another positive to this is that it will bring more occupants into our centres where they are likely to spend time enjoying the amenities, putting money back in business owners' pockets during a testing time.
It seems that there are many positives to commercial conversions, but aren’t stringent planning restrictions going to deter developers?
The process is easier than ever given the relaxed regulations following the introduction of PDR. There is no denying that a lot of work is required to make a former office building fit for purpose as a residential space. Sizing, lighting, and ventilation are key considerations. As is the quality, ensuring a habitable environment for future occupants for years to come. All the efforts put into creating a great living space will be reaped as buyers will find inviting properties a worthy investment.
Given its many plus points, is converting office space to residential property a popular choice?
More houses are being supplied by conversion or change-of-use than ever before. A recent House of Commons report says that 28,000 in 2021 were supplied in this way. This is more than double what it was in the ‘90s.
Even before the pandemic, with more companies adopting flexible working hours and remote policies, property owners were opting to convert unused commercial space into residential homes. The thinking is that it could help provide people with homes in desirable areas and make use of high-quality property that is lying empty.
Following on from COVID-19, as businesses continue to downsize in line with hybrid working preferences, or in some cases, fully remote working, conversions are only becoming more popular, and for good reason. The impact of this movement has no end of benefits in terms of the environment and economy.
