Government stifling supply of new homes conversions in commercial buildings

Adam Stackhouse, director of development and commercial investment at Winkworth, with more than 100 offices nationwide, including over 60 across the capital, told the latest episode of The Property Exchange, Winkworth’s podcast: “There’s such a lack of understanding between local planning policy and national policy.  It’s time for the government to step in and take firm control and start to hit some of the targets they have bandied around. Every time we think we’re making some progress, we get statements from central government, various boroughs elect to opt out and seek injunctions so they don’t have to toe the line. The government needs to say we need to fulfil this demand for private homes and we’re going to deliver it. And the only way to do that is to work collaboratively with local government. The solution is out there in front of us with buildings that need to be repurposed. We are looking at large scale sites within urban locations that would be perfect for conversion to residential.” 

Companies are increasingly involving their staff in decisions about new office accommodation. Adam told the podcast: “We are doing deals where businesses are asking the staff in to decide on the choice of office. We’ve never had to negotiate with staff before. A transport hub is essential. People walk in and want to know whether it’s an environmentally responsible building, the outlook, the levels of natural light, has the air condition system got anti-covid filters? It’s not just about a pool table or free coffee. So, the outlook is quite poor for buildings that are poorly insulated and are antiquated. There lies the opportunity. We remain hopeful that local and national government strategy will start to align and we can look forward to satisfying the shortage of new build properties and convert some of these buildings into really beautifully located, highly suitable homes for workers in London.” 

Charles Jordan, Winkworth’s head of new homes, highlighted some of the major success stories in commercial to residential conversions. He told the podcast: “The high demand for housing in London combined with the limited available land has led to an increasing trend of repurposing existing buildings for residential use. High profile examples include Battersea Power Station, BBC Television Centre and the Whiteley’s department store in Queensway, converted into The Whiteley, high-end residences and a Six Senses hotel. This is part of a £3bn regeneration of Queensway all the way to Hyde Park, where a new entrance to the Royal park is being developed.” 

Outside the central London area, light industrial sites are also providing land for new homes, where the future of a site is no longer sustainable. Adam Stackhouse commented: “In North London, there was one of the largest centres for servicing London taxis. With problems caused by the pandemic, taxis weren’t on the road and there has been a surge in electric vehicles. The owners now have planning consent for 30 beautiful houses and apartment at relatively affordable levels.”