How residential developers can save the high street and solve the housing crisis

Bruce Burkitt, Founder & Managing Director of Property Experts says that office-to-resi developments could revitalise the high street and provide help solve the UK's housing crisis…

In 2018, the total value of commercial property in the UK sat at over GBP880 billion, when the office market was at its height. Since the pandemic and a shift in working habits, over 200,000 (and counting) commercial units are currently sitting empty, with many falling into a state of disrepair and in desperate need of restoration.

So, is there an opportunity for developers to take advantage of a seriously depressed commercial market to secure substantial units, often in prominent locations, with the aim of repurposing them into multi-unit developments that will deliver much-needed new homes and breathe new life into these vacant spaces.

Firstly, office to resi conversions are nothing new, in fact they have been steadily increasing since the change to Permitted Development Rights (PDRs) in 2013, however, the pandemic has seen a shift in how many people can now live and work like never before. Recent technological advancements mean businesses can still thrive with a completely remote workforce, so the requirement for dedicated office space is no longer as critical as it once was. This shift immediately changes the saleability of commercial buildings and provides an opportunity for a discerning investor to strike while the iron’s hot.