Balancing the Need for Housing Supply with Need for Office Space

London is the stage for one of the problems that arises when encountered with a dearth of accommodations for housing and offices.

1 minute read

December 9, 2015, 7:00 AM PST

By James Brasuell @CasualBrasuell


Barbican Flats, London, UK

Clive Darra / Flickr

Elli Thomas explains the embarrassment of riches pressuring London: growing demand for housing is creating competition for the commercial and offices spaces that drive the city's economy.

While adding additional supply is critical to the affordability of the city, Thomas acknowledges, existing office space is critical for long-term economic growth. Calling on research by the Centre for Cities, Thomas picks a side in this contest, arguing that "as a result of specific national policies, the ability of cities to maintain an appropriate balance between residential and commercial space is under threat."

The policies in question relate to country's Permitted Development Rights (PDRs), which allows changes of use without full planning permission. "In May 2013," explains Thomas, "[PDRs were] extended to include the conversion of underused office space to residential..." Despite reassurances that the policy change wouldn't lead to a spike in planning applications, London's PDR applications shot up in 2014, and local authorities are having trouble resisting the loss of commercial space to new housing.

The problem, according to Thomas, is that the PDR policy will be beneficial to many parts of Britain, but now a fast-growing, high-demand city like London.

Thursday, December 3, 2015 in Centre for Cities

Aerial view of homes on green hillsides in Daly City, California.

Depopulation Patterns Get Weird

A recent ranking of “declining” cities heavily features some of the most expensive cities in the country — including New York City and a half-dozen in the San Francisco Bay Area.

April 10, 2024 - California Planning & Development Report

Aerial view of Oakland, California with bay in background

California Exodus: Population Drops Below 39 Million

Never mind the 40 million that demographers predicted the Golden State would reach by 2018. The state's population dipped below 39 million to 38.965 million last July, according to Census data released in March, the lowest since 2015.

April 11, 2024 - Los Angeles Times

A view straight down LaSalle Street, lined by high-rise buildings with an El line running horizontally over the street.

Chicago to Turn High-Rise Offices into Housing

Four commercial buildings in the Chicago Loop have been approved for redevelopment into housing in a bid to revitalize the city’s downtown post-pandemic.

April 10, 2024 - Chicago Construction News

Young woman and man seated on subway car looking at phones.

Google Maps Introduces New Transit, EV Features

It will now be easier to find electric car charging stations and transit options.

6 hours ago - BGR

Ohio state capitol dome against dramatic lightly cloudy sky.

Ohio Lawmakers Propose Incentivizing Housing Production

A proposed bill would take a carrot approach to stimulating housing production through a grant program that would reward cities that implement pro-housing policies.

7 hours ago - Daytona Daily News

Aerial view of Interstate 290 or Eisenhower Expressway in Chicago, Illinois.

Chicago Awarded $2M Reconnecting Communities Grant

Community advocates say the city’s plan may not do enough to reverse the negative impacts of a major expressway.

April 19 - Streetsblog Chicago

News from HUD User

HUD's Office of Policy Development and Research

Call for Speakers

Mpact Transit + Community

New Updates on PD&R Edge

HUD's Office of Policy Development and Research

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.