London's Housing Market Now Swallowing-Up Commercial Uses

A proposed extension of a 2013 law allowing commercial conversion to residential uses is threatening to "accelerate the hollowing out" of London.

2 minute read

October 28, 2015, 6:00 AM PDT

By jwilliams @jwillia22


Barbican Flats, London, UK

Clive Darra / Flickr

The government of the United Kingdom has proposed extension of a law that has allowed the conversion of commercial and industrial properties into residential uses. While this may be seen as beneficial to alleviating ongoing demand for much needed housing in the city, the conversions are threatening to force out needed office space and small businesses while providing no affordable housing, all with little oversight of local governments and planners. Olly Wainwright reports in The Guardian on the potential outcomes of the law.

"The government says it is targeting vacant or underused office space,” says Michael Bach, chair of the planning committee of the London Forum of Amenity and Civic Societies. “But the planning system isn’t capable of targeting whether buildings are in use or not. Instead, this opens the door to obliterating occupied, fully functioning office space. For developers, if you don’t have to provide affordable housing or meet housing standards, it’s a no-brainer. Spaces for small businesses and voluntary groups will be wiped out. As a long-term measure, it is disastrous for London."

Proponents of the law, including the British Property Foundation, say it will revive formerly dormant commercial properties into a needed use. However, Wainwright points to existing examples of the conversion of active commercial spaces in Croydon and the London Borough of Barnet, "which saw the eviction of 100 local businesses" after the conversion of an office block into 112 flats.

The law has had an added effect of creating land speculation, which Wainwright reports has resulted in "site wanted" posters popping up around the city. As the value of land goes up, commercial uses are being priced out, taking their jobs with them.

Tuesday, October 27, 2015 in The Guardian

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