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In today’s Budget, the Government has announced a couple of changes which will affect the property industry as it tries to achieve strong, sustainable and balanced growth.
Those working within the property industry have been well aware that the planning system does not always stimulate development and growth. In order to address this, a new presumption in favour of sustainable development will be introduced, supplemented by promises to streamline planning - removing bureaucracy and speeding up the system. This will include a 12 month guarantee for the processing of all planning applications including appeals.
In addition, the Government will seek to localise choice about the use of previously developed land, removing nationally imposed targets while retaining existing controls on greenbelt land.
As predicted, the Government is also to consult on proposals to make it easier to convert commercial premises to residential. However, prop-search believes that it these changes to permitted development are allowed then housing shortages could be severely reduced at the expense of the commercial property market.
Samantha Jones a Surveyor at prop-search said: "If this proposal was to be made law then ultimately we could see empty or redundant offices or light industrial units bought swiftly back into use – albeit for residential purposes. However, this could be damaging to the commercial marketing going forward."
"With few new commercial buildings currently being developed, there is already likely to be a shortage of stock as market conditions improve. Any loss in this could see the commercial sector further struggling to keep up with demand. There is also the worry that some landlords could see this as an easy escape route to avoid paying empty business rates and that offices or light industrial buildings could be converted to residential use just to maximise values."
"Whilst it is unlikely that this will impact on traditional commercial locations - like industrial estate or business parks - there is concern that it could have consequences for previously established commercial locations close to existing residential developments."
Prop-search is urging the Government to consider any permitted changes carefully. It suggests that certain criteria should be met before allowing such changes - such as building owners having to prove that any commercial space is unlettable for at least 12 months.