WIREDGOV

A government plan which was intended to bring empty offices back into use has led to some existing business being served with eviction notices, town hall leaders have warned.

In some areas new planning rules have brought vacant offices back into use but in others the majority of applications have seen offices which were either partly or fully occupied being turned into flats, a survey by the Local Government Association has found.

Office space and affordable housing will be reduced and infrastructure will be put under strain if the temporary changes to permitted development are made permanent, it warns.

So-called permitted development rights, introduced in May 2013, allow offices to be turned into houses without planning permission, changes the Government wants to make permanent.

The policy was designed to bring empty and underused buildings back into use but in some areas businesses have been served eviction notices so landlords can cash in on higher residential rents and sales prices.

A number of authorities have lobbied for and received exemptions from the policy where the measures would have an adverse economic impact on their areas, however under Government proposals these exemptions would be removed.

Councils warned about the impact this could have when the temporary changes were brought in 18 months ago and urged Government not to override local decision-making.

In a survey of planning officers, the LGA has identified the detrimental effect these changes are having on our communities. In a consultation response, it has warned against making the changes permanent from 2016 and removing the exemptions that currently apply.

The LGA's survey found:

• Four in 10 respondents said the measures had reduced office space within the local area and only two in 10 thought it had brought vacant office premises back into use.

• Over half of councils agreed the measures have resulted in housing which does not meet identified need.

• 60 per cent of councils agreed the changes have reduced the provision of affordable housing;

• Of the respondents that did know, nearly half (46 per cent) said that 50-100 per cent of prior approvals involved office space which was either partially or fully occupied.

• 82 per cent of councils said the £80 fee meant that they are operating at a loss.

Cllr Peter Box said, Chair of the LGA's Economy, Environment, Housing and Transport Board, said:

"What was meant to provide a new lease of life for empty offices has, in reality, seen organisations kicked out of their premises so landlords can cash in on the higher rents they can charge for flats and houses. High streets and communities have been changed with no consultation of those living and working in them.

"Councils have told us permitted development rights have meant that not only is there less office space available, there is also less of the vital infrastructure we need too. These changes have created homes which do not meet the identified needs of a community, which has put pressure on schools, roads and health services, as well as making fewer houses which are affordable at a time when rents and house prices are soaring.

"Rather than letting communities shape their local areas through the planning system, the majority of these proposals will impose additional control from Whitehall. It is vital residents can have a say through their democratically-elected councils. These plans fly in the face of localism, add further confusion to the planning system and undermine the premise of a locally plan-led system which government promised to local areas."

Case studies

Barnet Council

More than 100 small businesses and charities were given as little as four to six weeks' notice to leave their premises. Developers plan to turn the 14-storey Premier House in Barnet into 112 flats. A Barnet Council spokesman said councillors had no choice but to approve the conversion because of the new planning rules. He said the council would not have agreed to otherwise allow the eviction of a full office block.

Islington Council

In Islington, 71 office buildings have already obtained prior approval for conversion to residential since the law changed on 30 May 2013, with 11 further applications submitted. The total loss of office space is around 45,000 square metres – which is capable of accommodating between 3,000- 3,500 jobs. Around half of the above floorspace was occupied. In some cases, small businesses and charities have been evicted. Islington Council led a judicial review against the policy and earlier this month struck a deal to protect clusters of businesses and charities in the borough from being lost.

Merton Council

In Mitcham, small businesses said they are facing closure after receiving eviction letters giving them four weeks to move out of their offices before they are converted into flats. More than 40 small businesses and up to 150 employees in the Willow Lane Industrial Estate are searching for new premises after being told they must leave the block by Sunday September 7. Supported by the Mayor of London, Merton Council originally asked for the Willow Lane industrial estate to be exempt from government's rules in order to protect businesses but Government refused. The council objected to the proposal to convert the building into 46 flats but was unable to do anything because of permitted development rules. Having succeeded in getting permission for 46 flats, the landowner has recently submitted another 'prior approval' to change the same office into 101 studio flats. Merton Chamber of Commerce and Willow Business Improvement District have written to Eric Pickles, Secretary of State for the Department of Communities and Local Government, asking him to appeal the decision on the grounds the area is unsuitable for residential use and new flats do not justify loss of businesses and livelihoods.

Other examples

• One local authority in the south east 40,546 sq m of office space has been potentially lost across the borough through this measure, over 40 per cent of this space was occupied.

• In one district council in the southeast before the permitted development rights came in they allowed a 250 flat conversion scheme. Deferred contributions for affordable housing were secured, local space standards were met with sufficient parking as well as small scale contributions for local open space improvement. However, 50 yards away they now have, under permitted development, a scheme which achieves none of that.

• Areas previously exempt from the permitted development rights, which will be subject to the provisions if the government's proposals go ahead include areas within the City of London, Westminster, Manchester, Sevenoaks and Stevenage.

Areas previously exempt from the permitted development rights

Notes to editors

The LGA surveyed Heads of Planning Services in English Councils between July 3 and August 6 2014. The survey was fully completed by 93 councils, a response rate of 29 per cent. Nineteen councils provided incomplete responses and where appropriate, these have been included.

The LGA's survey found:

• Four in 10 respondents said the measures had reduced office space within the local area and only two in 10 thought it had brought vacant office premises back into use.
• 43 per cent of respondents disagreed that the policy had brought vacant office space back into use
• Over half of councils agreed the measures have resulted in housing which does not meet identified need.
• 60 per cent of councils agreed the changes have reduced the provision of affordable housing.
• 63 per cent agreed the measures have reduced the ability to shape their local area.
• Of the respondents that did know, nearly half (46 per cent) said that 50-100 per cent of prior approvals involved part or fully occupied space.
• 82 per cent of councils said the £80 fee meant that they are operating at a loss.

LGA survey of permitted developments

Contact

Greg Burns, Senior Media Relations Officer
Local Government Association 
Telephone: 020 7664 3184
Email: greg.burns@local.gov.uk
Media Office (for out-of-hours contact): 020 7664 3333
Local Government House, Smith Square, London SW1P 3HZ

www.local.gov.uk