Plans to address the housing crisis by relaxing planning rules and converting takeaways and betting shops into homes have been announced by the government today.
Secretary of State for Levelling Up, Housing and Communities Michael Gove also wants to cut red tape to enable the repurposing of agricultural buildings and disused warehouse.
And he also said the government would make it easier for people to extend their homes and create loft conversions.
“Most people agree that we need to build more homes – the question is how we go about it,” Gove said.
“Rather than concreting over the countryside, we have set out a plan today to build the right homes in the right places where there is community support – and we’re putting the resources behind it to help make this vision a reality.”
The plans were, in principle, applauded by the mortgage industry and housing experts.
Stephen Perkins, managing director at Yellow Brick Mortgages, said: “Relaxed planning rules around re-using existing buildings and footprints are welcomed and seem common sense to me.
“The UK is not building enough homes and has not for a sustained period, which has led to inflated house prices.”
Concerns raised over quality of shop conversions
But there was unease about what may appear in the detail of these proposals, with many raising concerns about the viability of using former shops for housing.
For example, questions were raised about whether potential buyers may face difficulties when taking out mortgages on these properties.
Laura Bairstow. founder at The Mortgage Masters, said: “Whilst in theory this may sound like a good idea, many lenders don’t like to lend on properties that are above or close to business premises.
“Lenders consider borrowers on this type of property higher risk, resulting in fewer options when it comes to deals and products available. Potential buyers may therefore struggle to get a mortgage or end up paying higher interest rates for the privilege.”
Paula Higgins, CEO of property advice website HomeOwners Alliance said, attention would need to be paid to the quality of any conversions. Currently these kinds of home lacked outside space and were often located in noisy, polluted streets, she warned.
“While making it easier to convert empty retail premises into flats and houses is welcome in principle,” she said, “these conversions are often of lower quality with poor ventilation. They certainly haven’t always been beautiful!
“Government must learn from its mistakes by creating a wild west of office to resi conversions. Developers must be required to meet all building and space standards; these developments must be properly inspected by a third party and buyers should receive a full structural warranty.”
She added: “If the government wants to truly build homes in the places people want to live, they need a strategy for building in suburban and rural areas as well as cities.”
