Could housing replace the High Street?

By Samantha Jones Prop-Search

The Government has opened a consultation to seek views on a controversial new permitted development right that could see housing replace the traditional High Street, says commercial property agent PropSearch.

The consultation - ‘Supporting housing delivery and public service infrastructure’ - looks to allow a change of use from the newly created Use Class E (commercial, business and services) to residential. The Government envisages that this permitted development right would help support housing delivery and address the surplus of retail floorspace, with the end result that residential development will help diversify and support the high street.

Samantha Jones, an Associate Director at Prop-Search, said: “It is no secret that in general high streets have had a tough time of late and according to Government statistics, there has been a net reduction of 5,350 units in town centres in England from June 2019 to June 2020. In addition to the introduction of Use Class E, the Government hopes that this new permitted development right would help to support town centres and high streets in adapting to them to become hubs where people live, shop, use services and spend leisure time.”

Such a right could also be good news for developers looking to convert existing buildings to residential and has the potential to increase the supply of housing at a time when it is in short supply.

However, Samantha warns that it is a difficult balance to get right. She said: “Nobody wants a high street filled with empty stores, but people do still want some kind of high street. There is a risk that the recent changes to the Use Classes Order and the rapid expansion of permitted development rights will mean that by definition it will be harder to control piecemeal development and high streets may, in the worst case, become too diluted to be viable shopping destinations.”

Over recent months, Prop-Search advises that it has seen an increasing shift to smaller independents seeking space; one to take control of their own destiny, but also to capture demand for the local shopping experience. Not only is this for the traditional butcher, bakers or barbers, but also those looking to respond to changing consumer demands and the evolution of technology.

It has already been a busy year in the world of planning with a raft of new permitted development rights that were introduced including the right to demolish certain buildings and construct new dwellings in their place, and to construct flats on top of commercial/ mixed use or residential terraces. In only September, the Town and Country Planning (Use Classes) Order 1987 was amended and included the introduction of a new Class E (commercial, business and service), combining the former use classes A1 (retail), A2 (financial and professional services), A3 (restaurants and cafes), B1 (business) and some D1 (nonresidential institutions) and D2 (leisure) uses.

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The Government hopes that this new permitted development right would help to support town centres and high streets in adapting to them to become hubs where people live, shop, use services and spend leisure time.”

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