A study has been carried out that shows property developers predict an increased number of conversions of under-used office buildings in to new homes. It is thought that over the course of the next two years 74% of property developers are predicting a change. These predictions come after the Government has decided to expand the legislation relating to property development rights.
Of the 74% that are expecting to see change, 30% of the developers feel that there will be a significant growth in the number of PDR-related conversion projects. The research was commissioned by Amicus Property Finance, a company who specialises in short term property lending. The research showed that 69% of the property developers asked welcome the change to the PDR limitations. The extension of PDR related conversions has been initiated in order to allow thousands of new homes to be created from a number of neglected industrial and office properties. This means that more new homes can be created while also taking steps to save the green belt.
Between July2015 and June 2016 in the UK it is thought that 1,066 applications for office to residential permitted development have been permitted with prior approval not required. The research also found that another 1,480 applications have been granted with prior approval. This is a step forward towards meeting in the housing demand, and it is thought that the PRD extension will only lead to an increase in these office to residential development projects. However, despite this positivity, the research has shown that only 4% of the property developers think that these changes will have any major impact on the lack of housing in the UK. 86% believe that this change will only marginally help narrow the housing demand gap. It has also been found that property developers are skeptical that the target set out by the Government to build one million homes by 2020 is realistic.
