Surge in commercial to residential conversions across England

There has been a big increase in the conversion of commercial properties into residential units across England, research reveals.

The findings from Direct Line landlord insurance reveal a 63% surge in change of use applications between 2021 and 2023.

The rising trend is driven by factors such as the shift to remote work and the evolving retail landscape.

It found that underused commercial spaces, including offices and retail outlets, are being repurposed to meet the growing demand for housing.

Demand for residential property

The insurer’s head of landlord, Jonny McHugh, said: “The property market is constantly evolving and as demand for residential property continues to soar, it has increased the attractiveness of converting commercial units for domestic use.

“By converting underused commercial properties into residential units, landlords can help maintain their revenue streams and future proof their investments.”

Hotspot for these conversions

London has emerged as a hotspot for these conversions, with seven boroughs ranking among the top 10 for application growth.

Haringey topped the list with a 100% increase, followed by Enfield, Merton, Croydon, Ealing, Lewisham and Hackney.

Other areas witnessing substantial growth include Somerset, Wakefield, Bristol, Sheffield and Milton Keynes.

These regions have seen significant increases in approvals for converting office space, retail outlets and warehouses into residential properties.