Developers are rushing to turn dreary offices into desirable flats. Thanks to a rule change back in March, converting big commercial spaces into residential pads is easier than ever, with thousands of potential homes in the pipeline.

New figures from property experts Knight Frank show that applications to transform large, unused offices into flats have gone through the roof since the government scrapped the 1,500 square metre size limit for these conversions.

In just six months, plans for 1,875 new homes have been submitted, up nearly 20% from pre-pandemic levels in 2019.

London Leading the Charge

The capital is at the heart of this conversion craze, with a surge of activity across 12 London boroughs.

• Hounslow is leading the way, with plans for over 100 flats in four separate projects, including turning a former Dell EMC office into 206 apartments.
• Croydon is also seeing big plans, with the iconic “50p Building” set for a makeover into 250 flats and the Landsdowne Building earmarked for 118 apartments.
• Even central London is getting in on the action, with the old MI5 building at One Bessborough Gardens being transformed into 53 luxury flats.

A Solution to London’s Housing Crisis?

With London’s housing shortage reaching crisis point, these office-to-residential conversions couldn’t come at a better time.

Knight Frank’s data reveals London is building just 35,000 new homes per year, a 10% drop from the previous year and way off the official target of 52,300.

Planning Hurdles Remain

While the relaxed rules are a step in the right direction, it’s not all plain sailing. Knight Frank warns that since March, applications for around 300 potential homes have been rejected, highlighting the ongoing challenges developers face.

Stuart Baillie, a planning expert at Knight Frank, says converting empty offices is just one piece of the puzzle. With the government now demanding 80,000 new homes a year in London, finding enough space for all those new builds will be a huge challenge.