According to the National Association of Estate Agents (NAEA) quick thinking developers should be given the support needed to transform the UK’s town and city centres from rows of empty shops to classy residential developments.
Peter Bolton King, chief executive of the NAEA said: "Commercial property owners are facing high business rates for buildings that no-one occupies. Therefore, in the right circumstances, converting these buildings for residential use could have an aesthetic and economic benefit.
“However, such renovations are not simple undertakings. We advise that a thorough evaluation of the work involved is carried out beforehand to avoid additional cost burdens.”
He added that city centre housing developments often provide better than standard yields because close proximity to amenities adds extra value to any project.
The NAEA, however, published a list of dos and don’ts for people considering moving into the central developments market.
Top of the list was weighing up if the cost of converting an existing commercial plot was effective when compared to building a new property from scratch on a separate site.
It also suggests that all legislation around “change of use” is thoroughly checked as building extensions or changing the front of shop may be subject to additional planning permission requirements.
Lastly, be prepared to wait. Some local authorities have a rule which states that commercial property must have been on the market for between six and twelve months. This is to show that there is no market for it to remain in commercial use before planning permission to convert is granted.
Commercial Property News
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