Solving the housing shortage?
Consider the following two findings: in February 2023, the think tank Centre for Cities revealed that, compared to Europe, the UK had amassed a backlog of 4.3 million unbuilt homes since the 1950s, owing to the country’s “outdated planning laws”. Another report from 2022 by law firm Boodle Hatfield claimed that 1.8 million m² of UK office floorspace – the equivalent of 248 football pitches – had been “taken out of use in the past year”, with London making up the majority of this disused space. One of the primary reasons for this, the law firm said, was a gradual change in working practices and a shift towards hybrid working models over the past decade, further accelerated by the COVID-19 pandemic.
In May 2013, the government introduced the office-to-residential PDR scheme as a temporary measure to make use of unoccupied office blocks to be found across the UK’s major cities. One of the significant elements of PDR is the waiving of planning permission, provided that “prior approval” from the local council has been sought and that, as of 2021, certain criteria have been met. This removal of planning application delays proved extremely popular among building owners, and with the government also declaring it a success, it eventually became a permanent fixture in April 2016.
Through its PDR guidance, the government has paved the way for developers and building owners to carry out conversions, reducing the planning obstacles they might otherwise face. However, the scheme continues to draw industry criticism, owing to the high percentage of poor-quality homes being created. In fact, the government’s own research on the quality of these converted homes concluded that such housing was “more likely to be characterised by worse quality residential environments than housing created under the full planning permission process”.
Key issues found in these retrofits include the high number of flats falling below the Nationally Described Space Standards and the lack of windows, resulting in very little natural light. Private amenity space was also incredibly low. Dr Ben Clifford, Associate Professor at the UCL Bartlett School of Planning, who led the 2020 research on behalf of the Ministry of Housing, Communities, and Local Government (MHCLG), added: “The problems are particularly acute in larger scale conversions, which are seen most frequently through the office-to-residential route… It does not usually lead to the high-quality design and placemaking outcomes which the government profess to aspire to. Permitted development is not the best approach to deliver homes in which people can enjoy a decent quality of life.”
The dire conditions found within some of these new forms of housing has seen them described as slums of the future, with Paul Scott of Croydon Council, where PDR conversions were at their highest, telling the Financial Times in 2018: “It’s totally unreasonable, and unprecedented in all other aspects of planning, to be able to build whatever you want. We are seeing units with no windows… We are seeing hundreds of substandard units in what were already fairly poor quality office buildings. To pretend that this is somehow responding positively to the housing crisis is a farce.”
With pressure mounting, the rules around PDR were finetuned, with the existing rights under Class O giving way to the new Class MA as of 31 July 2021, restricting the number of square metres in which a conversion could take place – a significant change from the original right where no limitation had been enforced.
Even more worryingly however, Lord Nigel Crisp, the sponsor of the Healthy Homes Bill introduced in 2022, stated that the lack of fire safety measures was also a growing concern, as “normal residential fire regulations do not seem to apply” in converted homes. And it is not just private housing affected by cheap retrofits. According to Caroline Brosnan, Senior Associate at Russell Cooke, the substandard quality of overcrowded conversions has also spilt over into social housing: “Sometimes, my vulnerable clients are housed in converted properties. What I’ve found at times is that there is no paperwork in place in terms of a fire risk assessment or other fire safety measures.”
Clients have had serious fire safety concerns about their assured shorthold tenancy (AST) blocks, including one example of residents not being able to hear the fire alarm when it went off. As Caroline explains: “People were paying a lot of money for what was a relatively new block. Yet there were some serious issues in terms of the fire alarm testing regime, and whether everything was in place that should be.”
She adds: “You can come across these issues where owners perhaps haven’t taken into account a particular fire safety measure... You might find that freeholders of multiple blocks will put their focus on those that are over 18 metres [high], which means that the people in the lower blocks are not getting the attention that they should be.”