In a response to Government’s consultation proposing greater flexibility to convert retail property into new homes, the British Property Federation (BPF) has welcomed its potential to both support the high street and provide an increase in much-needed housing.
With high street vacancy rates averaging 14 per cent and house building at historic lows, the BPF expressed enthusiasm for the creation of permitted development rights to enable retail-to-resi development.
The property trade body recommended that in order to ensure change-of-use remains relevant and advantageous, local authorities must strategically identify in advance which areas should be designated for change of use, and reflect such zoning in their local plans. The consultation response also called for:
- Encouragement for Local Authorities to think more strategically about their retail areas;
- The process of gaining prior approval for change of use to be simple and concise, and include consideration of any given unit’s economic viability;
- Assurances from local authorities that any retail-to-resi conversion will not have a resulting impact on existing business;
- Permitted development rights to change retail units to banks and building societies, stipulating the necessity for greater clarity on the definition of these institutions;
- Permitted development rights to change existing agricultural buildings to residential properties, stipulating that the upper threshold of 150m2 may be somewhat conservative.
Liz Peace, chief executive of the BPF, said: “We are fully behind the provision of greater local-authority flexibility to re-class redundant shops for development into desperately needed homes. Other retail conversions that might regenerate town centres by encouraging high street footfall would be a welcome breath of life for both the property industry and local communities.
“Recent high-profile reviews from Mary Portas and Bill Grimsey have energised industry consensus that retail-led high streets are no longer viable for the long-term, and that broader ‘community hubs’ may be the future of high street regeneration. As such, should this change-of-use initiative prove successful we would encourage the Government to consider proposals to redevelop retail units for leisure and community uses.”
The new £500,000 pot will help give local businesses a new way to generate extra funds for projects that will help communities to regenerate their own town centres, High Streets Minister Brandon Lewis announced.
So called business improvement districts are a tried and tested town centre catalyst, used in towns and cities across the world, to raise fund for improvements to local trading areas. Their potential to successfully support town centres growth was outlined by Mary Portas in her review of High Streets.
The government is committed to support the business improvement district model for high street regeneration and this £500,000 fund will help communities who wish to create a business improvement district overcome prohibitive initial start-up costs.
The new High Streets Minister announced that British BIDs will run the loan fund scheme while on a visit to the successful Bedford Business Improvement District, where he was attending the third meeting of the Future High Street’s Forum. The forum brings together leaders from across local government, retail, property and business to better understand the competition town centres across the country face and to drive forward new ideas and policies.
British BIDs will offer loans of up to £50,000 to communities and business groups with the potential to successfully establish a new business improvement district.
There are currently over 160 business improvement districts across the UK working on issues such as town centre safety, improvement of public realm, support for local traders and parking initiatives.
High Streets Minster Brandon Lewis said: "Local communities and local businesses know what works best in their area and business improvement districts help them to successfully raise they cash the need to re-energise their high street. Having experts like British BIDs manage our £500,000 loan fund will mean the right communities will be able to take advantage of this new support.
"This is just one of a wide range of measures the government has put in place to help the high street including doubling the amount small business and shops get in business rate relief so it now totals £900 million; cutting National Insurance and corporation tax; and encouraging local innovation and best practice through a range of projects like our 350 town teams.
"We have also changed bureaucratic planning rules to make it easier for empty high street shops to be brought back to life and we are now tackling unpopular parking practices that reduced parking spaces and increased parking charges deterring potential shoppers from coming to town."