New research by Direct Line Landlord Insurance has shown a 63% rise in commercial, business and service premises being converted to residential use over the last two year.
The research looked at change of use applications to councils between 2021 and 2023, with a 60% increase in approvals. This surge is said to be due to a surge in landlords taking advantage of the soaring need for homes.
Changes announced by the previous Conservative Government mean that since 1 August, unused commercial property can be converted into residential homes without full planning permission, something made even more attractive to investors by the sheer amount of unused commercial property since the pandemic.
Jonny McHugh, head of landlord at Direct Line, commented ‘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.’
When considering commercial projects landlords and investors should ensure they take advantage of all Capital Allowances available, see our recent article on what you can claim
Recent Comments