Out-Law / Your Daily Need-To-Know

Government to confirm fate of office-to-residential permitted development right 'in the not too distant future'

15 Sep 2015, 1:27 pm

Housing and planning minister Brandon Lewis has confirmed that a UK government announcement on whether it will extend a temporary permitted development right for the conversion of offices to homes should be expected "in the not too distant future".

The confirmation comes amid reports that the government is considering extending the permitted development right, which allows offices to be converted into homes without full planning permission, and adding a requirement for those using it to provide starter homes at a discount to market value.

Lewis was invited to speak at a meeting of the communities and local government select committee last week, to discuss planning reforms announced in July by chancellor George Osborne.

In response to a question from Conservative member of parliament Mark Prisk, the minister said the government was "looking to make an announcement around the future for permitted development rights relatively soon".

Lewis said the measure had been "beneficial", in particular in having "delivered a substantial amount of housing that we need in London". However, he said the government had "taken on board some of the points raised by local authorities". "We want to make sure that we get the decision right and make sure we learn from what's happened in the last three years," said the minister.

Lewis's comments were followed by reports that the government is planning to twin the extension of the right with its Starter Homes initiative and require developers making use of it to provide homes at a 20% discount to market value.

Planning expert Liz Wiseman of Pinsent Masons, the law firm behind Out-Law.com said: "There is no doubt that the office-to-residential permitted development right has been controversial. It is estimated that at least 16,600 new homes have been created in London however local authorities have expressed concerns that the amount of lost office space is threatening jobs and the viability of economic centres. Therefore, whilst local authorities may be disappointed to learn that all indications suggest the permitted development right looks to be extended beyond May 2016 they will be pleased to note that the government has stated that it will take on board some of their concerns. In any event, clarity from the government on their position as soon as possible will be welcome by all sides of the debate."