Marc Goldberg: Funding the High Street

As four London boroughs challenge the office-to-resi conversion rules, Marc Goldberg of the Blemain Group recently questioned whether those conversions could be the lifeline the nation's high

As four London boroughs challenge the office-to-resi conversion rules, Marc Goldberg of the Blemain Group recently questioned whether those conversions could be the lifeline the nation’s high streets need. 

This week, it was announced that four London councils are appealing against government policy that allows certain offices to be converted into homes without planning permission. 

However, it was proposed at last month’s Annual General Meeting for the Association of Bridging Professionals (AOBP) that office-to-residential developments could play a big part in refreshing some of the UK’s dwindling high streets. 

In his speech, Marc Goldberg discussed the changing landscape of the UK’s high streets. He said: “The high street needs to change to survive, where there’s change there is opportunity and with that a need for finance. 

“The vision is likely to be: key city centre streets will become residential areas with more cafes, bars, services to supply the demand of the residential population. 

“The government has made it easier for the conversion of b1 offices to c3 residential dwelling without the need for planning permission. If you look at the properties that are now vacant you have got centrally primary locations, good quality buildings and high yields potentially for residential lets. So the high street has a future and will be a good investment for the right types of business opportunities for property professionals.” 

He added: “Of course there is a shortage of housing in the UK, making Buy-to-Let more popular and city centre conversions a real opportunity.” 

The vacant properties on Manchester’s King Street, one of the most prestigious shopping locations in the North-West, were also mentioned with around a third of its shops standing empty. 

Marc Goldberg suggested that King Street could a viable location to transform into a residential development. However, he noted that the street’s high rates may discourage Councils from providing planning permission as they would be hesitant to sacrifice the high returns. 

It was revealed yesterday that the London Boroughs of Islington, Camden, Richmond upon Thames and Lambeth are bringing two actions against the Government regarding the office-to-residential development rules introduced on the 30th of May. 

Islington Council stated that both Camden and Richmond Councils are supporting and splitting the costs of its legal action. Lambeth Council is placing its own legal challenge to the rules. All of these cases will be heard at the same time.  

Islington Council complained that councils have: "Lost the ability to protect office space, and they are not able to demand that the new homes are affordable or even meet basic space standards.

"With no need for planning permission, residents' rights to be notified in advance and to raise any objection have been swept away."

James Murray, Islington Council’s Executive Member for Housing and Development, said: "In Islington, we have firm plans for building good quality, affordable housing. But the government's changes are undermining what we're trying to do by allowing developers to bypass these plans in a reckless free-for-all."

The boroughs have been informed that their applications for judicial review against the rules were successful. The High Court hearing will be held on the 4th December.

Keywords: Marc Goldberg, Blemain, AOBP, high street, office-to-resi, Council, borouh, court, housing shortage, buy-to-let

Source: Bridging & Commercial — https://bridgingandcommercial.co.uk/marc-goldberg-funding-the-high-street