We can fix this whilst capitalising on the opportunity with a new fast track method of turning office and business premises into residential apartments and at the same time creating a whole myriad of new jobs to do this.
As a result of the new way of working from home, many businesses have realised that there are huge benefits to be had.
1 People seem to be happier working at home which makes for better staff morale. They save time in not having to travel to work, or to other company premises.
2 Companies can save considerably by not having large numbers of staff coming into the office, as maintaining an office is costly, with heavy overheads such as rates, electricity, rent, heating .
3 Also during the pandemic many companies have discovered that they are saving hugely in staff fuel costs
As a result there will be plenty of business and office buildings which will become redundant. This will mean that the value of these premises will fall considerably as a result of there being limited demand for them. If you owned an office block you would be worried by the fact that you asset is starting to have no intrinsic value.
This will have a major effect on the small businesses which surround them, creating further damage to the local and national economies and creating empty, down-at-heel and uncared-for areas in the midst of our towns and cities.
However these premises would be ideally suited for conversion to apartments, dwellings, social housing or penthouses!
Firstly, all the services are in the buildings already in location and in adequate supply. Electricity, heating, lifts, water and drainage. All these services are normally used to provide for a great many working people and should easily be adequate for a smaller number of occupiers in apartments. This would make for speedy conversion and would provide a great kick-start for the jobs market.
• The building industry and housing are key drivers of the economy. More jobs would be created for those industries involved in the building and refurbishment projects. One can be sure that when Chancellor’s furlough scheme ends there would be a lot of people out of work
• Extra flats help the housing market. An over-supply of houses would cause a halt to the continuous upwards movement of housing prices. At the moment it is driven upwards by the housing shortage. This gap – the difference between the current housing stock and the number needed for everyone to have a decent home to live in – is more than one million homes, according to the BBC Housing Briefing
• Re-use of these premises will benefit local shops , high streets ,and business causing a regeneration of city areas.
How should this be done?
The Ministry of Housing, Communities &Local Government (MHCLG) (in league with The Treasury) is best placed to control this operation which would be carried out AT NO COST TO THE GOVERNMENT apart from administration.
There should be created a “REGENERATION BOND”. Investors would be invited to purchase these 3-year maturing bonds giving a very lucrative return of, say, between 10%-15%. These would be given by the Government. The property owners already own the freeholds and therefore the difference between refurbishment costs and what they will sell the apartments for should easily allow for them to repay these loans with interest to the Government. They would then have appreciating assets.
Under this scheme, property owners would be able to apply for planning permission to local authorities for conversion and change of usage. Local authorities would be invited to target specific types of housing needed and areas where the housing is best needed and suitable for conversion.
There needs to be a well publicised fast Track system with a quick and easy method for change of usage.
Financial handling of these loans to property owners would be handled and monitored by local authorities and the civil service.
The results of this project if handled correctly is a win-win situation for everyone.
• Investors make an exceptional return
• Housing problem solved
• Many ancillary jobs are created
• Gets the economy moving
• Property owners have an increasing asset rather than a declining one
• No cost to the nation!!
2025-11