The plans, in March’s Budget, would allow developers to convert commercial buildings into residential properties without the need for planning permission. Many offices are lying empty because of the complexity of the planning system, according to Pickles.
According to government statistics, London and the East Midlands have the most vacant office space that could be converted and the greatest need for new housing.
Both regions have a long-term vacancy rate of 11 per cent, which translates into approximately 76,000 offices. The North East, in contrast, has a long-term vacancy rate of just seven per cent.
Mr Pickles said: “Many towns and cities have office blocks, warehouses and business parks needlessly lying empty, while housebuilding has fallen to the lowest in peacetime history because the planning system has tied developers up in knots of red tape.
“By unshackling developers from a legacy of bureaucratic planning, we can help them turn thousands of vacant commercial properties into enough new homes to jump-start housing supply and help get the economy back on track.”
Up to 250,000 new homes could become available if all the long-term vacant office space in the UK were converted, the statistics show. Additionally, approximately £140 million could be saved by reducing bureaucracy.
Of the 129,000 new homes built last year, only 2.8 per cent came from office space being converted.
However, some have reacted to the plans by accusing the government of pandering to private investors. Additionally, the conversion of office space into residential space can entail a large amount of renovation, such as soundproofing and insulation.
Also, questions about whether converting old buildings is more environmentally friendly than new-build have also been raised.
Editor’s notes: In May 2022, it was reported that there was a spike in applications to convert office buildings into residential dwellings.
Construction News reported that data from the Department for Levelling Up, Housing and Communities showed that 2,119 bids were made the previous year to use permitted development rights allowing buildings to be switched from workplaces to residences – this was the highest number since 2017.
In February 2026, the Financial Times reported that, following a surge in building conversions intended to help reduce the UK’s housing shortage, office-to-residential schemes were in decline.
It was separately reported that conversions were often abandoned because they became notoriously expensive and physically complicated due to deep floor plans, inadequate plumbing, and poor natural light.
Those involved quickly learned that office buildings were simply not designed for residential living. Modifying large, deep floor plates required carving out massive central lightwells, and retrofitting modern plumbing and heating, ventilation and cooling (HVAC) could sometimes cost more than demolishing a building and starting from scratch.
There was also controversy over the findings of the Local Government Association, which found that nearly 28,000 affordable homes were lost over a decade because fast-track office-to-residential conversion rights exempted developers from providing affordable housing contributions.