The new vacant building credit could contribute to the central London office market becoming irreparably diminished, the Westminster Property Association has warned.
The WPA was speaking in response to Estates Gazette revealing last week that Westminster city council could lose £1bn pa from its affordable housing pot as a result of the new planning guideline.
The new guideline means that when planning is secured for a residential conversion in a building that is vacant, developers would only pay an affordable contribution on any new space. The provision was previously levied on the full size of the building.
WPA chairman Daniel Van Gelder said: “As well as removing an important element of developer contribution to the provision of affordable housing, our concern is that these changes may result in yet more office space being lost to homes in central London as it will encourage more office-to-residential conversions.”
He added: “I fear there may be a tipping point where the commercial heart of London becomes irreparably diminished. When big multinationals choose a new global HQ they want to be somewhere central with excellent transport connections, where they can recruit talent.”
Robert Davis, deputy leader of Westminster city council, told Estates Gazette last week: “This has serious implications, as it threatens our capability to deliver much-needed housing in central London.”
Housing minister Brandon Lewis said the planning guidance will help to bring empty buildings back into use.
