Budget 2018: Change of use from retail at five-year high

Change-of-use planning applications away from retail to other types are up 125% since 2013, Radius Data Exchange analysis shows. Within these figures, applications for retail-to-residential conversions are up almost 10% year-on-year, resulting in the proposal of an additional 13,000 residential units from around 1,600 applications. Change of use to new homes is increasing, accounting for 5% of all conversions from retail space in 2013 and now up to 18% so far this year. There have also been record numbers of change of use to restaurants and cafés accumulating over 3,400 separate applications since 2013. In the Budget yesterday, Philip Hammond announced that the government would “consult on planning measures to support high streets to evolve, by creating a more flexible and responsive change-of-use regime with new PD rights that make it easier to establish new mixed-use business models on the high street.” Figures below show that the trend is already well under way. The real issue is: do the measures go far enough? Most probably not. The launch of the Future High Streets Fund will bring in some £675m to support local areas to develop and fund plans to make their high streets and town centres fit for the future. It’s a great gesture, but throwing money at the issue won’t eradicate the problem. Cultural and structural change needs to be implemented, and fast. In terms of wrapping a safety blanket around the high street, the sentiment seems like it is there. First, the newly announced a 2% Digital Services Tax, which targets the “tech giants” will start in April 2020 – and second, there is a business rates bill reduction of a third for firms with rateable values of under £51,000. However, we know that it won’t be enough to heal the ailments on the high street. All physical retailers need a business rates reprieve and revaluation, combined with a rebalancing of the scales with their online competitors. The relief for SMEs is great – but how about the largest operators, the real powerhouses of retail, who by nature employ the most people? How are they being protected? They are, in fact, under the most acute pressure in 2018. Flexibility in the planning sector is needed to encourage future redevelopment and the repurposing of our high streets. Thankfully, the data shows that we are on the right track. But Hammond missed a trick in terms of really offering bricks-and-mortar retail some reprieve. With Brexit mentioned only once in his speech, the offer feels a bit “Budget-lite”. Most people are under the impression that we will probably have another one in six months. Main image © Rex/Shutterstock To send feedback, e-mail james.child@egi.co.uk or tweet @JamesChildEG or @estatesgazette