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London Commercial Property News: NAEA advises on converting commercial property to homes
Investors who are considering turning their commercial property in London into residential homes have been offered advice by the National Association of Estate Agents (NAEA).
In a bid to tackle the housing shortage, property owners might have thought about converting old buildings in their portfolio.
However, the NAEA suggests investors weigh up the cost of conversion against the cost of new build properties, as turning commercial property into residences often comes with extra regulation and costly skilled labour.
Additionally, owners might have to wait for between six and 12 months before a local authority will consider a change of use planning application, so investors might have to prove there is no market for the building commercially.
NAEA chief executive Peter Bolton King commented: "Theoretically, the government's decision to bring in this crucial change to planning regulation will provide a much cheaper alternative to new build properties.
"But such renovations are not simple undertakings," he noted, adding that owners should carry out a thorough evaluation of the work involved before committing to a conversion.
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