Feature: Commercial Property Renovation – Providing a Solution in UK Housing
The UK property market is moving faster than ever. With housing construction at an all-time low and property prices soaring, now is the perfect time to take advantage and purchase a commercial property to convert into a residential home.
Construction output falls to the new lowest level in recent years
Growth in the UK construction industry has slowed once again due to the lasting impacts of the Omicron Coronavirus variant. New work remains flat throughout the UK in 2021, mainly due in large part to a continuing shortage of essential products such as steel, concrete, and timber. Not only seeing shortages in materials but also rising costs of said products, with materials costing over 70 percent more in August 2021 than they did in August 2020.
Construction output fell as a whole by 1.8% in volume terms in October 2021, the largest monthly decline since April 2020, when output fell by 41.7%
Housing sales continue to rise after the pandemic
The booming property market continues to maintain its year-long sales record, with average house prices at the highest since 2004.
In 2021 the UK saw one in 16 homes change hands throughout the year, with the market seeing an average house price jump of £15,000. Although we are seeing an increase in housing costs, the rate at which people are buying property does not seem to be slowing down.
Whilst housing sales have continued to rise, the number of new homes being delivered in England has fallen to the lower figure in the last 5 years. According to figures, from the
Department for Leveling Up, Housing and Communities, the number of new homes fell 11% to 216,490 in 2021, the lowest level since 2015-2016.
This leads to a gap in the market to create a perfect home, through converting a commercial property into a residential home.
Converting properties into a residential home
With many businesses moving away from traditional commercial properties on the high street, the market has seen a higher number of units available. The units are perfect for turning into residential homes for first-time buyers and seasoned property developers alike.
Since 2015, it has become easier to carry out a commercial to residential development, causing an increase in the number of property buyers using the opportunity to create a home through converting.
Benefits of converting a property into residential
Competitive pricing – The commercial property market tends to be more competitive compared to residential, which means that commercial properties are priced lower. Lower prices allow for buyers to add value and make a healthy profit from the conversion, if looking to sell in the future.
A blank canvas to create your dream home – Buying a commercial property usually comes with a renovation project – to turn the unit into your dream home. Allowing you to create a property you truly love, with no restrictions.
You may not require planning permission – For many shops and offices, you may not require planning permission, as they come under Permitted Development Rights. However, if you do require planning permission, you are likely to secure this effectively as the Government’s National Planning Policy Framework makes the reuse of empty buildings a top priority.
The Final Verdict
Converting a commercial property into a residential development is a great option for home buyers looking to find a competitively priced property that you are able to put your own stamp on. Now is a better time than ever to consider this avenue of development due to the
booming market after the pandemic. Commercial properties tend to sell quickly, so act fast when trying to buy your first commercial unit.
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