Sites and buildings
Industrial sites. Redevelop, convert or split?
Industrial land is wanted for both industry and housing, and the right answer for one site can be the wrong one for the next. Whether to keep a building working, split it into smaller units, convert it or redevelop the land depends on how strongly the council protects it, the condition of what is there, local demand and the numbers. We set the options out on one basis and help carry out the decision.
Who it is for
For owners of industrial units, yards, depots and small estates; for businesses buying premises to occupy; for investors; and for landowners with old workshops or yards behind houses and shops, where the land may be worth more for homes.
What to consider
- Planning protectionCouncils protect land in employment use. In London, Strategic Industrial Locations and Locally Significant Industrial Sites are protected; the new draft London Plan, published in July 2026, keeps them, asks boroughs to review their boundaries and identifies a small number of sites for release to housing, while smaller sites outside them are treated more like brownfield land. Outside London, councils usually want evidence that a site is no longer needed for employment, often including marketing for a year or more, before they allow a change.
- Use class and permitted developmentGeneral industrial (B2) and storage and distribution (B8) usually need planning permission for a change to other uses. Light industrial now sits in Class E, so it may be able to use the Class MA right to convert to homes. A change from B2 to B8 is allowed without an application up to 500 square metres.
- Condition and contaminationRoofs and cladding in older units often contain asbestos. Previous uses may have left contamination. Drainage, power capacity and yard space all affect what the site can be used for and what work will cost.
- DemandWho would rent or buy each option, at what level. Small, well-located units are often in short supply, while large, older sheds can be harder to let.
- Homes next to industryWhere homes are built beside working industrial uses, noise, servicing and access have to be designed so that both can work, and the new homes are expected to deal with the existing noise rather than the other way round.
- The numbersWhat the site is worth in its current use, compared with what it would be worth after each option, less the cost, time and risk of getting there.
The options
- Keep and improveRefurbish and re-let, including the energy improvements needed to meet the minimum energy efficiency standards for letting.
- Split into smaller unitsMore tenants and often a higher rent per square foot, but each unit needs its own access, services, fire separation, meters, business rates assessment and energy performance certificate.
- ConvertChange to offices, trade counters, leisure or, where planning allows, homes.
- RedevelopNew homes, mixed use or modern industrial space, usually with a full planning application.
- Sell with planning permissionSecure a consent that unlocks a higher value, then sell to a developer.
How we help
- Feasibility studies: what the site or building could become, and what each option costs and returns
- Site identification: finding and securing the right site
- Development management: managing the scheme, including the planning process and the right planning consultant
- Delivery strategy for complex sites
- Project management
Case studies
Guides
Common questions
Can I get planning permission for homes on my industrial site?
It depends on whether the site is protected for employment, what local policy says about losing it, and whether housing would work next to any neighbouring industrial uses. The planning position should be checked before any design work.
Do I need planning permission to split a unit into smaller units?
Not always. Dividing a unit while keeping the same use may not need permission, but new doors, windows or other external changes usually do, conditions on the original permission can restrict it, and building regulations apply to fire separation.
What is my industrial site worth for housing?
That depends on how many homes it could take, the affordable housing and other obligations, the cost of clearing and building, and local values. A feasibility study works this through. It is not a formal valuation, which a lender would normally need.
Is asbestos a problem?
It is common in older industrial buildings. It does not usually stop a scheme, but it needs a survey before buying or starting work, and the cost of removing it belongs in the appraisal.