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Sites and buildings

Offices. Convert, refurbish or redevelop?

Many office buildings no longer suit how businesses work, and tougher energy rules are coming for larger ones. That leaves owners with a real choice: refurbish to attract tenants, convert to homes, redevelop the site, or sell to someone who will. The right answer depends on the building’s depth, structure and location, the planning route, and what each option costs and returns.

Office buildings on a London street

Who it is for

For owners of office buildings with falling occupancy or a lease ending, buyers looking at offices to convert, and investors weighing refurbishment against conversion.

What to consider

  • Class MAOffices are in Class E, so many can be converted to homes through prior approval rather than a full planning application, provided they have been in Class E use for two years and every home meets the national space standard. Many councils, especially in London and town centres, have removed the right with Article 4 directions.
  • Depth and daylightDeep office floors are hard to turn into homes with good daylight in every room. The building’s depth, window pattern, floor-to-ceiling height and cores decide how many homes it can really take.
  • Energy rulesA letting needs an energy rating of at least E. For buildings over 1,000 square metres, the government intends to require B from 2031 where cost-effective, which can mean significant spending to keep a building lettable.
  • Building safetyConverting a building of 18 metres or seven storeys and above into homes brings it under the Building Safety Regulator, which adds approval time and design requirements.
  • DemandWhether the location supports offices, homes or something else, from local evidence on rents, values and vacancy.

The options

  • Refurbish and re-letUpgrade the building to attract tenants and meet the energy rules.
  • Convert to homesUnder Class MA where it applies, or with planning permission.
  • Part convertHomes on upper floors with commercial use kept on the ground floor.
  • RedevelopDemolish and build new, usually with a full planning application.
  • SellWith or without a prior approval or planning permission in place.

How we help

Guides

Common questions

Can my office be converted to flats without planning permission?

Possibly, under Class MA, if it has been in Class E use for two years, the homes meet the space standard and there is no Article 4 direction. The council still decides a prior approval on matters such as daylight, noise and flooding.

Is conversion better than refurbishment?

It depends on the building and the location. Both should be costed and compared on the same basis, including the time and risk involved.

Will my office building need to reach EPC B?

If it is over 1,000 square metres, the government intends to require B from 2031 where cost-effective. Smaller buildings stay at E for now.

Have a site, a scheme or a programme to discuss?

Tell us what you are working on, the decision you need to make and where support would help.

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Email phil@bailyconsult.co.uk or call 07814 717088