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28,000 Commercial to Residential Development Hotspots

28,000 Commercial to Residential Development Hotspots

28,000 Commercial to Residential Development Hotspots

According to the latest data release from Searchland, the development site sourcing specialists, there are nearly 28,000 MA sites with an estimated market value of over £1.5 billion located across England, primed to be converted from commercial use into residential property.

The platform compiled a list of the number of buildings that are Class MA, meaning they have permitted development rights to be converted into a residential property, which would help alleviate the country’s lack of housing supply.

Speaking in July, housing secretary Michael Gove targeted making it easier to turn commercial premises like shops and restaurants into residential accommodation.

London has roughly a third of all England’s sites, numbering 8,985, with an estimated market value in the region of £928m.

The capital is followed by the South East and East of England, at 5,729 and 2,848 respectively, with these sites worth £385.4m and £186m.

The North East has the fewest sites with the potential for conversion, at just 840, while developers also have fewer options across Yorkshire and the Humber, with 1,342 sites, as well as the East Midlands, at 1,387.

These three regions only have 12.8% of England’s sites between them.

Size matters

While London is home to the most properties with the required permissions, space is at a premium in the capital.

Typical commercial premises have 157.0 sq ft of space, compared to an English average of 170.3 sq ft.

While Yorkshire and the Humber has a relatively low number of properties that can be converted, accounting for 4.8% of all stock, there’s more space in the region than any other, as commercial buildings with the required permissions average 186.3 sq ft.

This means there’s potential to either turn them into larger residential properties, or a greater number of apartments per conversion.

The East of England has the second most space, at 183.9, followed by the South West, at 178.0.

Co-founder and CEO of Searchland, Mitchell Fasanya, commented: “Disused commercial sites are a cornerstone of the government’s approach to solving the UK’s housing problems, if the rhetoric from Michael Gove is anything to go by. 

“Our data demonstrates that developers already have the opportunity to turn thousands of commercial properties into residential developments and these sites currently hold significant value in the current market. 

“If you’re a developer looking for a site, availability is best in London and the South East, but if you want to buy a big commercial site Yorkshire and the Humber is the place to be.

“Following Gove’s comments we’ll be monitoring government activity, as there could be more choice in regions like the North East, Yorkshire and the Humber, as well as the East of England.”

MA sites by region as a proportion of the national total and the total and average square footage

Location Est number Proportion % Est voa floor area sq ft Average voa floor area sq ft
London 8,985 32.4% 1,410,315 157.0
South East 5,729 20.6% 985,936 172.1
East of England 2,848 10.3% 523,730 183.9
North West 2,573 9.3% 457,615 177.9
West Midlands 2,123 7.7% 367,106 172.9
South West 1,921 6.9% 341,917 178.0
East Midlands 1,387 5.0% 245,030 176.7
Yorkshire and the Humber 1,342 4.8% 249,971 186.3
North East 840 3.0% 144,312 171.8
England 27,748 100.0% 4,725,933 170.3

Estimated total market value of MA sites in each region based on current value per square foot of developed land

Location Est voa floor area sq ft Average voa floor area sq ft Est sq ft value (resi developed) £ Est total area potential value
London 1,410,315 157.0 £658 £927,857,274
South East 985,936 172.1 £391 £385,412,696
East of England 523,730 183.9 £355 £185,997,131
South West 341,917 178.0 £308 £105,164,498
North West 457,615 177.9 £211 £96,461,354
West Midlands 367,106 172.9 £249 £91,356,923
East Midlands 245,030 176.7 £235 £57,483,601
Yorkshire and the Humber 249,971 186.3 £207 £51,640,506
North East 144,312 171.8 £168 £24,197,641
England 4,725,933 170.3 £325 £1,534,028,966

Post source : Searchland

About The Author

Anthony has an extensive construction and development background and looks forward to bringing your the latest news and resource on the industry.

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