Will PD rights lead to an office space shortage in suburban London?
In Spring 2013, the Government expanded Permitted Development rights to allow offices to be converted to flats. The deadline for the conversion work to have taken place is May 2016, although the Government announced on 12th October 2015 that these rights are to be made permanent.
We have been involved with the sale of various office buildings to residential developers and we are beginning to see that the reduced supply combined with additional demand from tenants having to move to new offices (having been decanted to give way to conversion projects) is leading to a distinct reduction in the amount of secondary suburban office space available.
This has not yet led to increasing rents because the available supply has been able to meet demand, but it may only be a matter of time before this happens.