Empty buildings are a housing resource waiting to be tapped – so why don’t we?

The new government has placed homes at the heart of its agenda, with reform to the housing system in England viewed as essential for both economic growth and social equity. This is not simply a question of fixing the planning process, however. We need to see careful regulation, significant funding, a commitment to long-term sustainability and a particular focus on the many empty buildings in our communities that are currently being overlooked. 

The clear message from the Labour Party Conference was “build, build, build”, focusing on the victory of the “YIMBYs” (Yes In My Back Yard). Policy proposals so far have centred on increasing the supply of new homes through reforms to the planning system, the release of “grey belt” land, and the establishment of new towns. In the rush for new homes, however, there is a danger that we will miss the opportunities under our noses. 

Thousands of commercial buildings sit empty owing to the increase in remote working, online shopping and shifts in the composition of the economy from industry to services. Habitat for Humanity GB estimated in 2021 that around 7,000 commercial properties owned by councils in England, Scotland and Wales had been vacant for over a year. That number will only have gone up, and many could make great social and affordable homes. 

The benefits of expanding our social housing stock in this way are obvious. The latest figures show more than a 10% increase in households facing homelessness in the last year alone. With house prices and rent ever more unaffordable, housing waiting lists lengthening, and thousands of families stuck in temporary accommodation, there is an urgent need for many more secure and affordable homes. 

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The conversion approach can deliver results faster than navigating the often-complex planning process for a new development or working through negotiations between a big developer and the local authority. Conversions can also be designed to meet local needs, rather than private profits. Plus, it is estimated that converting an existing structure uses 50-75% less carbon than a new build. 

Efforts have been made for years to revitalise high streets in the face of changing shopping habits, with limited success. By creating more homes in town centres, we are not only reducing housing pressures, but also increasing footfall, boosting the prospects of the shops, bars and restaurants that have survived the last few years. Habitat for Humanity GB proved this can be done in Barking, East London, where we worked closely with the local authority to take a set of long-term vacant shops and turn them into much-needed homes for local care leavers. 

If this approach makes so much sense, why isn’t it being more widely adopted? There are several actions the government could take to drive action. 

Years of austerity have left local authorities with very limited capacity, making deep collaboration with partners and long-term thinking difficult in the face of massive short-term need. Unexpected pressures on maintenance budgets following legislative change in the wake of tragedies like Grenfell, plus the Covid pandemic, have also limited the ability of authorities and housing associations to invest. The chancellor has the opportunity to address this in the budget, creating space and certainty to encourage investment. 

Through planning reform, local authorities will be tasked with identifying many more sites for new homes. This process represents a great opportunity to look in more detail at the empty buildings available and set out a plan of action for their conversion.

Habitat for Humanity GB have recommended that local areas create “Empty Spaces Taskforces”, consisting of public sector partners, housing associations and community members to do this work. 

The government should also evaluate how it can reform the system of developer contributions to affordable housing to incentivise or fund conversions. If it is determined to open up more green or “grey” sites, non-negotiable funding from developers for conversions should be part of the deal.

Sites could also become more viable if the government addressed the anomaly whereby new builds have an exemption from VAT that isn’t available for conversions or retrofit. 

By focusing on converting empty buildings into homes, we champion a more sustainable and environmentally responsible approach to development, while building vibrant, resilient communities. 

Henrietta Blackmore is national director at Habitat for Humanity GB.

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