Derelict high streets could provide space for 500,000 homes

A new report has encouraged the government to turn the challenges of the pandemic into an opportunity to revive Britain’s high streets, communities and commercial centres.

The Centre for Policy Studies says that even before the pandemic, up to 40 per cent of retail space was no longer viable or needed. Yet councils are doing little to ensure these vacant properties are being converted or redesignated, which is limiting opportunities for investment and the renewal of Britain’s high streets.

The Reshaping Spaces report shows that if this retail space could be repurposed, it could create at least 500,000 homes, or more if the space were converted into flats. It also shows how allowing for mixed use regeneration could unleash tens of billions in private finance to ‘build back better’ and level up left-behind high streets and commercial spaces across the UK.

As the new report highlights, the areas with the highest commercial vacancy rates are the same areas where the Conservatives picked up most seats in the 2019 General Election, demonstrating the urgent need to drive investment in those areas if the government wants to show the practical benefits of its levelling up agenda.

The think tank is proposing that the first part of each council’s new local plan should be a commercial assessment of their area’s needs, to be completed by the end of 2022.

On the issue of business rates, the CPS says that the government’s business rates retention scheme also creates an ill-advised incentive for councils to keep properties vacant. Because it includes commercial properties even if they are empty, a council which lets a property convert to a new home loses out compared to one that keeps a derelict eyesore on the high street.

Alex Morton, who wrote the report, said: “There is a real opportunity to boost the levels of homes and encourage mixed use regeneration as part of the current planning reforms. Councils need to take a lead and work with partners to see how their local commercial centres will look and create plans that can help Britain build back better. With high streets seen as a clear priority among local people, and vacancy rates highest in areas that swung in the 2019 election to the Conservatives, this is an area where the Government should prioritise sensible policy changes to support redevelopment.”

Luke Hall, Minister of State for Regional Growth and Local Government, said: “The role of the high street has always evolved and this year it’s even more important that we work together to support change and make sure that they are the beating heart of their local community. This can be achieved with high quality housing and leisure in addition to shops and restaurants, all of which is set out in the High Streets Strategy which was published last week. This report shows how councils can repurpose retail space to help their town centres become more attractive places to live, work and visit.”