Industry Insight Episode 07 | Missed an Episode? Catch Up Here:
Explore previous episodes of our Industry Insight series, each one focused on a current theme shaping the housing and mortgage market:
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Episode 1: Multigenerational Living Is On the Rise
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Episode 2: Challenges in the Mortgage Industry
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Episode 3: Turning Annexes into Holiday Lets
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Episode 4: Making the Dream Achievable
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Episode 5: Homeworking and Housing Demand
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Episode 6: New Housing Trends Post COVID
High Streets to Homes: Repurposing Retail Spaces for Housing
As we reflect on the long-term impacts of the pandemic, the transformation of the UK’s high streets offers a powerful visual of its effects. Once-vibrant commercial districts are now marked by empty retail units, a result of economic shifts and evolving consumer behaviour. But within this disruption lies an opportunity to reimagine these spaces as a solution to the UK housing crisis.
The Decline of the Retail Sector and a New Use for Empty Units
Thousands of retail businesses, from national chains to independent shops, have shut down since the 2020 lockdowns. According to research from the Local Data Company and PwC, over 11,000 chain stores closed between January and June 2020 alone.
The resulting surplus of unused commercial space has fundamentally reshaped the high street landscape. But these same properties could now help ease housing pressures through retail-to-residential conversions.
Retail Repurposing: A Sustainable Housing Solution
Converting empty retail properties into residential units not only addresses housing shortages but also helps regenerate communities. From split-use shop-and-flat layouts to full residential transformations, these conversions are gaining traction nationwide.
As urban housing demand rises, these redevelopments create vibrant, mixed-use neighbourhoods and open new opportunities for specialist mortgage products. For example, tailored mortgages could support developers, investors, or first-time buyers interested in repurposed properties.
Explore how our Specialist Mortgage Network for Advisers can help brokers serve this growing niche.
Eased Planning and Modern Construction Methods
Government changes to permitted development rights now allow many retail and commercial units to be converted into housing without full planning permission. This streamlining has opened the door for faster, more affordable developments.
Modern building techniques, such as modular construction, further accelerate these projects. These methods reduce disruption and costs, offering scalable, efficient solutions in urban regeneration.
What This Means for Mortgage Brokers and Lenders
This shift in property use brings emerging opportunities for mortgage professionals:
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New Product Types – The demand for financing unique property types (e.g., former commercial units) invites innovation in mortgage offerings.
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Broader Client Base – From developers to urban buyers, this trend diversifies the client pool.
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Local Revitalisation – Supporting high-street conversions can stimulate local economies and community value.
Now more than ever, mortgage advisers must stay informed and agile. Connect’s Broker Technology and tailored support for Newly Qualified Advisers help you navigate this evolving environment confidently.
Regional Variations in Retail Impact
While many towns have seen declines, there are notable exceptions. For example, Harpenden, home of Harpenden Building Society, bucked the national trend with a net increase in retail units, demonstrating local market resilience.
Being locally based, we remain deeply engaged in regional analysis while supporting brokers across the UK with insights that translate into smart lending strategies. Whether you’re in York, Hertfordshire, or beyond, understanding your local housing dynamics is vital.
Seizing the Moment: Trusted Advice in a Changing Market
As the housing sector adapts post-pandemic, brokers and lenders must lead with innovation and trust. Reimagining how properties are used, and who they’re for, means expanding how we think about mortgages and advice.
Our role is to support borrowers as they navigate these opportunities with personalised underwriting, market insights, and agile solutions. At Connect, we believe mortgage advisers have a vital role in shaping this next chapter of the housing market.
To support your journey:
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Thank you for reading our publication on “Industry Insight Episode 07 | A High Street Demise Outlook.” Stay “Connect“-ed for more updates soon!