Industry Insight Episode 7 
In the event you missed our previous episodes, please see our catch-up episodes below:
- “Industry Insight | Multigenerational Living Is On an Extraordinary Rise | 2020“
- “Industry Insight Episode 2 | Challenges in the Mortgage Industry: An Amazing Read“
- “Industry Insight Episode 3 | Uncovering the Potential of Annexes as Holiday Lets“
- Industry Insight Episode 4 | Making the Dream Achievable | A Blissful Ending
- Industry Insight Episode 5 | Summer Houses | Discover An Option for ‘Year Round’ Homeworking
- Industry Insight Episode 6 | Amazing New Housing Options Post COVID-19
Industry Insight Episode 7, we are discussing the topic “New Housing Options Post-Covid-19”
Industry Insight Episode 7 | Repurposed retail premises set to help ease housing crisis
As we approach the anniversary of the first lockdown, the ongoing impact of COVID-19 remains evident. The social and economic consequences are hard to ignore. Stepping outside reveals numerous examples of this impact. Empty, non-viable retail units now dominate our high streets.
Retail has been particularly affected. Over the past year, both big names and small family businesses have collapsed. More businesses go under every week, and, consequently, empty shop units have become a common sight across the country.
However, this situation may create new opportunities. One potential use for these redundant spaces is alleviating the UK’s housing shortage. This transformation could also provide new mortgage opportunities.
Transitioning retail space into residential units could benefit the housing market. It addresses both the surplus of unused commercial property and the housing demand. Additionally, this could invigorate local economies, providing a much-needed boost.
Furthermore, converting these spaces involves various stakeholders. It includes property developers, local authorities, and financial institutions. Collaborative efforts are essential to ensure successful transitions and maximise benefits.
In conclusion, while COVID-19 has devastated the retail sector, it has also opened doors. Converting empty retail units into housing presents a viable solution. It helps solve the housing crisis and revitalises struggling high streets.
Industry Insight Episode 7 | The background
According to research by the Local Data Company and accountancy firm PwC, over 11,000 chain store outlets shut between January and June 2020. You will recall that the sector’s sustainability was put under increased pressure from March, when the first lockdown was introduced, and only ‘essential’ shops could remain open.
The same research found that York was the worst affected area, with a net loss of 55 outlets. Harpenden, where our Society is based in Hertfordshire, interestingly bucked the overall negative trend and fared better with a net increase in stores. Although we are a locally based building society, we serve brokers across the entire UK, so we continually assess far-reaching trends affecting new housing and mortgage lending opportunities.
Industry Insight Episode 7 | Wider Housing Options
Adapting redundant retail units into residential properties could be one answer for repurposing a prime location and converting it into much-needed housing. Work has already started in many high streets, with formerly dedicated shops being converted to split retail/residential dwellings or a complete change of use, becoming flats and apartments.
Industry Insight Episode 7 | Changes in planning
With permitted development rights relaxed in recent years, allowing offices, pubs, and other redundant buildings to become housing, we will see more flexibility when it comes to changing the use of unviable retail units. Advancing building techniques such as ‘modular’ construction also makes it easier for retail space to convert into residential dwellings quickly.
Industry Insight Episode 7 | Opportunities for the Mortgage Industry
So, as we begin to enter a post-pandemic era, house-building firms will potentially have access to new development opportunities through the shop closures previously mentioned. Mortgage brokers, too, will have increased options to service the customers buying into this pioneering type of development. For all of us supporting the property market, we must prepare and ensure we are ready to service new openings like this.
Future mortgage applications may look different as a new breed of property comes onto the market. However, we all serve the industry and have a great opportunity to grow our business through this new situation.
Specialist lenders, like ourselves, who manually underwrite every mortgage application, are ready to help access this emerging market smoothly and ensure this new opportunity can be harnessed efficiently and smoothly. We’re ready for change!
Credit: Craig Middleton – Mortgage Sales and Distribution Manager, Harpenden Building Society | Industry Insight Episode 7. We’ve reached the end of our publication; until next time, stay Connect!