A decline in conversion projects could ultimately prevent the government from hitting its ambitious housing delivery targets, Jonathan Samuels, chief executive of lender Octane Capital, has argued.<\/p>\n
Government figures on net housing supply show that in the past five years a total of 114,961 homes were delivered through change of use, a 22% fall compared to the previous five-year period, when 147,458 homes were created.<\/p>\n
The North East has seen the steepest fall, down by more than half (-52.6%). London has also suffered a dramatic decline, with completions down by almost 50% (-49.7%). The East Midlands (-26.3%) and East of England (-23.5%) have also seen substantial reductions.<\/p>\n
Jonathan Samuels, chief executive of Octane Capital, said: \u201cThe government has set itself some very ambitious housing targets, but the reality is that these will never be achieved through new-build delivery alone.<\/p>\n
\u201cChange of use is one of the most effective ways of bridging the supply gap, yet delivery has been in decline. A lack of funding, stricter planning, and rising costs are all standing in the way.<\/p>\n
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\u201cHowever, the specialist finance sector is helping to combat this trend by giving developers the speed and flexibility to secure sites, fund conversions, and bring much-needed homes to market.\u201d<\/p>\n
Several factors have contributed to this downward trend. Developers have faced more restrictive planning requirements, particularly around permitted development rights, which have limited the number of straightforward office-to-residential conversions seen in previous years.<\/p>\n
Higher build costs, supply chain pressures, and rising interest rates have also made projects less financially viable. At the same time, mainstream lenders have become more cautious, with stricter lending criteria creating further barriers to getting projects off the ground.<\/p>\n
Despite these challenges, change of use remains one of the fastest and most efficient routes to adding to the housing stock, particularly when compared to the long timelines involved in new-build construction.<\/p>\n","protected":false},"excerpt":{"rendered":"
A decline in conversion projects could ultimately prevent the government from hitting its ambitious housing delivery targets, Jonathan Samuels, chief executive of lender Octane Capital, has argued. Government figures on net housing supply show that in the past five years a total of 114,961 homes were delivered through change of use, a 22% fall compared […]<\/p>\n","protected":false},"author":1,"featured_media":3617,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-3616","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n