"The big conversion: 40,000 new homes as London's offices are turned into flats"

Link to Evening Standard

"The relaxation of rules allowing offices to be turned into flats has set the property world alight. The major policy change could provide more than 40,000 new London homes, many in prime central business districts where young Londoners, keen not to have an expensive commute, will be able to live and work.

"The areas in the forefront of the great conversion are Holborn and the former Fleet Street newspaper district, Victoria, Vauxhall, Euston, Whitechapel, Waterloo and Hammersmith — all where residential demand is growing and outdated office buildings are ripe for conversion. In outer London, Ealing, Barnet and Hounslow are set to benefit from more homes.

How the figures stack up

"Office-to-residential conversions have been gaining pace for 10 years, driven by the demand for housing, especially in prime areas where flats cost up £3,250 a sq ft compared with £2,100 a sq ft for office space.

• Since 2001 more than three million sq ft of central London office space has been changed to homes
• Another 1.8 million sq ft of unused space is awaiting planning consent for change of use to homes
• An estimated 17 per cent of all offices in the South East commuter belt are lying vacant
• The Government believes up to 40,000 flats could be created in and around the capital."