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More shops and offices being turned into homes as high street dies "a painful death"

ended 11. July 2025

THE UK's high streets are being “transformed in real-time”, experts have said, due to a significant increase in shops and commercial buildings being developed into residential homes.

Adam Stiles, Managing Director at Helix Financial Partners, said: “Without question, more and more property investors and developers are seeking opportunities to convert commercial properties into residential homes, and have been doing so for some time. The UK high street is being transformed in real time.”

Bob Singh, Founder at Chess Mortgages, said that “thanks to the exponential rise of online shopping, the UK high street is dying a painful death."

He added: "Once bustling shopping centres and high streets are now much quieter. The effects of COVID-19 and high business rates have seen many shops close over the years. Working from home has also left many office buildings vacant and these, too, make great commercial to residential conversions. We're seeing a lot more of this now.”

Singh's views were echoed by Marcus Wright, Managing Director at Bolton Business Finance, who said “we're seeing a fundamental reset of the UK high street”. By way of example, Wright said one of his clients recently “converted an old Conservative Club into six luxury apartments”.

Meanwhile, Samuel Mather-Holgate, Independent Financial Adviser at Mather and Murray Financial, said councils appear aimless: "Our dying high streets have been a political dilemma for a decade, with more units falling into disrepair and towns and cities only seemingly able to attract pound shops.

“Local councils, quite rightly, want a reversal of this, but seem aimless in driving policies to incentivise the boutiques that residents crave. As a result, there is a collection of boarded-up units that eventually get the green light for residential development as it's the least bad option. The government needs to help drive change in town centres with subsidies for local initiatives that work.”

Chris Barry, Director at Thomas Legal, commented: “The changes to permitted development rules sparked a rush to convert commercial units to residential. Developers can now commit to purchase a commercial unit unconditionally, safe in the knowledge permitted development rights will enable conversion to residential under the same footprint without going through a full planning application. A quicker and easier planning process, together with a higher price per square metre, can make converting commercial units a very profitable endeavour.”

Sean Horton, Managing Director at Respect Mortgages, also highlighted the influence of permitted development rights: “The commercial-to-residential conversion trend really makes sense when you look at what's happening in the market. Property developers are spotting genuine opportunities here. Permitted development rights have made the process much smoother, and with building costs soaring, converting existing structures often beats starting from scratch."

6 responses from the Newspage community

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Marcus Wright
Managing Director at Bolton Business Finance
We are seeing a big increase in enquiries for commercial to residential development finance from our clients. We find it is a popular strategy with our bridging and development lenders as well, who are keen to fund them at competitive rates. The results can be impressive. One of our clients converted an old Conservative Club into 6 luxury apartments, increasing the value of the property by 500%. We expect to see continued strong demand for this type of finance with our property developer clients. We're seeing a fundamental reset of the UK high street.
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Samuel Mather-Holgate
Managing Director & IFA at Mather and Murray Financial
Our dying high streets have been a political dilemma for a decade, with more units falling into disrepair and towns and cities only seemingly able to attract pound shops. Local councils, quite rightly, want a reversal of this, but seem aimless in driving policies to incentivise the boutiques that residents crave. As a result, there is a collection of boarded-up units that eventually get the green light for residential development as it's the least bad option. The government needs to help drive change in town centres with subsidies for local initiatives that work. The decicisions should be made locally, with funding from central coffers as it will be rewarded in economic activity once the plans are in force.
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Bob Singh
Founder at Chess Mortgages
Thanks to the exponential rise of online shopping, the UK high street is dying a painful death. Once bustling shopping centres and high streets are now much quieter. The effects of Covid 19 and high business rates have seen many shops close over the years. Under permitted development rights, these premises can be converted into residential units without planning permission. Working from home has also left many office buildings vacant and these, too, make great commercial to residential conversions. We're seeing a lot more of this now. Conversions are favoured over ground-up developments as they’re seen as lower risk. The rise in the cost of materials and labour makes ground-up developments a less attractive proposition. Funding for these projects is also an easier process and costs can be better controlled. However funding for the end units may be a challenge in heavily commercial areas so caution is required.
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Chris Barry
Director at Thomas Legal
The changes to permitted development rules sparked a rush to convert commercial units to residential. Developers can now commit to purchase a commercial unit unconditionally, safe in the knowledge permitted development rights will enable conversion to residential under the same footprint without going through a full planning application. A quicker and easier planning process, together with a higher price per square meter, can make converting commercial units a very profitable endeavour.
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Adam Stiles
Managing Director at Helix Financial Partners
Without question, more and more property investors and developers are seeking opportunities to convert commercial properties into residential homes, and have been doing so for some time. The UK high street is being transformed in real time. Where the value of land for sale with planning has been largely stripped out by ambitious land owners expecting a pretty penny, the engineering of value and ease has been refocused towards conversion projects, which are usually quicker to turn around.
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Sean Horton
Managing Director at Respect Mortgages
The commercial-to-residential conversion trend really makes sense when you look at what's happening in the market. Property developers are spotting genuine opportunities here. Permitted development rights have made the process much smoother, and with building costs soaring, converting existing structures often beats starting from scratch. For lenders, they're generally quicker projects with fewer headaches than new builds, and developers can get their money back faster and move onto the next opportunity. With retail patterns changing permanently and housing still in short supply, these conversions make commercial sense for everyone involved.