Retail landlords throughout London “could be sitting on a goldmine” thanks to Philip Hammond’s announcement of a new planning policy in yesterday’s Budget.
In an effort to boost housing in the capital, the government has announced a new initiative to make sure all land in London is used efficiently.
This would look to convert space above London’s 72,242 shops into residential space.
Large retail spaces have become harder to fill in recent months, with one in four retailers on Bond Street reportedly looking to relocate due to soaring business rates and rents.
This has made the spaces less attractive for landlords, but under the new initiative that could potentially create hundreds of thousands of new homes, these properties stand to become far more valuable.
“Retail investors may see the government’s announcement as an unexpected boost to property values, particularly if the space has been underutilised but is otherwise in good condition,” JLL head of residential research Adam Challis told The Evening Standard.