Vacant building credit is deeply flawed and puts jobs at risk
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Version 0 of 1. While we agree with the government that there is desperate need for additional housing and want to see empty buildings brought back into use, we are concerned that recent changes to vacant building credit will have unintended consequences in Westminster and other areas of central London (Property firms profit as home rules change, 2 February). While it may help encourage development in parts of the country which may not otherwise take place, for prime areas of central London such a one-size-fits-all approach is clearly flawed. As well as removing an important element of developer contribution to the provision of affordable housing, further eroding the ability of people from a wide range of backgrounds to live in the heart of the capital, our concern is that these changes may result in yet more office space being lost to homes in central London, as it will encourage more office-to-residential conversions. Westminster is one of the jewels of London’s economy, contributing nearly £56bn and hosting 14% of its jobs. However, in the last four years alone it has lost 1.8 million sq ft of office space to housing, with a further 3.7 million sq ft in the pipeline to be converted, which by industry calculations could result in a loss of up to 78,000 jobs. I fear there may be a tipping point where the commercial heart of London becomes irreparably diminished. When big multinationals choose a new global HQ they want to be somewhere central with excellent transport connections, where they can recruit talent. It’s illogical to spend billions on Crossrail so commuters can reach central London more quickly, while at the same time eroding the very jobs which those people would travel to. There is undoubtedly a need for new housing, but that cannot be done at the expense of jobs in the centre of the city, and we need to think carefully about the type of housing we are providing. I therefore support Westminster city council’s stated opposition to the vacant building credit, and we are also urging the government to issue additional new guidance which encourages the retention or provision of office space in areas of significant commercial activity, such as central London, which serves as an engine for economic growth for both London and the UK economy as a whole.Daniel Van GelderChairman, Westminster Property Association |