Workplaces are undergoing a sustained period of change. Shifts in how, where and why we work have altered demand for office space, leaving parts of the market under increasing pressure while others continue to strengthen. At the same time, the UK faces a well-documented and persistent shortage of housing. Together, these trends are bringing renewed focus to the role of office-to residential conversion, not as a straightforward solution, but as a strategic opportunity that, when approached carefully, can respond to evolving market conditions on both sides.
Workplaces have changed significantly over the years. A move to agile working and remote or dispersed working practices have changed how offices are occupied, and a shift in the market has created a ‘polarisation’ of what is considered desirable in terms of workspace and location. It has been well documented that Covid 19 has only helped to accelerate these trends.
The subsequent impact of tenants consolidating their asset/s combined with a ‘flight to quality’ across the business space real estate has resulted in many office buildings, particularly Grade B spaces, either under-utilised or now sitting empty. Research recently conducted by BNP Paribas Real Estate revealed that 75% of available Central London office supply in Q4 2024 was Grade B – accounting for roughly 21 million sq ft of vacant stock in the city.
Meanwhile, demand and rent for ESG-centred Grade A office space across London continues to rise, widening the gap between Grade A and Grade B office space and reinforcing the two-tier market.
According to Oktra’s London Office Rent Report 2025, stricter EPC regulations will only put more pressure on landlords of lower-quality stock to refurbish or retrofit their properties.
At the same time, there is significant pressure on housing with a lack of supply across England. The Labour government promised to build 1.5 million new social and affordable homes by 2036 across this parliament with routes identified to achieve this, including a review of planning rules.
Until recently, affordable housing targets and conflicting design requirements which included dual aspect homes and a limit of dwellings per core, have challenged the sector and slowed progress in house building. The new Planning and Infrastructure Bill is set to speed up planning decisions and the construction of new homes in England, with the relaxation of design guidance to help move things forward.
Within this context, office to residential development is building momentum as developers increasingly recognise it as an opportunity to help address acute challenges faced within both sectors and a way to ensure return on investment.
There are however considerations to bear in mind when planning the conversion of office to residential. Both sectors and residential sub sectors have different planning status and design requirements, so viability and success of conversion is highly dependent on the type of existing office building, where it is located, and the target residential market.
Following a recent workshop involving Scott Brownrigg, Core Five and Elliott Wood, this paper outlines the key considerations associated with converting office buildings into residential use.
Drawing on three case studies, we examine the viability of repurposing typical office assets across a range of locations into diverse housing typologies, including private and affordable homes, build-to-rent schemes, later living developments, and student accommodation.
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