Croydon set to issue Article 4 direction to restrain office-to-resi conversions

The London Borough of Croydon is set to become the latest council to issue an Article 4 direction in a bid to restrain office to residential conversions.

The local authority said it had notified the Communities Secretary Eric Pickles of its intention to revoke the permitted development right.

When the Government brought in the right in May 2013, Croydon was one of a number of authorities whose applications for an exemption were unsuccessful.

Croydon said its fears over the effect the new right could have on office space and the quality of residential accommodation had been realised.

A report prepared ahead of Croydon’s Cabinet meeting next week (20 October) claims that 1,074 out of 1,236 units approved under the right are “substandard” accommodation.

If approved and there is no objection from the Communities Secretary, the council’s Article 4 direction would apply from September 2015. It is designed to protect office space in the central Croydon area, in particular around East Croydon station (the Croydon Opportunity Area).

Cllr Alison Butler, cabinet member for homes and regeneration at Croydon, said: “We want to give certainty to investors and developers about our support for office developments.

“While we are committed to providing new homes for Croydon residents, this is not at any cost. We are determined that all our homes, from whatever sector, should be decent and fit for purpose. In addition, the loss of office space is also resulting in a loss of jobs and opportunities for local people.”

Earlier this month the Local Government Association warned that businesses and charities were being evicted from premises as landlords sought to take advantage of the permitted development right.

Some 40% of heads of planning services surveyed by the LGA suggested that the measure had reduced office space. Only 20% reported that it had brought vacant office premises back into use.

In September Islington Council won the Department for Communities and Local Government’s backing for an Article 4 direction covering targeted areas in the borough.

This followed a long-running dispute that saw the authority at one stage threaten judicial review proceedings when the DCLG rejected its proposed direction outright.