Attention grabbing headlines like 'Avalanche of office to home conversions imminent' were widespread in early January after some London councils that were refused exemptions for allowing offices to be converted to homes without planning consent, failed to convince the High Court that they were treated unfairly.

Just before Christmas, on the 20th of December, a coalition of London boroughs lost their legal challenge at the High Court. The challenge led by Islington, and supported by Camden and Richmond Upon Thames, with a separate action brought simultaneously by Lambeth, sought a judicial review of the government's introduction of the new rules.

The councils, which were being financially supported by fellow boroughs Tower Hamlets and Sutton, argued that the move is already damaging their economies because of the loss of valuable employment space and jobs.

Only 17 councils were granted exemptions from the new rules by the Department for Communities and Local Government (DCLG) though 165 authorities argued a case for special treatment. While the DCLG granted Islington an exemption for part of the borough identified in the capital's 'Central Activities Zone', it refused a request for the rest of the borough to be put off limits.

The boroughs argued that the exemptions process was unfair, but the Judge concluded that the government's actions were not unlawful.