While fast-growing technology companies are thriving in the capital and hoovering up office space, start-ups and microbusinesses are constantly threatened by continuously rising property prices. A report from the London Assembly Conservative Group published recently has called for empty garages across the country to be converted into commercial spaces for small businesses. While this is an excellent opportunity to relieve the soaring costs burden on SMEs, are developers aware of the legal considerations (and associated costs) surrounding change of use of garages and conversion into a business unit?  

The report has identified approximately 3,275 garages standing empty across London, owned between 10 housing associations. Typically, lock-up and leave garages are in rows of 5-15 garages slightly separated from the residential properties they were built to serve and are often now too small to hold today's larger cars and instead they tend to be used for storage or lie empty.  Where possible, developers may try and convert these garages into more valuable residential units, however, for many reasons (e.g. privacy/over-looking issues, density issues) such redevelopments do not always receive approval or are not suitable for new residential stock.

Converting this space into commercial space provides an excellent opportunity where redevelopment is not suitable, allowing small businesses such as cycle mechanics and product designers to invest in company growth while reducing some of the costs associated with renting an office space. But while a garage conversion would minimise office rental expenses for small businesses, it would nevertheless require a significant initial investment from the developer. Developers would need to obtain a planning permission and ensure that the conversion complies with building regulations as well as any restrictive covenants on the title.