High street shop units are increasingly being targeted for conversion into homes, new data has revealed. Research by commercial law firm EMW found that the number of conversion applications leaped 37%. Some 677 applications were made in 2020/2021, versus 494 in 2019/2020. However, out of the 677 applications for conversion, some 45% were rejected by local authorities.

Marco Mauro, principal at EMW, said: “Some local authorities are hesitant about losing too much commercial space. If too many shops are lost, the value of a high street as a destination is eroded, often permanently.”

Many councils are fearful their areas may become “dormitories” and residents will turn to other areas to shop, Mauro explained. 

Due to this hesitancy from local authorities, it was in developers’ interests to consider mixed-use developments rather than solely residential projects, he added.

The pandemic has seen big names such as Topshop and Debenhams depart the UK high street, with many retail units remaining vacant. Some 14.4% of retail units on the high street are currently vacant, EMW said, citing figures from the department for levelling up, housing and communities.