With the increase in commercial-to-residential conversions, Zurich UK has raised concerns about potential risks, warning that poorly executed conversions may create homes unfit for future climate conditions.
Applications to convert commercial spaces into homes rose by 20% year-on-year in 2023, continuing the surge that began post-pandemic as developers repurpose unused office spaces under relaxed planning rules.
Key issues in conversions:
Overheating risks: Academics from London School of Economics (LSE) highlight that over half of UK homes may face overheating risks, particularly affecting buildings in urban heat islands.
Infrastructure strain: Many converted buildings struggle with issues like escape-of-water claims due to plumbing systems not designed for residential use, leading to frequent leaks and failures.
Climate resilience: As heatwaves become more common, Zurich cautions that homes need proper ventilation and shading to remain habitable in future UK summers.
Paul Redington, Major Loss Property Claims Manager at Zurich, explains: “Increasing the UK’s housing stock is crucial, but it’s essential that conversions are well-designed. If basic features like cooling systems and ventilation are ignored, these homes could become uninhabitable.”
Adding to these concerns, Tony Mulhall of RICS notes that while converting stranded commercial assets to housing is appealing, building adaptations must meet residential standards. “Direct access to outdoor space, such as balconies, is often overlooked in conversions under Permitted Development Rights,” he says, warning that such shortcuts could leave properties ill-suited to future needs.
With a significant portion of the UK’s housing shortfall being addressed through office conversions, Zurich and RICS urge developers to prioritise quality and sustainability in these projects to ensure they are not only viable in the present but safe and resilient long term.
