The new rules, which allow developers to change offices into residential dwellings without planning permission, form part of the government’s strategy to boost housing supply.

In 2009 – 2010 residential property construction dipped to its lowest level since 1924, with just 129,000 new homes constructed.

Only 2.8% of those homes were the result of office conversions.

The latest commercial vacancy rate is at 7-9%, which suggests there is an oversupply of commercial property which could be turned into residential use.

The government’s ‘change of use’ policy, which allows the conversion of offices, workshops, factories and warehouses into of residential dwellings, without the need for planning permission will run for three years.

Chris Baguley, managing director of Bridging Finance Limited, a short term funding provider to the professional sector, said:

“Many towns and cities have office blocks, warehouse and business parks needlessly lying empty. At the same time there is a growing demand to live in town centres with the local amenities and transport links.

“By changing the planning rules, the Government has freed up property investors to make use of vacant office units and turn them into new homes.

“Converting commercial and semi-commercial property into residential use results in the regeneration of town centres and stimulates the local economy by engaging local businesses to support the centrally located population. Since the planning rules changed, we’ve seen an increase in investors successfully executing this by converting redundant offices into residential properties.”