Between March 2020 and March 2022, Britain’s high streets lost a net total of 9,300 retail outlets. That’s not a slow decline — it’s a structural shift that has fundamentally changed what our town centres are for. What I’ve noticed covering this beat is that the conversation has moved on from “how do we save the shops” to something more interesting: what do we do with all this space now?
Those numbers tell a clear story. The old model — rows of shops selling clothes, electronics, and household goods — is no longer viable in many places. Online shopping, the pandemic, and rising costs have all played their part. But here’s the thing: empty shops don’t have to stay empty. Across the country, councils and developers are turning vacant retail space into homes, offices, and community services. It’s not a rescue mission for the high street of 1995. It’s something new. Here’s what you actually need to know.
What ‘residential hub’ actually means for a high street
When I say high streets are becoming residential hubs, I don’t mean a few flats above a Boots. I mean whole sections of town centres being rezoned and rebuilt as places where people live, not just shop. The shift of residents away from city centres has been well documented, but this is different — it’s about bringing people back into the heart of towns that have been hollowed out.
The key change is that Use Class E — which covers shops, offices, and restaurants — can now be converted into homes under permitted development rights. That’s why you’re seeing former department stores turned into apartments and old retail parades becoming housing. The question is whether this is happening too fast, and whether the homes being created are good enough. The House of Lords committee has specifically asked the government to review this policy.
Why this matters for anyone living in or near a UK town centre
If you live within walking distance of a high street, this transformation affects you directly. A net loss of 2,284 outlets in just the first half of 2024 means fewer places to buy everyday items, but it also means more empty units that can attract antisocial behaviour and reduce property values nearby. What I’ve seen in the data is that the places hardest hit are often the ones that can least afford it.
Take the ‘Shuttered Front’ — 39 constituencies, mostly in the Midlands and Northern England, where high street decline is closely linked to rising political disengagement. This isn’t just about shopping. It’s about whether a place feels like it has a future. On the other hand, cities like Sunderland are delivering over 1 million square feet of new office space and hundreds of new homes as part of a deliberate strategy to create a new central business district. The difference is planning and investment.
My own view is that the towns getting this right are the ones treating their high street as a neighbourhood first and a retail destination second. If you’re a homeowner near a declining high street, the risk is real — but so is the opportunity if regeneration comes. A property lawyer can help you understand how local planning changes might affect your property’s value or development potential.
Where high street conversions go wrong
The biggest mistakes I see aren’t about whether to convert — they’re about how it’s done. Here are the patterns that keep coming up.
Converting without considering the mix
Turning a row of shops into flats sounds straightforward, but if you remove all retail from a street, you kill the footfall that makes the area feel safe and lively. The House of Lords committee specifically warned that the government should review permitted development rights to examine the impact on high streets relative to the number and quality of new homes delivered. A street of nothing but front doors doesn’t function as a community hub.
Ignoring the quality of new homes
Not all conversions are equal. Some permitted development conversions produce small, poorly lit flats with no outdoor space. The committee’s concern is that the quantity of homes shouldn’t come at the expense of quality. If you’re considering buying a converted high street flat, check the natural light, soundproofing, and whether the building has proper fire safety measures. A real estate lawyer can review the conversion paperwork to ensure it meets building regulations.
Waiting for the market to fix itself
Declining footfall, shifting consumer habits, and financial pressures on local authorities all make revitalisation difficult without intervention. The Centre for Cities report highlighted that local responses vary hugely — from Sunderland’s major regeneration to Bradford’s closure of outdated retail space. The towns that are succeeding aren’t waiting for private developers to lead. They’re using High Street Rental Auction powers and public investment to drive change.
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| Approach | Risk | Better alternative |
|---|---|---|
| Full retail conversion to residential | Kills footfall and community feel | Mixed-use with ground-floor services |
| Permitted development without oversight | Poor quality housing | Local authority quality standards |
| Waiting for private investment | Decline accelerates | Public-led regeneration with rental auctions |
Overlooking the role of public services
The committee recommended that new public services — including libraries, diagnostic centres, and local government buildings — should be located on the high street in the first instance. This is one of the most underused levers. An NHS clinic or a council office brings reliable footfall every day, something retail alone can no longer guarantee. If your local high street is struggling, ask your council whether they’ve considered moving a public service into a vacant unit.
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How to navigate the shift from retail to residential
Whether you’re a homeowner, a prospective buyer, or someone who cares about their local area, here’s what you can actually do.
Understand your local planning pipeline
Check your council’s local plan to see which high street areas are designated for conversion. The government has been asked to fund local authorities to maintain an ownership and occupier database for commercial properties within high street areas. In the meantime, you can search planning applications on your council’s website for keywords like “change of use” or “Class E to residential.” If you see a cluster of conversions in one street, that’s a signal the character of the area is about to change.
Assess the impact on property values
Conversions can go either way. A well-planned mixed-use development with ground-floor cafes, a library, or a health centre can lift nearby house prices. A poorly executed conversion with low-quality flats and no amenities can drag them down. The impact of infrastructure on house prices is well documented, and high street regeneration is a form of infrastructure. Look for areas where the council has a clear plan, not just a policy of allowing conversions by default.
Push for community-led alternatives
Power to Change’s research shows that community businesses are repurposing vacant department stores and other empty spaces. These aren’t charity shops — they’re viable businesses run by and for the local community. If your high street has a large empty unit, ask your council whether a community asset transfer is possible. This gives local groups first refusal on buying or leasing the building.
- 1Check the local planVisit your council’s website and search for the local plan or neighbourhood plan. Look for policies on high street regeneration and change of use.
- 2Search planning applicationsUse the planning portal to find recent applications for change of use in your area. Note the volume and type of conversions proposed.
- 3Attend a council meetingHigh street regeneration is often discussed at planning committee or economic development meetings. Public attendance is usually allowed.
- 4Ask about community asset transferIf there’s a vacant building you think could serve the community, ask your council about listing it as a community asset or pursuing a transfer.
Watch for the emerging trend: NHS on the high street
The House of Lords committee specifically recommended that the government set out whether it intends to encourage moving more NHS health services to the high street. This is still in the discussion phase, but it’s worth watching. If your local high street has a large vacant unit, a community diagnostic centre or GP surgery could be the anchor tenant that brings everything else back to life. A business lawyer can help if you’re involved in a community group or local business looking to negotiate a lease on a former retail unit.
Can my council stop a shop being turned into a flat? ▾
Will converting shops to homes lower my property value? ▾
What is a High Street Rental Auction? ▾
Are there any tax incentives for converting retail to residential? ▾
What’s the ‘Shuttered Front’ and why does it matter? ▾
The shift from retail to residential on UK high streets isn’t a temporary trend — it’s a fundamental change in what town centres are for. The places getting it right are the ones planning for mixed use, insisting on quality, and bringing in public services as anchors. If this was useful, you might also want to read Decoding the UK property ladder: your guide to climbing it faster.
Sources and Further Reading
Is the UK real estate market becoming too expensive for young buyers? — Explores affordability pressures that are pushing more people toward high street conversions as a first home option.
How to boost your UK property’s value without breaking the bank — Practical tips for adding value to a converted high street flat or any property in a regeneration area.
High streets: life beyond retail. House of Lords Built Environment Committee, 2024.
Three weeks on: how our high streets report sparked a national conversation. Centre for Cities, 2024.
High streets research and reports. Power to Change, 2024.
