The Housing Corporation is drawing up a business plan for the agency and debating whether it should claw back money from rental income or rely entirely on public subsidy.
The agency will advise businesses on turning their upper floors into homes and act as a broker with housing associations and private landlords that would manage this accommodation.
No timetable has been set for the 300,000 target – an estimate of the number of homes the move could yield made by the Housing Above Shops taskforce, which comprises the British Property Federation, private investors, charities and businesses.
The taskforce recommended the creation of the agency in a report last September. Details of the study have only just emerged.
The BPF's director of residential property, Ian Fletcher, said: "A number of models could develop, some involving RSLs, others driven by the private sector.
"What's most important is that the owner of the property and occupier of the commercial premises are comfortable with any arrangements, as this will only work with their cooperation.
"Properties above shops would make good key-worker accommodation. Bringing such properties into residential use would also support other government objectives – regenerating our town and city centres, improving security and contributing to a more vibrant, 24-hour economy."
Bringing such properties into residential use would help regenerate our city centres
Ian Fletcher, BPF
The move to set up the agency was welcomed by the affordable rural housing initiative, set up last year by Prince Charles (HT 4 July 2003, page 13), because there are large numbers of empty properties above shops in market towns.
The initiative has set up a meeting next month between major high-street businesses, registered social landlords and the government to look at ways to encourage businesses to let vacant upper floors as homes.
An ODPM spokesman said: "We are committed to securing the release of vacant space over shops to assist housing supply."
He added that pension funds could be used to invest in property above shops: "As announced in the Budget, we intend to simplify the way pensions are taxed.
"This will allow small pension funds to invest without restriction in residential accommodation, including commercial property with accommodation on the upper floors."
The plans for the agency complement an amendment to the Housing Bill expected to be tabled by ministers as it passes through its final stages in parliament in the next few weeks.
The amendment would allow empty homes to be let without their owners' permission.
Source
Housing Today
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