Councils Turn to Empty Buildings to Boost Social Rent Supply

Local authorities across England are ramping up efforts to convert underused buildings into social rent homes, as part of a growing movement to tackle the housing crisis without relying solely on new construction.

Driven by rising demand and constrained budgets, councils are increasingly targeting long-term vacant properties, including former offices, retail units, and public buildings, for adaptive reuse.

According to Shelter’s “Home Again” report, over 10,500 empty homes could be converted into social rent properties within three years if central government invests £1.25 billion in targeted grants.

The initiative builds on the Levelling Up and Regeneration Act 2023, which introduced High Street Rental Auctions (HSRAs), a mechanism allowing councils to lease out persistently vacant commercial properties without landlord consent.

Eleven councils, including Camden, Barnsley, and Westminster, are now piloting the scheme, with auctions expected to begin this summer.

In Fleetwood, Lancashire, a former hospital is being transformed into a multi-use community hub, showcasing the potential of creative reuse.

Developers like Capital & Centric are partnering with councils to repurpose concrete buildings once slated for demolition, arguing that retaining existing structures can save money and preserve local character.

The Local Government Association (LGA) has also launched a call for evidence to gather best practices from councils navigating financial and logistical hurdles.

Case studies highlight successful acquisition strategies, partnerships with social investors, and the use of predictive analytics to identify viable properties.

Despite the momentum, challenges remain. Engineers are often reluctant to warranty older buildings, and planning regulations can complicate conversions.

However, advocates argue that with the right support, repurposing offers a faster, greener path to expanding social housing stock.

Tim Heatley, founder of Capital & Centric, said: “We forget that sometimes it’s not just what’s the cost, it’s also what’s the value. If you’re good at understanding what that additional value is and how to celebrate that, it helps.”