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Amid retail decline, the high street may be reborn as housing

As online retail changes the way people shop, a British government minister has put forward a proposal that could change the retail mix in high streets forever.
By · 7 Aug 2013
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7 Aug 2013
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As online retail changes the way people shop, a British government minister has put forward a proposal that could change the retail mix in high streets forever.

Planning Minister Nick Boles has sounded the death knell for traditional high streets by saying empty or boarded-up shops should be turned into housing.

A consultation paper due out this week will suggest councils throughout England concentrate their efforts to revitalise shopping to just one or two "prime streets". The rest can be converted.

Mr Boles will also allow farmers to convert agricultural buildings such as cowsheds and stables into housing.

The high street proposals mark a dramatic shift in government policy. Two years ago it hired Mary Portas, the "Queen of Shops", to save high streets. In June, she attacked the government for refusing to commit to the "town centre first" planning central to her recommendations.

Retail chiefs said Mr Boles' proposals marked the first time a minister had publicly admitted the high street in its traditional sense was beyond saving.

Bill Grimsey, a campaigner who has called on ministers to admit the high street is dying and needs radical reform, said: "As soon as I heard this, I tweeted 'Hooray'. At last the message is getting through - that there are high streets out there that need to be considered in a very different way. It's only going to get worse. High streets cannot continue to serve solely as a retail destination, they have to be seen as a community hub."

Another retail executive said: "Given the over-expansion into out-of-town shopping, and now the rise of the internet, there is just too much retail space."

A spokesman for Mr Boles' department said there was no estimate of how many homes could be created by relaxing planning rules. He insisted the minister was not "abandoning" the high street, and that more housing closer to shops in prime locations may boost business.

An estimated 14 per cent of British high street shops are empty or boarded up after the credit crisis ripped through the retail sector.
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Frequently Asked Questions about this Article…

Planning Minister Nick Boles has proposed relaxing planning rules so empty or boarded-up high street shops can be turned into housing. A consultation paper will suggest councils focus retail activity on one or two "prime streets" while allowing other parts of the high street to be converted to homes.

The proposal asks councils to concentrate revitalisation efforts on one or two prime streets, creating focused retail hubs. The idea is that other, less viable retail areas could be repurposed—potentially into housing—rather than trying to sustain every shop as a traditional retail outlet.

Yes. Mr Boles will also allow farmers to convert certain agricultural buildings, such as cowsheds and stables, into housing as part of the broader easing of planning restrictions.

Reaction is mixed but includes support for radical change. Campaigner Bill Grimsey welcomed the move, saying many high streets need to be viewed differently and become community hubs. Some retail executives and chiefs said the minister’s comments acknowledge that the traditional high street is struggling and that there is simply too much retail space after over-expansion and the rise of the internet.

The article cites an estimate that about 14% of British high street shops were empty or boarded up following the credit crisis that hit the retail sector.

A spokesman for Mr Boles’ department said there was no estimate yet of how many homes could be created by the proposed changes. The department also insisted the minister was not "abandoning" the high street and suggested more housing close to shops in prime locations might boost business.

The proposals reflect a shift away from viewing high streets solely as retail destinations. Officials and campaigners suggest high streets could become mixed-use or community hubs, combining housing and other uses alongside concentrated retail on prime streets.

The article indicates a potential long-term change in demand: less need for widespread retail space and more interest in converting underused units to housing or mixed use. For investors, that suggests a shifting landscape where prime retail locations may be preserved while other assets could be repurposed for residential use—though the government has not provided estimates of housing numbers yet.