London councils confirm bids for office to residential exemption

The new permitted development rights were announced by the Department for Communities and Local Government (DCLG) last week. The DCLG confirmed that there would be an opportunity for local authorities to seek an exemption from the right if they can demonstrate that the right would create "substantial adverse economic consequences".

The Royal Borough of Kensington and Chelsea said in a statement that it would make a "strong case" to Government for an exemption and that ministers are already aware of the Council's "serious concerns".

"We have distinct circumstances in Kensington and Chelsea with vast differences between office and residential property values. The Council will strongly defend small and medium-sized businesses staying in the area," the Council said.

The City of London Corporation has long been opposed to the plans, saying that the creation of such rights would undermine London as the world's leading financial centre.

"The City of London has made no secret of our concern about the impact of the proposed change to planning rules upon our role as a world business centre," said the Corporation's city planning officer Peter Rees previously in a statement. 

"Property consultants estimate that 20% of the office floor space in the Square Mile would be in immediate danger of conversion to flats if we do not achieve an exemption from the rule change," Rees said.

The Corporation has now confirmed it will make a bid to seek exemption from the new rights, according to a report in Planning Magazine.