Seven central registers, one picture of demand
Our figures come from the planning registers of Westminster, Camden, Southwark, the City of London, Islington, Tower Hamlets and Lambeth. In the 12 months from 7 October 2025 those registers recorded 1,330 commercial applications, 527 change-of-use applications and 122 commercial-to-residential proposals.
The recent proposals cover a wide spread of work:
- first-floor commercial space turned into flats, with new commercial floorspace built at street level
- offices returned to use as a single house
- small stores and offices demolished to make way for a new dwelling
- prior approval for a Class E studio to become a family-sized flat
- conditions being discharged on a purpose-built student accommodation redevelopment
- a listed building moving out of community use into flexible office space
That last example matters. London's pipeline is not only about losing offices. Buildings are also being brought into commercial use, and both routes need money to bridge the period between purchase and a finished, lettable or saleable asset.
Bridging while a London consent is still being worked through
Several of the proposals above are variations or condition discharges on permissions granted earlier. That is typical in central London, where a scheme often goes through more than one planning step before work can start. A bridge lets you secure the building now and carry it while the paperwork completes.
Lenders will usually lend against the value as it stands today, with any uplift from consent reflected once it is granted. Our page on a bridging loan for planning permission explains how that works, and office to residential bridging finance covers the conversion route that appears throughout these registers.
Listed fabric, conservation areas and permitted development
Much of central London is listed or sits within a conservation area. Class MA permitted development does not apply to listed buildings and is restricted in some protected areas, so many London conversions need a full planning application rather than prior approval. Our guide to Class MA permitted development sets out the general rules; confirm the position on any specific building with a planning consultant.
For lenders, the route to consent shapes the risk. A building with full permission and listed building consent in hand is a simpler case than one where the strategy depends on an application still to be decided. We present the planning position to lenders clearly so the valuer and underwriter see the same facts.
Loan size, exits and the single-house question
Central London values mean many cases sit at the upper end of bridging loan sizes, and some need a lender that is comfortable with a large single exposure. Our page on large commercial bridging loans covers that market. Loan to value is commonly up to 70% to 75% on a first charge for standard commercial property, lower for specialist assets.
Exits we see work in the capital include:
- sale of converted flats or of the finished building
- refinance onto a commercial mortgage once a building is let
- refinance onto investment mortgages where the end product is residential and let
One London pattern needs care. Where an office or shop becomes a single house that you, or an immediate family member, will live in, the loan is a regulated mortgage contract. We introduce those cases to a firm directly authorised by the Financial Conduct Authority.
