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Best Commercial to Residential Conversion Contractors in London and the UK: How to Choose

Vacant former pub and members' club on Allitsen Road, St John's Wood, appraised by Craftex for residential conversion

The best commercial to residential conversion contractor is one that can show you the planning route, the number and size of homes the building will really take, and a build price, before you commit, and then deliver all three. In London and across the UK, the firms that do this well combine planning, design, development appraisal and construction in one team, so the scheme that gets consent is the scheme that can be built for the price.

Converting offices, shops, pubs or warehouses into homes is not a fit-out. It changes the planning use, triggers Building Regulations for new dwellings, and lives or dies on the value of the finished flats. That is why choosing a conversion contractor is closer to choosing a development partner than a builder. This guide sets out the checks, compares the main types of firm, and is honest about where Craftex fits.

Three ways to buy a conversion

You want toThe partner you needWhat you keep
Keep the building, fund the scheme and just get it builtA conversion contractor, ideally design and buildThe building and all the profit, and the risk
Keep the building but hand over planning, design and deliveryA development manager on a fee, or a developer-contractorThe profit, less the fee
Share or pass on the riskA developer-partner that co-invests or buysA share, or a price

Craftex works in all three ways. Depending on the stage, we can co-invest, take 100% of the risk, or work on a percentage or fee basis.

The 7 checks for a conversion contractor

1. The planning route

A conversion can need full planning permission, or it may be possible under Class MA prior approval, which has its own conditions, and many London boroughs restrict it with Article 4 directions. Ask the contractor which route it would take for your building and why. If it cannot answer, it is a builder, not a conversion specialist. Our permitted development and prior approval and change of use pages explain the options.

2. Homes that meet the standards

New homes from a conversion must meet the nationally described space standards, and natural light is a recurring issue in deep office floorplates. Ask for a schedule of accommodation that shows each flat's size and outlook, not just a unit count. See our guide to space standards for flats.

3. Building Regulations for new dwellings

A change to residential use is a material change of use. Fire separation, escape, sound insulation, ventilation and energy performance all have to reach the standard for new homes, in a building that was never designed for them. On taller buildings the Building Safety Act regime adds a separate approval process; see our guide to Gateway 2 and the second staircase.

4. The structure you have

Floor-to-floor heights, column grids, risers, basements and façades decide where flats, bathrooms and stairs can go. A contractor should survey and test this before promising a layout.

5. Viability, not just cost

A conversion is worth doing only if the finished value covers the purchase, build, fees, finance and a profit. Ask who on the team runs the appraisal and has sold or let homes at scale. Our guide to development appraisal, GDV and residual land value shows how the numbers work.

6. Tax and VAT

Conversions can benefit from reduced VAT rates on some works, and the structure you buy and sell through matters. Take advice early; see VAT on commercial to residential conversions.

7. Residential finish quality

Offices are built to be durable; homes are judged by buyers on detail. Ask to see a finished residential project by the same team.

How the main types of conversion contractor compare

Typical patterns, not verdicts on any firm.

What mattersGeneral builderPermitted-development conversion specialistArchitect or planning consultantLarge residential contractorCraftex
Planning route adviceRarelyStrong on prior approvalCore strengthClient's consultantsIn-house design and planning
Unit mix and space standardsBuilds what is drawnOften maximises unit countStrongStrongTested against standards at feasibility
Viability and exitNoVariesRarelyClient's jobDevelopment Director with housebuilding MD background
Build deliveryCore strengthVariesNot their roleStrong on large schemesAround 70% own labour
One team from appraisal to handoverNoSometimesNoRarelyYes
WhereLocalVariesVariesNationalLondon and across the UK
A gutted London building held by a façade-retention scaffold during redevelopment

Rob Barton: why a housebuilder's view matters on a conversion

A conversion succeeds or fails on the homes at the end: their size, layout, light, price and how quickly they sell or let. That is a housebuilder's question, not a fit-out contractor's.

Rob Barton, our Development Director, leads development partnerships with landowners, investors and family offices. Before Craftex, over more than 20 years, he was a Regional Managing Director at Berkeley Homes and held Managing Director and Land Director roles at plc housebuilders including Countryside and St Modwen. In that previous career he was directly responsible for delivering more than 3,000 private homes, 1,000 affordable homes and 750 build-to-rent homes, on schemes including Acton Gardens (2,340 homes), St Andrew's Park in Uxbridge (1,340 homes) and the Old Vinyl Factory in Hayes. He has also served as a non-executive director of three housing associations. These are his schemes from earlier roles, not Craftex projects.

On a conversion, that experience shows up early: in the unit mix, in what the market will pay for each flat, in the affordable housing conversation with the borough, and in an exit plan before the drawings are finished.

The rest of the team, with earlier projects from their previous careers:

  • Rafael Porzycki, Head of Design & Planning: 15 years' experience; leads our in-house design and planning.
  • Martin Hickey, Preconstruction Director: more than 50 years in construction; responsible for preconstruction and project management.
  • Joe Crawford, Operations Director: 37 years, including residential developments in Belgravia, with projects from £100K to £135M.
  • Konstantin Jegorovs, Projects Director: 16 years, including aparthotels and high-end residential projects.

What we can show you, honestly

  • Allitsen Road, St John's Wood. A feasibility study for a vacant four-storey corner building in a conservation area, opposite two Grade II listed properties, once a pub and later a members' club. 458 m² existing GIA. We developed four design options, from light-touch to full conversion, tested against the Westminster City Plan, the London Plan and space standards, showing up to seven apartments. This is a feasibility study; the scheme has not been built.
  • Portsoken House, Aldgate. A conversion in the other direction: an abandoned warehouse turned into 1,550 sq m of premium offices in seven months, around occupied floors. £2.2M.
  • Drake's, railway arch. A 500 sq m warehouse conversion with a fully self-supported internal build because nothing could be fixed to the arch. Eight weeks, £200K.
  • Herbert Crescent, Knightsbridge. For residential finish: a £1.5M, 450 m² prime home refurbished over 32 weeks, with bespoke joinery made by our own joinery team.
  • Outside London, Craftex took part in Leicester One, a £3.9M, 56-room student residence.

Where Craftex is not the right fit

  • A single flat over a shop, or a scheme well under £100,000 of build. A local builder with a good architect will usually serve you better.
  • Planning only. If you need nothing more than a planning application, a planning consultant is the direct route; we are a design, development and build team.
  • Large high-rise conversions where your funder requires a national contractor. We will tell you if a scheme is bigger than we should take on.

For the whole process, see our commercial to residential conversion service and the commercial to residential conversion guide.

Conversion contractor questions

How do I choose a commercial to residential conversion contractor?

Ask each firm which planning route it would use for your building, how many homes it thinks the building will take and at what size, who on its team runs the development appraisal, and to see completed projects. Compare the answers before you compare prices.

Do I need planning permission to convert offices to flats?

Either full planning permission or, where it applies, prior approval under Class MA permitted development. Many London boroughs restrict permitted development with Article 4 directions, so check your borough early.

Do converted flats have to meet space standards?

Yes. Homes created through a conversion need to meet the nationally described space standards, and adequate natural light is a common condition. See our guide to space standards.

How much does a commercial to residential conversion cost?

It depends on the building's structure, the planning route, the number of homes and the specification. We don't publish rates per square metre because they mislead on conversions. Our conversion cost guide explains what drives the number.

Can Craftex take on the whole conversion, not just the build?

Yes. We can appraise the building, design it, take it through planning, build it and help with the exit. Depending on the stage we can co-invest, take 100% of the risk, or work on a percentage or fee basis.

Does Craftex work on conversions outside London?

Yes. We work with owners and developers in London and across the UK. Development schemes we take on range from £3M to £150M GDV.

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