Lloyds Banking Group has revealed its plans this week to convert disused office sites into social housing, following government’s announcement last week that it will deliver new mandatory housebuilding targets.

The bank will launch its new social housing programme in Pudsey, West Yorkshire, using a decommissioned data and office space to develop 80 new homes, with Lloyds assessing other potential office spaces across the UK for similar purposes.

John Guest, national head of social housing at leading audit, tax and consulting firm RSM UK, commented: “Labour’s focus on housing targets, planning reform and infrastructure investment is critical for the social housing sector, as there is currently a major shortage of affordable housing, which is hindering the sector’s long-term recovery.

“Housing organisations need to be innovative in terms of their access to sites for developments, and the announcement from Lloyds could initiate the change in momentum the sector has been longing for, while ensuring minimal impact to suppliers and tenants.

“Changing attitudes towards hybrid and flexible working means that there is less demand for traditional offices spaces, which alongside commercial awareness that sites can be repurposed in different ways, could see more companies follow Lloyds and consider different routes for surplus property assets.

“Given the new government’s commitment to achieving net zero, this shift in social housing development could also allow commercial property owners to review their environment, social and governance (ESG) credentials, and focus on how to apply these values to their asset bases.”