The latest government data on England’s housing supply highlights the need for “bold innovation and strategic growth”, according to a financial expert.

Robert Pritchard, chief investment officer at Cohort Capital, believes converting commercial spaces into residential accommodation could be one solution to improving the disappointing figures.

He said: “Recent data highlights a stark imbalance in the housing market, with demand significantly outpacing supply and new affordable housing construction plummeting by 88% in London.

“One promising solution lies in repurposing underutilised commercial spaces into residential accommodation. This adaptive reuse offers a pragmatic approach to addressing housing shortages while aligning with evolving societal needs.”

Pritchard added: “The past few years have fundamentally transformed how we view and use property. Remote working has become a lasting reality, reshaping patterns of work, travel, and leisure. Coupled with a growing emphasis on environmental sustainability, these shifts have rendered many commercial properties obsolete. 

“Properly executed, the conversion of such spaces can create much-needed housing relatively quickly and with a lower environmental footprint compared to new builds.”

However, Pitchard conceded that funding these conversions has become increasingly challenging. He said: “Traditional lenders are tightening their criteria in response to economic uncertainties, leaving many developers struggling to access capital. 

“In response, alternative lenders have stepped in, offering faster and more flexible financing solutions to unlock the potential of these projects. By bridging the funding gap, they play a crucial role in turning innovative housing concepts into reality.”