Plans to convert spaces above stores on shopping streets blocked by city regulations
Empty spaces above stores in Dutch shopping streets are a massive untapped potential in the housing crisis. This type of construction can provide more homes, does ot take up any extra space, and can liven up a neighborhood. But plans to convert these areas into living space are often blocked by city regulations or because doing so is unprofitable, the Telegraaf reports based on research by ING.
According to the bank, there are approximately 50,000 empty floors above shops in the Netherlands. “Many home seekers find it incomprehensible that they see empty floors above shops, while the housing shortage is so high. Many of these spaces could easily be used as living space but remain unused due to financial barriers and complicated regulations,” ING researcher Sophie Kraaijeveld said.
Discussions with investors and experts showed that municipalities can stimulate this type of construction by accelerating permit procedures and being more flexible about extra parking spaces. The parking requirement was often mentioned as a reason that plans fall apart. According to Kraaijeveld, flexibility here is possible “because not every home seeker needs their own parking space.”
Municipalities can also offer more help to small investors who don’t have experience in transforming empty floors into homes. Financial incentives could also be helpful. Conversion is often unprofitable for investors because the high costs do not outweigh the future rental income, for example, because the home would fall under rent regulation.
