CROYDON Council wants to pull out of a controversial law which allows property developers to convert offices into flats without planning permission.
It says 86 per cent of the 1,236 units approved since permitted development rights were introduced, in May last year, have been of "sub-standard" size.
Those 1,074 apartments that fall below the Mayor of London's space standards include studio flats which are 14.9 sq m – less than half the size of the minimum 37 sq m recommendation.
Alison Butler, cabinet member for housing and regeneration, accused developers of cost-cutting and warned of "social repercussions" – including increased domestic violence – caused by "overcrowded" homes.
The council has written to Communities and Local Government Secretary Eric Pickles to inform him it plans to bring in special powers – called Article 4 – to opt out of permitted development from September 2015.
It says the measure will protect "much-needed" office space in the town centre from being lost.
Martin Skinner, who is converting two former office blocks into apartments which will be smaller than the suggested floor space, said he and other property developers would no longer invest in Croydon if the powers were ignored.
Mr Pickles has yet to respond to the letter and could block the council's plans, though last month he approved the restriction of permitted development in Islington.
The law has been used to gain permission for 26 flat-to-residential conversion projects in Croydon town centre in the past 18 months.
Schemes approved through permitted development are not subject to planning regulations such as minimum sizes, Section 106 agreements or affordable housing quotas.
Delta Point, the former BT building in Wellesley Road, is being converted into 404 apartments by asset management company Criterion Capital. None of the flats will meet the floor space targets.
Permission was automatically granted for five units at 21A George Street, the smallest of which is a 14 sq m studio flat.
Croydon-based Caridon Property Services used permitted development to gain approval for 16 units in Token House, Robert Street, including a 16 sq m studio. The flats are for social tenants.
None of the 1,236 units given the go-ahead using the law have been completed yet. Hundreds more are set to be approved.
Cllr Butler said the council views the mayor's design recommendations – 50 sq m for a one-bedroom flat shared by two people, for example – as a "minimum standard".
"There are social repercussions when people live in overcrowded accommodation, which is what is currently being built," she said.
"It puts all sorts of tensions on the people living there which, among other things, could lead to an increase in domestic violence.
"What we want is decent homes for people to live in. At the moment, too many people will be living in too small a place."
The council's stance on permitted development might appear at odds with the borough's housing crisis, but Cllr Butler plans to concentrate on working with responsible developers.
"While we are committed to providing new homes for Croydon residents, this is not at any cost," she said.
"If someone wants to convert an office block into flats, they should do it through the planning process so we can ensure they are the right size and they fulfil other criteria.
"There are a whole load of things developers are cutting costs on which mean these homes will not be up to standard."
The Conservative-led council tried unsuccessfully to opt out of permitted development when the power was introduced and, in July, the new Labour administration tried again but failed.
Cllr Butler admitted there is little the authority can do if Mr Pickles intervenes for a third time.
"We will have a big issue if he decides to turn us down," she said.
It will be discussed at a cabinet meeting on Monday.
'This would be a silly step to take'
A PROPERTY developer says he will no longer invest in Croydon if the council withdraws permitted development rights.
Inspired Asset Management is using the powers to convert two former office blocks into 134 flats, none of which will meet space standards set by the Mayor of London.
The smallest of the 75 one-bedroom apartments at Green Dragon House, in High Street, will be 26 sq m.
Martin Skinner, chief executive of Inspired Asset Management, said the "space efficient" flats had to be small in order to be affordable to "normal working people in London".
Hallway spaces within the apartments, he explained, had been "fire designed out" and replaced instead with a "higher standard of sprinkler system".
"It means that although the flats are smaller, the space they have is more efficiently used," he said.
Mr Skinner said the company focuses on quality instead of size and the apartments – aimed at "young, local professionals" – will be of "luxury" standard, including granite worktops, hardwood floors and Bosch appliances. Prices start at £195,000.
"Any suggestion that the quality of our homes is 'sub-standard' would be totally unfair," said Mr Skinner. "These are top-notch apartments – they're just much more efficiently designed."
He added that planning requirements such as minimum space standards, 106 agreements and affordable housing quotas serve to reduce the number of homes being built.
"The demand is there for affordable, high quality accommodation, but the market isn't able to produce it when it's restricted by regulations," he said.
"You just need to look at the number of units that have been permitted as a result of the change in legislation to see the amount of stock coming onto the market as a result of it.
"Less regulation means less risk, means more investment coming in and, as a result, means more supply of desperately needed housing."
He is convinced, however, developers will stop creating those homes in Croydon if the council uses Article 4 to pull out of permitted development.
"I won't be investing anything more in the area if they do that and I'm sure others won't either," he said.
"For a borough that's looking to encourage redevelopment and regeneration, it would be a silly step to take."
