Building Residential Above Retail: Solving the High Street Code Through Mixed-Tenure Development

Mixed-tenure residential above retail is transforming the UK's high streets. This approach uses different types of housing, such as social rent, affordable, and market-rate homes, with ground-floor commercial uses like shops, cafes, and workspaces. Brixton and Woking demonstrate the challenges and opportunities for investors and planners.

Brixton

Somerleyton Road in Brixton is recognised for delivering affordable housing above active retail and workspaces. Fifty percent of homes in the scheme are socially rented, managed by a housing co-operative, directly tackling displacement caused by rising rents and gentrification. The integration of flexible workspace on the ground floor supports creative and digital industries (CDIs), enabling local entrepreneurship. Brixton’s mixed-use approach aims for a long-lasting social legacy, with the scheme winning multiple awards for design and sustainability.

Key development features:

• Tenure mix: 50% socially rented, 50% private homes, managed by a co-operative.
• Workspace allocation: Significant ground floor areas for affordable workspace targeting CDIs.
• Planning success: Achieved permission by balancing affordable targets with commercial viability and strong stakeholder engagement.
• Community-led management: Housing co-operatives and emphasis on fair pay in workspace schemes.

Woking

Woking’s local plan pushes for high-density, mixed-use schemes to address housing shortages and redevelop town centres. Developments such as the New Central Woking scheme consist of hundreds of apartments, mixing affordable and market options, plus offices, retail units, leisure assets, and improved public space. The council’s Channel Strategy earmarks specific sites to ensure strategic allocation of affordable housing alongside commercial and cultural facilities, up to 4,964 new dwellings and 28,000 sqm office space by 2027.

Key development features:

• Balanced use: Blocks comprise apartments above retail and offices, with resident gyms and leisure amenities adding value.
• Public-private collaboration: Strategies to deliver affordable homes while meeting commercial let requirements and masterplan ambitions.
• Integration with public realm: Projects prioritise improvements to pedestrian access and civic space to increase footfall and dwell time.

Planning, Policy and Permitted Development

The expansion of residential above retail is accelerated by changes in planning policy and permitted development rights. Class G and Class MA allow conversion of shops and offices to flats with minimal permission, up to two new units above each commercial unit. Recent government reforms further grant flexibility for high streets to adapt from retail to residential as economic conditions shift, aiming to avoid “dormitory towns” by maintaining active ground floor uses.

Key planning considerations:

• Permitted development: Simplifies process for new residential above existing shops without full planning approval, boosting supply.
• Strategic local planning: Councils retain control over mix, density, affordable quotas, and protection of community uses.
• Policy risk: Over-conversion can diminish commercial street life, so best practice requires strong masterplanning and safeguarding of workspace and retail.

Workspace and Economic Benefits

Affordable workspace as part of mixed-use schemes is key for economic sustainability. Councils like Lambeth and Brent require significant provision for studios and commercial units in new developments, generating employment, supporting cultural industries, and maximising social value. This mix helps maintain high street relevance and creates local economies.

Investment and Sustainable Impact

Investors gain risk management and long-term returns by aligning residential with commercial space, meeting ESG requirements and unlocking town centre sites previously considered unviable. Collaboration across sectors is crucial, with best-in-class schemes balanced between investor expectations, planning mandates, and social impact.

Mixed-tenure developments above retail, as evidenced by Brixton and Woking, offer a clear template for UK investors and planners. With careful design, and commitment to community outcomes, this model is shaping the sustainable high street for the future.