Tech City and creative industries ‘threatened by conversion plans’

Shoreditch: at the intersection of Hackney's creative talents. Photograph: Tech City

Government plans to allow offices to be converted into residential spaces without planning permission have been criticised by Hackney’s technology and creative industries.

The scheme promises to tackle housing shortages, but many fear the knock on effects could prove disastrous for businesses trying to find cheap office space.

Developers stand to make larger profits selling or renting residential spaces than office spaces; the new plans could thus encourage conversions, making it more difficult for businesses to find affordable offices.

Shoreditch Works is leading the petition for Tech City against the plans, in support of Hackney Council’s efforts to grant the borough an exemption from the proposals.

James Governor, investor and co-founder of Shoreditch Works, warned that without an exemption Tech City will be left a “hollow doughnut of bankers”.

Big businesses such as Google that have set up in Hackney will still be able to afford office space there, but Mr Governor asks: “What about supporting the grass roots?”

With housing prices already on the rise, the plans could put an end to the tech hubs springing up around Hackney.

Governor explained that if the plans go through, “we have two options, we can either struggle on or bugger off”, and added that although he has ties to the Hackney area: “If I can’t live in a community with creative businesses, I’m not sure I would want to be there.”

Artists and those working within the creative industries will also feel the impact of these plans. Space Studios, a Hackney charity that provides artists with affordable studio space, is leading the fight on the side of the creatives.

Anna Harding, from Space Studios, said the policy is “good for developers, but not the local economy”.