17 September 2026

Living Above the Shop Takes More Than Stairs

Shops on High Street Tonbridge
Photograph: David Howard. Wikimedia Commons · CC BY-SA 2.0

As the evenings draw in, I find myself thinking about which high street windows will be lit after the shops close. Returning upper floors to homes offers something more useful than the appearance of activity. It puts people within walking distance of ordinary errands and makes use of space that can be difficult to let for anything else. But a light above a shop is the end of a fairly complicated process, not the beginning.

Some upper rooms were once homes. Others were offices, stockrooms or staff accommodation, and their return to residential use is not necessarily a return to anything. I would start with the staircase. Does it have its own door from the street, or does access run through the shop? A narrow frontage may not have room for a new entrance without losing a useful part of the sales floor. That small division can alter the shop’s viability.

The lease reaches upstairs

In occupier work, I have learned to look beyond the space where the trading happens. A retailer’s lease may include the whole building, even where the upper floors look unused. The landlord cannot simply take them back because housing would produce a better return. Recovering them may require an agreed surrender of part, with the rent, access rights and repairing obligations reconsidered. The tenant may welcome that conversation. It is still a negotiation, not an administrative correction.

Nor does an apparently empty floor necessarily have no value to the business below. It may hold seasonal stock, the staff toilet, a small office or the only place where deliveries can be unpacked without obstructing customers. Removing it can mean paying for storage elsewhere or using more expensive ground-floor space for work that earns nothing directly. I would want those consequences costed before treating the upper floor as a surplus asset.

There can be a genuine benefit for the retailer. A smaller demise, with a sensible rent and a clearly reduced repair burden, may be easier to sustain. But the documents have to deliver that result. If the occupier previously repaired the whole building, taking back the upstairs needs more than a line on a plan. Responsibility for the roof, structure and shared services must be settled, along with the treatment of existing disrepair. Otherwise, a useful change leaves an expensive argument behind.

Two uses sharing one building

The physical work brings another set of tests. Depending on the building and the consent route, daylight, escape arrangements, sound insulation, ventilation and waste storage can determine whether homes are achievable at all. These are not finishing touches. A rear yard that looks available for bins may already be needed for deliveries or escape. Conversion costs also need to sit where the agreements and the law place them; a shop’s service charge is not a general fund for the landlord’s redevelopment.

Then there is the daily accommodation between neighbours. A bakery starts early. Refrigeration equipment runs at night. A delivery driver cannot always arrive between breakfast and lunch. Residents are entitled to a decent home, and an established shop needs workable trading conditions. I become wary when a scheme relies on one party simply being reasonable forever. Good acoustic design, suitable plant locations and clear arrangements for access do more than an optimistic promise that everybody will get along.

I am in favour of more people living above shops, although I am less persuaded by the claim that they will rescue the shops underneath. Residents have limited budgets and shop elsewhere too. The stronger case is that a building can provide useful homes and retain useful commercial space, rather than leaving half its floors idle. I would judge the change by whether both uses can carry on comfortably: someone sleeping upstairs while someone downstairs can still earn a living.

Need advice on a lease renewal, rent review or dilapidations claim? chris@mcgarrigle.com

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