What can we expect to see from our highstreets in the near future?

COVID19 did not cause the high street’s woes. It did, however, make them a whole lot worse literally overnight. With restrictions now a distant memory (for some) and vaccines helping to keep people on their feet, could this lead to the recovery of our high streets, or may require separate measures?

The history of the high street

Up until the 1950s, the high street was the hub of the UK’s communities. It didn’t matter if you were in the countryside or in the city. Your local high street was where you went to get your essential goods and services. It was also, usually, the place you went for leisure and entertainment too. 

In the 1950s, however, cars began to go mainstream. The more people owned cars, the more incentive there was for businesses to save themselves the cost of city centre locations by opening out-of-town ones. Similarly, the more affordable haulage became, the easier it was to sell non-perishable items remotely. This prompted huge growth in the catalogue industry. 

By the 1990s the internet had come along catching some businesses between a rock and a hard place. This was particularly true in the retail sector. On the one hand, pure-play online retailers like Amazon were rocking the boat through their use of technology. On the other hand, smaller, artisanal retailers were able to build their brands online and leverage these to punch way beyond their weight. 

To make matters worse, high street businesses were limited in their ability to respond to changes due to outdated planning regulations. These worked on the assumption that residential areas and commercial areas generally needed to be kept separate. They did allow for exceptions but the process for getting an exception was often slow, complicated and expensive. 

The impact of the pandemic 

The pandemic was excruciating for the high street. 

Firstly, it had an immediate impact on sales. Secondly, it created an opportunity for online businesses not just to expand into new markets but to consolidate their relationship with previous/existing customers. 

Thirdly, in some instances, businesses saw their stock rendered worthless. For example, perishable items expired and fashion items went out of style. 

For all the pain, however, there were at least a couple of bright spots on the horizon. Both related to planning regulations. Firstly, the government was already in the process of making changes to permitted development rights. Of these changes, probably the most significant was the introduction of “Class E”. This was effectively a catch-all for ‘commercial, business and service’ use. 

The reason this mattered was that it made it vastly easier to create, convert and/or expand businesses even within residential areas. This gave businesses much more scope both to go with the flow and to create future plans without so much concern for the impact of building regulations. For example, it allowed retailers to offer add-on services. 

Another significant development came in March 2021 when the government made it much easier to convert commercial buildings to residential ones. There are still restrictions in place. These are to protect both viable businesses and future residents. The new approach, however, is that such developments should be permitted unless there is a reason to stop them, rather than vice versa. 

The high street and the housing crisis 

Straightforward logistics practically scream for the repopulation of the high street. It is common knowledge that the UK has a massive need for new homes. This indisputable fact comes up every election along with targets to build them and schemes to help people afford them. 

Mark Burns, Director of Pure Investor commented, "Realistically, if the UK successfully addressed the lack of supply of homes, there would probably be much less need for schemes to help people to afford them. This is a compelling argument for telling unused or underused commercial buildings into residential ones."

The benefits go further. Repurposing commercial land mitigates the conflict between those who prioritize new housing and those who prioritize the safeguarding of greenbelt land. Both positions are valid and have merit. There should not need to be a fight between them. What’s more, repurposing commercial land helps prevent neighbourhoods from falling into decay. 

This last point should not be overlooked. The history of the 1980s is a case study of what happens when neighbourhoods lose their core functionality. They go into a downward spiral with all kinds of negative social repercussions. Quite bluntly, it’s a whole lot easier and kinder (and more affordable) to prevent the rot than to have to repair it. 

Why repopulating the high street could be a win/win 

Repopulating the high street has the potential to be a clear win for people looking for affordable property. It also has the potential to be a clear win for businesses, especially retailers. In fact, it is probably fair to say that repopulating the high street could be essential to the very survival of many smaller and mid-sized retailers. 

The simple fact of the matter is that out-of-town and online retailers are practically guaranteed to be able to beat the high street on price and breadth of choice. Currently, online retailers can also hold their own with the high street in terms of convenience and customer experience. These are, however, the two areas where the high street has the best chance of regaining lost ground. 

Doing more to mix up residential and commercial areas (with safeguards) could help to push up the convenience factor of shopping on the high street. In itself, this might not be enough to tilt the balance in favour of a return to real-world shopping. It could, however, be combined with a real push to engage with customers in a meaningful way. 

In particular, real-world retailers could promote their ability to curate their products and to assist customers to find the right products for their needs, wants and budget. Ideally, retailers would either expand their offering to include valuable add-on services or partner with other businesses to create extra incentives to head back to the high street. 

Local authorities could also have an important role to play. Quite bluntly, if they want to see local businesses thrive, then they need to work on creating the right conditions for them to do so. For example, they need to create the right balance of vehicular traffic (and parking) and pedestrian zones.