Relaxed rules on the conversion of commercial property to housing could threaten the health of town centres, the government has been warned.

Almost 30 industry organisations spanning retail, hospitality, leisure and property have written to housing, communities and local government secretary Robert Jenrick to voice their fears that the future of town centres is at serious risk.

Store closures and tough trading conditions have hit some retailers hard and conversion to residential premises has risen up the agenda for owners of former Debenhams stores, for instance. 

The government has proposed a blanket permitted development right on high streets, but the business groups argued town centre development should be done in partnership with local authorities, the community and businesses rather than without planning permission.

The groups, including the Association of Convenience Stores, the British Property Federation, the British Independent Retailers Association and the Booksellers Association, argued “the best town centres do not just happen but require active coordination at a local level”.

They wrote: “We welcome government recognition that our town centres must change, but an all-embracing permitted development right that allows most commercial buildings to be converted to housing risks putting the long-term health of our town centres at risk for the sake of a short-term stimulus.

“Putting groundfloor housing in a random and uncontrolled manner within high streets does not draw footfall, does not support new businesses, reduces the potential for business growth and will undermine the viability of existing retail, cultural and commercial activities on the high street and remove convenience stores from local neighbourhoods. 

“This will create a vicious circle whereby the reduced viability of the remaining commercial uses, in turn, threatens their existence and incentivises their conversion to residential.

“At the neighbourhood level, we consider that local centres would be particularly at risk. The loss of local shops and services could precipitate their decline at a time when we are putting greater emphasis on the need for walkable neighbourhoods, which provide a range of day-to-day needs in local centres. A change of use to housing is a one-way trip.”