Developers looking to convert the capital’s car parks into residential properties could be met with objections from local residents, according to Omni Capital.

Bob Sturges, Head of Communications at Omni Capital, said unlocking this land could also prove tricky for developers.

Bob was responding to a report in Development Finance Today (DFT), which claimed that over £1bn worth of development land is locked up in London’s car parks.

He told DFT: “Developing parking sites for residential or commercial purposes has been a hot topic of debate among Londoners for as long as I can remember.

“As I see it, the problem with developing parking sites is threefold: first, objections from commuters and locals about losing a community facility; second, density - most London sites are in very contained locations; and third, target audience - only prime buyers can deliver the returns developers require, a controversial point in itself.

“For these and other reasons, I do not see parking sites as fertile territory for London developers.”

However car parks can make good development sites for practical reasons, particularly when a quick-fix solution to the housing crisis is needed.

Scott Marshall, Operations Manager at Roma Finance, told DFT: “In many ways, car parks are the ideal development plot [because] if there was a building on the site previously, it will have been cleared and the ground set for the car park.

“Alongside that, they are often in very good locations, usually near shops or offices [and] this can make them good opportunities for apartments and student housing, or even mixed developments where there are new shops with flats above.

“With the local councils being forced by the Government to fast track plans for housing on brown field land, car parks, particularly temporary ones, are being targeted by developers to build residential schemes suited to the local area."

Broker Positive Commercial Finance told DFT that it expects to complete a bridging deal this week that will see a car park in Birmingham acquired and converted into six town houses.

The developer is buying the land without planning consent, but the planning consultant and council have both indicated that an application is likely to be successful.

Looking ahead, John Waddicker, Director at Positive Commercial Finance, expects the market for this type of conversion to remain steady.

He told DFT: “I don’t expect to see any significant increase in activity in developers looking to acquire such sites, but they will always be considered if there is a realistic chance of a change of use being granted, wherever that may be in the country.”

Although Regentsmead is involved in several similar projects, the lender echoed Bob’s concerns about developments in London.

Ashley Ilsen, New Business Executive at Regentsmead, said: “We are currently funding several schemes that involve developing car parks and often this can be a great way of providing housing for land that is being used inefficiently.

“This is likely to be more of a concern in London where land is at a premium. However, we are equally as stretched in terms of space for cars.”