THERE is a “severe shortage” of commercial property space in Brighton and Hove, according to a leading consultant.

Major developments are failing to meet the huge demand in the city for office space during the economic resurgence, research by Stiles Harold Williams has found.

Permitted Development Rights, which allows office space to be converted into residential, is one factor that has led to a significant reduction in office space.

Another is low rents relative to construction costs, which has resulted in a tentative approach to developing new offices on brownfield sites. Emma Hards, associate at Stiles Harold Williams, said: “We are having to turn potential occupiers away because of the shortage.

“The overall property development picture may be rosy, but we are suffering from a lack of supply which needs to be addressed if the economy of the city and employment levels are to flourish over the next decade or so.”

Brighton and Hove City Council successfully exempted several key areas from being subject to Permitted Development Rights legislation to protect office space.

But despite this, around 750,000 sq ft of office space has been given consent for conversion to 745 flats in the last 18 months.

Stiles Harold Williams said the policy had seen the removal of generally poorer quality space from the market including the 52,000 sq ft Prestamex House, Preston Road and P&H House, Davigdor Road.

It is anticipated the guidelines on Permitted Development Rights (PDR) could change again in May 2016.

Martin Clark, managing partner for Stiles Harold Williams, added: “This is a classic case of the double-edged sword.

“Permitted development means we can alleviate some of the housing shortage, and this has been gained by a significant reduction in business premises of all sizes, which in turn will lead to rising office rents.”

In Brighton and Hove 85 per cent of office stock was built before 1987, is poor quality and does not meet the needs of modern business.