ALMOST a million square feet of office space has been lost in the city since planning laws were controversially relaxed, The Argus understands.

Brighton and Hove has lost 16% of its commercial space - 800,000 sq ft - since the introduction of the permitted development rights two years ago, according to the city’s Economic Partnership.

The shock figures were revealed despite the city council efforts to protect commercial space by securing exemptions to the policy.

Permitted development rights allow developers to convert residential into commercial without planning permission as a way to boost homes.

Brighton and Hove City Council was the first authority in the country to introduce an Article 4 direction to protect key employment sites.

The government has promised to make an announcement on the future of the scheme in the “not too distant future” and is balancing the need for economic growth and the need for more homes.

Development consultant Ed Allison-Wright said: “An extension of existing permitted development rights will produce more homes. However, it may conflict with economic growth, as valuable office space continues to disappear as a result of this market intervention. In any case, the industry needs to see a ministerial statement clarifying the situation one way or another, as soon as possible.”

Andy Parsons, managing director of Yelo Architects said the scheme would stimulate the commercial office market and economic growth.

He said: “The reduction of office I believe in the long term will be a good thing for the city. The value of offices has remained stagnant for a good decade meaning that it has not made economic sense for developers to build them as their end value is almost equal to their development cost.

“This reduction in office accommodation should remove the majority of the poorer quality unlettable offices, this in turn will put up values of good offices leading to new offices being built as they will make strong investments.”

Brighton and Hoe City Council said it recognised the need to balance homes and jobs.

A council spokesman said: “We recognise the pressing need for new homes but have to find a balance between homes and jobs. Office space is vital to protect employment and that is why the council lobbied government successfully last year for powers to protect office space in central Brighton and at other key employment sites.

“Every planning application is considered on its merits, and there will be applications suitable for some housing. The planning process also enables local communities to have a say on proposals as well as giving planning officers the opportunity to negotiate community benefits and affordable housing if change of use is recommended.

“Requiring planning permission in the selected areas will not mean that office space can never be converted to homes.

Annual average losses of 3,000 square metres of office space to other uses shows that the council considers change of use applications on merit against local planning policies.”