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Introduction
According to a 2025 commercial property report from the Alan Boswell Group, the average cost of commercial property in England is forecast to rise by around 19% over the next decade (between 2024 and 2034), representing an increase from £94 to £112 per square foot. This positive forecast makes it a viable consideration for businesses looking to expand to invest in new premises or renovate existing premises to create long term value from property assets.
The report also states that in the first half of 2024, 87% all of commercial planning permission applications across England were approved. It is forecast over the next decade that this approval rate will remain stable at between 86% and 89%. This statistic suggests that most local authorities across England have a friendly regulatory environment for commercial expansion and regeneration.
In terms of under-developed locations, East London has the most vacant commercial property vacancies, at a rate of 14.8% (as of Q2 2024). This high vacancy rate is due to a change in commercial property space requirements in London post Covid-19. Over recent years, there has been lower demand for office space due to businesses adopting work from home and hybrid working models. However, vacant office spaces are gradually being transformed into new mixed use commercial and residential spaces, encompassing retail, hospitality, entertainment and living spaces.
Businesses looking to carry out building acquisition and renovation activities face hurdles from the high cost of undertaking such expansion projects. Financial support can be found from local authorities who are the main source of grant funding for commercial building and renovation projects in towns and cities. Each local authority aims to encourage vacant commercial units to become occupied and to help regenerate high street areas by providing funding for interior renovation or improvement of shop fronts. In rural areas, local authorities are particularly interested in encouraging diversification from traditional farming activities and grants are available for businesses to convert existing premises, or acquire new premises to set-up new ventures to boost the rural economy.
Here Is A Selection Of The Latest UK Building and Renovation Grant Schemes
i) Grant Investment Fund
The North of Tyne Combined Authority is providing capital funding for micro and small businesses in the rural areas of Northumberland to expand productive capacity or diversify into new markets or products away from traditional farming activities. Building and renovation costs are eligible if they support the expansion of production or help establish a new business venture. Funding up to £300,000 is available.
Application Deadline: Applications are invited on an ongoing basis
ii) West Northamptonshire Rural Business Grant
West Northamptonshire Council is running provides funding to support capital projects, including costs related to creating net zero infrastructure for rural businesses and property expansion and conversion relating to the diversification of farm businesses outside of agriculture. Funding up to £100,000 is available.
Application Deadline: Applications are invited on an ongoing basis
iii) Nelson Town Deal Grants
Pendle Borough Council is running a scheme that aims to help manufacturing businesses in Nelson to become more resilient and to help them grow. The funding will cover investments in new plant or machinery, energy efficiency/carbon reduction and premises improvements or adaptation. Funding up to £100,000 is available.
Application Deadline: Applications are invited on an ongoing basis
iv) SME Capital Grants
Coventry City Council is running a scheme that enables B2B businesses in the local area to invest in capital assets such as machinery or equipment, hardware/software and the refurbishment or purchase of new premises. Funding up to £100,000 is available.
Application Deadline: Applications are invited on an ongoing basis
v) Accelerated Business Growth Grant
Newport City Council is running a scheme that aims to support capital investment activities that will either allow well-established, new to the region businesses to set up premises in the City of Newport or allow an existing Newport-based business to accelerate their growth ambitions with a significant contribution towards investment, including premises development. Funding up to £75,000 is available.
Application Deadline: Applications are invited on an ongoing basis
vi) Commercial Property Development Grant
Denbighshire County Council is permitting commercial property owners to apply for funding towards the cost of works such as shopfronts, improved display windows, signage improvements and external lighting. The scheme aims to reduce town centre vacancy rates and improve the overall quality and image of the environment. Eligible towns include Denbigh, Llangollen, Prestatyn, Rhuddlan, Rhyl, Ruthin and St Asaph. Funding up to £50,000 is available.
Application Deadline: Applications are invited on an ongoing basis
vii) Bridgend Valleys and District Centres Placemaking Property Improvement Grant
Bridgend County Borough Council has a scheme that supports works to enhance building frontages and bring vacant commercial floor space back into beneficial use and to convert vacant upper-floor space into new residential accommodation above commercial units, including internal and external works. Up to £30,000 is available for occupied properties and up to £49,999 is available for properties that have been vacant for more than six months.
Application Deadline: Applications are invited on an ongoing basis
viii) Empty Shops Grant Scheme
Aberdeen City Council is running a scheme that aims to reduce the number of vacant shops, leverage private investment in vacant shops to bring them back into use, support new start-ups and entrepreneurs and create new jobs through enabling the provision of suitable premises. Funding up to £35,000 is available.
Application Deadline: 30th September 2025
How To Apply For Building and Renovation Schemes
Full details about how to apply for schemes and the eligibility criteria is available on each individual scheme page on the relevant website. Any deadlines, who can apply and what eligible costs the grants will cover will also be outlined on these pages. Interested businesses can speak to funding advisors based at each provider who can guide them through requirements and eligibility criteria to see if the relevant funding is a match with their needs and help them to apply. There are also application forms and other supporting guidance available on scheme pages as well.
Want To Find More UK Building and Renovation Funding Opportunities?
If you want to see the full set of UK building and renovation funding currently available, please visit https://getbusinessgrants.com/