A SHORTAGE of office space in Southampton could hit the Solent’s economy, according to a new report.

City-based property consultants JLL are calling for more office developments in the city so Southampton’s economic development isn’t curbed.

The firm says changes to planning law, which mean offices can now be turned into flats without full planning permission, have combined with a huge increase in office deals to leave the city facing a crisis in the number of business premises.

Office deals in Southampton and the Solent are up 50 per cent on the same period last year, but demand may soon outstrip supply.

A total of 200,785 sq ft in office space was let in the South Coast Metropole area, which includes S o u t h a m p t o n , Portsmouth, Bournemouth and the Isle of Wight, in 2013.

But in the first three-quarters of this year deals have been completed for 422,626 sq ft of offices.

But in the same time, since planning laws were relaxed in May last year, 212,000 sq ft of office stock was converted into other uses, while 274,500 sq ft of development land earmarked for office use has now been utilised in different ways.

And that has led to a warning from JLL’s lead director in Southampton, Michael Green.

He said: “At long last Southampton and the south coast region is seeing strong economic growth, which has brought about a welcome boost to the commercial property market.

“But we risk stopping that economic growth in its tracks if the region cannot meet the growing demand for commercial property – and, just as importantly, the right kind of property.

“The recent rise in demand, coupled with the reduction in supply partly brought about by the relaxation of the planning regime, means there is an ever greater need for speculative development in the region to complement the current round of refurbishments.

“However with recovery still building, there is still little prospect of developers building first and letting later, therefore refurbishments are likely to lead the market in the short to medium term.”