A report by the Centre for Retail Research (CRR) has said that failed retail units should be turned into new homes.

The report, Retail Futures 2018, added that the proposed empty units could also be used for offices and leisure and entertainment venues.

It is predicted that in five years' time, the total number of shops on the UK's high street will fall by 22%, from 281,931 to 222,000.

The study suggested that 164 major or medium-sized companies would go into administration, involve the loss of 22,600 stores.

The CRR added that the retail destinations that will do well will be those "serving a mainly prosperous hinterland; areas of growth, new housing and young families; easy-to-reach tourist areas aimed at middle-income families; and areas where unemployment is low".

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Regionally, London and other key shopping cities like Birmingham and Manchester will be among the best performers, as will tourist areas like Oxford and Brighton.

The report stated: "There will be retail problem areas within otherwise thriving decent retail zones, such as Oxford, and successes in areas where we expect large percentage falls in shop numbers. But in very general terms the changes in store numbers reflect the north-south divide."

In response to the findings, the CRR called for a £320m "pump-priming" fund from the government to redevelop problem town centres by converting failing and empty shops into residential accommodation, service, entertainment and leisure outlets, and offices, doctors’ surgeries and other locally required facilities.

The report added that such a programme could create around 15,000 to 20,000 new homes over four years.

(JP/CD)