Government overhauls planning rules on changes of use

The intention of the Government’s new regulations is to revamp high streets and town centres to permit changes in the use of commercial properties without the need for express planning.

New Use Class Summary:

● The Regulations have now introduced Classes E, F1 and F2:

1. Class E (Commercial, business and service) – this includes retail, restaurant, office, financial/professional services, indoor sports, medical and nursery uses along with “any other services which it is appropriate to provide in a commercial, business or service locality”.

2. Class F1 (Learning and non-residential institutions) – this includes museums, art galleries, libraries, public halls, religious institutions or law courts; and

3. Class F2 (Local community) – including use as a shop of no more than 280 sqm mostly selling essential goods, including food and at least 1km from another similar shop, and use as a community hall, area for outdoor sport, swimming pool or skating rink.

Changes to Use Classes:

● The original Use Classes A and D under TCP(UC)O 1987 have been removed.

● A1 (shops), A2 (professional and financial), A3 (restaurants and cafes), and parts of D1 (non-residential institutions, e.g. places of worship, health centres, creches etc.), and D2 (assembly and leisure) have been placed into a use Class E, which also includes the original Use B1 (office and light industrial).

● Changes of use within Class E band will not constitute development, and will, therefore, not require any planning consent.

● This means that many types of business user will be able to change the uses of properties without seeking planning permission. For example, under the new rules, a shop will be able to change to an office and then to a gym and back again, without the need for planning permission.

● Those remaining Use Classes within the original Use Class A and D that are not accounted for under the new Use Class categories will fall into the sui generis class with no changes – this includes A4 and A5 (drinking establishments and hot food takeaways).

● The new Class E encompasses commercial, business and service, while the new class F1 and class F2 apply to learning and non-residential institutions and local community needs.

What does this mean for landlords and tenants?

The new regulations hope to revive our town centres and give greater flexibility to the changing nature of our high streets. However, landlords are likely to implement stricter permitted use clauses into their leases to retain control over the type of businesses which can operate from their properties.

Tenants must remember that planning permission and permitted use are two different things. Just because a property has planning consent to use a property in a specific way, it does not mean that this will be permitted under a lease. Great care should be taken to ensure that the actual use of the property is not in contravention of the lease OR planning consent.

Existing planning applications

Applications for planning permission, or permissions given in principle, which were submitted before 1 September 2020 and refer to the existing use classes, must be determined by the local planning authority using the former use classes rather than the new ones.

In order to change the uses within a class, there must have been actual and lawful use (i.e. if the building is not being utilised for the use permitted under an existing planning permission, it will need to be used for that use before it can then change to another use within Class E).

Permitted development rights

The Government has also created changes to permitted development rights.

The following permitted development rights are now also available:

● From 31 August 2020, there will be a new right permitting the demolition and rebuilding of “vacant and redundant” office and light industrial buildings into dwellings, without the requirement of planning consent.

● From 31 August 2020, new permitted development rights will allow the upward extension, by two storeys, of existing homes. This also encompasses the right to the creation of new homes above terraces, offices and shops, without planning permission.

We have commercial property solicitors in Brighton, Eastbourne, Hastings, London, and Uckfield, providing support in all areas of property law.