CHANGES TO THE PROPERTY USE CLASSES

The property use class guide has had a facelift recently. From 1^st September 2020 (with a transition period until 31^st July 2021) the old Use Classes Order has been replaced with a neater condensed version. The Town and Country Planning (Use Classes) (Amendment) (England) Regulations 2020 aim is to make it easier for business premises to change a use, for example, transforming a restaurant into a retail shop.

Use Classes are applied to properties by the local planning authority to designate how a building may be used.  Issues may arise for example when a busines owner wishes to change the use of the premises (e.g. from B1(a) (offices) to A1 (retail shop). There are some class changes that are allowed without planning permission under permitted development rights however each council has the ability to prohibit these rights by using Article 4 directions (which continue to stay in force with the new reforms).

The new rules form a new Class E – Commercial, Business and Service, which encompasses the previous classes A1-3, B1-2 and parts of D1 and D2 thus covering a multitude of businesses. This will make it much easier for businesses to swap industry without the overhead of acquiring planning permission for changing the use of the premises. Other planning consents may still be required, for example for building work. Please note, compliance with Building Regulations is still compulsory.

The reforms also focus on educational and community values and have introduced Class F1 – Learning and Non-Residential Institutions and F2 – Community Use. Class F1 includes businesses such as museums, art galleries, libraries etc; whereas F2 covers small shops selling essential goods (at least 1km from another similar busines), community halls, public sporting areas.

Moreover, the Sui-Generis category has expanded to include A4, A5 and some D2 businesses such as pubs, bars, hot-food takeaways, cinemas, concert halls, live-music halls and bingo halls. Sui-Generis includes those uses which are not included in a Class and require planning permission for any change of use.

Some finer details regarding what businesses fall into which categories still require some clarity such as what constitutes a hairdressers rather than a beauty salon? However overall, the reforms will ease pressure on businesses especially during these uncertain times, in particular High Street businesses will be able to more easily adapt to market changes.

Property developers, and those looking to sell their commercial properties, are likely to attract a wider array of buyers as the use of the premises will be less restricted. Commercial landlords will also benefit as they can now expand their range of tenants. However, if, as a Landlord, you do not wish for your tenants to have the flexibility to change the use of the premises, specific clauses can be incorporated into the Lease to prevent this.

In short, the reforms have not changed the Use of a premises, however the range of classes has changed thereby allowing more permitted changes without the need to obtain planning. Classes A, B and D have been revoked, Class remains unaffected and Classes E and F have been introduced. If a use does not fall within a Class it will be Sui Generis and thus require planning permission. Local Authorities will still have the power however to enforce Article 4 restrictions to require planning permission.

If you would like to discuss any of these issues in greater detail, please call John Szepietowski at Audley Chaucer 10372 303444.

Larissa Bourgi