21 Sep ‘Permitted Development Rights’ enable commercial buildings to be converted into homes without planning permission

Posted at 00:00h in Commercial Property Law by

At the end of March 2021, the Housing Secretary announced changes to permitted development rules in England. These changes, effective from 1st August 2021, allow the conversion of certain commercial properties to residential use without requiring full planning permission, subject to prior approval and specific conditions. This change has been a subject of ongoing discussion. This article explains the updated permitted development rights, their implications for developers, the high street, and the wider community.

What are the Permitted Development Rights?

The regulations permit the change of use from Class E (commercial, business, and service uses) to residential properties (Class C3), without needing full planning permission, provided prior approval is obtained from the local planning authority and certain conditions are met. Importantly the Use Classes Order has been amended. Class E no longer exists in its previous broad form. It is now essential to check the specific use of the building before the changes to ensure it qualifies for permitted development.

Prior Approval Process

While full planning permission isn’t required, developers must seek “prior approval” from the local planning authority. This process allows the council to assess specific aspects of the proposed conversion. The council can refuse prior approval on grounds such as:

  • Flood risk
  • Impact of noise from commercial premises (if any remain)
  • Conservation implications (listed buildings, conservation areas)
  • Loss of essential services (e.g., health centres, registered nurseries—although these are less likely under the updated regulations)
  • Highway safety
  • Contamination risks
  • Design and external appearance (this has become more significant in recent interpretations)
  • Impact on neighbouring amenity

Conditions for Permitted Development Rights (Former Class E to Residential)

Before undertaking a commercial to residential conversion under permitted development rights, developers must ensure their project meets specific conditions. Failure to comply with these conditions may result in the local planning authority refusing prior approval.

  • The building being redeveloped must have been vacant for 3 months before the date of the application.
  • Its size is limited to 1,500 square metres of floorspace.
  • A single bedroom must have a floor area of at least 39 square metres if the home has a bathroom, or 37 square metres if the space has a shower room.
  • All rooms should have adequate natural light, i.e. there should be a window in every room. It is important to note that you need to make use of the space and existing windows. If you need to create new windows within a room, you will need to apply for full planning permission.
  • The building must have been in commercial, business or service use for two years prior to conversion.

The Council retains the power of Article 4, which allows them to veto developments until planning permission is granted. Any existing Article 4 directions will still apply until 31 July 2022. Property developers must check if an Article 4 direction has been put into place before proceeding with any development plans.

Benefits for property developers?

Despite the constraints, the new Permitted Development Rights bring an increased potential to property developers to expand their portfolio and help to regenerate brownfield sites. By removing the need for full planning permission, property developers need to spend less time on administration and can move more quickly to completing new developments.

What are the benefits for commercial property owners?

The government believes the new legislation will help breathe new life into flailing high streets, increase footfall and help businesses to recover following the coronavirus pandemic. Commercial property owners seeking to sell their premises will also have a larger pool of interested buyers.

What are the benefits for the high street and wider community?

Small businesses and local property developers will gain the greatest benefit from the plans, as new life is brought into town centres, more jobs are created in the construction industry, eyesore buildings are removed and brownfield land is used. The increase of available housing should also contribute towards solving the UK housing crisis.

Why is it so contentious?

There are several groups opposed to the new Permitted Development Rights, from professional property developers to high street business owners and residents. Concerns include the belief that it will lead to an increase in substandard housing, as it appears that only the bare minimum standards are required to comply. It will not revitalise high streets, instead it will create dormitory towns where there are only residential properties, with no local amenities. Some feel it will not contribute in any meaningful way to the housing crisis.

Practical tips for developers

  • Thorough due diligence: Conduct thorough research on the property’s history, including its previous use, any planning restrictions, and the presence of Article 4 Directions.
  • Engage with the Local Planning Authority: Early engagement with the local planning authority is highly recommended. This can help identify potential issues early on and streamline the prior approval process.
  • Professional advice: Seek professional advice from planning consultants and legal experts specialising in permitted development. This can help you navigate the complex regulations and avoid costly mistakes.

For legal advice on property development, contact the Commercial Property legal team at HRJ Foreman Laws Solicitors. Email info@hrjforemanlaws.co.uk or call Hitchin 01462 458711, Welwyn Garden City 01707 887701

https://www.hrjforemanlaws.co.uk/legal-services/property-development

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