Planning for change

I have recently covered the Government's proposals to make it easier for commercial properties (use class B1a) to be converted into residential property (use class C3). I have written about the Government's proposals to streamline the planning process for free schools. However, this does not benefit the commercial Landlord. That said, the following changes might.

The Government aims to simplify and streamline our byzantine planning system by encouraging greater flexibility in the use of buildings.

Firstly, agricultural buildings may be converted for other uses with the exception of residential dwellings.

The thresholds for permitted development rights will be increased for changes of use between office (B1) and warehouse (B8) classes and from general industry (B2) to B1 and B8 from 235 to 500 square feet.

To encourage more start ups, a range of buildings may convert temporarily for an alternative use including shops (A1) financial and professional services (A2) restaurants and cafes (A3) and offices (B1 for up to two years) for up to two years.

Lawyers should plan for change and be aware of the planning rules that will assist commercial Landlords and Tenants. However, they should also be aware of the potential problems. The above changes concern permitted development. However, councils still retain their Article 4 powers. In other words, they can still override permitted development. I recently said that councils would have to prove significant economic detriment in order to overrule a change of use from B1 (office) to C3 (residential). The city of London has already successfully applied for an exemption and we will have to watch this space as to whether other cities will successfully gain an exemption. Some Leases and Lenders may not permit a change of use.

Whilst, the above may oil the wheels of the planning process it remains to be seen whether or not the changes will have any significant effect.

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