Govt's SME property scheme fails

Today's post concerns a property related government scheme to open up unused (government) properties to SME's. However an article in The Guardian reports, that takeup on the scheme has been abysmal, with only four businesses currently awaiting to hear whether their bid (to occupy a government property) has been successful. The article can be accessed at:

http://www.guardian.co.uk/business/2013/feb/15/businesses-empty-buildings-plan-failing

The principle reasons for this failure are:

• Unsuitable properties
• Poor security
• Restrictive Leases which state that the property can only be used for government purposes

The last point is of interest. The Government has recently announced changes to permitted development. In short, it will be easier to convert from office (B1A) to residential (C3). The government has also allowed free schools to open up in commercial premises (for a year) without planning permission. The above illustrates a potential problem. A Lease may contain a user clause that restricts the use of the property. An onerous user clause could easily defeat a business or free school from setting up in an unused property. The government's aim of streamlining the planning process is laudable and welcome. However, restrictive user could turn the whole process on its head.

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