National planning policies introduced in summer 2021, have resulted in a lasting impact on changing the town centre business mix across England. Here we summarise the changes.
Under the revised use class and permitted development rights systems, shops, for example, can now be changed to professional and financial services; medium-sized cafes or restaurants; offices; housing; or assembly and leisure, without planning permission.
Simplified use classes
The ways the business use of a building is classified was simplified in September 2020. New regulations created a streamlined new use class system, although the terminology did not change until July 2021.
The new use classes are: a broad Class E (commercial, business and service), Class F1 (learning and non-residential institutions) and Class F2 (local community). Shops fall into Class E or Class F2 depending on their use, size and location. This change is important in shaping the potential mix of town centre businesses because it is no longer necessary to obtain planning permission for some changes between various non-residential uses required under the previous use classes. The full list of the new use classes and their previous equivalents is shown in our downloadable guide to the changing use of town centre businesses.
Additional safeguards
At the time of the change, the use of some types of building were afforded additional safeguards:
- Pubs, cinemas, and concert halls: If an owner wants to repurpose these buildings, they would need full planning permission and local consideration. The implication is that buildings which bring particular benefits to the local community will be protected.
- ‘Nuisance uses’: Buildings like hot food takeaways & betting shops which attract strong views locally, will not be able to change use without full planning permission.
- ‘Local Community’ use class: This is intended to protect uses important to local communities, like swimming pools, skating rinks and areas for outdoor sports.
Permitted development
In addition to the changes allowed within the broader use class definitions, some changes between use classes are covered by ‘permitted development’ rights (meaning that planning permission is deemed to have been given).
New rules allowing commercial premises to be converted into homes came into force on 31st March 2021. The government introduced legislation for England to bring forward this right from 1 August 2021. The full list of permitted changes is given in our downloadable guide to the changing use of town centre businesses.
The change from business premises to new homes is delivered through a simple ‘prior approval’ process instead of a full planning application. The legislation allows for local consideration by the local planning authority of specific planning matters through the prior approval process. These considerations include: Flooding; impacts of noise from commercial premises; provision of adequate natural light to all habitable rooms; consideration of the impact of the loss of the ground floor commercial, business and service use (in conservation areas only); impact of the loss of health centres and registered nurseries on the provision of such local services.
The right also includes a vacancy requirement that will ensure the building changing use has been vacant for 3 months before the date of the application to protect successful businesses in these premises. A size limit is also included of 1,500m2 of floorspace to focus the right to change use on small to medium sized high street site premises.
Article 4 directions
Local councils have powers to restrict or remove permitted development rights from sites or areas within their authority. These powers are known as restrictions “Article 4 directions”. Local councils can restrict or remove most permitted development rights from small or large areas. This could even include the whole council area. The only requirement is that they must have a good reason for doing so.
Common reasons for making Article 4 directions include:
- Protecting Conservation Areas. Many councils will restrict the permitted development rights available in Conservation Areas to protect against the gradual loss of its special features or value. For example, Article 4 directions are frequently introduced to prevent historic windows from being replaced with UPVC units
- Protecting the High Street and local industry. Many councils will restrict certain change of use permitted development rights where there is legitimate concern that High Streets or local industries are suffering. Their primary goal will normally be to hold onto as many retail and similar or complementary commercial uses as possible.
More information
Download our guide on the changing use of town centre businesses.
Read government government guidance from the time on the flexible use of the High Street that explains the changes in use classes.
Read more about permitted development rights as part of government’s new measures to support High Streets.
Keep up-to-date with our latest guidance on our tried and tested approaches to town and city centre revitalisation.
