Navigating Planning Use Classes: What’s Changed and Why It Matters
If you’re buying, selling or investing in commercial property, it’s important to understand how planning use classes work. These rules decide what a building can be used for.
In 2020, the government made one of the biggest updates to the system in decades, introducing a new category called Class E. The goal was to make things simpler and give property owners more flexibility. Here’s what’s changed and why it matters.
What Are Planning Use Classes?
Planning use classes are categories set by the government that group buildings based on how they’re used. They’re part of the Town and Country Planning (Use Classes) Order 1987.
Before 2020, there were separate classes for different types of business, for example:
- A1 – Shops
- A2 – Financial and professional services (like estate agents and banks)
- A3 – Restaurants and cafés
- B1 – Offices and light industrial work
- D1/D2 – Clinics, nurseries, gyms and leisure uses
If you wanted to change a building from one use to another (for example, a shop into a restaurant), you often needed planning permission, a process that could take weeks or even months.
The Introduction of Class E
In September 2020, the government combined many of these separate categories into one new class: Class E (Commercial, Business and Service).
Class E includes:
- Shops and retail spaces
- Restaurants and cafés
- Offices and co-working spaces
- Clinics, health centres, and nurseries
- Gyms and indoor sports facilities (that don’t include outdoor sports)
The idea was to make it easier for property owners to change how they use a building without needing planning permission.
For example, a small shop could become a café or fitness studio without going through a full planning application.
Why Did These Changes Happen?
The main reason for the change was to support town centres and high streets. Many retail businesses were struggling, especially after the pandemic, so the government wanted to make it easier for landlords and tenants to adapt buildings for other uses.
By allowing flexible use, vacant shops can now become restaurants, offices or wellness spaces more easily, helping to keep local areas lively and avoid empty units.
What Does This Mean for Buyers and Sellers?
For Buyers and Investors
If you’re buying a commercial property, Class E can make it more versatile and valuable.
You could use the space for different types of businesses without having to apply for planning permission every time. This flexibility is especially attractive for investors who want to rent out the property to different types of tenants.
For Sellers
If you’re selling a property that falls within Class E, it could appeal to a wider range of buyers.
Because the building can be used for several purposes, buyers may see more potential in it, which can make it easier to sell or even increase its market value.
Are There Any Restrictions?
Even though Class E makes things simpler, there are still a few important limits to know about:
- Local Restrictions: Councils can put in place Article 4 Directions, which remove permitted development rights in certain areas.
- Listed Buildings: If a property is listed or in a conservation area, extra rules apply.
- Conversions to Residential: Some Class E buildings can be converted to housing, but only under certain permitted development rules and they must meet space and light standards.
It’s always best to check with a planning professional or solicitor before making any changes.
Why This Matters
Understanding use classes can save property owners and investors time, money and stress. The introduction of Class E has made it much easier to respond to changes in the market, especially as businesses move away from traditional retail and towards mixed-use spaces.
So, if you’re buying, selling or simply exploring your options, knowing which class your property falls into can help you make more informed decisions and avoid unexpected issues later on.
In Summary
- The government introduced Class E in 2020 to simplify planning rules.
- It combines several old classes (A1, A2, A3, B1, D1, and D2).
- It allows many commercial uses to switch between one another without needing planning permission.
- This makes commercial property more flexible and appealing to both buyers and sellers.
If you’re unsure how the planning use classes apply to your property or a potential purchase, it’s a good idea to speak to a solicitor or planning advisor who can guide you through the details. At GPS Commercial, our specialist team can guide you through every stage of the process.
With extensive experience in the confidential sale of trading businesses, investment property and commercial premises, we provide clear, professional advice to help you make informed decisions.
Email: info@gps-direct.com
Call: 01323 727271
.jpg)