Introduction
Planning permission and the lawful use class of a property can have a significant impact on whether a commercial property is suitable for your intended purpose. When buying commercial property at auction, it is essential to understand the planning status of the building, any restrictions affecting its use, and whether changes can be made without formal planning consent.
This section explains how planning permission and use classes relate to commercial property purchases and what buyers should consider before bidding.
Planning Permission and Use Classes Related to Auction Commercial Property
Commercial property in England is governed by the Town and Country Planning (Use Classes) Order, which categorises how buildings and land can legally be used. The system was substantially reformed in 2020 to provide greater flexibility within commercial sectors, particularly through the introduction of the new Use Class E.
Understanding the current use class of a property is important because it determines whether you can occupy or operate from the premises without submitting a planning application.
Main Commercial Use Classes (England)
The most common use classes relevant to auction commercial property are shown below.
Use Class
Description
Class E
Commercial, business and service uses including retail, offices, restaurants (not takeaways), medical services, gyms, nurseries and other town centre uses
B2
General industrial use
B8
Storage and distribution (warehousing)
C1
Hotels and guest accommodation
C2
Residential institutions (care homes, hospitals)
C3
Residential dwellings
C4
Houses in multiple occupation (small HMOs)
F1
Learning and non-residential institutions (schools, museums, places of worship)
F2
Community uses and local facilities
Sui Generis
Uses that do not fall within a defined class (for example pubs, hot food takeaways, cinemas, petrol stations, nightclubs)
Many uses that were previously separate categories — such as shops, offices and restaurants — are now grouped within Class E, allowing greater flexibility between activities without planning permission in certain circumstances.
Flexibility of use within class E
One of the most important planning changes affecting commercial property buyers is the flexibility within Class E.
For example, a property lawfully used as:
- A retail shop
- An office
- A café or restaurant
- A medical clinic
- A gym
may often be changed to another Class E use without requiring full planning permission, provided no additional restrictions apply.
This flexibility can increase the attractiveness of commercial properties purchased at auction, particularly where future repositioning or tenant demand may change.
However, buyers should always confirm the lawful existing use and any planning conditions attached to the property.
Uses outside class E
Some commercial uses remain outside the flexible Class E category and are classified as Sui Generis. These include:
- Public houses and drinking establishments
- Hot food takeaways
- Cinemas and nightclubs
- Petrol filling stations
- Casinos and amusement centres
- Large HMOs
- Taxi businesses
Changing between these uses usually requires planning permission.
Changes of use without planning permission
In certain circumstances, changes of use may occur without submitting a full planning application. These are often referred to as permitted development rights.
Examples may include:
- Certain commercial to residential conversions (subject to approval)
- Agricultural buildings to commercial use (subject to conditions)
- Some Class E changes internally
However, permitted development rights are complex and may be restricted by local planning policies or Article 4 Directions. Buyers should never assume that a change of use is automatically permitted.
Professional advice should always be obtained where the intended use differs from the existing lawful use.
Importance of planning research before auction
When buying a commercial property at auction, buyers should confirm:
- The current lawful planning use
- Whether any planning permissions are in place
- Whether planning conditions or restrictions apply
- Whether the intended use is permitted
- Whether future development potential exists
If planning permission is required for your intended use and has not yet been obtained, this introduces additional risk. Planning applications can take several weeks or months to determine and approval is not guaranteed.
Planning permission applications
Planning is a specialist area requiring technical knowledge. A change of use application may be relatively straightforward in some cases, but full planning applications can involve detailed reports such as:
- Transport or highway assessments
- Environmental reports
- Structural surveys
- Flood risk assessments
- Noise impact reports
Local authorities can provide initial guidance, although planning consultants are often engaged where projects are more complex or involve development potential.
If significant alterations are planned, buyers may require input from professionals such as:
- Planning consultants
- Architects
- Structural engineers
- Building control specialists
- Project managers
- Quantity surveyors
- Contractors
The level of professional input required will depend on the scope of the proposed changes.
Responsibility for Planning Compliance
Ultimately, responsibility for confirming planning status rests with the buyer. Auction sales proceed on the basis that the purchaser has carried out appropriate investigations prior to bidding.
Failure to confirm planning use or restrictions can result in unexpected costs or limitations after purchase, particularly where intended uses are not permitted.
Summary
Planning permission and use class are key considerations when buying commercial property at auction. The modern planning framework provides greater flexibility in some sectors, particularly within Class E, but buyers must still confirm lawful use and any restrictions before bidding.
Understanding the planning position of a property helps reduce risk and ensures the building is suitable for your intended purpose.
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