Introduction
When selling a commercial property, the planning permission and lawful use attached to the building or land can have a significant impact on value, buyer demand and transaction speed. Buyers, lenders and professional advisers will want clarity regarding how the property can legally be used and whether there is potential for alternative uses, redevelopment or change of use.
Understanding the planning position before marketing your property — and providing clear supporting documentation — can make the property more attractive to purchasers and help reduce delays during the legal process.
Use Classes and Planning Permission Related to Selling a Commercial Property
Commercial property uses in England are governed by The Town and Country Planning (Use Classes) Order. The framework has changed significantly in recent years, with many traditional commercial uses now falling within Class E (Commercial, Business and Service), which provides greater flexibility compared with the historic A1, A2, A3 and B1 classifications.
The principal use categories relevant to commercial property include:
Class E — Commercial, Business and Service
This broad class covers many common commercial premises, including:
- Retail shops and showrooms
- Offices and professional services
- Restaurants and cafés (for consumption on the premises)
- Medical or health services
- Indoor sport and recreation facilities
- Day nurseries and similar services
The flexibility of Class E can be attractive to buyers because movement between several uses may be possible without full planning consent in certain circumstances.
Industrial and Storage Uses
Class B2 — General Industrial
Industrial processes not included within Class E.
Class B8 — Storage and Distribution
Warehousing, logistics buildings and open storage land.
Industrial and distribution property has experienced strong demand in recent years, particularly in well-located areas with good transport connectivity.
Residential and Accommodation Uses
Classes C1 to C4 include:
- Hotels and serviced accommodation
- Residential institutions
- Dwelling houses
- Houses in Multiple Occupation (HMOs)
Community Uses
Classes F1 and F2 include educational, community and local service uses.
Sui Generis Uses
Certain property types fall outside the defined use classes and are treated individually, including:
- Public houses and bars
- Hot food takeaways
- Petrol filling stations
- Nightclubs
- Theatres and cinemas
- Motor trade premises
- Casinos and betting shops
Sui generis properties can sometimes present additional planning considerations, which buyers may assess carefully when evaluating risk.
Changes of use and planning flexibility
In some circumstances, changes between uses may be possible without full planning permission under permitted development rights. However, these rights depend on the specific property, its location and any local planning restrictions, including Article 4 Directions that remove permitted development rights in certain areas.
Sellers should avoid assuming that a change of use will be automatically permitted. Buyers will normally rely on their own planning investigations and professional advice before proceeding.
If a buyer intends to use the property for a purpose that differs from the existing lawful use and permitted development rights do not apply, a formal planning application will usually be required. Determination periods commonly start from around eight weeks but can extend considerably depending on complexity and local authority workload.
Why planning information matters to buyers
Planning certainty is one of the first areas investigated during commercial property due diligence. Unclear planning status can:
- Reduce buyer interest
- Affect valuation assumptions
- Delay legal progress
- Create renegotiation risk
- Impact lender approval
Conversely, a well-documented planning position can improve buyer confidence and help support stronger offers.
Providing planning information when selling commercial property
Providing planning documentation early can improve transaction efficiency and reduce legal enquiries. Information commonly requested includes:
- Planning permissions and decision notices
- Lawful use or lawful development certificates
- Approved drawings and plans
- Evidence that planning conditions have been discharged
- Listed building consents (if applicable)
- Building regulations approvals and completion certificates
- Details of any planning restrictions or enforcement notices
Including these documents within the legal pack can significantly reduce delays once a purchaser has been identified.
Planning status should also be clearly referenced within the Heads of Terms (HOTs) to avoid misunderstandings between the parties.
Development potential and added value
Where a property benefits from planning consent for redevelopment, extension or alternative use, this can enhance value considerably. Even where planning consent is not in place, demonstrating potential through planning appraisals or feasibility studies may broaden the buyer pool and increase market interest.
For development opportunities, buyers may request supporting reports such as:
- Topographical surveys
- Transport or access assessments
- Environmental or contamination reports
- Ground investigation surveys
- Structural assessments
Providing this information in advance can strengthen marketing and improve purchaser confidence.
When Professional Planning Advice May Be Required
Planning is a specialist area and professional input may be necessary where there is complexity or development potential. Depending on the circumstances, sellers may benefit from advice from:
- Planning consultants
- Architects
- Structural engineers
- Building control specialists
- Project managers
- Quantity surveyors
- Contractors or cost consultants
Engaging advisers early can help identify both risks and opportunities before marketing begins.
Contacting the Local Authority
Local planning authorities hold records relating to planning permissions and property history. While contacting the council may provide useful information, professional planning advisers are often better placed to interpret planning policy and development potential in a commercial context.
Summary
Planning permission and lawful use are fundamental to commercial property value and marketability. Establishing a clear planning position before marketing — and providing supporting documentation where available — can improve buyer confidence, reduce delays and support stronger offers. Where planning complexity exists, obtaining professional advice early in the sales process is often worthwhile.
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