Use Class Orders for Investment Properties

Use Class orders for Investment Properties

When purchasing an investment property in the UK, it’s essential to understand the planning permission requirements and the property’s designated use class. The Town and Country Planning (Use Classes) Order 1987, along with its subsequent amendments, categorises property and land uses into specific classes. This classification determines the permissible activities within a property and guides whether planning permission is required for changes in use.

Updated Use Class Categories:

In September 2020, significant changes were introduced to the use class system in England to provide greater flexibility for property use. The revised classes are as follows:

Class	Description
Class E: Commercial, Business, and Service	Encompasses: – Retail: Shops selling goods (formerly A1). – Professional Services: Banks, estate agents (formerly A2). – Restaurants and Cafés: Serving food and drink on-site (formerly A3). – Offices: Workspaces not linked to industrial processes (formerly B1). – Research and Development: Labs and similar facilities. – Light Industry: Suitable for residential areas. – Health Services: Clinics, surgeries. – Day Nurseries: Childcare facilities. – Gyms**: Indoor fitness spaces.
Class F.1: Learning and Non-Residential Institutions	Covers: – Educational Facilities: Schools, colleges. – Cultural Venues: Museums, galleries. – Community Halls: Public spaces for gatherings. – Places of Worship: Churches, mosques, temples. – Law Courts: Judicial buildings.
Class F.2: Local Community Uses	Includes: – Small Community Shops: Serving essential needs, with specific size and location criteria. – Community Halls: Spaces for local gatherings. – Sports Facilities: Non-motorised indoor or outdoor venues. – Swimming Pools and Skating Rinks: Recreational facilities.
Class B2: General Industrial	Pertains to industrial processes not covered under Class E, excluding certain hazardous activities.
Class B8: Storage and Distribution	Relates to storage facilities and distribution centres, including open-air storage.
Class C1: Hotels	Covers hotels, boarding houses, and guest houses without significant care services.
Class C2: Residential Institutions	Encompasses residential care homes, hospitals, nursing homes, boarding schools, and training centres.
Class C2A: Secure Residential Institutions	Includes prisons, detention centres, secure hospitals, and military barracks.
Class C3: Dwellinghouses	Pertains to single households, including families, single occupants, and groups living as a single household.
Class C4: Houses in Multiple Occupation (HMOs)	Applies to shared houses occupied by between three and six unrelated individuals sharing amenities.
Sui Generis	For uses that don’t fall within the above classes, such as: – Theatres – Amusement arcades – Launderettes – Fuel stations – Car showrooms – Tattoo parlours – Nightclubs – Casinos – Betting shops – Pubs and bars

Permitted Development Rights:

Certain changes in property use are allowed under permitted development rights, meaning they don’t require full planning permission. However, some may need prior approval from the local authority. Examples include:

From Class E to Class C3 (Dwelling houses):
Subject to prior approval, properties can be converted from commercial, business, or service use to residential use.
Between Classes B2 and B8:
Changes between general industrial and storage or distribution uses are permitted, provided the floor space doesn’t exceed 235 square metres.
From Sui Generis (Casinos, Betting Shops, Payday Loan Shops) to Class E:
These specific sui generis uses can change to commercial, business, and service uses, subject to prior approval.

Key Considerations:

Planning Permission:

If your intended property use doesn’t fall under permitted development rights, you’ll need to apply for planning permission. This process can be time-consuming, often taking at least eight weeks. It’s advisable to make any property purchase contingent upon receiving the necessary planning consent.

Professional Assistance:

Navigating planning regulations can be complex. Engaging professionals such as planning consultants, architects, structural engineers, and building control services can be beneficial.

Local Authority Engagement:

Contacting your local planning authority is a good starting point for guidance on planning matters. Be aware that reaching them by phone can sometimes be challenging.

Understanding these classifications and regulations is essential for making informed decisions when purchasing an investment property in the UK. Always ensure that the property’s current use aligns with your intended use, and seek professional advice when necessary.

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Disclaimer

The Content above is for guidance purpose only. While we make every effort to keep the information current and correct, we do not make representations of any kind. Professional advice should be sought, before entering into any legal contract and purchasing a property.