More opportunities for converting commercial buildings to housing in London

Since 1 August 2021, Class MA of the General Permitted Development Order (GPDO) has enabled buildings that have been in Use Class E (Commercial Business and Service) for at least two years to be converted to residential use, subject to the proposed units being compliant with the Nationally Described Space Standards (NDSS) and “prior approval” by the Local Planning Authority (LPA) being secured. 

Decoration Decoration

The advantages of securing residential conversion under permitted development rights

Category
Bell Cornwell News
Region
National
Author Martin Moss
Associate
Decoration Decoration

A prior approval application is required to seek confirmation that specified parts of the proposed development are acceptable by demonstrating through the submission of technical reports, that they:

Do not have harmful transport impacts.
Do not result in exposure to contamination.
Do not result in exposure to flooding risks.
Do not result in any adverse fire safety impacts.
Do not impact the intended occupiers of the development with noise from commercial premises.
Do not harm the character or sustainability of a conservation area.
Provide adequate internal daylighting.
Do not result in harmful impacts to end-users as a result of proximity to nearby general or heavy industrial uses; and
Any resultant loss of a registered nursery or health centre on-site would not harm the local provision of these services.

Please note: Unlike planning permission, which only needs to be implemented within three years, once prior approval is granted, the conversion must be completed within three years.

If any external works are required, e.g., new windows (to provide suitable noise attenuation or sufficient internal daylight), planning permission for these should be secured ahead of, or alongside, any prior approval application. 

The advantages of securing residential conversion under permitted development rights

Whilst housing delivered under national permitted development rights must comply with NDSS minimum size standards, they do not otherwise allow LPAs to apply their Local Plan policy requirements. As a result, developers:

  • Do not need to provide any affordable housing
  • Do not need to provide a mix of unit sizes
  • Do not need to provide external private or communal amenity space
  • Do not need to provide any play space
  • Do not need to achieve any sustainability targets – e.g. Net Zero Carbon or Biodiversity Net Gain
  • Do not need to discharge any pre-commencement conditions prior to commencement
  • Do not need to make any Section 106 financial contributions

Limitations on this permitted development right in London are not as onerous as you might think.

When the “Class O” permitted development right to convert offices only to residential use was introduced in 2013, several LPAs acted quickly to secure Article 4 Directions to remove this permitted development right in their administrative areas.  The Secretary of State also accepted the blanket removal of this permitted development right for a specifically defined central area of London (known as the Central Activities Zone (CAZ)), which spans a number of London Boroughs and is identified by the London Plan as the focus for activities and uses that to contribute to London’s role as a “World City”. 

However, when the broader Class MA permitted development right was introduced to replace Class O, the Secretary of State refused to grant Article 4 Directions to provide the same blanket removal of the Class MA permitted development right (apart from for the City of London).  The affected London Boroughs were, therefore, required to define more specific areas/individual properties to be the subject of the subsequent Article 4 Directions.

Some LPAs outside of the CAZ area determined not to pursue fresh Article 4 Directions. 

However, where Article 4 Directions were secured relating to Class MA, this was on the understanding that the scope to secure residential conversion of buildings from Use Class E was limited to less than 1500 floors and only available for vacant buildings, so it was not considered too much of a threat.

The recent relaxation of the “Class MA” Permitted Development Right.

The Class MA permitted development rights originally required buildings to have been vacant at least 3 months before any prior approval application and set an upper floorspace limit of 1500sqm.

However, changes to the GPDO  which came into effect on 5 March 2024 have removed the requirement for the existing building to be vacant and the 1500sqm floorspace limit.

A window of opportunity

These changes to Class MA of the GPDO provide an opportunity to consider the residential conversion of buildings in Use Class E – in particular buildings that are currently occupied – with no upper limit on the amount of floor space within a building that can be converted. Securing conversion under this permitted development right has significant advantages as it does not allow LPAs to apply their Local Plan policies – giving developers greater freedom to develop what they want and maximise returns accordingly.

Even where LPAs have Article 4 Directions, removing the Class MA permitted development right; these only cover specific areas and properties.  These Article 4 directions were also secured at a time when the 1500sqm upper floorspace limit and the requirement for a building to be vacant reduced the amount of Use Class E floorspace likely to be lost.

It is not clear whether the new government may seek to remove or amend the Class MA permitted development right (particularly given that it does not deliver any affordable housing). Equally, some authorities may now seek to introduce new Article 4 Directions (or replace existing ones) in response to the greater scope for larger Use Class E buildings (including potentially viable retail and office space) to be lost.

However, there is likely to be a window of opportunity (until at least early 2025) to secure Prior Approval for residential conversion of large occupied buildings in Class E use (as long as conversion can then be completed within three years)

How can Bell Cornwell help you?

Bell Cornwell LLP’s experienced team of chartered planning consultants have significant expertise in securing Class MA residential conversions and can provide the following:

  • Site appraisals – to assess the potential for secure conversion of individual properties under the Class MA permitted development right (including pre-purchase advice) 
  • Prior approval applications – Preparation, submission and management of applications, including briefing and coordinating any technical specialists required
  • Securing planning permission – Initial advice, preparation, submission and management of planning applications for residential developments on sites not able to benefit from permitted development rights

 

Related Articles