A Guide to Property Use Classes

Property Use classes dictate how all UK commercial property can be used. Understanding Use Classes is essential for property investors and businesses as they determine permitted activities that can legally occur within a property and whether planning permission is required for changes. This can impact property value, leasing options, and compliance with local planning regulations.

Adhering to Property Use Class rules is not just important, it’s crucial for avoiding legal issues and costly planning disputes. Misclassifying a property can lead to fines, enforcement notices, and difficulties obtaining planning permission for changes. This underscores the need for caution and attention to detail when dealing with Use Classes.

The Town and Country Planning Act 1990 provides a comprehensive framework for controlling how land, including commercial properties, can be used in England and Wales. It establishes the framework for obtaining planning permission, outlines the roles of local planning authorities, and sets the procedures for appeals and enforcement.

The Act is crucial for understanding Property Use Classes. It defines the categories of land use, including residential, commercial, and industrial, and determines what activities can occur on a property.

Key provisions include the creation of development plans, which guide land use decisions and the classification of properties into various use classes. This ensures that developments comply with local planning policies and maintain orderly growth.

The Act also addresses planning permissions, enforcement actions, and the process for appealing decisions, making it central to managing property use and ensuring compliance with planning regulations.

The UK Use Class categories are broken down by commercial activity as follows:

B3-B8 (Industrial Uses)

This category covers more specialised industrial activities such as waste disposal (B7) or printing (B8):

• B3: General industrial uses.
• B4: Specialised industrial uses.
• B5: Waste disposal (B7).
• B6: Storage and distribution.
• B7: Printworks and similar operations.
• B8: Warehousing and distribution.

Use Class C (Residential Institutions and Dwellings)

This class covers various residential uses, including hotels, care homes, and dwellings. It is further divided into subcategories like C1 (Hotels), C2 (Residential Institutions), C3 (Dwellinghouses), and C4 (Houses in Multiple Occupation):

• C1: Hotels, guest houses, and hostels.
• C2: Institutions providing residential care, such as care homes and hospitals.
• C3: Dwellinghouses, including houses and flats.
• C4: Houses in Multiple Occupation (HMOs) for small-scale shared housing; larger HMOs fall under Sui Generis.

Use Class E (Commercial, Business, and Service)

This broad category covers a wide range of commercial activities and is the most flexible of all the use classes. Most shops, restaurants, offices, gyms, and cafes fall under Use Class E.

Use Class F (Learning and Non-Residential Institutions)

This class covers educational establishments and community facilities such as schools, libraries, museums, and places of worship.

Use Class Sui Generis

Properties with unique uses that don’t fit standard categories typically fall under the Sui Generis class. This includes premises such as theatres, cinemas, petrol stations, casinos, and large HMOs.

Recent updates to Property Use Class legislation introduced in 2020 significantly impacted the commercial property market. This overhaul aimed to simplify the planning process and encourage greater flexibility in property use.

Fundamental changes included the creation of broader Use Classes, such as Class E (Commercial, Business and Service), which merged several former categories, including shops (A1) and offices (B1), allowing for easier transitions between different commercial activities in these premises, without the requirement for full planning applications. This consolidation aimed to improve flexibility for property owners and tenants, replacing previous, more restrictive categories.

Use Class F was also updated to cover educational and community uses and property used as religious space (F2), while some premises previously classified as Sui Generis, such as hot food takeaways and certain retail outlets, were moved into the new Use Class E. This means they no longer require planning permission to change their use within this category.

Sui Generis still includes unique properties like pubs, casinos, and large HMOs.

The restructuring provides greater adaptability in property use and supports economic recovery by accommodating shifts in business models.

These modifications have profoundly impacted the commercial property market, influencing investment strategies, leasing options, and development opportunities. By understanding these changes, property owners, businesses, and developers can more easily navigate the evolving commercial property marketplace and make informed decisions.

Understanding how Use Classes are assigned and the factors influencing this classification is essential for property owners, businesses, and developers.

How is a Property’s Use Class Determined?

The Use Class of a property is typically determined by its historical use. If the property has been used for a particular activity for a substantial period, it will likely fall within the corresponding Use Class. However, changes in use over time can complicate matters. The 2020 Use Classes Order introduced new classifications and altered the rules for some existing uses. For example, a property previously used as a D1 nursery will now fall under Use Class E as the new regulations consolidate various uses into broader categories. 

Key Factors Influencing Use Class:

• The property’s original design and construction: The building’s structure and layout can provide clues about its intended use.
• Planning history: Previous planning permissions and changes of use can impact the current Use Class.
• Physical characteristics: The property’s size, location, and amenities can influence its classification.

Considerations When Converting or Redeveloping a UK Commercial Property

When converting or redeveloping a property, consider the following:

• Previous Use Class: Confirm the property’s historical Use Class to determine its current classification and any transitional rights.
• New Use Requirements: Ensure the new Use Class aligns with your intended use and check if any further permissions or adjustments are needed.
• Planning Permissions: Evaluate whether you need a change-of-use application or other planning permissions for your redevelopment plans.