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Change of use of a premises – what do I need to do?

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James Regan is a partner in our commercial property department. You can contact him on 01323434420 or by email: james.regan@stephenrimmer.com

Whether you need to do anything if you decide to change the use of a premises depends on two main factors. The first is the current use of the premises and the second is whether you own or lease the premises. This means we must consider the use aspects of the premises from a planning perspective. If the premises are leased, you will need to focus on the use clause in the lease.

Planning considerations

When considering change of use of any premises, your first line of enquiry will be to the planning authority. The planning authority deals with all aspect of planning and these include the change of use of a premises. That change might be from residential to commercial or, where the premises are already commercial premises, a change in the nature of use of those premises.

There are a number of Use Classes used to define the use of properties.

Use classes

Use classes are defined in the Town and Country Planning (Use Classes) Order 1987. Schedules 1 and 2 of this Act deal with the different use classes. The current use class groupings are as follows:

SCHEDULE 1

PART A PART B PART C PART D
Class A1. Shops Class B1. Business

 

Class C1. Hotels Class D1. Non-residential institutions
Class A2. Financial and professional services Class B2. General industrial Class C2. Residential institutions. Use as a hospital or nursing home. Use as a residential school, college or training centre. Class D2. Assembly and leisure
Class A3. Food and drink Class B3. Special Industrial Group A C2A. Secure residential institutions  
  Class B4. Special Industrial Group B

 

Class C3. Dwelling houses, used as sole or main residences  
  Class B5. Special Industrial Group C Class C4. Houses in multiple occupation  
  Class B6. Special Industrial Group D Class C5. Dwelling houses, used otherwise than as sole or main residences  
  Class B7. Special Industrial Group E Class C6. Short-term lets  
  Class B8. Storage or distribution    

 

SCHEDULE 2

PART A Commercial, Business and Service PART B Local Community and Learning
Class E. Commercial, Business and Service Class F.1 Learning and non-residential institutions
  Class F.2 Local community

 

If you wish to change from residential to commercial or vice versa, or if you wish to change between use classes, you must speak with the local authority and, if necessary, apply for planning permission for change of use. Usually, changes from one use class to another or from residential to commercial and vice versa will require planning permission for change of use.

Planning permission for change of use may also be needed when the change constitutes a material change of use. This generally means a significant change impacting on the use of the premises. Each case must be considered on its own merits.

Additional permissions will be required if the premises form part of a listed building. You can conduct a search on the Historic England website to find out if the premises are listed.

If the premises are leased you may need landlord’s consent

If you lease the premises, you must first check the use clause in the lease. The use clause will define the uses to which you can put the premises. Check whether your proposed use is within the use provisions in the lease. If it is not, you must make a formal application to the landlord for permission for change of use.

The landlord may not be obliged to grant consent to the change use unless there is a qualification in the lease stating that the landlord cannot unreasonably refuse consent.

There may also be clauses in the lease that trigger rent increases or reviews when consent to change of use is granted. Check the terms of the lease to find out if there is anything that is likely to cause an increase in rent or otherwise impact on your use of the premises.

Also, once the consent to change of use has been agreed, make sure you obtain that in writing.

What other consents might you need?

In addition to any planning and landlord’s consent, if you are carrying out any alterations, you may need further local authority consent for changes affecting the building regulations.

Check whether you need any health and safety permissions for the change you intend to make to the premises or their operation once change of use has come into effect.

Will you need a license following change of use?

If you plan to sell any alcohol from the premises you will need a premises license. You are also likely to need a premises license if you intend to show films, put on live music or host an indoor sporting event. The UK government has a page on premises license which is useful for checking these requirements. Again, you will need to apply to the local council for one of these.

This list is not exhaustive and you should seek professional advice to ensure you cover all eventualities.

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