Commercial Property Use Classes: What You Need to Know

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Understand commercial property use classes in the UK. Fraser Bond explains key classifications like Class E, Sui Generis, and more to help you find the right property.

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Understanding Commercial Property Use Classes in the UK

In the UK, commercial properties are categorized into use classes, which dictate how a property can be legally used. These classifications are defined by the Town and Country Planning (Use Classes) Order 1987, with updates made in September 2020. Understanding these use classes is essential for businesses seeking to lease or buy a property, ensuring compliance with planning regulations.

Key Use Classes for Commercial Properties

1. Class E: Commercial, Business, and Service

Introduced in 2020, Class E consolidates several former use classes, offering flexibility. It includes:

Shops: Retail outlets (formerly Class A1).
Restaurants and Cafés: Places selling food and drink for on-site consumption (formerly Class A3).
Offices: For administrative or professional services.
Gyms and Health Services: Fitness studios, medical clinics, and day nurseries.

2. Class B: Industrial and Storage

Class B2: General industrial uses that do not fall under residential neighborhoods.
Class B8: Storage or distribution, including warehouses.

3. Class C: Residential

While primarily for residential use, some commercial properties may fall under this class, such as:

Class C1: Hotels, guesthouses, and similar accommodation.
Class C2: Residential institutions like care homes.

4. Sui Generis: Unique Uses

Some uses don’t fit within standard categories and are classified as Sui Generis:

Pubs, bars, and nightclubs.
Cinemas and theatres.
Casinos and betting shops.
Large-scale retail outlets not covered under Class E.

Why Are Use Classes Important?

Compliance with Regulations: Ensure your business operates within legal planning frameworks.
Flexibility in Use: Some properties, especially under Class E, allow for easier change of use without requiring planning permission.
Impact on Value: A property's use class can affect its market value and suitability for different business types.

Changing Use Classes

If you wish to use a property outside its designated use class:

Permitted Development Rights: Some changes (e.g., between certain Class E uses) are allowed without planning permission.
Planning Application: For other changes, you’ll need to apply to the local planning authority.

How Fraser Bond Can Assist You

Navigating use classes can be complex, but Fraser Bond provides expert advice to simplify the process:

Property Matching: We help you find properties aligned with your business needs.
Planning Guidance: Assistance with change-of-use applications and regulatory compliance.
Market Insights: Expertise in identifying properties with flexible or valuable use classes.

Conclusion

Understanding commercial property use classes is critical for making informed real estate decisions. Whether you're launching a new business or expanding operations, Fraser Bond offers the expertise to help you find the perfect property while ensuring compliance with planning regulations.