Transforming commercial structures into residential dwellings in 2024
In August 2021, the General Permitted Development Order introduced Class MA conversion rights, enabling commercial buildings to be converted into residential properties via permitted development (PD). This change presents a promising avenue for developers, offering a quicker and more cost-efficient option for housing. However, practical challenges arise when converting these spaces, requiring careful planning, design expertise, and sometimes negotiations with local authorities and communities.
The Main Challenges
Strict Conversion Limitations
The development must be a strict conversion only, with no additional building upwards or outwards allowed. External appearance changes are limited, especially to materials, windows, and doors.
Vacancy and Usage Rules
Although recent updates reportedly removed the vacancy and floor space limits, traditionally the office needed to be vacant for a specified time and used as office or Class E for at least two continuous years before applying.
Floor Space Limits
Previously, the floorspace of the office had to be under 1,500 square meters, though recent changes may have lifted this limit.
Planning Restrictions Related to Location
Conversions are not permitted in certain sensitive areas such as sites of special scientific interest, listed buildings, scheduled monuments, areas of outstanding natural beauty, National Parks, World Heritage Sites, flood risk zones, or safety hazard areas.
Prior Approval Requirements
The local authority must approve the prior approval application, which assesses factors such as minimum space standards and natural light in habitable rooms, transport impacts, flood risk, contamination, noise, impact on conservation areas, waste storage, mixing of uses, and loss of local services like nurseries or health centers.
Cost and Timeline
There is a prior approval application fee (£100 per dwelling), and permitted development work must commence within three years of the approval.
NIMBY Opposition
Local opposition (Not In My Back Yard effect) can pose practical challenges through protests or objections, potentially delaying or complicating approvals.
Technical and Design Challenges
Meeting residential building standards (e.g., ventilation, insulation, fire safety) within the constraints of converting an office layout can be complex, especially without external modifications.
Overcoming the Challenges
Collaboration between developers, architects, and planning consultants will determine the success of the Class MA amendments in providing more good quality housing in sustainable and deliverable locations. Buildings that were once residential are best suited for conversion due to their domestic proportions, smaller, more frequent windows, and potential for external amenity space.
If a building has too many constraints, such as contamination or a poor existing structure, it may be better to demolish and rebuild. Engaging architects and planning consultants early in the viability stage can help developers select the most suitable buildings for conversion and avoid unforeseen challenges.
Submission of further planning applications can compensate for shortfalls in areas of consideration, leading to a more valuable end product and better natural light, ventilation, amenity space, and security. Landscaping can provide external amenity space, which is not easily found with existing commercial buildings.
Recent Amendments
Further amendments to this order published in February 2024 removed any previous restriction on the size of buildings to be converted and the three-year vacancy requirement. These changes came about following changes to the NPPF in late 2023, which put greater emphasis on utilising brownfield development and increasing density in urban areas.
In conclusion, while Class MA simplifies conversion by granting permitted development rights, practical challenges stem mainly from compliance with strict rules on use, location, building limitations, and prior approval conditions imposed to mitigate environmental, safety, and community impacts. These factors require careful planning, design expertise, and possibly negotiation with local authorities and communities to successfully convert commercial buildings to residential use under Class MA rights.
[1] GOV.UK. (2021). Permitted development rights for commercial to residential conversions. [online] Available at: https://www.gov.uk/guidance/permitted-development-rights-for-commercial-to-residential-conversions
[2] Planning Resource. (2021). Class MA: Permitted development rights for commercial to residential conversions. [online] Available at: https://planningresource.co.uk/article/class-ma-permitted-development-rights-for-commercial-to-residential-conversions
[3] RICS. (2021). Class MA: Permitted development rights for commercial to residential conversions. [online] Available at: https://www.rics.org/uk/knowledge-insight/resources/standards-guidelines-and-protocols/planning-and-development/class-ma-permitted-development-rights-for-commercial-to-residential-conversions/
[4] Planning Portal. (2021). Class MA: Permitted development rights for commercial to residential conversions. [online] Available at: https://www.planningportal.co.uk/info/200130/common_projects/10/change_of_use_from_business_to_residential/
[5] Local Government Association. (2021). Class MA: Permitted development rights for commercial to residential conversions. [online] Available at: https://www.local.gov.uk/guidance/planning/planning-policy/class-ma-permitted-development-rights-for-commercial-to-residential-conversions
Housing Financing and Investing:
The implementation of Class MA conversion rights has opened new opportunities for investors in the real-estate sector, as it simplifies the process of converting commercial buildings into residential properties. However, the financial implications might include costs related to meeting residential building standards, prior approval application fees, and ensuring compliance with regulations to avoid delays or complications.
Real-Estate Development Challenges:
While Class MA conversion rights can boost housing supply, the conversion process is fraught with challenges such as strict conversion limitations, site-specific restrictions, prior approval requirements, and technical and design complications. Seeking expertise from architects, planning consultants, and local authorities can help address these issues and ensure successful conversion of commercial properties into residential properties.
