Topic 12

Commercial properties and change of use

For business owners and investors: shops, restaurants, offices and turning commercial space into homes.

23 articles

Use classes and change of use

01Use classes explained: E, F1, F2, B2, B8, C and sui generisUse classes group activities for planning purposes. Moving between activities within the same class is generally not development, but moving between classes may need permission or a specific permitted-development route; sui generis uses sit outside the classes.02Class E: switching between shop, café, office, gym and clinicA lawful Class E premises can generally switch between qualifying shop, café, office, gym and clinic activities without a change-of-use planning application. The activity must actually fall within Class E, and existing restrictions, building work and licensing must be checked separately.03Takeaways, pubs and betting shops: when planning permission is neededPubs, hot food takeaways and betting shops are sui generis uses, so they do not share the general flexibility available within Class E. A material change to one of these uses normally needs planning permission; the existing lawful use and any specific permitted-development right still matter.04Do I need planning permission to change the use of my unit?You need a planning application if the proposal is a material change of use and no applicable permitted-development right authorises it. Start by establishing the lawful existing use, then check the proposed activity, any restrictions and the separate permissions needed for building work.05Working from home: when does it need permission?Working from home does not automatically need planning permission. The issue is whether the business remains incidental to living there or changes the overall character of the property; customer visits, traffic, noise and other effects can be relevant.

Commercial to residential

06Converting commercial space to homes without full planning (Class MA)Class MA can allow qualifying Class E commercial premises to become C3 homes without a full planning application, but a prior-approval application is still required. Eligibility, local Article 4 directions, living conditions and the separate building-regulations requirements must all be checked.07Article 4 directions that block commercial-to-residential conversionsAn Article 4 direction can remove the Class MA permitted-development right for specified commercial premises, making a full planning application necessary for the proposed conversion. Coverage depends on the operative direction, its map and its effective date, not simply the borough name.08Flats above shopsFlats above shops may be possible through Class G prior approval, another eligible conversion route or a full planning application. The correct route depends on the existing planning unit, whether commercial use remains below and how the proposed homes will meet access, fire, sound and living-condition requirements.09Adding storeys to commercial buildingsAdditional homes above some commercial or mixed-use buildings may be possible through Part 20 permitted-development rights, subject to prior approval and strict eligibility tests. A full planning application is the alternative where those rights do not apply; neither route establishes that the existing structure can safely support the addition.10Losing commercial or employment space: the marketing evidence councils ask forCouncils may require marketing and viability evidence before allowing protected commercial, employment or community space to be lost. The evidence must address the policy for the particular use and location; there is no single marketing period that applies to every London commercial property.

Shops, restaurants and takeaways

11Shopfronts and shuttersNew or substantially altered shopfronts and external shutters commonly need planning permission, even where the business remains in Class E. Check the physical works, signage, access and any heritage constraints separately rather than assuming that an unchanged use means no approvals are needed.12Advertisement consent for signsA business sign needs express advertisement consent unless it is outside advertisement control or satisfies an applicable deemed-consent category. Size, position, illumination and location matter, so there is no reliable single area threshold that decides every shop sign.13Kitchen extraction and odour controlCommercial kitchen extraction must be designed around the food operation, the building and nearby occupiers. External ducts and plant may need planning permission even where a café or restaurant use is already lawful, and odour control, noise, fire safety and maintenance need to be considered together.14Noise, plant and opening hours conditionsPlanning conditions can control business hours, deliveries, external plant and noise mitigation. The conditions for the actual permission must be read alongside any premises licence, and compliance with planning does not remove the separate law on statutory nuisance.15Hot food takeaways near schoolsA proposed hot food takeaway near a school can face refusal under national, London and local planning policies. The August 2026 NPPF uses a reasonable-walking-distance test with a town-centre exception, while London and borough policies must be checked separately for their own distance and location requirements.16Planning permission vs premises licencePlanning permission controls the use and development of premises; a premises licence authorises specified licensable activities. A restaurant, pub or takeaway may need both, and the business must comply with both sets of conditions rather than choosing the more generous permission.17Pavement licences for outdoor seatingFood and drink businesses can apply for a pavement licence to place eligible removable furniture on certain adjacent highway space. The licence controls the seating area and conditions; it is not a general permission for fixed structures, advertising boards or alcohol sales.

Building regulations and compliance

18Building regulations for a fit-out or change of useA commercial fit-out can need building regulations approval even where no planning application is required. The answer depends on the physical work and whether the proposal is a material change of use as specifically defined by the Building Regulations, not simply whether it stays within planning Class E.19Fire risk assessmentsThe responsible person for commercial premises must ensure that a suitable and sufficient fire risk assessment is carried out, recorded and kept under review. Since 1 October 2023, the full assessment and fire safety arrangements must be recorded regardless of the number of employees.20Disabled access and accessible toiletsA commercial project needs an access assessment that considers the entrance, routes through the premises and any toilet accommodation together. Building regulations and the Equality Act impose different requirements, so meeting an Approved Document layout does not automatically settle every duty to disabled customers.21BREEAM: when councils ask for itBREEAM is an independently assessed sustainability standard that a council may require through its planning policies or a project-specific condition. Whether it is needed, which scheme applies and what rating must be achieved depend on the borough and proposal; there is no single BREEAM threshold for every commercial project in England.22Commercial EPCs and minimum energy standardsCommercial EPC rules require an energy certificate in specified circumstances, including selling, renting and completing a new building. Separately, qualifying privately rented non-domestic premises generally need at least EPC E unless a valid exemption applies; the proposed higher standard for larger buildings is not yet the current rental rule.23Extending a shop, office or industrial unitSome extensions to commercial premises have permitted-development rights, but they use different rules from house extensions. The route depends on the lawful use, size, height, boundaries and site restrictions; a proposal outside those limits may still be considered through a planning application.