After three years, has Use Class E been a success?
It’s three years since the UK government’s shake-up of the high street Use Classes Order. Did it work? Let’s find out more.
In September 2020, the UK government made significant changes to the Use Classes Order, creating a new and broad-ranging Class E. The aims of the changes were to:
Simplify the use class system
Make high streets and town centres more vibrant and multi-use
Give businesses more freedom to change how they use their buildings
Support local businesses and communities as they recover from the pandemic
Three years on, did the new Class E achieve these goals? In this article, we’ll examine the effects in more detail.
Introducing Class E
The creation of Use Class E was the centrepiece of the changes. It combined most of the uses from:
Use Class A - Shops, financial services, cafes and restaurants
B1 – Offices, R&D, minor industrial
D – Clinics, health centres, nurseries, gyms
This amalgamation into Class E created a new, single ‘commercial, business and service’ use class, giving businesses more flexibility to change the use of their properties.
Other changes included creating a unique class for pubs and takeaways and splitting some D1 uses into new Classes F1 and F2.
A frosty reception
The initial response to the changes from stakeholders was not initially welcoming. The government had to defend a judicial review challenge against the changes, which the Court of Appeal dismissed in December 2021.
The new Permitted Development rights for changes between Class E and Class C3 (residential) also caused disagreement. Some authorities quickly implemented Article 4 directions to prevent the use of Permitted Development rights, but the Secretary of State pressured for these directions to be more limited. We recently wrote an article about this, which you can read here.
Did it foster flexibility?
Under the changes, businesses with properties within Class E could alter their use without planning permission unless there are specific conditions or planning obligations restricting changes. Sites with permissions predating the changes would also be treated as Class E if the specified use had started before September 2020. But did the changes work?
A 2022 study from the Planning Advisory Service on the impacts of Class E on town centres and high streets found an uptick in the adaptation of existing premises. The number of cafes, restaurants and office spaces has increased. However, the study also pointed out some unintended consequences, such as the loss of active frontages and potential impacts on residential amenities from new cafes and restaurants.
Meanwhile, recent court cases where property companies have challenged the government have highlighted the challenges of the new Class E.
Implications for commercial landlords
If you’re a commercial property landlord with units in your portfolio that may be within Class E, you may be considering altering their use. However, if your local authority attempts to stop your modifications, it could take much longer than you initially allocated to the project. It will also lead to lost earnings as your units remain empty while you resolve the case.
In this situation, having an experienced property lawyer in your corner is worth its weight in gold. They’ll explain the Use Classes Order and what you are allowed to do in plain English. They’ll also complete and submit all the necessary documents. Then, if there are any bumps in the road, they’ll protect your interests and ensure you get the outcome you need.
Whatever you’re planning for your commercial property, don’t do it alone. Talk to your solicitor straight away.
Find out more from Couchman Hanson
At Couchman Hanson, our solicitors genuinely care about getting the best outcome for you. We’re highly professional, with ‘city’ level talent and experience, but also friendly and welcoming. Everything we do fits with our values of integrity, honesty and authenticity.
Call 01428 774756 or visit couchmanhanson.co.uk.