Change of use: classes, costs, and common pitfalls

The Use Classes Order categorises land and buildings in England by function. Moving between certain classes is permitted development; others require planning permission. Class E (commercial, business, and service) was introduced in September 2020 and allows flexible movement within the class. Class MA allows office-to-residential conversion via prior approval.

This article is for general information only. It is not financial, legal, or tax advice. Laws and regulations change. Always check the official sources linked below and seek independent professional advice before making decisions.

This article is for general information only. Consult a planning consultant before relying on change-of-use rights.

Every building and piece of land in England has a use class defined by the Town and Country Planning (Use Classes) Order 1987, as amended. Changing from one use class to another typically requires planning permission, but some changes are permitted development under the GPDO.

For property developers, change of use is one of the main routes to creating value from commercial or agricultural buildings.

The use classes

The current use classes in England (since the September 2020 overhaul) are:

Class Use Examples
B2 General industrial Factories, workshops
B8 Storage and distribution Warehouses, distribution centres
C1 Hotels Hotels, boarding houses
C2 Residential institutions Care homes, hospitals, boarding schools
C2A Secure residential Prisons, detention centres
C3 Dwellinghouses Houses, flats
C4 HMOs (3-6 persons) Shared houses
E Commercial, business, and service Shops, offices, restaurants, gyms, clinics, creches
F1 Learning and non-residential institutions Schools, museums, places of worship
F2 Local community Small shops, halls, swimming pools
Sui generis Does not fit any class Pubs, takeaways, cinemas, large HMOs (7+)

Class E was the big change. It merged the old A1 (shops), A2 (financial services), A3 (restaurants), B1 (offices and light industrial), and several D1/D2 uses into a single flexible class. Movement within Class E does not require planning permission. A shop can become an office or a gym without an application.

When you need planning permission

Moving between different use classes requires planning permission unless a PD right applies. Common scenarios:

E to C3 (commercial to residential): Permitted development under Class MA, subject to prior approval. The building must have been in a qualifying Class E use for at least two continuous years. Properties in conservation areas, listed buildings, SSSIs, and safety hazard zones are excluded from Class MA.

C3 to C4 (house to small HMO): Permitted development unless an Article 4 direction removes this right. Check with the council.

Agricultural to C3: Permitted development under Class Q, subject to prior approval. Limited to five dwellings and 465 sqm total floor space.

Sui generis to anything: Planning permission required. Pubs, takeaways, and large HMOs cannot change use under PD.

Class MA in detail

Class MA (introduced May 2021) allows conversion of any building in use class E to residential (C3). This is the most commercially significant PD right for developers.

Conditions: the building must have been in a Class E use for at least two continuous years before the application, there is a 1,500 sqm floor space limit per building, and the building must have been vacant for at least three continuous months immediately before the prior approval application.

Prior approval is required. The council assesses transport and highway impacts, contamination, flood risk, noise from commercial premises, and whether the property provides adequate natural light. The fee is £100 per new dwelling.

If granted, development must begin within three years.

Common pitfalls

Assuming PD applies when it does not. Article 4 directions can remove PD rights for specific changes (commonly C3 to C4 in university towns). Always check before purchasing.

Ignoring CIL. The Community Infrastructure Levy applies to most residential development, including change-of-use conversions. CIL rates vary by council and can add £50 to £200+ per sqm to your costs.

Not verifying actual use. A building may be described as "office" by the estate agent but have no lawful use class confirmation. If the building was last used as a warehouse (B8), Class MA does not apply. Obtain a Lawful Development Certificate or check the planning history before committing.

Overlooking building regulations. A change of use from commercial to residential requires building regulations approval for fire safety, sound insulation, ventilation, and energy efficiency, regardless of whether planning permission or prior approval is needed.


Sources

  1. Planning Portal, "Use classes". https://www.planningportal.co.uk/planning/planning-applications/find-out-more/use-classes [Accessed 6 May 2026]
  2. Town and Country Planning (Use Classes) Order 1987, legislation.gov.uk. https://www.legislation.gov.uk/uksi/1987/764/contents [Accessed 6 May 2026]

Sources

  1. title: "Use Classes Order, Planning Portal

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