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Why new permitted development rights could prove valuable to property owners

Alittle-known change in the national planning regulations could mean commercial property has new and highly lucrative development potential.

Why new permitted development rights could prove valuable to property owners

In the final quarter of last year a new class of permitted development rights came into place to enable the conversion of light industrial units – use class B1c – to residential use. 

This form of permitted development will benefit those small to medium sized businesses which can operate successfully in residential areas without being a detriment to the neighbouring area. 

Examples of these types of business include small workshops, repair workshops and similar non-intensive enterprises.
Kevin Ellis, founder of the Land & New Homes Network, highlighted the opportunities. He said: “The recent regulation change offers owners of these light industry units an opportunity to explore the residential potential of their building, which for many would not have previously been possible.”

Lincolnshire agency Pygott & Crone, is a member of the national Land & New Homes Network, and has recognised this as an opportunity for many commercial property owners to benefit from.

“Landowners may wish to take advantage of exploring the value of a building within the framework of the new permitted development rights and that’s something that Pygott & Crone can help with,” new homes manager Craig Stones said.

The new PD rights won’t apply to all light industrial buildings. Those located in certain protected areas, or that form part of a protected curtilage, are unlikely to be eligible for residential conversion under Class PA.

Sites which are exempt include:

  • The existing floor space of the building exceeds 500 square metres.
  • The site forms part of a site of special scientific interest
  • The site is occupied under an agricultural tenancy, unless consent is given by both landlord and tenant.

There are several other elements which need considering and permitted development rights only apply where no external alterations are required to the building.

Mr Stones added: “If external alterations are required to enable the conversion, ie window positions, cladding etc, planning permission will be required for those works.

“Pygott & Crone has a team of expert consultants, with experience in all areas of development and planning regulations,  
waiting to help land owners throughout the region.”

“If you think you have a site that falls into this category and would like to explore the development potential, then please get in touch.”

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