Planning conditions and permitted development: Lessons for developers
A recent court decision clarified how recent Use Classes changes affect commercial property developers. Let’s find out more.
We wrote recently about changes to planning law and the introduction of the new Class E use class. It aims to simplify the system, make it easier for landlords to alter the use of their buildings, and give the UK’s declining high streets a new lease of life. Opinions are divided on its success so far.
But what about if you were already running a development when the rules changed? What then? A recent court decision has given commercial developers across the UK a steer. In this article, we’ll examine this case and what it means to you.
The case
Back in 2003, the owner of the Brunswick shopping centre in Central London received permission to renovate it under specific conditions. One condition, Condition 3, stated that only up to 40% of the retail space could be used for shops and restaurants.
In 2020, new regulations arrived, creating Class E, which allows developers to make changes between use classes without special permission. The Brunswick owners argued that the new Class E should automatically apply to their property too, superseding Condition 3. Unfortunately, their case went to Court and the judge ruled that Condition 3 must remain in place. They would not be able to change the use of the Brunswick Centre further without permission.
Lessons for developers
So, what does this mean for you and anyone else in commercial property?
The main lesson is that property developers should be cautious when choosing new projects. You must be crystal clear on what conditions you agree to when planning a new development, while thinking about what conditions may apply to you in the future. Even when the law changes, as it did in 2020, existing conditions may still apply, which can affect your plans.
Rules are often in place to protect the specific character of an area. In the Brunswick case, the judge ruled that Condition 3 safeguards it from excessive development. It’s essential for you to understand the rules you need to follow, why they exist and whether they might change moving forward.
However, there are also lessons for the local authorities that set out planning conditions. They should use more precise language to avoid ambiguity when imposing rules and conditions. If they want to exclude rules in the future, they must state it clearly from the beginning. In fact, both sides must be clearer in the way they communicate to avoid future disputes.
Why you need a commercial property solicitor
Cases like this are sure to make developers think twice before they start planning projects. 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 attempt it alone. Talk to your solicitor straight away.
Find out more from Couchman Hanson
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