With the continual rise of remote working and the increasing popularity of home-based businesses, the idea of converting residential properties into commercial spaces is becoming more commonplace. However, this isn’t a process you can simply dive into without proper planning. This article seeks to provide insights on the requirements for converting a UK residential property into a commercial property.
Understanding the difference between residential and commercial properties
Before you begin the process of conversion, it’s crucial to grasp the distinction between residential and commercial properties. Residential properties are buildings or land intended to be used as a dwelling. On the other hand, commercial properties are buildings or land intended to generate a profit, either from capital gain or rental income.
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Commercial properties may include office buildings, industrial property, medical centres, hotels, malls, retail stores, shopping centres, farm land, multifamily housing buildings, warehouses, and garages. If a residential property is converted into one of these types, this could likely be considered a change of use to a commercial property.
Acquiring Planning Permission
A crucial step when converting a residential property into a commercial property is acquiring the necessary planning permissions. Planning permission refers to the consent granted by your local planning authority, allowing you to carry out certain building work or change the use of a building.
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This doesn’t necessarily mean that planning permission will be required for every change you wish to make. Some changes, particularly those considered minor, will fall under ‘permitted development rights,’ which means you can carry out the work without needing to seek permission.
However, it’s always advisable to check with your local planning authority before making any changes. Failing to obtain the necessary permissions can result in enforcement action from your local council, leading to stress, financial penalties, and a possible requirement to undo the work you’ve carried out.
Planning Class Changes
The planning class of a building is a categorisation set by the UK Planning Authority that defines what a particular property may be used for. For instance, a house falls under ‘Class C3: Dwellinghouses,’ while an office or research and development studio falls under ‘Class B1: Business.’
In 2020, the UK government introduced a new class, Class E, which encompasses commercial, business and service uses. This class includes retail, restaurant, office, financial services, indoor sports, and medical uses. It is this general commercial class that most residential to commercial conversions will fall into.
However, if your proposed change of use does not fall into the new ‘Class E,’ you will need to apply for planning permission to change the use of your property.
Selecting the Right Development Team
Choosing the right team to carry out your property conversion is as vital as the planning stage. Your team may consist of architects, structural engineers, builders, and possibly even specialist contractors, depending on the nature of your business.
The team you choose should have ample experience in both residential and commercial projects. They should be able to assess your property, provide recommendations, and execute your vision while adhering to the necessary regulations.
Compliance with Building Regulations
Building regulations are minimum standards for design, construction and alterations to virtually every building in the UK. They exist to ensure the health and safety of people in and around buildings.
When converting a residential property into commercial, it’s important to remember that the building regulations for commercial properties are different from those for residential homes. For instance, fire safety regulations are typically more stringent for commercial properties. Therefore, it’s crucial to ensure that your converted property complies with all relevant building regulations.
In conclusion, converting a residential property into a commercial property in the UK is a significant undertaking that requires careful planning and understanding of property laws and regulations. By obtaining the correct planning permissions, understanding planning classes, assembling the right development team, and adhering to building regulations, you can successfully convert your residential property into a commercial space.
Understanding Permitted Development Rights
Permitted development rights are a grant of planning permission by law, which allow certain types of works to be carried out without having to make a planning application. These rights are subject to conditions and limitations to control impact and to protect local amenity.
For instance, a permitted development right may allow you to convert your residential home into a commercial property, such as an office or shop, without requiring a specific planning permission. However, these rights are not universal. They may be restricted or removed by the local planning authority, particularly in areas where the character of an area is to be preserved.
Permitted development rights are complex and it’s crucial to fully understand what is allowed and what isn’t. For example, if your residential property is situated within a conservation area or is a listed building, you may find that your permitted development rights are more restricted.
In a situation where a proposed change to a property doesn’t fall under permitted development, a planning application must be submitted to the local planning authority. If you’re unsure whether your property conversion falls under permitted development rights, it is always recommended to consult with your local planning authority or a planning professional.
The Role of Prior Approval
In certain circumstances, even if a change of use falls under permitted development rights, you may still need to seek what’s known as prior approval from your local planning authority. This is to ensure that specific aspects of the development, such as the impact on transport and highways, noise impact, contamination risks and flooding risks, are acceptable.
For example, when converting a residential property into a commercial one, you may need to seek prior approval for things like the property’s external appearance, its impact on a road or pathway, or the potential noise impact on neighbours.
Prior approval is not always required and it depends on the specifics of the development. If you are unsure whether prior approval is needed, it is advisable to seek advice from a planning professional or your local planning authority.
Conclusion
In conclusion, converting a residential property into a commercial property is not a step to be taken lightly. It requires a deep understanding of the planning permission process, planning classes, building regulations, and the nuances of permitted development rights and prior approval. It also involves assembling a competent development team that can bring your vision to life, while ensuring all aspect of the project complies with the relevant laws and regulations.
Remember that each property is unique and the requirements for conversion can vary. Therefore, it’s always wise to seek professional advice before embarking on your property conversion journey. By taking the correct steps and making informed decisions, you can successfully transform your residential property into a thriving commercial space, paving the way for new business opportunities and a potentially lucrative real estate investment.
Whether it’s for a short term investment or a long-term business venture, the conversion of a residential property into a commercial property opens up a world of possibilities and can be a rewarding challenge for any property owner.
