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Residential

New planning laws to boost growth

Q1 2013

New legislation is to allow a change of property use from office to residential without the need to apply for planning permission.

New legislation is to allow a change of property use from office to residential without the need to apply for planning permission.

Coming into force in spring 2013, the Government hopes it will provide additional housing where there is a shortage and also encourage economic growth.

Strutt & Parker welcome this change and believe that it will be of particular interest to developers and land owners, enabling them to take advantage of quick and flexible planning responses to provide residential development.

In addition, the fresh legislation will also create opportunities for new and start-up businesses, although some critics have suggested that it may lead to a dearth of office space; driving rents up for businesses as well as changing the face of the British high street and even reducing employment opportunities.

Mark Dorman, head of Strutt & Parker's London Residential Development Team, said: "There is already a well-documented trend in the capital with an increasing number of buildings in office use being converted into residential. In areas such as Westminster for example this is a frequent occurrence and the area has already vastly improved as a residential location with buyers from the UK and abroad buying into it as a place to live."

A proposal on granting permitted development rights to change use of buildings from commercial to residential use was first consulted on by the Government back in 2011 and chief planning officers at local authorities in England have now received letters from the Government alerting them of the full extent of the changes.

The General Permitted Development Order will now be amended to authorise the change of use without the need to apply for planning permission, initially applying for a three-year period. A decision will then be made as to whether the rights should be extended indefinitely.

While a full planning application will not be needed under the change, there will be an approval process relating to significant transport and highway impacts, and development in certain zones, such as areas at a high flood risk.

Only limited prior approval will be needed for a change of use to go ahead, but a full planning application will be needed for any external works that are required to facilitate the change of use.

The new rights will not apply to the City of London, while local authorities can seek an exemption for specific parts of their localities where there are exceptional circumstances.

Exemption requests must be submitted by 22nd February 2013 to be considered. A list of the exempted areas will be published in spring 2013.