Farmers and landowners will be able to take advantage of the opportunity to put redundant agricultural buildings to commercial use now that new legislation has come into play, says property consultancy firm Strutt & Parker.

The new permitted development rights, which came into effect last week (May 30, 2013), offer significant potential to revive disused farm building stock and capitalise on existing buildings.

Under the new policy, agricultural buildings no longer suitable or needed for agricultural use can be put to alternative uses such as shops, restaurants, small hotels, leisure facilities (including equestrian) and offices, all without the need for planning permission. Those eligible need simply apply for prior approval, which costs £80, and a decision will be made within 28 days; in contrast, the cost of a planning application could be considerably more and could take up to eight weeks. Agricultural buildings can be changed in purpose more than once, provided any new use falls within the commercial categories stipulated.

The buildings must have been in agricultural use before July 3, 2012, and a maximum area of 500sqm can be changed per agricultural unit. For areas under 150sqm, the local planning authority simply needs to know the new purpose of the building and when it will change, as well as a floor plan. If the size affected is between 150sqm and 500sqm, an application for prior approval needs to be made to the planners, which will determine whether further details are needed for transport and highway impacts, contamination and flooding.

Anna Cole, associate in Strutt & Parker’s Stamford office, said: “The new policy opens up significant opportunities for farmers with redundant building stock and the process saves both time and money as opposed to lengthy planning applications.

“It offers potential for diversification and new commercial rents could provide an extra income. It is also likely to reduce maintenance liabilities and, in the long-term, enhance the capital value of the property. On the whole, it is good news for farmers and landowners. However, they do need to consider exposure to business rates and capital tax implications.”

Miss Cole added: “It is important to note that the new policy relates only to change of use. External alterations or developments still require planning permission. Additionally, the question of whether it allows agricultural buildings to be converted into holiday lets is a grey area. I would advise all landowners to ensure change of use applications are underpinned by a sound business plan.”

“The changes offer a significant boost to the rural economy, providing a valuable opportunity to create new businesses and, by extension, jobs. There are many disused farm buildings across the country and this will help in reviving properties which may otherwise have been left largely to fall into disrepair.”

For more information or advice, please contact Miss Cole in Strutt & Parker’s Stamford office on 01780 484 040.