Farmers and landowners should take advantage of the opportunity to put redundant agricultural buildings to new commercial use, says property consultancy firm Strutt & Parker.

The new permitted development rights, announced by Communities Secretary Eric Pickles and Planning Minister Nick Boles in January and due to come into effect this spring, offer significant potential to revive disused farm building stock.

Under the new policy, agricultural buildings no longer suitable or needed for agricultural use could be put to alternative uses such as shops, restaurants, small hotels, leisure facilities (including equestrian) and offices, all without the need for planning permission.

The process will save both time and money. 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.

Beatrice Ramsay, land agent in Strutt & Parker’s Chelmsford office, said: “The change in policy offers significant opportunities for farmers and landowners wondering what to do with disused farm buildings and outbuildings. 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.”

The new permitted development rights for agricultural buildings do not allow conversion to residential. However, in a move announced on the same day, further alterations to the Permitted Development Orders will allow change of use from B1(a) office to C3 residential. Local authorities can seek an exemption, on predominantly economic grounds, to such rights for specific parts of their locality but such an exemption will only be granted in exceptional circumstances. It is also worth noting here that Chancellor George Osborne announced further consultation into allowing agricultural to residential conversions in the Budget last month.

Miss Ramsay 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.”

The new policy will run for an initial period of three years, after which time it will be reviewed. For more information or advice please contact Miss Ramsay in Strutt & Parker’s Chelmsford office on 01245 258201.