
As of March 5, 2024, significant adjustments will have been made to the rules governing permitted development, specifically under Class MA. These alterations have implications for the conversion of commercial properties into residential units, presenting a myriad of fresh prospects for property developers. This article delves into the details of these changes and explores the advantages they offer in terms of property development opportunities.
The revised Class MA permitted development right pertains to commercial buildings falling under usage class E, allowing for a simplified process of conversion into residential units.
Notably, the previous version of this right imposed two notable limitations.
Firstly, the vacancy test necessitated that a commercial building remain vacant for a consecutive period of three months before an application for permitted development could be made. This requirement has now been abolished, streamlining the conversion process.
Secondly, there existed an upper limit on the square footage that could be converted to residential use. This constraint has also been lifted, enabling the conversion of larger office buildings in their entirety, thereby expanding the scope of potential development projects.
Additionally, local authorities previously had the authority to implement "Article 4" which served as mechanisms to exclude specific areas from permitted development. However, recent revisions by the Secretary of State have altered some of these Article 4 areas in select councils such as Brent, Hillington, and Three Rivers. These adjustments hold the potential to unlock additional deal opportunities in these areas, further enhancing the appeal of property development ventures.
The overarching objective of these new rules is to bolster housing supply by incentivizing the conversion of underutilized commercial properties into residential dwellings. Notably, there have been no indications from the government of plans to repeal these changes, signalling a sustained commitment to fostering a dynamic property development landscape.
To conclude, the recent amendments to Class MA permitted development regulations mark a significant milestone for property developers, heralding a wave of fresh opportunities in the realm of property development.
By removing key limitations and facilitating a more streamlined conversion process, these changes aim to invigorate the housing market while offering developers greater flexibility and scope for innovation. As such, stakeholders in the property development sphere are encouraged to capitalize on these new opportunities and stay abreast of further updates in this dynamic landscape.
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