The Government issued letters on 24 January 2013 stating that the right to convert B1(a) Offices to Residential uses will apply from Spring 2013. We await the detailed regulations bringing these powers into effect.
Local authorities may be unaware of the time-limit of 5pm 22nd February 2013 to apply for exemptions from the Government. The City of London has already stated in the press that it intends to be a front runner in seeking this exemption. In the event other local authorities are considering this exemption, time is fast expiring.
The main grounds for claiming an exemption directly from the Government are (i) the loss of nationally significant area of economic activity and (ii) substantial adverse economic consequences at the local authority level. The adverse consequences must outweigh the benefits (stated to be set at a very high threshold). Detailed descriptions of the adverse impact demonstrating why areas should be exempted need to be submitted.
While the communities secretary states that the intention is to bring empty and underused buildings back into use, it is not clear how that will be achieved (if at all) or whether in reality there will be a blanket right to change from B1 (a) office use.
The right will only permit change of use (and not any associated physical development) and it is anticipated that local authorities will still be able to exercise their rights under Article 4 to exempt specified areas from benefiting from the proposed change. The right will last three years and will be subject to the prior approval process where (i) significant transport and highway impacts and (ii) development in safety hazard zones, areas of high flood risk and land contamination can be considered.
Those authorities intending to exercise Article 4 directions need to be ready with their justifications by Spring and would do well to seek advice now. The details of the circumstances in which buildings will benefit from the conversion rights are yet to be revealed. One would anticipate that piecemeal conversions of disused office spaces within primarily business districts could have long-term impact on the viability of remaining businesses (for example, from new residents and nuisance type complaints).
Previously published on LocalGov.co.uk
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